Gamma Exposure (GEX) levels represent the aggregate gamma across all options at various strike prices for a given underlying asset, measuring the convexity of the delta with respect to the underlying price. This second-order Greek is instrumental in identifying potential liquidity shocks and pin risk scenarios in the market, allowing us to isolate critical thresholds of gamma concentration, which serve as precursors to imminent price inflection points.

Our approach includes an 80/20 allocation ratio, in regard to underlying equities and derivative instruments. For our derivative strategies, we primarily utilize in-the-money (ITM) contracts to optimize exposure to vanna, charm, and delta. Additionally, we deploy advanced volatility trading strategies, including spreads, butterflies, and other complex structures, to manage risk and adapt to changing market conditions with greater agility.

Mean reversion helps us recognize when an asset's price deviates significantly from its historical average, allowing us to anticipate corrections and avoid extreme price levels. Z-score analysis quantifies these deviations in terms of standard deviations, providing a precise measure of how far an asset's price has strayed from its mean. By integrating these techniques, we can strategically enter or exit positions to exploit price corrections.