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Dealer Flow
How to Read Dealer Positioning
"Dealer positioning" sounds like insider jargon, but it's a readable picture built from public options data. Here's the practical framework.
NoVo Options Trading · 2026
Reading dealer positioning means answering one question: are dealers set up to calm the market or amplify it today? The inputs are public options data, and the framework is three readings (the market-structure & dealer-flow guide).
1. Net gamma: the regime
Net gamma exposure (GEX) tells you the regime. Positive net GEX = dealers absorbing (expect grind, pins, mean-reversion). Negative net GEX = dealers amplifying (expect trends, extension, violence). This single sign sets your expectation for the day's character (positive vs negative gamma).
2. The gamma-flip level: the pivot
The gamma flip is the price where net gamma crosses zero — the boundary between the two regimes (the gamma flip). Where price sits relative to the flip, and which way it's heading, tells you whether conditions are about to calm or heat up. A cross of the flip is a genuine regime change.
You're not predicting price. You're reading the terrain — and terrain decides whether a push rolls downhill or gets absorbed by the hill.
3. The walls: the levels
Finally, locate the big open-interest strikes — the call and put walls that act as magnets and barriers (gamma walls). Together, the three give you a map: the regime, the pivot, and the levels that matter. This is precisely the read NoVo Analyst publishes each session — net GEX, the flip level, and the key levels, in plain language. See how dealer hedging moves price.
More on this: Can Retail Traders Really See Dealer Positioning? · What Is DEX (Delta Exposure)? Dealer Directional Positioning
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NoVo is a software tool for market analysis and for executing trades you initiate, not financial advice. This article is general education, not investment advice. Options trading involves substantial risk of loss, up to and including your entire capital. NoVo makes no guarantee of profit, win rate, or performance, and past results do not predict future outcomes. You are responsible for your own broker account, configuration, and trading decisions.