Definition · updated 2026-10-21
Dealer positioning
Dealer positioning is the net options exposure market makers carry after selling the public its calls and puts, and therefore the share buying or selling they must do to stay hedged. It is read through gamma exposure: positive gamma stabilises price, negative gamma amplifies it.
See it live: today's GEX levels by ticker.
Why dealers matter
Market makers do not take directional views; they hedge. When the public is long calls, dealers are short calls and hedge by holding shares, buying more as price rises and selling as it falls. Aggregate that across the whole chain and the hedging flow is large enough to shape intraday behaviour.
Reading it
Net GEX gives the regime, the walls give the levels, the flip gives the line where the regime changes. Expiration (OPEX) removes a chunk of positioning at once, which is why ranges often break the week after.
Frequently asked questions
- How do you know dealers are short gamma?
- From the sign of net gamma exposure computed from open interest: when put gamma outweighs call gamma around spot, dealers are net short gamma and hedge in the direction of the move.
- Does dealer positioning predict direction?
- No. It describes how hedging will react to a move, not which way the move goes. It is a volatility and level map, not a signal.