Again what is Gamma? Well as you may know it is one of the 'Option Greeks', mathematical functions that are part of the option pricing formula. Specifically, Gamma refers to the rate of change in Delta in the option per each $1.00 move in the underlying security.
But Gamma has many uses outside of options trading - this ancient Greek symbol is used in probability, engineering, physics and many other sciences. In popular culture, remember that the Incredible Hulk (trademark Marvel) was formed when Dr. Bruce Banner, a mild mannered scientist, was exposed to a "Gamma bomb".
This Gamma exposure brought out a very strong side to Banner in the form of the Hulk; it magnified parts of his personality and basically was a massively "leveraged" form of himself.
Similarly, the way you utilize Gamma in your aggressive option selection is designed to accelerate the leverage for you with as little cash outlay as possible. What is the technique to utilize in order to maximize profits with aggressive directional trade?
Basically, you will focus on the "high Gamma" options in the 1 week to 1.5 month expiration area. These offer the biggest 'bang for the buck' with a relatively small cash outlay. This provides a great risk/reward package.
Normally the Gamma Booster options that you should choose are near-the-money, usually a bit out-of-the-money (OTM) ... although they can also be at-the-money (ATM) or even in-the-money (ITM). But we're finding that the optimal 'sweet spot' between Delta, Gamma, Theta and Vega is often 1 or 2 strikes OTM in the front month options.
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