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Regime tendencies

Each gamma regime is associated with a theoretical hedging posture, not a fixed market outcome. The descriptions below outline what the model suggests could happen if dealer delta-hedging were the dominant flow—they are not a strategy menu, and they are never a promise about how the next session will trade.

Above HVL

Above HVL: positive GEX regime (dampening / mean-reverting tendency) Above HVL, the profile sits in positive GEX (including above C1). In a simplified long-gamma model, dealer re-hedging sells into rises and buys into dips, dampening moves and pulling price back toward an equilibrium range. POSITIVE GEX (ABOVE HVL, INCLUDING ABOVE C1) Above C1 (still positive GEX) C1 Rally: hedge sells (caps move) Dip: hedge buys (cushions move) cT HVL Regime pivot + Dampening / mean-reverting Price rises -> hedge sells: Opposes the rally and slows upside speed. Price dips -> hedge buys: Absorbs selling and pulls price back.
Above HVL (including above C1): positive GEX regime, where a simplified long-gamma hedge sells into rallies and buys into dips—acting as a dampening, mean-reverting force.

In a simplified long-gamma model, dealer re-hedging would lean against price movement—selling into rallies and buying into dips—which can dampen realized volatility and encourage mean-reverting behavior. In practice, actual dealer inventory may differ from the model’s assumptions, or non-option flows and macro catalysts may overwhelm any hedging flow, so a session above HVL can still trend strongly in either direction. “Positive” only names the modeled gamma regime, not price direction and not a trading strategy.

Below HVL

Below HVL: negative GEX regime (volatility-accelerating tendency) Below HVL, the profile sits in negative GEX (including below P1). In a simplified short-gamma model, dealer re-hedging sells into a drop (accelerating the decline) and buys into a rally (accelerating the rip). NEGATIVE GEX (BELOW HVL, INCLUDING BELOW P1) HVL Regime pivot pT Dip: hedge sells -> drops faster Rally: hedge buys -> rips faster P1 Below P1 (still negative GEX) - Volatility-accelerating Price dips -> hedge sells: Adds selling pressure and accelerates the drop. Price rises -> hedge buys: Adds buying pressure and accelerates the rally.
Below HVL (including below P1): negative GEX regime, where a simplified short-gamma hedge sells into dips (accelerating a drop) and buys into rallies (accelerating a squeeze).

In a simplified short-gamma model, dealer re-hedging would lean with price movement—selling into dips so a drop can accelerate further down, and buying into rallies so a bounce can accelerate further up. That makes faster, wider intraday swings plausible, though far from guaranteed: quiet, range-bound sessions can and do occur below HVL. A move through P1 or C1 is an observation to reassess the map, not an automatic continuation signal.

Inside the transition, and beyond the wall

Transition band vs. extension beyond the primary wall Left: inside the pT-to-cT transition band around HVL, regime polarity flips easily as spot crosses HVL. Right: trading above C1 or below P1 places spot in an extension state where the primary wall is behind price. TRANSITION BAND + - Between pT and cT cT HVL pT Mixed regime around HVL; polarity shifts quickly. EXTENSION STATE Beyond C1 or P1 Upper Extension: Spot above C1 C1 P1 Lower Extension: Spot below P1 Primary wall is behind spot (location state only).
Left: inside the pT-to-cT transition band around HVL. Right: beyond C1 or P1, spot sits in an upper or lower extension state.

Between pT and cT, the modeled regime is mixed and hedging pressure may shift quickly as spot crosses strikes. Trading beyond C1 or P1 places spot in an extension (“squeeze”) state on the screener, meaning the primary wall is already behind price. That label only describes where spot sits relative to the profile—it does not prove that dealers are being forced to chase price, and it does not say whether to be long or short. See GEX zones & states.

Horizon still comes first

A regime label only suggests whether modeled hedging flow might dampen or amplify movement; it does not choose a trade structure. A position held for several days depends on a different clock than a same-day trade, even when both are opened above HVL. Match the horizon to the expiry you actually read, then treat the regime as optional context for how the tape might behave. See Expiry selection & 0DTE.

Where you see it

TanukiTrade documentation. Levels are context, not a recommendation. tanukitrade.com