Is the gamma flip support or resistance?

Not exactly. It marks a change in how hedging behaves, not a price that must hold.

Why does the gamma flip move?

Open interest changes every day, options expire, and spot moves, so the estimate is recalculated as positioning changes.

Where can I see the gamma flip?

Obelion's GEX page shows the estimated gamma flip for each ticker free.

What is the gamma flip?

The gamma flip is the price where estimated net dealer gamma exposure crosses zero. Above it, dealers are long gamma and their hedging tends to dampen moves. Below it, they are short gamma and their hedging tends to amplify them. Traders watch it as the line between calmer and faster markets.

See the gamma flip

How it is estimated

Gamma exposure is summed across strikes at a range of hypothetical prices, using the options' open interest and an assumption about which side dealers hold. The price where that total changes sign is the flip. Different assumptions give somewhat different levels.

How traders use it

Above the flip, fading moves toward the walls tends to work better. Below it, momentum tends to work better and stops need more room. A move back across the flip is often watched as a regime change.

Questions

Is the gamma flip support or resistance?: Not exactly. It marks a change in how hedging behaves, not a price that must hold.
Why does the gamma flip move?: Open interest changes every day, options expire, and spot moves, so the estimate is recalculated as positioning changes.
Where can I see the gamma flip?: Obelion's GEX page shows the estimated gamma flip for each ticker free.

For education only, not financial advice. See the disclaimer.

How it is estimated

How traders use it

Questions

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