# Gamma envelopes

Source: https://tactiq.pro/docs/gamma-envelopes · Options gamma · updated 2026-10-31

Three smoothed lines from 24 h of options volume × gamma: zero gamma (its tag says which side is calm), the +γ wall that slows price and the −γ wall that speeds it.

Three smoothed lines that follow where option gamma sits around price. They answer: *is price on the calm side or the fast side, and where may it slow or speed up?* Off by default; turn it on in **Indicators → Options (estimated, Deribit) → Gamma envelopes**.

![A 30-minute BTC chart from 28 to 31 October with three lines through time: teal +γ wall 78,830 · slows price above price, yellow Zero γ 76,570 · calm above / fast below and magenta −γ wall 76,320 · speeds price below it; on the evening of 29 October price falls through the yellow line and the magenta line drops with it.](https://tactiq.pro/docs/chart/gamma-envelopes.webp)

*BTC perp, 30m, 28–31 Oct 2026: zero gamma (yellow), the +γ wall (teal) and the −γ wall (magenta), with their tags.*

- **What you see:** Three solid lines, no fill, each with a tag at the right edge in plain words. In the picture: *+γ wall 78,830 · slows price* (teal), *Zero γ 76,570 · calm above / fast below* (yellow) and *−γ wall 76,320 · speeds price* (magenta). The yellow tag says which side of zero γ is calm: here above, and price (77,439) is above it, so it is on the calm side. Look left: until the evening of 29 October price stayed above the yellow line (about 80,000); then it fell through it and dropped about 4,000 USD while the magenta line fell with it. The biggest move in the picture began from above the yellow line (hover those bars to read which side was calm then): calm is a tendency in the model, not a floor. Hover a bar and the readout says which side was calm then, for example *Zero γ (24 h volume): calm above / fast below*. On a phone the tags are shorter (*Zero γ 76,570*, *+γ 78,830*, *−γ 76,320*). A line far from price can leave the chart; its tag then sticks to the top or bottom edge with an arrow (▲ or ▼).
- **How to read it:**
  - **The yellow tag says which side is calm:** *calm above / fast below* or *calm below / fast above*. On the calm side, dealer hedging tends to lean against moves; on the fast side it can push with the move.
  - **"No flip near price · all calm"** (or *· all fast*) means gamma does not change sign close to price: the whole area is calm (or fast). The tag then has no number; the yellow line still shows the last zero γ, and the readout says *none near price — last at …*.
  - **Teal line:** the centre of the positive gamma near price. Price may slow near it.
  - **Magenta line:** the centre of the negative gamma near price. Price may speed up through it.
- **What it tells you:** Where option trading of the last 24 hours put gamma, and so where hedging may calm or speed price. It does **not** tell you that price will stop at a line, and it does not know who holds the options: it is a volume estimate (below).
- **How to use it:** Start each session by reading the yellow tag and noting whether price is on the calm or the fast side. Calm side, near the teal line: expect rallies to slow, so take profit on longs earlier and do not chase breakouts into it. Fast side: expect bigger swings, so use a wider stop with a smaller size, so the money at risk stays the same, and do not fade a fast move just because it looks stretched. Always confirm at the line with the footprint and delta.
- **Common mistakes:**
  - Assuming "above the yellow line = calm". The side changes with the data: always read the tag.
  - Treating the teal line as a hard ceiling. It is where hedging may slow price, not an order.
  - Reacting to every small move of the lines. They are smoothed over about 30 minutes on purpose.
  - Forgetting the limits: Deribit only, and gamma's edge in crypto is unproven.

### How the lines are made

1. **Volume × gamma.** For each option, Tactiq takes the coins traded in the last 24 hours (rolling, so there is no jump at midnight), counts calls as plus and puts as minus, and multiplies by the option's gamma at each price. This assumes dealers are long the calls and short the puts that traded: a heuristic, not real positions.
2. **+γ wall and −γ wall.** The average strike of the positive (or negative) gamma near price, weighted by how much gamma each strike has. "Near price" means within the 7-day expected move (±10 % when there is none). Because it is an average, the line moves smoothly instead of jumping between strikes.
3. **Zero γ.** The price where the total crosses zero. When there are several crossings, Tactiq follows the one nearest the previous zero γ. The calm side is the side where the total is positive, worked out at each snapshot; with no crossing near price, the sign at price says whether everything nearby is calm or fast.
4. **Smoothing.** A new snapshot every 5 minutes; each line is an average over the last 6 snapshots (about 30 minutes). When a side has nothing, the line holds its last value and the hover readout says so.

The **Gamma envelopes source** setting can switch the lines to dealer positioning (your Gamma model) instead of volume. Past bars that Tactiq rebuilt from Deribit trade history look exactly like live ones. The hover readout says *rebuilt* on those bars, and the notes pill says how many there are.