General Thoughts
As G says: theory before practice. So this is a page of theories on how to make money off Gamma levels.
At first I thought that there is consistency in how price behaves around various Gamma Levels, but it appears to only be true sometimes.
For instance, GEX FLIP will resist the price, but upon crossing will sometimes radically accelerate it further to the other side of itself.
Lets brake this image down.
On 5.14.2026 the price rapidly approached GEX FLIP level (A), slowed down to a short trade through (seller resistance was quickly eaten), and then proceeded to continue through. I don't know if there is an entry here at (A), but look what happened further. The price action is clearly way over-extended with massive velocity, and does a perfect FB setup against CALL WALL.
GAMMA Levels take out guesswork from your level placement. You can still trade other levels, but you know there is actual MM structure behind GAMMA levels.
Further into (B), where GEX FLIP now becomes resistance (basically a Mirror Level like setup here), confirmed next day by (D). Later price action goes into See Saw around GEX FLIP (E).
How would you trade this?
(A) could be a continuation trade, but it might be hard to tell if its FB or not. So normally, skip this because once price goes through GEX FLIP, it has a higher probability to accelerate. GEX FLIP is a Reluctant Accelerator. It often fights the price, and bounces it back, and if price wins, it will often accelerate it further.
I guess if the price is approaching it from a period of no interaction (with it), then maybe acceleration is more likely. I need to observe this further.
The only real trade here is between A and B, the false breakout against CALL WALL. CALL WALL is traditionally resistance, so this is to be expected here.
General Advice
Trade GAMMA Levels like you trade normal levels (Gerchiks setups), but include their individual mechanisms (MM Hedge Strategy).
If price is bouncing off GEX FLIP or another GAMMA level, just trade it normally as FB or B. If its a clearly formed Mirror Level - trade that as FB/B or BO -> B.
Failing Acceleration (GEX FLIP)
Here we see GEX FLIP failing (A) to accelerate the price to the other side, which more or less should mean that it wants to continue being a resistance level.
There is no B or FB setup at (B1), although one could probably trade B at (B2).
The obvious trade is at (C), where we can fully expect the price to dive down, everything here is obvious:
- Stop Size
- Entry
There is also a strategy at (D) that I want to flesh out at some point, something that deals with floor, calculated stop - against ATR, and FB setup. But that is for another day.
Key Takeaway here:
Observe rejections, and assume they will be repeated during FB setups later.
MAX PAIN
Is the level where MMs tend to have MAX GAIN and retail takes the painful losses due to their expired worthless options.
And I can't help but notice how that level is so often acting like a resistance, reflecting price back at high velocity. Which of course begs to trade FB/B.
Here are some examples:
Here we see MAX PAIN establishing resistance (A), and morning selloff the next day (B) does FB against that same level and into an intraday rally.
MAX PAIN FB Strategy
The strategy is 3 fold. 3 Ingredients are required for entry:
- MAX PAIN must have bounced the price before, with decent velocity. No sticky trade-throughs at the level.
- We are at Low Volume area of the current Node (VP).
- We have approached the level at high velocity and are at 70% ATR
(basically we are set up correctly for Gerchiks FB)
Entry: Just in front of level.
Stop: Below the currently forming tail (update as it forms)