Overview
Options Lab is an analytics workbench for understanding options market structure. It provides three specialized visualizations: Gamma Exposure (GEX) by strike, Volatility Term Structure, and Volume/Open Interest analysis. These tools help you understand where dealer hedging creates price magnets, how volatility is priced across expirations, and where the largest open positions sit.
Tabs
Gamma Exposure (GEX) chart showing the aggregate gamma exposure of market makers at each strike price. GEX reveals where dealer hedging activity creates support and resistance zones.
- -Bar chart of net gamma by strike price
- -Positive gamma zones (dealers buy dips, sell rips — acts as support/resistance)
- -Negative gamma zones (dealers amplify moves — high volatility areas)
- -Current price marker on the GEX profile
- -Ticker search to analyze any optionable stock
Volatility term structure showing implied volatility across different expiration dates. Reveals whether the market is pricing near-term or long-term uncertainty.
- -Term structure curve (IV by expiration)
- -Contango vs backwardation identification
- -Historical IV comparison
- -Ticker-specific analysis
Options volume and open interest breakdown by strike price. Shows where the most contracts are concentrated and where new positions are being opened.
- -Volume and open interest by strike (call and put)
- -Put/call ratio by strike
- -Max Pain calculation (strike with maximum expiring OI)
- -Ticker-specific analysis
Understanding GEX (Gamma Exposure)
Gamma Exposure measures how much market makers need to buy or sell the underlying stock to maintain delta-neutral hedges. This hedging activity creates observable price effects:
| GEX Zone | Dealer Behavior | Price Effect |
|---|---|---|
| Positive Gamma (above zero) | Dealers buy when price drops, sell when price rises | Dampens volatility — price tends to mean-revert and stay range-bound |
| Negative Gamma (below zero) | Dealers sell when price drops, buy when price rises | Amplifies volatility — moves accelerate in both directions |
| GEX Flip Point | The strike where GEX transitions from positive to negative | Key inflection level — above it markets are calm, below it they get volatile |
| High GEX strikes | Large gamma concentration at a specific strike | Acts as a magnet — price tends to gravitate toward high GEX strikes near expiration |
Tip
Volatility Term Structure
| Shape | Meaning | Implication |
|---|---|---|
| Contango (upward sloping) | Near-term IV < long-term IV | Normal market — no imminent fear, gradual uncertainty increase over time |
| Backwardation (downward sloping) | Near-term IV > long-term IV | Market is pricing a near-term event (earnings, FOMC, etc.) — elevated short-term fear |
| Flat | IV similar across expirations | Uncertainty is evenly distributed — no strong event pricing |
| Kinked | Spike at a specific expiration | Binary event priced at that date (e.g., FDA decision, earnings) |
How to Use
- ●Enter a ticker symbol in the search bar on any tab
- ●Start with GEX Visualizer to understand where dealers are positioned
- ●Identify the GEX flip point and high-gamma strikes as key levels
- ●Switch to Volatility Lab to see if the market is pricing near-term events
- ●Check Volume & OI to see where the largest positions are concentrated
- ●Use Max Pain as a reference for where price might gravitate by expiration
- ●Cross-reference GEX levels with support/resistance from the Chart page
- ●Check for backwardation ahead of known events (earnings, FOMC meetings)
Note
This platform provides data and analysis tools for educational and informational purposes only. Nothing on this platform constitutes financial advice, investment recommendations, or solicitation to buy or sell any securities. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.