Gamma vs Theta Race
An interactive simulation that shows how path dependency determines whether gamma or theta wins — even when implied volatility stays the same. Pick a side, choose a scenario, and watch the 30-day race unfold.
How It Works
Every options contract is a battle between two forces. Gamma profits from realized moves — the bigger the daily price swing, the more it earns (scaling with the square of the move). Theta profits from the passage of time — every day that passes without a big move, time decay chips away at the option's value.
The key insight: it's not just how much the market moves in total, but when and how those moves happen. The same realized volatility can produce completely different outcomes depending on the path — whether moves cluster together, spread out evenly, or arrive as sudden gaps.
Scoring
Scoring: Dominance tracks Gamma's share of total activity. At 50/50 you break even. The further your side pulls ahead, the more you earn. Max win is +100 per round, max loss is -100.
RV vs IV: Implied vol is fixed at 25%. If realized vol comes in higher, Gamma tends to win. Lower, Theta tends to win. But "tends to" is doing a lot of work — path shape matters just as much as path magnitude.
Earnings mode: 29 days of theta bleed followed by a single massive gap. Can one day of gamma pay for a month of decay? This is why gamma is an insurance product.