This post is for subscribers only on ZH, but I’m only talking about the title, they mention that Gamma Flip is imminent.

https://www.zerohedge.com/markets/last-quad-witch-opex-election-huge-goldman-trader-warns-imminent-gamma-flip

Lately, there is a lot of this Gamma Flip talk. It means, if I simplify, when market makers (hedgers, liquidity providers) change their behavior. If Gamma is positive like right now, they are more or less stabilizing markets, buying the dips and selling into the strength, reducing volatility.

But, if there is a Gamma Flip, then MM’s are usually contributing to volatility, selling as markets sells off. It is just the nature of their work. I wrote usually, since there are different market forces and not always MM’s need to behave this way. Anyway, you can read more about this online if you are interested. Just for fun, I’m posting current chart, where it shows, where is currently Gamma Flip:

This is not static, as spot price moves, so does Gamma Flip a little bit. If price keep drops, Gamma Flip may be some 10-15-20 points lower than it is right now. So, if I guess a little bit, say, if price keep drops today, it would cross Gamma Flip around 5635 maybe little bit lower.

At that point, or sometime after that in theory, market could start accelerating to the downside. Last few days, price came close to GF and then turned back up, so GF at least last few days acted a little bit as support.

Don’t take this too serious though. This is only one small piece in bigger puzzle that daily influence market moves. You may not even notice any difference. So, just for fun, I’m posting this here. And I will probably not be able to update if Gamma Flip does happen, I will mostly be away from computer. Life and so on… 😉