Options gamma
Gamma Flip and Zero Gamma
The price where net dealer gamma changes sign. Above it, moves tend to dampen. Below it, moves tend to extend.
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How the flip works
Positive gamma
Above Zero Gamma, dealer hedging trades against the move. Ranges tend to stay tight.
Negative gamma
Below Zero Gamma, hedging trades with the move. Ranges tend to widen and trends can extend.
The flip
A close across Zero Gamma changes the regime. Intraday crosses can switch it back and forth.
Two names
Gamma flip and Zero Gamma describe the same level.
Illustration
Gold sample · 21 Sept 2026 to 3 Nov 2026
The next session, by regime
Gold, expiries within 30 days. The average size of the next session's move after each close.
- Positive gamma
- Negative gamma
- Zero Gamma
- Reference close
After a close above Zero Gamma
0.73%
8 sessions
After a close below Zero Gamma
1.16%
23 sessions
Closes above Zero Gamma
8 of 32
Sample data. Live levels update after every US session.
Descriptive statistics on a small sample. Not a forecast. Model estimates of where dealer hedging concentrates. Not trading signals.
Reading the regime
Distance
The farther price sits from Zero Gamma, the more settled the regime.
Near the line
With price close to Zero Gamma, the regime can switch within the session.
Direction
The regime describes volatility, not direction. Negative gamma extends moves both ways.
With the walls
Negative gamma with a distant Put Wall leaves room for an extended decline.
Across six markets
The last sample session of each market.
| Market | Zero Gamma | Reference close | Regime |
|---|---|---|---|
| Gold →XAU/USD | 4,049.19 | 3,921.50 | Negative gamma |
| Silver →XAG/USD | 50.07 | 49.66 | Negative gamma |
| S&P 500 →US500 | 7,741.70 | 7,544.00 | Negative gamma |
| Nasdaq 100 →USTEC | 29,672.69 | 27,995.90 | Negative gamma |
| WTI Crude →XTI/USD | 96.96 | 97.02 | Positive gamma |
| Bitcoin →BTC/USD | 76,272 | 77,779 | Positive gamma |
Questions
What is the gamma flip?
The price at which net dealer gamma changes from positive to negative. It is also called Zero Gamma.
Is a close below Zero Gamma bearish?
Not by itself. The regime describes volatility, not direction. In negative gamma, moves in either direction tend to extend.
Why does Zero Gamma change every day?
It depends on open interest across strikes and expiries. New positions and expiring contracts shift it.
How is Zero Gamma different from the walls?
The walls mark the single strikes with the most gamma. Zero Gamma marks the price where the total changes sign.
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