Reading the Dealer Gamma Map
Every morning, near the bottom of the Pre-Market Briefing, you will find a small table called the Dealer Gamma Map. It looks simple — three price levels — but it is one of the most useful tools in the letter for understanding how the market is likely to move on a given day, not just which direction. This guide explains what those levels mean, why they matter, and how to use them.
The one-sentence version
Big banks and market makers (“dealers”) are on the other side of most options trades, and they constantly buy and sell futures to stay balanced. The Dealer Gamma Map shows the price levels where that mechanical buying and selling is strongest — and whether, today, those flows are likely to calm the market down or speed it up.
What is “dealer gamma”?
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