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Gamma Exposure Context

Use options gamma positioning to predict price pinning and breakouts

Live Suitability Check

WAIT Vol regime (high) too high for pinning plays.
Regime: sell
Vol: high
Composite: -0.141
Funding: -0.048
Imbalance: +0.155

What This Strategy Does

When market makers hold large gamma positions, they hedge by buying dips and selling rallies, creating a 'pinning' effect near the max-gamma strike. When gamma flips negative, it amplifies moves instead of dampening them.

Works when: Works best near large options expirations when positive gamma creates predictable pinning behavior. 62% accuracy on pin predictions within ±1 ATR.
Fails when: Fails when a fundamental catalyst overwhelms the gamma effect, or when options OI is too low for meaningful hedging flows.

Backtest Summary

Sharpe Ratio
1.4
Win Rate
62%
Max Drawdown
-9.8%
Risk Level
Medium
Period: 2025-06 to 2026-03 · Time horizon: 1h – 3 days

Entry/Exit Checklist

  • ✅ Options expiration within 3 days
  • ✅ GEX is significantly positive (pinning) or negative (amplifying)
  • ✅ Identify max-gamma strike level
  • ✅ Check if price is within ±1 ATR of max-gamma
  • ⚠️ Reduce exposure ahead of high-impact news events
  • ⚠️ Monitor for gamma flip (positive → negative or vice versa)

Math & Logic

GEX Positive → Price pins near max-gamma strike
GEX Negative → Price moves amplified
Entry: Sell vol when GEX >0 near pin
Entry: Buy vol when GEX <0 (breakout expected)

Signal History — 24h

500 data points · alpha_spread_bps

Required Signals

GEX LevelMax Gamma StrikeVolatility RegimeATR

API Endpoints

curl "https://algotick.dev/v1/signals/composite"
curl "https://algotick.dev/v1/signals/volatility"

Datasets for Backtesting

📁 Gamma Exposure📁 Orderbook

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