Gamma Exposure

Gamma Exposure

Gamma Exposure (GEX) is an indicator used in the options world to assess the market’s total exposure to price changes in the underlying asset, based on the aggregate gamma of option positions held by market makers and institutional traders.

Simply put:

• Gamma measures how much an option’s delta changes as the underlying asset’s price changes;
• Gamma Exposure aggregates all the gamma of outstanding options, weighted by the number of contracts, to estimate how much market makers will have to buy or sell the underlying asset when the price moves.

Where to find Gamma Exposure on beeTrader

The Gamma Exposure feature in beeTrader is available within the Options Strategy section.

1. Create a new strategy by selecting the underlying asset of interest;
2. On the right side of the window, go to the Gamma Exposure tab (purple);
3. If required, update the data by right-clicking and selecting Update Data.

By clicking on the elements in the chart legends, it is possible to activate/deactivate the drawing of the different components, Gamma Call, Gamma Put, and Net Gamma Exposure.

Note

This feature is currently NOT available for Fideuram, as this service does not provide the data required to calculate Gamma Exposure. It is available for all other brokers, including Deribit, which provides it for Bitcoin and Ethereum.