title: Dealer Positioning description: Dealer positioning shows the net gamma and hedging posture of options market makers — the flow that silently drives support and resistance in every market. date: 2026-08-02 category: Dealer Flow related: [gamma-exposure, gamma-flip]
Dealer Positioning
Dealer positioning refers to the aggregate net exposure of options market makers to the market. Because dealers must remain delta-neutral, their hedging activity creates mechanical flows that show up in price.
The mechanics
When you buy an option, someone on the other side — usually a market maker — takes your risk. To stay neutral, they immediately hedge in the underlying. That hedge is dealer flow. Aggregate this across thousands of trades and you get a real, measurable force pushing price toward or away from specific levels.
Long vs. short gamma dealers
- Long gamma dealers buy low and sell high (dampening moves).
- Short gamma dealers chase price (amplifying moves).
The concentration of open interest at each strike tells you where these flows intensify — those are the "dealer walls" traders watch.
What it means for you
By mapping dealer positioning, you can:
- Identify the strongest support and resistance before the chart shows it.
- Anticipate whether breakouts will follow through or fail.
- Understand who is on the other side of your trade.
Related terms
DealerFlow Terminal maps dealer positioning live, so you trade the same signals Wall Street uses. Join the waitlist for access.