FAQ: What is a Gamma Flip?
Learn what traders mean when they reference a Gamma flip. OIC instructor Mat Cashman uses a market-maker pit scenario to explain how dealer positioning shifts as the underlying moves through key strikes.
0:00 Introduction: What Is a Gamma Flip?
0:23 Dealer Positioning Explained
0:49 Example: 100/110 Call Spread
1:20 Long Gamma, Paying Theta at 100
1:39 Stock Moves to 110: Position Flips
2:15 Now Short Most Gamma on Board
2:45 Gamma Flip = Dealer Positioning Change
3:08 Gamma Flip vs. Gamma Squeeze
Register to view the complete 0DTE Options – The Move to Shorter Duration Options and What It Means for Risk webinar: https://bit.ly/4wWNFAw
Recommended Videos
Gamma: The Accelerator Behind Your Delta
Gamma measures the rate of change in delta for every $1 move in the underlying. Discover why gamma is highest for at-the-money options, how it accelerates delta as a stock moves in your favor, and why high gamma can work against you just as quickly if the stock reverses.
Watch Now
Options Gamma and the Rate of Delta Change
Watch Now
FAQ: Infinite Volatility To Zero Gamma
Explore the counterintuitive relationship between implied volatility and Gamma. OIC instructor Mat Cashman uses an infinite-volatility thought experiment to explain why higher vol means lower Gamma.
Watch Now
Evaluating Delta as a Probability Proxy
Break down a complex math concept into a relatable "odds of winning" metric that helps beginners evaluate potential risk.
Watch Now
Delta Explained: Reading Your Options Speedometer
Delta measures how much an option's price changes for every $1 move in the underlying stock. See how it scales from near zero for deep out-of-the-money options to 1.00 for deep in-the-money options, and why at-the-money options consistently carry a delta.
Watch Now