The Hedge Ladder: How Much Dealers Must Trade at Each Price Step, and Why a Jump Matters
By OIData Editorial Team ·
Dealer gamma is usually shown as a chart of bars by strike. The hedge ladder turns it into the number a desk actually watches: the futures that must be bought or sold if the index moves half a percent, one percent, two percent, in either direction. How it is computed strike by strike, how to read the sign, what a jump in the ladder means, and how it links to the corridor and the regime.