The short answerThe gamma flip — also called the zero gamma level — is the price at which dealers’ net gamma changes from positive to negative. Above it their hedging usually dampens moves; below it their hedging usually adds to them, so the market tends to move more once it falls under the flip.
How the flip is found
Take today’s open interest and recompute the total gamma exposure as if the price were somewhere else — a bit higher, a bit lower — across a range of prices. Somewhere the total crosses zero. That price is the gamma flip. Because gamma depends on where the price is relative to each strike, the same book of options can be stabilising at one price and destabilising at another.
Why it matters
- Above the flip, dealers are long gamma: they sell into rallies and buy dips. Realised volatility tends to be lower.
- Below the flip, dealers are short gamma: they sell into declines and buy into rallies. Moves tend to be larger and can accelerate.
- Near the flip, small moves can change the regime, which is why traders watch the distance between the price and the flip.
Using it with the other levels
The flip says how the market may move; the call wall and put wall say where the heaviest positions sit. A price above the flip and between the walls is the calmest set-up; a price below the flip and near the put wall is where hedging pressure is strongest. None of this is certain: the flip itself moves every night as open interest changes.
Live example: SPY and QQQ today
From the close of Fri, Nov 13, 2026 — this box is rebuilt after every trading day.
SPY closed at 754.21 on Nov 13, 2026; the gamma flip is 759.93 — the close is 0.8% below the flip. Dealers were short gamma for 23 sessions. Page: SPY.
QQQ closed at 679.89 on Nov 13, 2026; the gamma flip is 692.87 — the close is 1.9% below the flip. Dealers were short gamma for 25 sessions. Page: QQQ.
Questions and answers
Is the gamma flip the same as the zero gamma level?
Yes. Both names mean the price at which estimated net dealer gamma is zero.
Does the market always fall faster below the gamma flip?
No. It means dealer hedging tends to add to moves rather than absorb them; whether the market falls or rises depends on everything else.
How often does the gamma flip change?
Every day, because it is recomputed from the night’s open interest. It can move a lot around big expirations, when many contracts disappear at once.
All 10 lessons: Learn · every term in one long page: the full guide · the numbers for any ticker: ETFs, stocks. For education only — not investment advice.