Guide
Gamma flip: where dealer hedging changes sides
The gamma flip, also called zero gamma, is the price where estimated dealer gamma changes from positive to negative. On one side, dealer hedging should lean against moves; on the other, it should lean with them. That makes it one of the most watched options levels, and one of the most misunderstood.
How the flip is found
Swiftedge evaluates total GEX at every 250 USD step from about 12 % below to 12 % above the current price, as if price were at that level. The flip is where that curve crosses zero, the step closest to the current price where estimated dealer gamma changes sign. Depth shows two versions: the flip for all expiries, and the flip for the same-day (0DTE) options only.
What changes at the flip
Under the standard assumption that dealers are long calls and short puts:
- Above the flip dealers are estimated to be long gamma. They hedge by selling into rallies and buying dips. In Swiftedge Options this zone glows blue.
- Below the flip they are estimated to be short gamma. They hedge by buying rallies and selling dips. This zone glows pink.
The textbook story is that markets are calmer above the flip and more jumpy below it. Whether that holds for Bitcoin is a question for data, not for the textbook.
Why the flip moves
- Positions change. New options open and old ones close every minute.
- Time passes. As expiry nears, gamma concentrates near the strike and the curve reshapes. After the daily 08:00 UTC settlement the same-day options disappear, and the 0DTE flip with them.
- Implied volatility changes. Higher volatility spreads gamma out over a wider price range.
- The assumption. Switching from the standard assumption to positions rebuilt from Deribit trade flow moved our flip by about 2,700 USD in one comparison.
What our own data shows
Over 6,680 hours of Bitcoin data from January to October 2026, hours the model classed as long gamma were followed by about 19 % lower volatility in the next hour (roughly 32 versus 40 basis points). That sounds like the textbook. But calm markets tend to stay calm anyway, and once we accounted for how volatile the market already was and for the time of day, the regime added almost nothing. It also showed no tendency for price to continue or reverse in either regime.
How to use it. Read the flip as a description of where estimated hedging changes character, alongside volatility and the order book, not as a level price has to respect.
See the levels on the live chain.Swiftedge Options tags the call wall, put wall, gamma flip and max pain on the BTC options chain from Deribit, OKX and Bybit. Free, no sign-up.
Open Swiftedge OptionsCommon questions
Is the gamma flip support or resistance?
Not by itself. It marks where the model's hedging behaviour changes, not a price where orders wait. Price can cross it freely, and it often moves as positions change.
Why is the gamma flip different on different sites?
Because it depends on the sign assumption, the venues, which expiries are included and the price grid. A different assumption alone moved our flip by about 2,700 USD.
What is the 0DTE flip?
The same calculation using only options that expire within 24 hours. It sits close to price and changes quickly, and it disappears at the 08:00 UTC settlement.