2.5.4 Gamma Max (GM)

Gamma max (GM) is the spot price on the chain at which the market maker holds the maximum possible amount of positive gamma based on their aggregate portfolio. As it generally corresponds to the most intense market maker selling on price upside, it often marks the peak of a bullish price trend. Note that it is not a hard limit, and it is possible for price to move beyond this point, or for market participants to roll positions upwards, thus raising GM over time with rising price.