Glossary
Gamma flip
The price level where dealer gamma crosses from stabilizing to amplifying.
What it is
The Gamma Flip is the price at which aggregate market maker gamma exposure switches from positive (stabilizing) to negative (amplifying). It is the most important level on the GEX chart.
Above the flip = calm. Below it = chaos.
What happens at the flip
Above the Gamma Flip (Positive GEX): Market makers are long gamma. When price drops, they buy the underlying to hedge. When price rises, they sell. This creates a self-correcting force — price gets pinned, ranges compress, realized volatility falls.
Below the Gamma Flip (Negative GEX): Market makers are short gamma. When price drops, they must sell more to hedge — accelerating the move. When price rises, they buy more. Moves extend further and faster than expected.
How traders use it
Day traders: if SPY is above the flip level, trade long bias and buy dips. Below it, trade short bias and sell rips. When GEX flips negative, widen your stops and expect overshoots.
Where you will see it
- Futures GEX CalculatorReal-time dealer gamma for SPX, ES, NQ, SPY and QQQ: track the flip level, gamma walls, and the key support and resistance dealers are defending.
- Gamma ScanNames sitting on meaningful dealer gamma, where positioning can pin, accelerate, or reverse the underlying.