Question 1

What is Gamma Exposure (GEX)?

Accepted Answer

Gamma Exposure (GEX) is a quantitative metric measuring how sensitive option market makers' delta hedges are to changes in the underlying asset price. In positive GEX regimes, dealers buy into market declines and sell into rallies, suppressing volatility. In negative GEX regimes, dealers sell into declines and buy into rallies, accelerating volatility.

Question 2

What are Call Walls and Put Walls?

Accepted Answer

A Call Wall is the strike price possessing the greatest concentration of positive net call gamma, typically acting as a strong structural resistance zone. A Put Wall is the strike price with the largest concentration of put gamma, functioning as an institutional support floor.

Question 3

What is the Zero Gamma Flip Level?

Accepted Answer

The Zero Gamma Flip is the critical inflection strike where aggregate market maker gamma transitions between positive territory (volatility suppression) and negative territory (volatility expansion). Trading below the flip level typically increases realized price volatility and widening candle ranges.

Question 4

How do market makers hedge gamma exposure?

Accepted Answer

Option market makers maintain delta-neutral books. When dealers are net short options, their gamma is negative, requiring them to sell shares as the underlying drops and buy shares as it rises. When net long options, dealers hedge by buying dips and selling rips, stabilizing price action.

Question 5

What is 0DTE options gamma exposure?

Accepted Answer

0DTE (Zero Days to Expiration) options have rapid gamma expansion as contracts near expiration. Intraday gamma concentration from 0DTE contracts can drive rapid pinning effects at major strikes or trigger sudden gamma squeezes when spot crosses key dealer positioning levels.

Question 6

What are Vanna and Charm in options trading?

Accepted Answer

Vanna measures how delta changes with respect to changes in implied volatility (IV). Charm (delta decay) measures how delta shifts as time passes toward expiration. Both second-order Greeks require dealers to adjust hedges even if spot prices remain unchanged.

Question 7

How often is options data recalculated on GEX Horizon?

Accepted Answer

GEX Horizon streams and recalculates intraday options open interest and quote updates continuously during market hours across all covered indices, ETFs, and major single-stock equities.

Question 8

How can traders use GEX levels in trading?

Accepted Answer

Traders incorporate GEX levels to identify high-probability support/resistance walls, anticipate volatility regime shifts at the Zero Gamma Flip, gauge pinning targets near expiration, and align scalp or swing entries with institutional market maker hedging flow.

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