3.6 Gamma Curve

The Gamma Curve is meant to visualize the GEX exposure of an underlying ticker. This cumulative value helps to inform at which price levels the market maker will be trading with or against price action. As you move further up (down) the GEX line, gamma exposure increases (decreases) and thus the market makers’ overall positioning effect changes accordingly. As the price travels further up (down) the Gamma Curve and GEX increases, the market Makers are trading against (with) price action. The solid white line on the chart is where the underlying spot price is at. And the dashed blue line is where GEX will go from positive to negative or vice versa. Which is the point at which the market makers go from trading with (against) price action, to trading against (with) price action.