Option Market Maker Pressure shows the pressure from market maker activity over time. It is similar to a cumulative volume delta, but it is built from options data.
Note: Option Market Maker Pressure uses CBOE data and shows values on SPX charts only.
How to Add Option Market Maker Pressure
Open an SPX chart in DeepGamma Web
Click Indicators in the Menu Bar
Click the green Add indicator button at the bottom of the panel
Open the Options (Cboe) tab and search for Option Market Maker Pressure
The indicator is added to your chart and appears in the Indicators panel
You can also turn it on or off from M.M. Pressure in the Settings quick bar.
Understanding the Indicator
By default, the indicator is plotted in its own panel below the price chart, labeled MM Pressure. It has three lines:
MM Pressure - The pressure line. It is green when the value is positive and light purple when it is negative
Average 1 - A yellow dashed moving average of the pressure line. It is on by default
Average 2 - A second moving average of the pressure line. It is off by default. If you turn on both averages, change the color of one so you can tell them apart
Like a cumulative volume delta, the pressure line builds up over the session, so the direction it moves matters more than the exact value.
Settings
The indicator has two tabs: Parameters and Series.
Parameters
General
Overlay on chart - When enabled, the pressure is plotted on the price chart. When disabled, it is plotted as a separate indicator panel below the chart. Default is disabled
Average 1
Enabled - Show or hide Average 1. Default is enabled
Type - Choose the type of moving average. Options available:
Simple
Exponential (default)
Weighted
Double exponential
Triple exponential
Hull
Smoothed
Least squares
Length - Set the number of bars used for the average. A shorter length follows the pressure line closely, and a longer length is smoother. Default is 15
Average 2
Enabled - Show or hide Average 2. Default is disabled
Type - Choose the type of moving average. Options available:
Simple
Exponential (default)
Weighted
Double exponential
Triple exponential
Hull
Smoothed
Least squares
Length - Set the number of bars used for the average. Default is 30
Series
MM Pressure
Color
Color - Set the color used when the pressure is positive. Default is green
2° Color - Set the color used when the pressure is negative. Default is light purple
Line style
Type - Choose how the line is displayed. Options available:
Line (default)
Hidden
Line style - Choose the style of the line. Options available:
Solid (default)
Dash
Dot
Dash dot
Dash dot dot
Line width - Set the thickness of the line. Default is 1
Auto color - Set how the line changes color. Options available:
None
Slope
+/- (default) - Uses the Color for positive values and the 2° Color for negative values
Marker
Name label - Show the name of the line. Default is disabled
Value label - Show the current value of the line on the price axis. Default is enabled
Use chart color - Use the chart color for the marker. Default is disabled
Name background - Show a background behind the name. Default is disabled
Value background - Show a background behind the value. Default is enabled
Show line - Show a line from the marker across the chart. Default is disabled
Name - Set the name of the line. Default is MMP
Average 1
Color
Color - Set the color of the line. Default is orange
2° Color - Set a second color for the line. Default is red
Line style
Type - Choose how the line is displayed. Options available:
Line (default)
Hidden
Line style - Choose the style of the line. Options available:
Solid
Dash (default)
Dot
Dash dot
Dash dot dot
Line width - Set the thickness of the line. Default is 1
Auto color - Set how the line changes color. Options available:
None (default)
Slope
+/-
Marker
Name label - Show the name of the line. Default is disabled
Value label - Show the current value of the line on the price axis. Default is disabled
Use chart color - Use the chart color for the marker. Default is disabled
Name background - Show a background behind the name. Default is disabled
Value background - Show a background behind the value. Default is disabled
Show line - Show a line from the marker across the chart. Default is disabled
Name - Set the name of the line. Default is empty
Average 2
Color
Color - Set the color of the line. Default is orange
2° Color - Set a second color for the line. Default is red
Line style
Type - Choose how the line is displayed. Options available:
Line (default)
Hidden
Line style - Choose the style of the line. Options available:
Solid
Dash (default)
Dot
Dash dot
Dash dot dot
Line width - Set the thickness of the line. Default is 1
Auto color - Set how the line changes color. Options available:
None (default)
Slope
+/-
Marker
Name label - Show the name of the line. Default is disabled
Value label - Show the current value of the line on the price axis. Default is disabled
Use chart color - Use the chart color for the marker. Default is disabled
Name background - Show a background behind the name. Default is disabled
Value background - Show a background behind the value. Default is disabled
Show line - Show a line from the marker across the chart. Default is disabled
Name - Set the name of the line. Default is empty
Example - How to Use Option Market Maker Pressure
Watch which way the pressure line is moving during the session
Watch the moving average. When the pressure line and the average move differently, the pressure may be changing
Compare the pressure line with price to see whether the two are moving together
Combining with other indicators
Dynamic Walls - When price is inside the band, check whether MM Pressure is moving in the same direction as price or against it
O.I. Levels (RT) - When price reaches a Call or Put level, look at MM Pressure to see if the pressure is building or easing around that level
Gex Profile (M.M) and Gex Heatmap (M.M) - Use these to see where dealer exposure is concentrated, and check MM Pressure for the same area
M.M. Sentiment - The regime and direction strips give you the broader context, and MM Pressure shows how that pressure is building or unwinding through the session
Exhaustion - When an Exhaustion marker appears, check whether MM Pressure is turning at the same time
Any Questions?
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