Module 2 · Dealer Gamma
The Gamma Flip & Vol Trigger
The level where the regime changes.
In this lesson you'll
- Define the zero-gamma / gamma-flip level
- Distinguish the Vol Trigger from zero gamma
- Use 'above vs below' to read the regime
So a simple regime read: price above zero-gamma → presumed long-gamma → stable, fade extremes; price below zero-gamma → presumed short-gamma → volatile, respect momentum.
Key takeaways
- Zero-gamma / gamma flip = where net dealer gamma crosses zero (regime change).
- Above zero-gamma = presumed stable (long gamma); below = presumed volatile (short gamma).
- The Vol Trigger is a SEPARATE level (last positive-gamma support), usually above zero-gamma.
- Use 'above vs below the level' as a quick regime read — loosely.
Check your understanding
Pick an answer to reveal instant feedback. Answer every question to complete the lesson.
Why that's off: Stable/long-gamma is ABOVE zero-gamma.
Why that's off: Above vs below the flip is exactly the regime read.
Why that's off: It implies higher volatility, not a guaranteed crash.
Below zero-gamma, dealer flows tend to destabilize (short-gamma): volatility expands and moves trend, so traders respect momentum rather than fading.
Why that's off: They are defined differently.
Why that's off: It's a positioning level, not the close.
Why that's off: Zero-gamma is the regime-flip price, not the call wall.
They're often blurred but distinct: the Vol Trigger is a separate defensive level (last major positive-gamma support) that typically sits above the mathematical zero-gamma.
Educational content only. Nothing here is financial or trading advice. Order-flow and options patterns shift probabilities; they never guarantee outcomes.