Dealer Hedging Pressure

PRO

Gamma & Exposure · HTTP Data · Pro Tier

Overview

Dealer Hedging Pressure quantifies the magnitude of hedging activity that market makers must perform at each strike. The formula — |γ × Δ| × OI × 100 — captures the combined effect of gamma sensitivity, delta direction, and open interest size. The result is a per-strike pressure reading that tells you where dealer hedging flow will be strongest.

This window bridges gamma and delta analysis: while GEX shows what exposure dealers have, Hedging Pressure shows how much they need to trade. Strikes with the highest hedging pressure are where the most institutional flow will occur.

Dealer Hedging Pressure showing estimated hedging flows by strike based on dealer gamma positioning — SPY example

Key Features

Hedging pressure formula: |gamma × delta| × OI × 100 per option, aggregated by strike. Captures the absolute magnitude of required dealer hedging.
Net Gamma Overlay: Toggle a net gamma overlay on top of the hedging pressure chart to see both standard GEX and hedging pressure simultaneously.
DWOI fallback: Built-in local Delta-Weighted OI computation as a fallback data source, ensuring the chart always has data.
7 chart types: Bar, Line, Area, Scatter, Step, Bubble, and Heatmap for flexible visualization.
ATM range filter: Focus on the near-money zone where hedging pressure is most impactful on price.
View options: Show Net, Net Only, and Net Gamma Overlay toggles from the View Options dropdown.
Premium themes: Full theme library for chart customization.
Guide Panel: Educational overlay explaining dealer hedging mechanics, the pressure formula, and practical applications.

Formula Reference

Component	Role
\|γ\| (Gamma)	Rate of delta change. Higher gamma = more rapidly changing hedge ratio, requiring more frequent rebalancing.
\|Δ\| (Delta)	Current hedge ratio. Higher delta = each option represents more underlying exposure.
OI (Open Interest)	Number of outstanding contracts. Larger OI = more aggregate exposure requiring hedging.
× 100	Contract multiplier — each equity option controls 100 shares.

The combined metric: |γ × Δ| × OI × 100 gives you the dollar amount of stock dealers must trade per $1 move in the underlying at each strike. It's the most direct measure of where market maker flow concentrates.

Use Cases

Flow-driven support/resistance: Strikes with the largest hedging pressure are where the most dealer-driven trading occurs. These levels act as structural support and resistance because the flow is mechanical, not discretionary.
Intraday volume prediction: Hedging pressure predicts where volume will concentrate as the underlying moves. If price approaches a high-pressure strike, expect elevated volume and tight spreads.
OPEX rebalancing preparation: As options expire, hedging pressure at near-dated strikes increases dramatically. Use this window to identify the strikes where the most violent rebalancing will occur on expiry day.

How to Launch

Open the Window Launcher — click + or press L.

Search for Dealer Hedging or browse Gamma & Exposure.

Click to launch and enter a ticker.

Data loads via HTTP. The chart shows hedging pressure per strike with the highest bars indicating the strongest dealer flow zones. Toggle Net Gamma Overlay to compare with standard GEX.

Data Source & Tier

Per-option gamma, delta, and OI parsed from the grid via Ohey's HTTP Data Abstraction Layer. Dealer Hedging Pressure is on the Pro tier ($79/month). View pricing →

Related Windows

Gammatrix™ — Visualize the gamma exposure that drives dealer hedging flows
Vega Concentration — See where volatility sensitivity concentrates alongside hedging pressure
Gamma Exposure (GEX) — Per-strike gamma exposure underlying hedging calculations