Dealer Positioning Pillar Hub
Dealer positioning exposes the underlying delta and gamma exposures of option market makers. Because market makers are legally required to hedge net directional delta, their position adjustments create predictable flow boundaries.
Why It Matters
Tracking dealer positioning allows traders to locate Gamma Flip zones, Dollar Delta Exposure (DEX), Dealer Stress Index levels, and Call/Put walls where price action is expected to contract or expand.
Core Concepts
- Net Gamma Exposure (GEX): The dollar exposure market makers must adjust per 1% price move.
- Dollar Delta Exposure (DEX): Cumulative directional delta held across dealer portfolios.
- Dealer Stress Index: Normalized capacity metric measuring market maker hedging strain.
- Gamma Flip Zone: The specific pivot strike where market regimes change from compression to expansion.
- Rehedging Pinning Effects: How dealer options decay forces price convergence toward high-gamma strikes.
Learning Pathway
Popular Guides
Dealer DEX & Stress Index Telemetry
Comprehensive framework for analyzing Dealer Dollar Delta Exposure (DEX), inventory asymmetry, and the Dealer Stress Index across NSE index chains.
Gamma Exposure Explained
The definitive guide to understanding option dealer Gamma Exposure (GEX), net calculations, volatility compression, and hedging cycles.
Gamma Flip Explained
Locate the Gamma Flip zone where aggregate dealer options positioning pivots, shifting volatility regimes from compression to expansion.
Complete Dealer Positioning Library (6 Documents)
Dealer Hedging Explained
Deconstruct option market makers' dynamic delta-neutral hedging requirements, contract sizes scaling, and shares adjustments.
Gamma Exposure Explained
The definitive guide to understanding option dealer Gamma Exposure (GEX), net calculations, volatility compression, and hedging cycles.
Gamma Flip Explained
Locate the Gamma Flip zone where aggregate dealer options positioning pivots, shifting volatility regimes from compression to expansion.
Call Walls & Put Walls
Identify call and put walls where options concentration creates major structural barriers for spot movements.
Pinning Effects
Understand option expiration pinning dynamics and how decay forces price convergence toward high-gamma strikes.
Dealer DEX & Stress Index Telemetry
Comprehensive framework for analyzing Dealer Dollar Delta Exposure (DEX), inventory asymmetry, and the Dealer Stress Index across NSE index chains.