Zero gamma: the boundary line
TL;DR
- Zero gamma is the price where dealers flip from dampening to amplifying — the session's regime boundary.
- When spot hugs it (within ~25 pts on NQ/NDX), the read is 'transitioning, no edge — wait.' That warning is a feature.
- It moves intraday. Rising = structure strengthening up; falling = eroding down. Treat it as a zone, not a laser.
Regime tells you the character of the day. Zero gamma tells you where that character flips. It’s the single price at which dealers’ net positioning changes sign — the battle line.
What it is
Above zero gamma, dealer hedging tends to suppress movement (positive-gamma behavior). Below it, hedging tends to amplify movement (negative-gamma behavior). Crossing the line changes the session’s character — which is exactly why the Regime engine leans on where spot sits relative to it.
How GEXmon shows it
In the Regime panel you get Zero Gamma right next to Spot, plus Δ vs ZG (signed distance; green when spot is above, red when below). A structural note tells you which way the line itself is moving:
- “Zero gamma rising (+12) — structure strengthening up.”
- “Zero gamma falling (−9) — structure eroding down.”
- “Zero gamma stable — structure holding.”
When spot sits within a small band of zero gamma — about 25 pts on NQ/NDX, 6 on SPX/ES, 8 on gold — the engine flips the regime to NEUTRAL and warns: “Spot within 25 pts of zero gamma — transitioning, no edge.” This is the tool actively telling you to skip. Chop directly on the line is normal and untradeable from a gamma standpoint; the warning saves you from forcing it.
The value we add
We don’t just print the level — we track its movement through the session (rising structure vs. eroding) and explicitly flag when proximity kills the edge. You get a dynamic pivot with a health read attached, not a static number.
Correct use & expectations
Treat zero gamma as a dynamic regime boundary. Respect the no-edge zone. Watch for clean breaks that hold away from the line — that’s when the regime read becomes trustworthy again. And remember it’s a zone, not a laser line: it drifts intraday, and it can take a few minutes to populate at the open (Part 10 FAQ).
Do this on the dashboard now
- In the Regime panel, compare Spot to Zero Gamma and read Δ vs ZG.
- If the two are close (a small Δ), expect NEUTRAL and a “transitioning” warning — wait.
- Read the rising/falling note to see whether structure is strengthening or eroding.
- Mark zero gamma on your chart as a pivot, and only trust the regime once price breaks and holds clear of it.