Gamma flip: an estimated pivot, not a prediction
The gamma flip is the estimated price level where net dealer gamma changes from positive to negative.
The idea
Market makers hedge option positions. When they are net long gamma they tend to sell rallies and buy dips, which dampens moves. When they are net short gamma they chase the move, which can amplify it. The flip is where the estimate changes sign.
What it rests on
It depends on assumptions about who holds which options, which we cannot observe directly. Treat the level as a model estimate, not a fact.
What we saw
In our stock data, days when spot was within about 1% of the flip had larger next-day moves relative to the IV-implied estimate than other days. That is a descriptive finding from our own tests, not a trading signal, and it needs more data before anyone leans on it. We show the flip distance on the screener and stock pages.
Related tools and reports
Educational content, not investment advice. F&O trading can lose more than you put in.