Reading the gamma flip
How to read an estimated gamma flip without treating it as a guaranteed regime boundary or trade signal.
The gamma flip is the modeled price where signed net gamma crosses zero. It can organize a market-structure read, but it is sensitive to the available chain, implied volatility, time, and the model’s dealer-sign assumption.
Above the flip
When the model estimates positive net gamma, one hypothesis is that related hedging could lean against moves. Actual price can still trend or break through modeled walls because dealer inventory is not observed and many other participants and catalysts affect the market.
Below the flip
When the model estimates negative net gamma, one hypothesis is that related hedging could amplify moves. That does not predict a trending day or tell you to fade or follow. Use the flip as conditional context, then assess current price behavior, liquidity, volatility, and your own risk limits.