These charts are cool @elementsiz, please keep sharing.
Took me a minute to *think* I understood it... For anyone
scratching their head, here is what ChatGTP says:
Gamma Flip Line
(red)
Gamma Flip:
681.74
This is the
strike where total gamma
shifts negative → positive.
Below 681.74(red
background):
Negative gamma
zone → volatile, bigger swings
Above
681.74(green background):
Positive gamma
zone → stabilizing hedging flows
Green vertical
line
Last Price:
682.04
Price is
just abovethe
gamma flip → meaning:
? Market is currently in
positive
gammaterritory
?? Not far above the
volatility zone — small drop could re-enter negative gamma
? What This Implies for
SPY
Current
Position
Interpretation
Price >
Gamma flip
Hedging
flows
dampen
volatility
Positive
gamma overall
Supportivefor
gradual upside / mean reversion
Nearby
negative gamma
Dangerif price
breaks below ~682
?Trading Interpretation (not
advice)
If SPY stays above
~681.7→
? Dips likely get
boughtdue to
hedging
? Upside grind is easier
If SPY falls below it →
?? Market maker hedging flips
→
volatility
increases ? Downside moves can
accelerate
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
682 close... Gamma wins again
Posted by elementsix on 31st of Oct 2025 at 04:02 pm
682 close... Gamma wins again
Gamma
Posted by Orangeman on 31st of Oct 2025 at 04:56 pm
These charts are cool @elementsiz, please keep sharing.
Took me a minute to *think* I understood it... For anyone scratching their head, here is what ChatGTP says:
Gamma Flip Line (red)
Gamma Flip: 681.74
This is the strike where total gamma shifts negative → positive.
Below 681.74(red background): Negative gamma zone
→ volatile, bigger swings
Above 681.74(green background): Positive gamma zone
→ stabilizing hedging flows
Green vertical line
Last Price: 682.04
Price is just abovethe gamma flip → meaning:
? Market is currently in positive gammaterritory
?? Not far above the volatility zone — small drop could re-enter negative gamma
? What This Implies for SPY
?Trading Interpretation (not advice)
If SPY stays above ~681.7→
? Dips likely get boughtdue to hedging
? Upside grind is easier
If SPY falls below it →
?? Market maker hedging flips → volatility increases
? Downside moves can accelerate