48 terms defined in plain English. Every concept links to the full article for deeper learning.
Options expiring on the same day they're traded. Have extremely high gamma, creating intense but short-lived structural pressure. Dominate intraday market structure. Read more →
An option whose strike price is equal to or very close to the current price of the underlying asset. ATM options have the highest gamma and are most sensitive to price changes. Read more →
A term structure state where near-term implied volatility is higher than longer-term IV. Signals the market expects a significant near-term event. Read more →
The strike price with the highest positive gamma exposure from call options. Acts as a resistance ceiling because dealers sell stock as price approaches from below. Read more →
A second-order Greek measuring how delta changes with the passage of time. Creates predictable overnight flows as market makers adjust hedges for time decay. Read more →
The normal term structure state where longer-dated options have higher implied volatility than near-term options. Indicates no imminent event expectations. Read more →
Measures how much an option's price changes per $1 move in the underlying. Also approximates the probability of expiring in-the-money. A 0.50 delta call moves ~$0.50 per $1 stock move. Read more →
The total delta-weighted exposure at each strike price. Shows the directional tilt of dealer positioning — positive DEX means bullish exposure, negative means bearish. Read more →
The process by which market makers buy or sell shares of the underlying stock to offset (hedge) the delta risk of options they've sold. The foundation of market structure. Read more →
The range the options market implies price will stay within over a given timeframe, with roughly 68% probability (one standard deviation). Derived from implied volatility and structural levels. Read more →
Measures the rate of change of delta — how fast your directional exposure changes with each $1 stock move. High gamma means rapid delta changes and intense hedging activity. Read more →
The total gamma-weighted hedging obligation at each strike price. Positive GEX = dealers buy dips and sell rips (stabilizing). Negative GEX = dealers amplify moves (destabilizing). Read more →
When a ticker's net GEX transitions from positive to negative (or vice versa). A regime change that alters how the market behaves. Read more →
Whether the net gamma exposure at the current price is positive or negative. Determines if dealer hedging stabilizes (positive) or amplifies (negative) price moves. Read more →
A rapid price move amplified by gamma hedging, typically in a negative gamma environment. As price moves, dealers hedge in the same direction, accelerating the move further.
The removal of gamma exposure when options expire. Dealers close their stock hedges, potentially causing volatility in the opposite direction of the prevailing structure. Read more →
MarketOptix tool that shows positioning across the entire market. Each tile represents a symbol colored by direction and intensity. Used for market-wide scanning. Read more →
The market's expectation of future volatility, derived from option prices. Higher IV = more expensive options = the market expects larger moves.
A call option with a strike below the current price, or a put with a strike above. ITM options have delta closer to 1.0 (calls) or -1.0 (puts).
The difference in implied volatility across strikes for a single expiration. Put skew (puts more expensive than equidistant calls) is normal in equities and reflects demand for downside protection. Read more →
A firm that provides liquidity by continuously quoting bid and ask prices. They profit from the spread while hedging their risk, creating the structural forces that move markets. Read more →
MarketOptix's real-time monitoring tool. Tracks regime status, intraday positioning shifts, and flow data. Essential for day traders and 0DTE players. Read more →
A trading strategy that profits when price returns to a central value after deviating. Works best in positive gamma environments where dealer hedging dampens moves.
When market makers are net short gamma. Their hedging amplifies price moves — selling into drops and buying into rallies. Creates trending, volatile market behavior. Read more →
The combined gamma exposure from both calls and puts at a given strike or across all strikes. The net effect of all hedging obligations.
The total number of outstanding options contracts at a given strike that haven't been closed or exercised. The foundation of structural analysis — more OI means more hedging pressure. Read more →
The date when options contracts expire. Monthly OpEx (third Friday) removes the most gamma. Creates a predictable cycle of structural buildup and unwind. Read more →
A call option with a strike above the current price, or a put with a strike below. OTM options have low delta and are unlikely to be exercised.
MarketOptix's core tool. Displays positioning as a bar chart across strikes, with key levels (CW, PW, ZG) marked. Shows the complete structural landscape for any ticker. Read more →
The tendency for price to gravitate toward high-OI strikes near expiration. Caused by intense gamma hedging at these levels creating a magnetic effect. Read more →
When market makers are net long gamma. Their hedging dampens price moves — buying dips and selling rips. Creates stable, range-bound, mean-reverting behavior. Read more →
The ratio of put open interest to call open interest at a strike or across the chain. Indicates the positioning bias — high ratio means more bearish positioning.
The tendency for OTM puts to have higher implied volatility than equidistant OTM calls. Reflects demand for downside protection. Steep put skew = elevated fear. Read more →
The strike with the highest positive gamma exposure from put options. Acts as a support floor because dealers buy stock as price drops toward it. Read more →
A transition between positive and negative gamma environments. One of the most important signals in market structure — changes how you should trade. Read more →
MarketOptix tool that monitors structural changes across your watchlist. Alerts you to regime flips, wall shifts, expected move breaks, and unusual positioning. Read more →
The current market price of the underlying asset. In MarketOptix, spot is marked on the Price Levels tool and used as the reference point for all structural levels.
Specific price points where options market maker hedging creates measurable pressure. Includes call walls, put walls, and zero gamma. Unlike chart patterns, based on real positioning data. Read more →
How implied volatility varies across expirations. Contango (normal) = far-dated IV higher. Backwardation = near-term IV higher, signaling an expected event. Read more →
Measures the daily time decay of an option's value. Accelerates near expiration. Options lose theta every day, which is why 0DTE options are so volatile. Read more →
A second-order Greek measuring how delta changes when implied volatility moves. Drives structural flows around VIX mean-reversion events — falling VIX creates buying pressure. Read more →
Measures how much an option's price changes per 1% move in implied volatility. High vega = sensitive to vol changes. Important for understanding pre/post-event dynamics. Read more →
The total vega-weighted exposure at each strike. Shows where volatility changes will trigger the largest position adjustments. Builds up before events, collapses after. Read more →
A rapid decline in implied volatility, typically after an anticipated event (earnings, FOMC). Causes significant option value loss regardless of directional move.
MarketOptix tool for analyzing implied volatility across strikes and expirations. Shows skew, term structure, and vol regime. Essential for options strategy selection. Read more →
A 3D map of implied volatility across all strikes (x-axis) and expirations (y-axis). Reveals patterns in how the market prices risk across different scenarios. Read more →
The number of options contracts traded in a given period. Unlike open interest, volume counts every transaction. High volume with low OI change = position turnover, not new positioning.
The price level where net gamma exposure flips from positive to negative. The regime boundary — above it, markets are stabilized; below it, moves are amplified. Read more →
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