⭐ Vanna vs Charm – Intraday Cheat Sheet
Vanna – Δ vs Vol (∂Δ/∂σ)
- How dealer delta changes when IV moves.
- Red: dealers BUY when IV drops → upward bias.
- Blue: dealers SELL when IV drops → downward bias.
- Best for: open, events, IV shocks, fast direction / mean reversion.
Charm – Δ vs Time (∂Δ/∂t)
- How dealer delta changes as time / θ passes.
- Red: dealers BUY as time passes → upward drift.
- Blue: dealers SELL as time passes → downward drift.
- Best for: midday → close drift, 0-DTE expiry behavior.
Heatmap Colors (both metrics)
- 🟥 Red zones: dealer buy flows → support / magnet / vol compression.
- 🟦 Blue zones: dealer sell flows → resistance / acceleration / more vol.
- ⚪ White band near spot: sign flip → price often gets pinned here.
Quick Trade Rules
- Price below a strong red band: bullish – buy dips (mean reversion up).
- Price inside a strong red band: expect chop / pin – fade extremes.
- Price near or entering strong blue below: watch for fast selloffs.
- Both Vanna & Charm red above spot: highest-conviction intraday long bias.
⭐ GEX vs DEX – Dealer Hedging Cheat Sheet
GEX – ΔΔ vs Price (Gamma Exposure)
- How aggressively dealers must hedge price moves (2nd order).
- Red: dealers tend to BUY dips / SELL rips → range / pin.
- Blue: dealers tend to SELL dips / BUY rips → trend / acceleration.
- Best for: identifying range vs trend, “walls”, breakout risk, pinning zones.
DEX – Net Delta Position (Delta Exposure)
- Where dealers are structurally long/short delta (1st order).
- Red: supportive bias (dealers more likely to buy to hedge) → upside drift.
- Blue: bearish bias (dealers more likely to sell to hedge) → downside pressure.
- Best for: directional bias, “sell rips / buy dips” zones, trend alignment.
Heatmap Colors (GEX / DEX)
- 🟥 Red zones: “supportive” dealer behavior → pull price back / reduce realized vol.
- 🟦 Blue zones: “destabilizing” dealer behavior → amplify moves / increase realized vol.
- ⚪ White band: near zero-cross → flip zone (regime can change here).
Quick Trade Rules
- GEX mostly red around spot: expect chop → fade extremes (scalps / iron fly / condor mindset).
- GEX strong blue below spot: breakdown risk → size smaller, respect stops, momentum trades work.
- DEX red + GEX red: best “buy dip” environment (supportive + mean-reverting).
- DEX blue + GEX blue: best “sell rip / trend” environment (pressure + acceleration).
- Spot near Flip: avoid over-sizing — regime can switch fast; wait for confirmation.
⭐ GEX + Charm + Vanna – Dealer Flow Regimes
- GEX (Price): how dealers hedge price movement (pinning vs acceleration).
- Charm (Time): how dealer delta drifts as time passes (late-day gravity).
- Vanna (Vol): how dealer delta changes with volatility moves (squeeze fuel).
| GEX (Price) | Charm (Time) | Vanna (Vol) | Market Behavior |
|---|---|---|---|
| +GEX | −Charm | −Vanna | Strong pinning → late fade (classic 0DTE grind + selloff) |
| +GEX | +Charm | +Vanna | Controlled grind higher (low vol, dealer-supported rally) |
| +GEX | −Charm | +Vanna | Choppy range, upside attempts fade |
| −GEX | −Charm | −Vanna | Fast downside acceleration (selloffs feed on themselves) |
| −GEX | +Charm | +Vanna | Melt-up risk / squeeze (vol up + delta build) |
| −GEX | −Charm | +Vanna | Trend day risk (either direction) |
| Near Flip | Any | Any | Unstable regime → wait for confirmation |
Quick Read Rules
- +GEX + −Charm: expect pinning early, fades late.
- −GEX + −Charm: trend acceleration risk → momentum works.
- +Vanna rising: volatility can create direction (watch squeezes).
- Near Flip: reduce size — regime can change fast.