Pure Gamma Scenarios — Γ Bell Distribution
Gamma peaks at ATM and shows how dealer hedging intensity varies by strike and width
Scenario 1 · High Gamma — Narrow Bell
Short DTE / tight strikes: gamma is tall and narrow — explosive hedging at ATM
⚡ Narrow bell = intense ATM pinning pressure
Scenario 2 · Low Gamma — Wide Bell
Long DTE / far strikes: gamma spreads wide — muted dealer hedging per point
🌊 Wide bell = distributed hedging, no single pin
Scenario 3 · ATM Peak — Gamma Wall
Maximum gamma right at spot: dealers must hedge aggressively on every tick
🧲 Gamma wall at ATM — magnetic price attraction
Scenario 4 · ITM Gamma — Shifted Bell
Deep ITM options: gamma bell shifts OTM from spot, flatter profile
📐 ITM gamma lower — less hedging needed near spot
High Gamma
Low Gamma
ATM Peak
ITM Shifted