How Option Dealers Use Gamma Exposure (And How You Can Too)
· 3 min read
When we analyze modern financial markets, it is easy to get lost in macroeconomic narratives and fundamental valuations. However, the true "plumbing" of the market—the mechanical flows that force prices up or down regardless of news—is controlled by option dealers.
Understanding how these dealers use Gamma Exposure (GEX) to manage their books is the key to anticipating market turning points before they happen.