The gamma flip: the level that decides the game

Why it exists

Clients mostly hold puts below price (protection) and calls above (covered call writing). Market makers are therefore short gamma on the low strikes and long gamma on the high strikes. As long as price is above the put zone, net gamma is positive. When it sinks into that zone, put gamma takes over and the net turns negative.

The gamma flip is the price where that sum crosses zero. Its location depends on the distribution of positions, so it moves, slowly with open interest, quickly with 0DTE.