Reading dealer positioning

Options dealers hedge what they sell. That hedging is mechanical, predictable, and large enough to shape how price moves. Dealer positioning is the map of it.

Long gamma, short gamma

• Long gamma (gold): as price rises, dealers sell into it; as it falls, they buy. Their hedging dampens moves. Price tends to grind and pin.
• Short gamma (red): as price rises, dealers have to buy more; as it falls, sell more. Hedging amplifies moves. Price tends to run and gap.

Neither is bullish or bearish. They describe the texture of movement, not its direction.

The levels

• Call wall — the strike with the largest positive exposure above spot. Rallies often slow into it.
• Put wall — the largest negative exposure below spot. Selloffs often slow into it.
• Gamma flip — where net exposure crosses from long to short. Above it, dampening; below it, amplification.
• High OI — the strike with the most open contracts.
• APEX NODE — the single largest exposure in view, whichever side.

On Charts, the GEX Levels overlay draws these and a few further positioning-derived levels such as VOL SHIFT and RESOLVE. See Charts levels.

The four postures

The Blueprint view summarizes a chain into one of four dealer postures — PINNED (grinding, range-bound), DRIFT (dampened but able to shift), VOLATILE (expansion, fast moves), and LOOSE (unstable, direction unresolved). Each describes hedging mechanics, not a forecast; the card shows the posture and a one-line note on why.

How to use it in the routine

Dealer positioning fits into step 3 and 4 of Daily Prep — it tells you whether the index is likely to grind or run today, which sets expectations for how far a setup can travel. Combine it with continuity; never trade it alone.

0DTE

Same-day expiry positioning changes fast and is the most reactive to intraday flow. The 0DTE view on the workspace isolates it. Expect it to be sparse early and dense into the close.