title: What Is a Gamma Flip? description: The gamma flip is the price level where dealer positioning shifts from positive to negative gamma — a major support/resistance zone that traders track daily. Learn how to trade it. date: 2026-08-03 category: Options Market Structure related: [gamma-exposure, dealer-positioning]
What Is a Gamma Flip?
The gamma flip is the price level at which dealer gamma positioning switches from positive to negative. It is one of the most-watched levels in dealer flow analysis because the market behaves differently on each side of it.
How the flip works
As price trades through the flip level, the dominant dealer hedging regime changes:
- Above the flip — dealers are long gamma. Expect mean-reverting, range-bound behavior with strong magnetism back toward the flip.
- Below the flip — dealers are short gamma. Expect trending, volatile behavior where moves accelerate in the direction of price.
Why it matters for traders
The gamma flip acts as a self-fulfilling support/resistance line. Institutions watch these levels because the hedging flow behind them creates real, tangible buying and selling pressure at the zone.
When a market trades through its flip with conviction, it often signals a regime change — from chop to trend — and vice versa.
Trading the flip
- Treat the flip as a key level to respect on the daily chart.
- If price holds above the flip and GEX is positive, favor buying pullbacks.
- If price breaks below and GEX turns negative, respect the trend and reduce counter-trend exposure.
Related terms
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