Gamma exposure (GEX) estimates how much mechanical dealer hedging is stacked up at each price level. When you trade an option, a market maker usually takes the other side and hedges in the underlying stock — GEX is a map of how much of that hedging has to happen, and where.
In positive gamma, dealers hedge against the move (sell rallies, buy dips), which dampens volatility and tends to pin price. In negative gamma, they hedge with the move, which amplifies it and can accelerate breaks. It's plumbing, not a prediction.
Related terms
- Gamma wall — A strike with a large pile of dealer gamma. Call walls often act as resistance, put walls as support.
- Gamma flip — The level where net dealer gamma changes sign — roughly where a calm regime turns volatile.
- Open interest (OI) — The number of option contracts currently open. Shows positions that exist — not their direction.
See it in the flow
Open the dashboard to watch real options flow free, or read the beginner guides. Watch-only — not financial advice.