Video lesson · OptionsGamma exposure (GEX): how options positioning moves the price
Gamma exposure, GEX — dealer gamma: does the market dampen moves or amplify them. The lesson takes 2:14; its full text is below the video.
Narrated in Russian. English subtitles are on by default.
Gamma Exposure in short
What does Gamma Exposure show?
Bars under the chart show options dealers' gamma exposure in dollars per 1% price move. Green above zero is positive gamma, red below zero is negative gamma.
How to read Gamma Exposure?
- Positive gamma means dealers hedge against the move and dampen swings.
- Negative gamma means dealer hedging amplifies moves.
- The price where gamma flips sign appears in Options Levels as the gamma flip line.
How to use Gamma Exposure?
- Positive gamma favors ranges, negative gamma favors sharp moves; factor this into your stops.
- Watch for gamma turning negative: it changes how price moves.
- Use it together with the gamma flip line in Options Levels.
What do you often see on Gamma Exposure?
- With negative gamma moves tend to be sharper and longer; with positive gamma price more often stays in a range.
- Gamma jumps around expiry — compare readings before and after it.
- Dealer gamma is an estimate, not an exact count of their positions.
- Describes the market's state, not its direction: on its own it does not tell you where price goes next.
Where can I find Gamma Exposure?
In the Liqwall terminal: the Indicators button, the Options section, Gamma Exposure. The “Open in the terminal” button on this page opens the chart with it already added.
Lesson text
0:00What Gamma Exposure is
Sometimes the market damps moves on its own, and sometimes it lets them run. You can see it in options gamma. Meet Gamma Exposure.
0:09How to add Gamma Exposure to the chart
Open the indicator list, the Options section, and add Gamma Exposure. The bars appear in a pane below the chart.
0:17How to read Gamma Exposure
The indicator shows how option sellers behave when the price moves. Green bars above zero. Positive gamma. Sellers act against the move and damp the swings.
Red bars below zero. Negative gamma. Sellers act with the move and speed it up. The value is in dollars per one percent of price movement.
0:40Gamma Exposure settings
The Underlying setting picks the coin, bitcoin or ether. Look not only at the sign but also at the height of the bars. Tall green bars mean a strong cushion. The market tends to stay in a range. When the bars shrink toward zero, the cushion melts and moves get bigger.
0:59An example on a real chart
An example. From October 1 to 6 the bars stood tall, at times around 300 million dollars. Meanwhile bitcoin traded in a calm range, roughly from 83 to 87 thousand. On October 7 and 8 the bars started shrinking fast.
The cushion melted, and the price went from 85,500 to 80,300. The strongest move of the early month. The same picture repeated on October 14 and 15. On the night of the 15th gamma fell almost to zero.
And in those very hours bitcoin set the month's low at 80,188.
1:40What to pair Gamma Exposure with
Gamma Exposure is handy to watch together with Options Levels. The white line on the price shows the level where gamma changes sign. In October this line stood a little above 80 thousand, next to both lows. ATM IV and DVOL hint at the expected strength of a move. The indicator is most useful when you choose where to put a stop. When gamma melts, moves are wider.
2:06The takeaway
Gamma Exposure hints at the market's mood: calm or sharp.
Add the indicator to the chart and look at it on your own coin.Free account — no card needed.