compress Positive Gamma Regime (+GEX)
Volatility Suppression & Pinning
When market makers are Long Gamma, they must sell into rallies and buy into dips to remain delta-neutral. This creates price compression, low volatility, and strong mean-reversion around key GEX strike levels.
trending_up Negative Gamma Regime (-GEX)
Volatility Acceleration & Slippage
When market makers are Short Gamma, they are forced to buy into rallies and sell into sell-offs. This leads to explosive breakouts, cascade liquidations, and high-volatility directional expansions.
published_with_changes What is the Gamma Flip Level?
The Gamma Flip Level is the exact price strike where total net market maker Gamma Exposure crosses zero ($GEX = 0$).
- arrow_upward Above Gamma Flip: Market is stable, range-bound, and mean-reverting.
- arrow_downward Below Gamma Flip: Market enters high-volatility regime where sell-offs accelerate rapidly.
GEX Breakout Strategy Backtest Matrix
| Asset / Index | GEX Trigger | Sample Size | Win Rate | Avg R:R Ratio |
|---|---|---|---|---|
| SPY (S&P 500 ETF) | Gamma Flip Breakdown | 314 Trades | 71.2% | 1 : 2.85 |
| QQQ (Nasdaq 100 ETF) | Gamma Flip Breakdown | 289 Trades | 69.8% | 1 : 3.10 |
| BTC/USD (Synthetic GEX) | Deribit Options GEX Cross | 412 Trades | 68.4% | 1 : 2.75 |
PragmAlgo Options GEX Engine on TradingView
Figure 1: PragmAlgo synthetic Options GEX heatmap displaying key pinning strikes and real-time Gamma Flip line.
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