STK HUNTERS
GAMMA EXPOSURE LEVELS
When you buy an option, a market maker sells it to you. To stay neutral, they buy or sell the underlying stock to hedge. GEX tells us HOW MUCH stock market makers need to buy or sell at each price level — and this creates predictable support, resistance, and price magnets in the market.
| LEVEL | WHAT IT MEANS | HOW TO TRADE IT |
|---|---|---|
| ▲ CALL WALL | Strike with most call open interest. Market makers sell stock here to hedge → acts as strong resistance | Sell calls or take profits near the call wall. Price often struggles to break through |
| ▼ PUT WALL | Strike with most put open interest. Market makers buy stock here to hedge → acts as strong support | Buy calls or enter longs near the put wall. Price often bounces here |
| ⚡ GAMMA FLIP | The price level where net GEX switches from positive to negative. This is the most important level | Above flip = range bound, buy dips. Below flip = trending, ride momentum |
| 📌 HVL | High Volatility Level — strike with largest absolute GEX. Acts like a magnet for price | Price tends to gravitate toward HVL, especially near expiration |
| REGIME | WHAT HAPPENS | TRADING STRATEGY |
|---|---|---|
| POSITIVE GEX | Market makers are long gamma. They BUY when price drops and SELL when price rises. This suppresses volatility and keeps price in a range between put wall and call wall |
• Buy dips near put wall • Sell rips near call wall • Avoid breakout trades • Sell options (they decay faster in low vol) |
| NEGATIVE GEX | Market makers are short gamma. They SELL when price drops and BUY when price rises. This amplifies moves and causes trending, volatile price action |
• Ride the trend — don't fade moves • Use momentum strategies • Buy options (vol expands) • Expect larger than normal candles |
SPY is in positive GEX. Put wall at $710,
call wall at $720, gamma flip at $715.
Trade: SPY dips to $711 (near put wall).
Action: Buy calls with $714 target, stop at $709.
Why: Market makers will buy stock near $710 to hedge puts → price bounces.
TSLA is in negative GEX. Gamma flip at $375.
TSLA breaks below $375.
Trade: Buy puts targeting $365, stop at $378.
Why: Below gamma flip in negative GEX = market makers amplify the move down by selling more stock → momentum trade.
GLD gamma flip at $424. GLD has been trading above $424 all week.
Watch for: If GLD retests $424 from above → buy. If it breaks below $424 → sell.
Why: The gamma flip acts like a pivot — above it market makers stabilize price,
below it they accelerate the move.
| SITUATION | ACTION |
|---|---|
| Price above gamma flip + positive GEX | Buy dips, sell rips between put/call walls |
| Price below gamma flip + negative GEX | Short rallies, ride downtrend |
| Price approaching call wall | Take profits on longs, consider short |
| Price approaching put wall | Take profits on shorts, consider long |
| Price crossing gamma flip | Watch for regime change — big move coming |
| 0DTE expiry (today) | Gamma effects strongest — levels most reliable |
| Friday expiry | Weekly options expire — biggest gamma day of week |
💡 PRO TIP: GEX levels are most reliable during the first hour of trading (9:30-10:30am ET) and the last hour (3:00-4:00pm ET). During these windows, market makers are most active in hedging, making the support and resistance levels from GEX extremely accurate. Combine with our volume scanner for the highest probability setups.