Glossary / Pinning

Pinning

Price getting drawn to and held near a high-gamma strike into expiration.

Pinning is when price gets drawn to and held near a high-gamma strike, especially into expiration. As hedging flows around that strike cancel out directional moves, the underlying trades sideways right at the level the open interest predicted.

More terms: Gamma wall · Delta neutral · Gamma · 0DTE options · Dealer hedging · Call wall

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