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.