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If stock price changes by a relatively large amount (as opposed to small changes in the case of delta) , but we do delta-hedge and rebalance our portfolio continuously, then does it matter if we still use delta-hedging rather than gamma-hedging?

Hi David So in this case, does it mean that in order to benefit from long volatility, we should get exposed to positive gamma and should not gamma hedge so that we can lock in any profit when delta changes?

Hi David, Thanks for your reply. So do you mean that only by dynamic hedging will our exposure to positive gamma be profitable when realized volatility is larger than implied volatility? The reason is because I tried identifying an underpriced put (based on volatility), weekly delta hedging...

Hi David, Why is it that when the realized (actual) volatility turns out to be higher than initial implied volatility, then our strategy is profitable (assuming that we bought the call option in the first place)? If we believe that the call was underpriced because the implied volatility quoted...