Option Envelopes Advanced plots three key gamma levels directly on your price chart as horizontal lines - Zero Gamma, Major Gamma, and Minor Gamma - calculated using real time open interest sourced from CBOE market maker data. It works the same way as Option Envelopes, but instead of using volume to estimate dealer positioning, it uses DeepChart's real time CBOE open interest calculation for a more accurate read on where dealer hedging activity is likely to be concentrated.

Note: Option Envelopes Advanced is available on SPX only, as it requires real CBOE participant data.

How to Add Option Envelopes Advanced

1. Go to New in the top menu

2. Click on Option Chart
   
   

   

   
   
   

3. A Select Instrument dialog will appear. Since Option Envelopes Advanced requires CBOE data, select SPX - Symbol: ES-CME, Exchange: CME

   

4. Select SPX and click to open the chart

5. Once the Option Chart is loaded, click the Indicator Add button on the chart toolbar

6. Search for Option Envelopes Advanced and click + to add it

7. Click the settings icon to open the configuration window

   

Understanding Key Terms

Before choosing a data source, it helps to understand a few core options concepts:

• Call - An option that gives the buyer the right to buy the underlying at a set price. Traders buy calls when they expect price to go up

• Put - An option that gives the buyer the right to sell the underlying at a set price. Traders buy puts when they expect price to go down

• OI (Open Interest) - The total number of option contracts currently open and not yet closed or expired

• OI (R.T.) - Real time open interest calculated from live CBOE buy and sell flow, rather than end of day figures

• Gamma (Call OI-R - Put OI-R) - Net gamma exposure calculated using real time open interest for calls and puts, combined with the gamma greek

Settings

General

• Data source - Choose how the gamma levels are calculated. Options available:

  • Gamma (Call OI-R - Put OI-R) (default) - calculates levels based on real time open interest multiplied by the gamma greek, giving a gamma-weighted read on standing positions using live CBOE data rather than volume.
    Use this when: you want the most accurate real time read on dealer positioning and market regime, upgraded from the volume based calculation used in Option Envelopes

  • OI (R.T.) - calculates levels using real time open interest alone, without gamma weighting, showing where standing positions are concentrated live.
    Use this when: you want to see live standing positions without any gamma weighting

• Expiration - Filter levels by expiration. Options available: 0 DTE, <= 1d, <= 7d, <= 31d, <= 91d, All expirations. Default is 0 DTE

• Include Carry or Open Interest - When enabled, includes open interest carried over from previous sessions into the calculation, giving you a broader view of total positioning. When disabled, only the current session data is considered. Default is enabled

• Number of Strikes (0 - unlimited) - Sets how many strikes out from the current price to include in the calculation. A value of 0 includes an unlimited number of strikes. Default is 0

  

Subgraphs

Zero Gamma (1)

Zero Gamma is the most important level. It represents the price point where dealer gamma exposure flips from positive to negative, calculated here from real time CBOE open interest rather than volume. Above this level dealers are long gamma and will dampen price moves. Below it dealers are short gamma and will amplify price moves.

• Color - Default is yellow/gold

• 2° Color - Set a secondary color

• Subgraph Style - Choose between Line or Hidden. Default is Line

• Auto Color - Options: None, Slope, +/-. Default is None

• Line Style - Choose between Solid or Dash. Default is Solid

• Line Width - Default is 1

• Short Name - Set a custom label for this series

• Name Label - Toggle visibility of the name label

• Value Label - Toggle visibility of the value label

• Name Background - Toggle the name label background

• Value Background - Toggle the value label background

• Chart color for marker - Enable to use chart color for markers

• Include on Auto Center - Enable to include this series in auto centering. Default is disabled

  

Major Gamma (2)

Major Gamma represents the highest concentration of dealer gamma exposure above the current price, based on real time open interest. This is where the most significant resistance or support from dealer hedging is likely to appear.

• Color - Default is green

• 2° Color - Set a secondary color

• Subgraph Style - Choose between Line, Hidden, or BrokerLine. Default is BrokerLine

• Auto Color - Options: None, Slope, +/-. Default is None

• Line Style - Choose between Solid or Dash. Default is Solid

• Line Width - Default is 1

• Short Name - Set a custom label for this series

• Name Label - Toggle visibility of the name label

• Value Label - Toggle visibility of the value label

• Name Background - Toggle the name label background

• Value Background - Toggle the value label background

• Chart color for marker - Enable to use chart color for markers

• Include on Auto Center - Enable to include this series in auto centering. Default is disabled

  

Minor Gamma (3)

Minor Gamma represents the secondary concentration of dealer gamma exposure, based on real time open interest. It acts as a softer level compared to Major Gamma and can be useful for identifying intermediate reaction zones.

• Color - Default is purple

• 2° Color - Set a secondary color

• Subgraph Style - Choose between Line, Hidden, or BrokerLine. Default is BrokerLine

• Auto Color - Options: None, Slope, +/-. Default is None

• Line Style - Choose between Solid or Dash. Default is Solid

• Line Width - Default is 1

• Short Name - Set a custom label for this series

• Name Label - Toggle visibility of the name label

• Value Label - Toggle visibility of the value label

• Name Background - Toggle the name label background

• Value Background - Toggle the value label background

• Chart color for marker - Enable to use chart color for markers

• Include on Auto Center - Enable to include this series in auto centering. Default is disabled

  

Example - How to Use Option Envelopes Advanced

Once added to your chart, you will see three types of lines plotted directly on your price chart, working the same way as Option Envelopes but with a real time edge:

• The yellow line is the Zero Gamma level, the most important level on the chart. Since it's calculated from real time CBOE open interest instead of volume, it reflects actual standing dealer positioning rather than an estimate based on trading activity. When price is above it, dealers tend to be long gamma and the market tends to be calmer. When price breaks below it, dealers tend to be short gamma and the market can become more volatile

• The green lines are the Major Gamma levels, zones where real dealer positioning is most concentrated. How price reacts here depends on the direction it is approaching from and the current gamma regime

• The purple line is the Minor Gamma level, a softer secondary reference zone with the same significance as Major Gamma, just to a lesser degree

  

Tip: Use Option Envelopes Advanced alongside the standard Option Envelopes to compare the volume based read against the real time CBOE positioning read. Significant divergence between the two can be a useful signal on its own.

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