Gamma Exposure (GEX) Analysis
Understand where market makers are forced to buy or sell to hedge their positions. GEX analysis reveals invisible support and resistance levels that drive intraday price action.
What is Gamma Exposure (GEX) Analysis?
Gamma Exposure (GEX) Analysis Gamma Exposure (GEX) measures the amount of hedging activity market makers must perform at different price levels based on their options inventory.
Positive GEX acts as a magnet, dampening volatility as dealers hedge against moves. Negative GEX amplifies moves as dealers hedge in the same direction as price.
Key Features
Real-Time GEX Levels
See live gamma exposure at each strike price updated throughout the trading day
Support & Resistance
Identify key levels where dealer hedging creates natural price floors and ceilings
Flip Points
Know exactly where the market transitions from positive to negative gamma environments
Historical Comparison
Compare current positioning to previous sessions to spot unusual accumulation
How It Works
Options Data Collection
We aggregate real-time options data across all strikes and expirations
Gamma Calculation
Calculate dealer gamma exposure at each strike based on open interest and delta
Visualization
Display actionable levels on an intuitive chart with support/resistance zones
Alerts
Get notified when price approaches major GEX levels
Use Cases
Use GEX levels as intraday targets and stop levels for scalping strategies
Place credit spreads outside major GEX support/resistance for higher probability
Identify when gamma flip points suggest potential trend changes
Understand when markets are in low-volatility (positive GEX) vs high-volatility (negative GEX) regimes
Frequently Asked Questions
What is Gamma Exposure (GEX)?
Gamma Exposure (GEX) measures the hedging activity market makers must perform at different price levels. When options are sold, market makers must dynamically hedge their positions. This creates predictable buying and selling pressure at specific prices.
How do I use GEX for trading?
Use GEX levels as support and resistance. High positive GEX levels often act as magnets that attract price. Negative GEX zones tend to amplify volatility. The gamma flip point indicates where market behavior changes from mean-reverting to trending.
Related Features
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