The Gamma Squeeze Cheat Sheet Every Trader Needs 📊 #optionstrading #gex #gammaexposure #gammasqueeze

Why It Matters

Aligning option strategies with gamma exposure lets traders anticipate volatility spikes and capture premium, directly impacting profitability in fast‑moving markets.

Key Takeaways

• Negative gamma below flip point amplifies price swings, increasing volatility.
• Positive gamma above flip point stabilizes moves, supports upward resistance.
• Trade long straddles/strangles on assets below flip point for big moves.
• Use short option spreads on assets above flip point to capture premium.
• Analyze open interest by strike and expiry to refine gamma exposure strategy.

Summary

The video presents a concise cheat sheet for traders on gamma exposure, explaining the concept of a gamma flip point where dealers shift from net short to net long gamma. It distinguishes negative gamma—typically arising from put positions below the flip point—and positive gamma above it, outlining how each regime influences market dynamics.

Below the flip point, dealers are net short gamma and tend to sell as prices fall and buy as they rise, amplifying swings and heightening volatility. Conversely, above the flip point, dealers are net long gamma, providing resistance on the upside and dampening downward moves. These mechanics create clear trading signals based on the underlying’s position relative to the flip point.

The presenter recommends long straddles or strangles—positive‑vega positions—on stocks below the flip point to profit from anticipated large moves. For assets above the flip point, negative‑vega strategies such as condors, short straddles, or short strangles can capture premium while the market remains constrained. Additional charts showing open interest by strike and expiration help fine‑tune exposure.

Understanding and applying gamma exposure enables traders to align option structures with market‑driven volatility, improving risk management and potential returns during squeeze scenarios.

Original Description

If you don't know where the Gamma Flip point is, you are trading completely blind to institutional order flow. 🏛️📉

Most retail traders rely entirely on moving averages or chart patterns, but market makers (the big banks) move markets based on a structural boundary line called the Gamma Flip Point. In this clip, Gavin breaks down the exact institutional playbook you need to copy:

Below the Flip Point (Negative Gamma Zone): Dealers are net short gamma, meaning they are forced to sell as prices fall and buy as prices rise. This completely amplifies price swings, crushes structural support, and spikes volatility.

👉 The Strategy: Run high-volatility, positive Vega buying strategies like Long Straddles and Strangles to profit from the wild, explosive moves.

Above the Flip Point (Positive Gamma Zone): Volatility is heavily suppressed as dealers buy the dips and sell the rips.

👉 The Strategy: Run premium-selling systems like Iron Condors, Short Straddles, or Short Strangles to collect decay in a quiet, stable market.

Stop guessing if a stock is going to break out or stay flat. Let the dealer positioning tell you exactly what strategy to deploy.

📊 Want to see the Gamma Flip points for your favorite stocks? Access institutional Gamma Exposure here: https://www.barchart.com/etfs-funds/quotes/SPY/gamma-exposure

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