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Net gamma held by options market makers at each strike price. Positive GEX tends to suppress volatility; negative GEX can amplify moves.
⚡ KEY TAKEAWAY: Positive GEX = market makers dampen moves (good for sellers). Negative GEX = moves get amplified (risky).
Term Structure
Contango = normal, good for sellers. Backwardation = market stress, reduce position size or wait.
Contango
Normal state = green light for sellers. VIX/VIX3M below 0.9 means term structure strongly supports premium selling.
Backwardation
Market is pricing more fear now than later. Reduce size, tighten stops, or sit out until contango returns.
VIX (Volatility Index)
VIX 15–25 is the sweet spot for premium sellers — enough fear for rich premiums, not enough for gap risk.