Module 4 · Limits & Risk
Final Exam
Mixed questions across the whole course. Aim for SHARP (≥90%).
In this lesson you'll
- Synthesize OI, dealer gamma and 0DTE end to end
- Read OI-by-strike and regime charts under exam conditions
- Hold the framework AND its limits at once
No new material — this exam mixes everything: OI vs volume, walls, dealer gamma regimes, the gamma flip, charm/vanna, 0DTE pinning, max pain, and the honest limits. Your score saves automatically.
Final exam
Answer all questions. Each is graded instantly with an explanation.
Why that's off: Volume resets; OI is cumulative.
Why that's off: OI counts calls and puts.
Why that's off: The VIX is index implied vol, unrelated.
OI is the running total of open contracts; volume is the day's trading that resets each morning. They measure different things.
Why that's off: Amplifying is the short-gamma regime.
Why that's off: They hedge continuously.
Why that's off: They both buy dips and sell rips.
Long-gamma dealers trade against the move (buy dips, sell rips), compressing volatility and pinning price.
Why that's off: Stable is ABOVE zero-gamma.
Why that's off: Above/below the flip is the regime read.
Why that's off: Pinning is a long-gamma behavior.
Below zero-gamma, dealer flows destabilize (short gamma): volatility expands and moves trend.
Why that's off: Support is the put wall.
Why that's off: The pin is the key gamma level, not necessarily the call wall.
Why that's off: Max pain is a separate concept.
The call wall (highest net call gamma) is the expected ceiling / resistance; the put wall is the floor / support.
Why that's off: Delta vs price is gamma.
Why that's off: Charm is a real, important flow.
Why that's off: Delta vs IV is vanna, not charm.
Charm = delta decay through time; into the close it produces a steady hedging drift channeled by nearby OI — the end-of-day pin.
Why that's off: The evidence shows it's weak.
Why that's off: It's roughly a coin flip within ±1%.
Why that's off: Its weak pull isn't a clean function of regime.
Price closes within ±1% of max pain only ~48% of the time on SPX, much worse in high-vol weeks — treat it as weak color, not a forecast.
Why that's off: Cboe's data disputes domination.
Why that's off: The mechanism is real; its magnitude is small/disputed.
Why that's off: Positioning is modeled, not observable.
Cboe found net dealer gamma tiny relative to futures liquidity, flows balanced, and no discernible vol impact — so the levels are real at moments but don't clearly dominate price. Teach the framework AND its limits.
Educational content only. Nothing here is financial or trading advice. Order-flow and options patterns shift probabilities; they never guarantee outcomes.