Anatomy of a Gamma Week / Part 2
RISK DISCIPLINE TUESDAY · AUG 11, 2026 7 MIN READ

The Put Spread Everyone Could Have Followed

Tuesday’s map answered a question Monday’s could not: where exactly does the tape stop being friendly? The 0DTE gamma profile crossed from positive to negative between $723 and $722, and the gamma flip level had jumped more than eight points closer to price overnight. That is a defended zone with an edge you can name — and a spread you can sell underneath it.

Overnight: the gross gamma rebuild Aug 11 pre-open vs the Aug 10 9:00 ET brief
Net GEX
+$3.99B
+$0.33B (+9.0%)
Call GEX
$13.9B
+$2.5B (+21.9%)
Put GEX
-$9.9B
-$2.2B (28.6% more negative)
Zero gamma
$715.10
+$8.42 (+1.19%)
cushion to the flip · 0–3% of spot

Total GEX rose $4.6B (+24.1%) to $23.7B. Gross positioning was rebuilt on both sides overnight; the walls themselves did not move. Source: QQQ Gamma & Short-Volatility pre-open brief, transcribed from the InsiderFinance and Unusual Whales panels captured that morning. Values the panels did not expose are omitted rather than estimated.

The walls held, the inventory doubled

Spot was $722.81, down 24 cents. Net GEX rose to +$3.99B (+9.0%), but the interesting move was gross: call GEX up $2.5B to $13.9B (+21.9%), put GEX $2.2B more negative at -$9.9B, total GEX up $4.6B to $23.7B (+24.1%). The call wall stayed $730 and the put wall stayed $660.

Zero gamma went from $706.68 to $715.10 — up $8.42. (Monday's own 7:20 AM brief printed $707.18; this comparison is against the 9:00 ET capture, hours apart. Neither figure is adjusted here.) That single number did two opposite things at once. It made the pinning structure above the line stronger, and it turned $715 into a much more important trigger, because the cushion beneath the market shrank from roughly sixteen points to under eight.

A regime line that rises toward a flat spot is not good news dressed as good news. The same structure gets more fragile without price doing anything at all.

The chart that defined the trade

Where the tape changed character: the 0DTE sign flip 0DTE net gamma by strike · Aug 11 pre-open · spot $722.81
Where the tape changed character: the 0DTE sign flip 0DTE net gamma by strike · Aug 11 pre-open · spot $722.81. 730: +$114.8M; 729: +$42.0M; 728: +$60.8M; 727: +$57.8M; 726: +$152.5M; 725: +$151.7M; 724: +$68.2M; 723: +$104.8M; 722: -$6.0M; 721: -$15.6M; 720: -$35.4M; 719: -$32.4M; 718: -$14.0M; 717: -$64.8M. 730: +$114.8M — call wall 730 729: +$42.0M 729 728: +$60.8M 728 727: +$57.8M 727 726: +$152.5M 726 +$152.5M 725: +$151.7M 725 +$151.7M 724: +$68.2M 724 723: +$104.8M — immediate opening magnet 723 +$104.8M 722: -$6.0M — first negative strike 722 721: -$15.6M 721 720: -$35.4M 720 719: -$32.4M 719 718: -$14.0M 718 717: -$64.8M — largest visible downside node 717 -$64.8M $100M-$50M SPOT 722.81 FLIP 715.10 0DTE net gamma
Positive / call-side gamma (bar grows right)Negative / put-side gamma (bar grows left)

The page exposed 17 of 530 strikes, covering roughly $717-$730 — not the full range. Separate call and put totals were not exposed per strike, so a negative bar is labelled negative net GEX rather than presented as pure put gamma. Source: QQQ Gamma & Short-Volatility pre-open brief, transcribed from the InsiderFinance and Unusual Whales panels captured that morning. Values the panels did not expose are omitted rather than estimated.

Read it top to bottom. From $730 down to $723, every strike carried positive 0DTE gamma — a shelf, with $726 (+$152.5M), $725 (+$151.7M) and $723 (+$104.8M) as the heaviest planks. At $722 the sign flips, and it stays negative all the way to $717 (-$64.8M), the largest visible downside node.

Above $723, dealer hedging leans against movement. Below $722, it stops helping and the negative pockets start doing the opposite. That is not a directional forecast. It is a statement about where the character of the tape changes — and that is exactly what a spread seller needs.

