Gamma
How to read SPY positive vs negative gamma (sticky vs ice)
Gamma is not a target. It is the dealer’s job for the session. Positive gamma is sticky: they sell rips and buy dips. Negative gamma is ice: they buy higher and sell lower. Read the regime first. Walls second. Event days: the event is the lede. Education, not advice.
Dealers fade
They are long gamma. Expect chop, magnet to a strike, slow grind. Call wall is a ceiling. Put wall is a floor. A thin wall is not a plan.
When it snaps: lose the put wall or the flip and the regime can change. Sticky does not mean safe. Sticky means fade behavior is the default until the map breaks.
Dealers chase
They are short gamma. Expect trend, gap, squeeze, “it doesn’t stop.” The same walls are fuel until spot is back in positive.
When it calms: reclaim the flip and get back into sticky. Ice does not mean short everything. Ice means chase behavior is the default until the map settles.
Regime first, walls second
Most bad gamma reads happen because someone treats a wall like a guaranteed pin. Walls are levels with size. Invalidation is the wall you lose. Gamma is a regime, not a price target.
- Is there a scheduled event? Lead with that. Gamma is the backdrop.
- Sticky or ice: one sentence. Regime, not a target.
- Size the put wall and the call wall. Invalidation is the wall you lose.
- If flow, magnets, and gamma disagree, do nothing. The 1–5 stays in charge.
Hunt still does not invent a 1–5 from a pretty dealer chart. Flow still does not raise a 3 to a 5 because gamma looks exciting.
0DTE vs the whole chain
Same-day gamma can dominate the cash session and vanish at the close. Ask whether the pin is just today. AO’s dealer screen shows the sign, the flip vs spot, and the walls. That is enough for session English. It is not a forecast engine.
If 0DTE walls are huge and the rest of the chain is quiet, treat the day as a same-day job until proven otherwise. If the whole chain leans one way, the regime may travel past the close. Either way, write the regime in one sentence before you talk strikes.
Example walkthrough
CPI morning. Event is the lede. Before the print you open the dealer screen. Regime reads sticky. Put wall below spot. Call wall above. Flip marked relative to spot. You write one sentence: sticky backdrop into the event; walls are context, not a target.
Print hits. Spot rips through the call wall. Regime flips toward ice behavior into the afternoon. You do not invent exact GEX totals. You update the English: dealers chasing, walls are fuel until spot reclaims the flip.
Separately, a name on Hunt sits at 3/5. Exciting SPY gamma does not raise that 3 to a 5. You wait. Later SPY context matters for risk and timing, but the stock plan rule is unchanged: only 5/5 Breakout and 1/5 Breakdown publish.
How sticky vs ice shows up in Simple and Pro
Simple Mode keeps the dealer read short: sign, flip vs spot, walls, one-line regime. Pro Mode lets you dig into the map without changing the house rule. Either way, past positioning does not guarantee future price.
Common mistakes
- Treating gamma as a buy or sell signal. It is a regime.
- Ignoring the event on event days. The event is the lede.
- Calling a thin wall a plan. Size matters. Invalidation matters.
- Letting gamma override the 1–5. It cannot.
- Inventing precise GEX totals from memory or vibes. If the desk does not show a number, do not invent one.
FAQ
What does sticky mean?
Positive gamma. Dealers fade: sell rips, buy dips. Chop and magnets are common until walls or the flip break.
What does ice mean?
Negative gamma. Dealers chase: buy higher, sell lower. Trend, gap, and squeeze behavior until spot gets back into sticky.
Is gamma a price target?
No. Regime first. Walls second. Invalidation is the wall you lose.
What happens on event days?
Lead with the event. Gamma is backdrop. Do not pretend walls override a scheduled catalyst.
Can gamma raise my stock 1–5?
No. The 1–5 stays in charge. Flow and gamma can agree or disagree. Disagreement means wait.
Where do I see this on AO?
Dealer screen on the member desk. Start with the $1 for a 30-day desk trial, then $50/month Desk.
Educational analytics. Not financial advice. Options involve substantial risk. Past positioning does not guarantee future price. Waiting is a read, not a miss.