2026-01-08 01:30:01

Whenever gamma exposure reaches extreme levels in options markets, price action tends to snap back to its origination point roughly 9 times out of 10. The dynamics between dealer hedging and option gamma create mechanical pressure that eventually corrects these sharp moves. Understanding this pattern helps traders anticipate potential reversals during high gamma regimes.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

25 Likes

Reward
25
8
Repost
Share

Comment

0/400

WalletAnxietyPatient

· 01-10 10:46

90% retracement? Sounds like I'm about to get trapped again haha

View OriginalReply0

SellTheBounce

· 01-09 21:29

90% chance of returning to the origin? Haha, I've seen too many "inevitable rules" ultimately face backlash. Gamma pressure definitely exists, but that 10% you can never predict exactly when it will come. Sell on rebound, I agree with that, as for the rest? Just be patient and wait for a lower point.

View OriginalReply0

GraphGuru

· 01-08 02:00

90% chance of rebound? That sounds like just another overhyped "rule," but in the real market, where are there so many absolutes...

View OriginalReply0

BuyTheTop

· 01-08 01:58

90% chance of a pullback? Sounds like they want me to chase the high again... This kind of rhetoric is always used in every bull market, but what’s the result?

View OriginalReply0

potentially_notable

· 01-08 01:52

90% chance of a pullback? Sounds pretty unlikely. I believe in gamma pressure, but how many can truly hit the right rhythm?

View OriginalReply0

GateUser-9f682d4c

· 01-08 01:41

Gamma hits the top and then rebounds. This pattern is incredible; I always wait for this moment.

View OriginalReply0

GasFeeCry

· 01-08 01:40

Will the price rebound by 98% under extreme gamma exposure? Why do I find this data so hard to believe... I've heard so many dealer hedging theories that my ears are calloused, but the real situation is often more complicated.

View OriginalReply0

RamenDeFiSurvivor

· 01-08 01:34

When gamma was at its peak, I knew I had to operate in reverse. There's a 90% chance this thing will revert to the origin. The dealer's hedging strategy is really top-notch.

View OriginalReply0