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Back to GlossaryGamma & Dealer Positioning

Gamma Flip

The underlying-price level at which aggregate dealer gamma exposure crosses zero. Above the flip, dealers are long gamma and the market behaves as mean-reverting; below it, dealers are short gamma and moves amplify.

Also known as:gamma flip levelzero gammaGEX flipgamma neutral level

The gamma flip is the single most-watched level on a GEX profile. It is the price at which the dealer book transitions from net long gamma to net short gamma — flipping the entire regime in which the market is trading.

Above the flip, dealer hedging dampens moves (buy dips, sell rips). Below the flip, dealer hedging amplifies moves (sell dips, buy rips). A close that crosses the flip in either direction is often the inflection point that converts a quiet session into a volatile one or vice versa.

How it is computed

ChartGEX recomputes aggregate GEX at a small set of candidate prices in the neighborhood of the current spot, using Black-Scholes assumptions to re-derive each option's gamma at the candidate price. The zero-crossing is then linearly interpolated. For 0DTE expiries the flip can move significantly intraday, so ChartGEX snapshots it hourly.

How traders use it

Watch for closes through the flip on rising volume — these often mark regime changes that persist for days. Within a session, the flip acts as a soft pivot: chop above, trend below.