The gamma flip (zero gamma)
The single price level that separates a calm market from a violent one.
The gamma flip, or zero-gamma level, is the price at which aggregate dealer gamma crosses from positive to negative. Above it, dealer hedging tends to dampen moves; below it, hedging tends to amplify them. It is the most important single number on a GEX chart.
Above vs below the flip
| Above the flip | Below the flip | |
|---|---|---|
| Dealer gamma | positive (long) | negative (short) |
| Hedging | against the move | with the move |
| Volatility | suppressed, mean-reverting | amplified, trending |
| Feel | grindy, dips get bought | fast, air pockets, gap risk |
Crossing the flip changes the game
When price falls through the flip level, the market flips from volatility-suppressing to volatility-amplifying. Selloffs that accelerate through the flip are why down moves so often feel faster than up moves, dealers go from cushioning to chasing.Obelion marks the flip level directly on the GEX view so you always know which regime you are trading in.