Module 3 · 0DTE & Using Levels
0DTE Gamma & Pinning
Concentrated gamma near spot — pin or accelerate.
In this lesson you'll
- Understand why 0DTE gamma sits near spot
- Recognize intraday pinning
- Know it can also accelerate
Gamma grows as expiration approaches and is largest at-the-money. On expiration day it peaks and clusters tightly around the current price — so 0DTE OI/gamma sits right where price is trading, making any dealer hedging maximally sensitive there.
Pinning: if dealers are net long gamma at a heavily-traded strike, their “sell rallies / buy dips” hedging can pull price back toward that strike — the 0DTE pin. Charm flows accelerate this into the close, often producing a drift into a key strike at the 4:00 PM settlement.
Key takeaways
- 0DTE gamma peaks at-the-money near expiry, sitting right at spot.
- Long-gamma + charm can PIN price to a heavy strike into the close.
- But in a short-gamma regime, the same concentration ACCELERATES breakouts.
- There's no time buffer in 0DTE — read the regime before assuming a pin.
Check your understanding
Pick an answer to reveal instant feedback. Answer every question to complete the lesson.
Why that's off: Far-OTM options have little gamma near expiry.
Why that's off: It's about the current spot, not last week's close.
Why that's off: It's at a maximum near the money, not zero.
Gamma peaks at-the-money and grows into expiry, so 0DTE gamma concentrates right where price is trading — making dealer hedging maximally sensitive there.
Why that's off: The weekday doesn't set the regime.
Why that's off: The regime (sign of dealer gamma) is the key, not the VIX alone.
Why that's off: It does NOT always pin — short gamma accelerates.
In a long-gamma regime the concentration pins price; in a short-gamma regime it amplifies a breakout. With no time buffer, delta swings fast — so read the regime first.
Educational content only. Nothing here is financial or trading advice. Order-flow and options patterns shift probabilities; they never guarantee outcomes.