Report Guides
How positive vs negative gamma regimes affect daily range and strategy
Options dealers' gamma exposure (GEX) fundamentally changes how the market behaves. In positive gamma, dealers hedge by buying dips and selling rallies — suppressing volatility. In negative gamma, dealers amplify moves — increasing volatility. This report quantifies the performance difference.
| Metric | Positive Gamma | Negative Gamma |
|---|---|---|
| Daily Range | Below average (-20-30%) | Above average (+30-50%) |
| Mean Reversion Win Rate | 70-82% | 45-55% |
| Breakout Win Rate | 35-45% | 60-72% |
| Intraday Reversal Rate | High (65-75%) | Low (35-45%) |
| Best Strategy | Fade extremes | Trade momentum |
Positive gamma: Fade moves to VWAP standard deviation bands and IB extremes. Mean reversion strategies thrive. Dealers are on your side.
Negative gamma: Trade breakouts and momentum. Dealers amplify the move. Don't fade — the market can trend hard. Use wider stops and trail aggressively.