Question 1

What is Gamma Exposure (GEX)?

Accepted Answer

Gamma Exposure (GEX) measures how option dealers must dynamically hedge their delta exposure as the underlying price moves. In positive gamma, dealers stabilize the market by buying dips and selling rips. In negative gamma, dealers accelerate market moves in the trend direction.

Question 2

What is the Zero Gamma Flip level?

Accepted Answer

The Zero Gamma Flip is the strike price where market maker aggregate gamma flips between positive (stabilizing mean-reversion) and negative (high-volatility directional expansion).

Question 3

How do Call and Put Walls function?

Accepted Answer

The Call Wall is the strike with the largest positive Call Gamma, functioning as an institutional resistance ceiling. The Put Wall is the strike with the largest negative Put Gamma, acting as primary support.