Learn · Gamma flip
Gamma flip (zero gamma)
The gamma flip, also called the zero gamma level, is the price at which the estimated net gamma of option dealers changes sign, positive on one side and negative on the other.
How the flip is read
Above the flip, estimated dealer gamma is positive and hedging tends to dampen moves. Below it, gamma is negative and hedging tends to amplify them. The flip is a dividing line between two kinds of session, not a price target.
Watch how price behaves on either side of it and as it crosses. A cross does not guarantee a reversal.
The flip moves
The flip is not fixed. The map is re-estimated through the session, so the flip can move, and the regime can flip more than once in a day. On some sessions the flip cannot be estimated at all, and then it is left empty rather than guessed.
How LiveGexLevels shows it
On the map the gamma flip is a primary level, drawn with the walls and the centre of mass. The data also says whether price is far from it, how many times the regime flipped today and since when the current sign holds.
Which MCP tool returns it
get_gex_regime returns the flip and whether price is far from it. get_gex_levels lists it as the level with the flip role, and get_level_changes reports a regime_flip event when the sign changes.
Questions and answers
Is crossing the gamma flip a trade signal?
No. It changes the behaviour the regime describes, as a tendency. What you do with that is your decision.
Is the gamma flip the same as the zero gamma level?
Yes. Both names describe the price where estimated net dealer gamma changes sign.
Why does the flip move during the day?
Because the map is re-estimated through the day, as the market and the session change. LiveGexLevels updates the map within seconds during the US cash session.
