Thanks 🙏 I usually just plot the larger ones on the chart as thicker horizontal lines (red for negative, green for positive) as a personal preference but there’s really no right or wrong way to draw them as long as you know what it means.

I actually have one planned for Charm. It’s more of an aggregate effect than anything.

To know for sure we would have to look at deltas on those strikes and deselect puts or calls to see which one remains. Depending on if it’s negative or positive gamma/vanna we can derive if they are long or short. I’d have to look it up

That’s seen through the charm impact (time’s impact on delta) rather than gamma. As the contracts decay from theta, charm also impacts delta, which then causes buying or selling based on the net impact being negative or positive charm that’s impacting deltas on the contracts. Gamma hedging has dealers buying or selling based on price movement of the underlying.

The reason I mentioned this is because I had the impression you meant that the Institutions are selling short shares and the Dealers are also.

Great question! That's the unfortunate thing about doing these complex topics in super short videos, nuances like this aren't always clear. So when we are referring to negative gamma shown in this example, the options have already been purchased by the institutions & the hedging requirements by the dealers already exist in this case (data taken from the prior session close). So in this case, when price is moving into a negative gamma zone, dealers will be assisting that movement. Meaning, on larger assets like indices, the price movement occurring at that moment is being caused by banks and large institutions (typically driven by their intraday algo's). Since it's a negative GEX zone, rather than dealers being forced to do the opposite of this move (buy shares/futures contracts if it's going down or sell shares/futures contracts if it's going up) they'll actually assist movement through it, causing additional volatility and more rapid movement towards and through that -GEX strike. So in this example, when I say institutions are selling into it, in reality it's any organization or group that's currently causing that move lower & the dealers hedging the GEX around that strike are also selling with them due to -GEX hedging requirements, assisting movement lower. I hope that helps clear it up, let me know if not.

Yes, it’s just the combination of net calls and net premiums show via net flow subtract from one another. It actually came before net flow. Net flow just shows them separately.

@@FattyTrades So your calculation is similar to a CVD?