The structure that fit it

"I plan to leg into this vertical today since gamma isn’t giving enough at the moment — Selling a 25K vertical Put spread towards the end of the week — 714/716 (Q stays above those levels)"— Jim Claxton, 7:57 AM ET, Aug 11

The morning framing was 714/716. The fill, at 9:42 AM, was a 100-lot 715/720 put spread expiring Aug 14, with the stated plan to hedge it overnight. Worth stating plainly: the posted idea and the executed strikes were not identical.

What makes the structure fit the map:

Getting paid more for the same distance

The skew was doing the spread seller a favor:

MeasureAug 11 readingWhat it means for a put spread
0DTE ATM IV16.7% at strike 723Up from 12.1% the prior day — more premium available
25∆ skew+10.7 vol pointsPuts rich; real demand for downside protection
25∆ references717P 22.1% vs 726C 11.4%Nearly double the implied vol on the side you are selling
25∆ butterfly+0.1 pointsLittle curvature — the skew is a tilt, not a kink
Term slope+1.9 pointsNear expiry still cheaper than the Aug 12 CPI expiry
Rich put premium is not free edge. It is the market’s bid for protection, and it is highest exactly where protection is most likely to be needed. The spread’s edge is in the structure — capped loss, defended short strike — not in the fact that the premium looked generous.

The slow money, reported

The large-capital strangle was left alone, because the call side never got pressured. It produced $871 over the weekend and another $377 on Monday — consistent with the stated expectation of 10-12% a month on larger capital. A new leg went on in the same train: 655p/780, September 25 expiration.

The day, including the part that lost

The day, by strategy Aug 11 realized P&L as reported at 3:24 PM ET
The day, by strategy Aug 11 realized P&L as reported at 3:24 PM ET. Kite: +$4,465; Strangles: +$1,412; Gamma scalps: -$1,678. Kite: +$4,465 — 2 entries — one bull, one bear Kite +$4,465 Strangles: +$1,412 — on 72K buying power Strangles +$1,412 Gamma scalps: -$1,678 — 4 trades — 3 bull, 1 bear Gamma scalps -$1,678 $2K$4K-$1K realized P&L
GainLoss

The $1,412 on the primary strangles was almost 2% in a day on 72K of buying power, against a stated standard of about 0.5%. Reported figures from the desk’s own end-of-day recap; the losing line is included for the same reason the winners are.

Three strategies, two green, one red. The Kite took two entries — one bull, one bear — for +$4,465. The primary strangles made $1,412 on 72K of buying power, close to 2% in a day against a stated standard of about 0.5%. Gamma scalping lost $1,678 across four trades, three bull and one bear.

The individual legs show why the scalping line is negative:

LegQtyTradeCloseP&LROI
QQQ 720 long put · Aug 111001.061.88+$8,160+76.8%
QQQ 723 long call · Aug 111000.860.49-$3,675-42.7%

A 76.8% winner and a 42.7% loser in the same session, on the same underlying, hours apart. That is the honest texture of trading the fast side of a pinned range.

And the reason to be careful anyway

CPI was one session away. Net GEX was positive, ATM IV had risen, downside skew was very rich — and none of that addresses an 8:30 AM print. Oil was an active overlay: Reuters had Brent up roughly 2% after a 5% prior-session surge on the U.S.-Iran impasse, with VIX around 15.5 and the 10-year near 4.72%.

Positive gamma can damp a session. It cannot protect an overnight position from an inflation gap. The rule that follows is about size, not about direction.

The takeaway

Frequently asked

What put spread was sold on August 11, 2026?

A 100-lot QQQ 715/720 put spread expiring Aug 14, sold at 9:42 AM ET, with the stated intention to hedge it overnight. The morning note had framed the same idea as a $25K vertical at 714/716 before the fill went on at 715/720.

Why sell the spread below the gamma flip rather than above it?

The short strike sits under the level where dealer hedging stops dampening moves. Above the flip, hedging works with the position; the spread only comes under real pressure once price trades into the zone where that support disappears — and the long wing caps the loss if it does.

Does rich put premium mean a put spread is free money?

No. On Aug 11 the 25-delta skew was +10.7 vol points with the 717 put at 22.1% against the 726 call at 11.4%. That premium exists because demand for downside protection is real. Getting paid more for the same distance is an edge in pricing, not a reduction in risk.

The rest of the week

Anatomy of a Gamma Week — all four parts, plus the week seen whole.

← PART 1

The $730 Ladder Was on the Screen Before the Move

PART 3 →

CPI Day: Positive Gamma Is Not a Hedge