Behind the Screens Episode 25 - Gamma Exposure w /Gexbot
Jun 16, 2023
John Kirby, a consultant at Gexbot with a strong background in options pricing, dives into the world of Gamma Exposure. He discusses how Gexbot tools help traders navigate market dynamics and informs their trading decisions. Kirby highlights the significance of analyzing zero DTE options and market signals, emphasizing the psychological elements of trading strategies. Additionally, he critiques traditional methods in options trading while introducing innovative techniques to enhance understanding of order flow and improve strategic decision-making in real-time market conditions.
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Episode notes
Gamma Reveals Market Tipping Points
- Gamma exposure reveals where option sellers will panic and create market inflection points.
- These gamma pressure points map to trap traders and help time low-risk reversions or breakouts.
Why Gamma Highlights Critical Strikes
- Gamma peaks at-the-money and expresses the fastest change in delta as price moves.
- Weighting exposure by gamma highlights the strikes where sellers face maximum convexity risk.
Confirm GEX With Volume And Auction
- Use Gex levels together with auction context and volume profile before trading.
- Enter breakouts or fades with tight stops when Gex shows concentrated call/put exposure.