Zomma

Urban dictionary will tell you something different, so...make sure you have your context right when you’re trying to figure out what “zomma” means.

In economic-land, zomma is one of those strings of Greek letters that make your eyes burn a little bit because you don’t know what they means, like some cruel, cryptic code.

In finance, zomma is the third derivative of an option value. Options investors with gamma hedged portfolios (ones that are strategized to reduce risk through fancy mathematical means) keep their eyes on zomma to help them predict if their options are still a good idea to have based on changes in volatility.

If you hear, “Wow, that zomma is really smart in the way that she uses her porfolio’s zomma,” you’ll know what at least one of the “zomma”s means.