Gamma exposure (GEX)

Why dealer hedging matters

When you buy an option, a market maker usually takes the other side. To stay neutral, they hedge by trading the underlying stock — and they adjust that hedge as price moves. Gamma exposure (GEX) estimates how much of that mechanical hedging is stacked up, and where.

It's not a prediction. It's plumbing: a tendency created by how much hedging has to happen at each price level.

Positive vs negative gamma

In POSITIVE gamma, dealers hedge against the move — selling into rallies, buying dips. That dampens volatility; price tends to get “pinned” and ranges stay tight.

In NEGATIVE gamma, they hedge WITH the move — selling as it falls, buying as it rises. That amplifies volatility; breaks can accelerate. Knowing which regime you're in changes what a move is likely to feel like.

Walls and the flip

A “gamma wall” is a strike with a big pile of dealer gamma. Call walls often act as resistance, put walls as support — magnets that price gravitates toward or bounces off.

The “flip” is the level where net dealer gamma changes sign — roughly where the regime turns from calm to volatile. Our GEX tab (Pro) marks the walls, the flip, and the current regime for any ticker.

Related terms

• Gamma exposure (GEX) — An estimate of how much dealer hedging is stacked at each price level. Positive = dampened, negative = amplified.
• Gamma wall — A strike with a large pile of dealer gamma. Call walls often act as resistance, put walls as support.