Positive gamma regime (dampened)
A positive gamma regime is a state in which a dealer GEX model estimates the hedging book to be net long gamma at the current spot. Under a delta-neutral hedge assumption, that book sells after rises and buys after falls, so the modeled hedging flow leans against price moves; Senzoukria labels this state Dampened.
Senzoukria · Glossary · Updated September 2026
How the regime is determined
A GEX model aggregates signed gamma across strikes and expiries, typically as a running sum from the lowest strike upward, and compares the total at current spot with zero. If spot sits above the zero-gamma root under the chosen positioning convention, the book is modeled as long gamma and the regime is positive. The label therefore inherits every assumption of the model: expiry scope, 0DTE handling, pricing model, the freshness of the open-interest snapshot and, above all, the dealer positioning sign.
What the model implies
- The modeled hedge sells into strength and buys weakness, which, if large enough, holds moves in.
- The modeled expectation is that ranges hold and breakouts fade; it is a tendency stated by the model, not a measured frequency.
- The strength of the effect scales with the size of net gamma; a barely positive reading near the flip is a weak statement.
- None of this is a forecast. Other flows, news and hedging through other instruments can overwhelm the modeled effect on any session.
Reading it next to the tape
The regime is a hypothesis about who is likely to fade moves. It becomes useful only when compared with what is executed. If the model says dampened and a push into a level meets strong opposing volume at the ask or bid with little price progress, the observation is consistent with the hypothesis; if the push runs through with thin opposition, the hypothesis failed for that session. Record both outcomes with the same rule.
In Senzoukria
The GEX module's regime panel shows one of four states: Dampened, Amplified, On the edge and Unclear. Dampened carries the message that dealers are long gamma here, sell into strength and buy weakness, and that ranges tend to stick while breakouts tend to fade. The panel also shows the Gamma flip price, Spot, Put / call OI and a corridor width, and follows the user from page to page inside the module. Its caveat states that this is a reading of the street, not a law, because it assumes dealers are net short options, which nobody publishes. Unclear appears when not enough of the chain came back to place the flip; the module never fills a missing chain with a default regime.
Common mistakes
- Trading the label instead of the executed response at the level.
- Ignoring that a change in expiry scope or the positioning setting can move the flip and change the regime without any new data.
- Treating open interest published after yesterday's close as today's positions.
Related
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Frequently asked questions
- Does a positive gamma regime mean the market will range?
- No. It means a modeled hedging book would lean against moves if it hedges as assumed. A range is one possible outcome, and it can fail when other flow dominates or when the positioning assumption is wrong for that day. Treat the regime as context for reading executions, not as a prediction.
- How far above the flip does the regime need to be to matter?
- There is no published threshold. The modeled effect grows with the size of net gamma, so a reading barely above zero is weak and Senzoukria shows it as On the edge rather than Dampened. The How firm the key levels are section shows how much the flip moves across assumptions, which is a better guide than distance alone.