Gamma Exposure (abbreviated as GEX) refers to estimated local gamma for each individual strike. Gamma measures the change in delta with respect to the underlying price, and GEX is used to evaluate the amount of gamma held across the options market. This metric can be used by traders to isolate support and resistance levels based on Market Maker positioning at or near specific strikes.

Image description: GEX by Strike, as shown in SpotGamma TRACE.

SpotGamma’s GEX by Strike is featured in the TRACE Strike Plot. GEX is measured in dollar notional terms based on the current price.

Blue (positive GEX): This indicates a positive gamma position, meaning the market participant selected is long calls or long puts. For Market Makers GEX specifically, the broader market may encounter local support or resistance as dealers hedge against the market (sell underlying during rallies, buy underlying during a sell-off).

Red (negative GEX): This indicates a negative gamma position, meaning the market participant is short calls or short puts. If Market Maker (default) is selected as the market participant, negative gamma is likely to exacerbate price movement at these strikes (buy underlying during rallies, sell underlying during a sell-off).

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