Option Gex Profile Hedging displays a vertical profile panel showing how Market Makers are likely to adjust their hedging at each strike price, based on implied volatility and the option Greeks rather than gamma exposure alone. Instead of just showing where dealer exposure is concentrated, it shows the likely direction of that hedging activity if price moves toward each level, helping you anticipate whether Market Maker hedging will amplify or dampen a move.

Note: Option Gex Profile Hedging is available on SPX only, as it requires CBOE data.

How to Add Option Gex Profile Hedging

1. Go to New in the top menu

2. Click on Option Chart

   

   
   

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

   

   
   

4. 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 Gex Profile Hedging and click + to add it

7. Click the settings icon to open the configuration window

   

Understanding the Profile

Unlike a standard GEX profile, which shows where dealer gamma exposure is concentrated, the Hedging profile shows how dealers are likely to react as price approaches each strike. At every strike, DeepChart evaluates the implied volatility and Greeks to estimate whether Market Maker hedging at that level would push price further in the direction it is already moving, or work against the move and slow it down.

• Purple bars (amplifying) - Market Maker hedging at this level is likely to amplify the move. If price is falling and reaches this strike, dealer hedging may add further selling pressure. If price is rising and reaches this strike, dealer hedging may add further buying pressure

• Green bars (attenuating) - Market Maker hedging at this level is likely to attenuate the move, working against it and slowing price down as it approaches the strike

• Neutral (olive/yellow) - Strikes where the hedging impact is not clearly amplifying or attenuating

  

Understanding Key Terms

Before reading the profile, 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

• Gamma - A measure of how much an option’s delta changes as price moves. High gamma means dealers need to hedge more aggressively as price approaches a strike

• Implied Volatility - The market’s expectation of how much the underlying price will move, which directly affects options pricing and how aggressively dealers need to hedge

• Greeks - A set of measures (including delta, gamma, and others) that describe how an option’s price and risk change as market conditions shift. The Hedging profile uses these together, not just gamma alone, to estimate dealer behavior

Settings

Colors

• Color amplifying - Set the color for strikes where hedging is likely to amplify price movement. Default is purple

• Color attenuating - Set the color for strikes where hedging is likely to attenuate price movement. Default is green

• Color neutral - Set the color for strikes where hedging impact is neutral. Default is olive/yellow

  

Plot Settings

Width/Offset

• Width type - Choose how the profile width is calculated. Options available:

  • Automatic (default) - DeepChart automatically sets the profile width based on the current chart view

  • Percentual period - sets the width as a percentage of the visible chart period

  • Window width - sets the width based on the current visible window

  • Fixed bars - sets a fixed number of bars for the profile width

• Current Width - Set the width of the current session profile. Default is 10

• Current Offset - Set the horizontal offset of the current session profile. Default is 0

• Previous Width - Set the width of previous session profiles. Default is 15

• Previous Offset - Set the horizontal offset of previous session profiles. Default is 0

Visual Appearance

• Number of profile - Set how many session profiles are displayed on the chart. Default is 5

• Vbp opacity - Set the opacity of the profile bars. Default is 90

• Border width - Set the border width of the profile bars. Default is 1.00

• Show above bars - When enabled, the profile is displayed on top of the price bars. Default is disabled

• Visual style - Choose between Solid or Hollow profile bars. Default is Solid

• Align to the right - When enabled, aligns the profile to the right side of the chart. Default is disabled

• Always visible - When enabled, keeps the profile visible even when scrolling outside its range. Default is disabled

• Strike Ticks Height (%) - Set the height of each strike’s bar as a percentage. Default is 75

  

Example - How to Use Option Gex Profile Hedging

Once added to your chart, you will see a vertical profile with purple, green, and neutral colored bars at different strikes. Here is a simple way to use it:

• If price is falling and approaching a strike with purple (amplifying) bars, be aware that dealer hedging may accelerate the decline as price reaches that level

• If price is falling and approaching a strike with green (attenuating) bars, dealer hedging may slow the decline and offer some support

• The same logic applies on the upside. Purple strikes above price suggest hedging could accelerate a rally, while green strikes suggest hedging could cap or slow it

  

Combining with other GEX profiles

You can place the Hedging profile side by side with Option Gex Profile (Market Maker) and Option Gex Profile (Volume based) on the same chart for a fuller picture:

• H - GEX (Hedging) tells you whether dealer hedging at a strike is likely to amplify or attenuate a move

• GEX (MM) tells you where real market maker gamma exposure is concentrated

• GEX (Vol) tells you where the classic volume based gamma exposure is concentrated

  

When a strike shows strong exposure on both GEX (MM) and GEX (Vol), and also shows purple (amplifying) on the Hedging profile, that level carries more weight since dealer positioning and hedging behavior are lining up in the same direction. If the same strike shows green (attenuating) instead, it suggests the level may act as a brake on the move rather than accelerating it, even though dealer exposure is concentrated there.

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