Gamma measures how much an option’s delta changes as the underlying price changes. It peaks when the stock price is near the option's strike price. You can jump right into the deep end by reading about Gamma Hedging. on Investopedia.
Large gamma at a strike price acts like gravity. Market Makers hedge around these levels, which can cause stock prices to accelerate or stall.
Market Makers aim to stay delta-neutral. Gamma positioning determines what action Market Makers take as the price of a stock moves. Their reactions depend on the gamma regime:
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We recommend beginning with the ratings page and My Dashboard, which offer a simplified view of current opportunities based on our AI-powered analysis.
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Much of our advanced content relies on an understanding of options greeks, particularly Gamma, Delta, Theta, IV, and Skew. If you're unfamiliar with these, we recommend brushing up through the following:
Once you're familiar with the basics, explore additional tools like:
The platform is designed to grow with you — start simple, learn the signals, and layer in complexity as you gain confidence.
Gamma analysis requires a deep understanding of options modeling and greeks. Our Ratings are automatically generated based on the current state of the stock's gamma structure, IV, and Skew.
Ratings can be used by customers as an initial tool to screen, sort, and analyze opportunities.
Ratings for nearly 1,000 stocks are updated once in the first 40 minutes of trading and again in the last 40 minutes of trading.
Our automated ratings system classifies stocks based on gamma structure, IV, and skew:
Trading Volatility does not provide any personalized financial advice. Ratings are not intended to be investment advice to buy or sell any security.
Combine high call skew, negative SA-GEX, and price confirmation → Call spread.
Use a straddle when historical IV is low but SA-GEX is strongly negative.
Condor, butterfly, or short strangle work best with high IV and positive SA-GEX.