Glossary topic
Dealer Positioning & GEX
17 terms
Why this topic matters
Turn the option chain into a map of hedging pressure. Gamma exposure locates the concentrations, the call and put walls identify key strikes, and the gamma flip separates exposure regimes. Positive-gamma hedging trades against price; negative-gamma hedging follows it.
Read the strike profile and aggregate gamma curve together, then connect the levels with filtered options flow. Add automated technical confirmation and compare the position’s payoff. The full workflow turns dealer positioning into a complete trade plan.
Topic questions
Dealer Positioning & GEX FAQ
C
2 termsCall Wall
A call wall is the main gamma concentration above the current price, which InsiderFinance marks at the strike with the largest positive net gamma exposure (GEX).
Charm Exposure
Charm exposure is the total change in an option book’s delta as time passes at a fixed price, summed across signed positions and stated in share equivalents per day.
D
3 termsDark Pool Index (DIX)
The Dark Pool Index (DIX) is a daily, dollar-weighted average of S&P 500 off-exchange short-volume ratios, read as a gauge of buying absorbed off-exchange.
Dealer Positioning
Dealer positioning is a model that uses the public option chain to estimate the delta and gamma inventory market makers carry and the hedging it implies.
Delta Hedging
Delta hedging is the process of offsetting an option position’s directional sensitivity with shares, futures, or other options and rebalancing as delta changes.
G
4 termsGamma Exposure (GEX)
Gamma exposure (GEX) estimates how much options dealers would need to buy or sell to stay hedged as price moves, summed from gamma and open interest across strikes.
Gamma Flip
The gamma flip is the underlying price where aggregate dealer gamma exposure crosses zero and changes sign, separating positive-gamma and negative-gamma regimes.
Gamma Pinning
Gamma pinning is price clustering near an option strike into expiration, associated with long-gamma hedge trades that sell after rises and buy after declines.
Gamma Squeeze
A gamma squeeze is a reinforcing market move in which rising call deltas lead short-gamma participants to buy more of the underlying, adding demand as price advances.
M
1 termN
2 termsNegative Gamma
Negative gamma is a portfolio state in which delta decreases as the underlying rises and increases as the underlying falls, creating short convexity.
Net Dealer Delta
Net dealer delta is the estimated aggregate directional exposure that options market makers carry from customer positioning, expressed in equivalent shares or dollars.
P
2 termsPositive Gamma
Positive gamma is a portfolio state in which delta increases as the underlying rises and decreases as the underlying falls, creating long convexity.
Put Wall
A put wall is the main gamma concentration below the current price, which InsiderFinance marks at the strike with the most negative net gamma exposure (GEX).
V
2 termsVanna Exposure
Vanna exposure is the aggregate vanna of an options book, estimating how much underlying a delta-hedged dealer complex may trade when implied volatility rises or falls.
Volatility Trigger
A volatility trigger is a gamma-based reference level for volatility shifts, which InsiderFinance sets at the strongest qualifying negative-gamma strike below spot.