Positive Peaks (P1/P2)
Top positive gamma peaks. Market makers stabilize price here (buy dips, sell rallies).
P1 and P2 are the top positive net gamma peaks. Market makers are long gamma at these levels.
- Market makers stabilize price here: buy dips, sell rallies
- If price BELOW: Acts as stability ceiling (dealers sell rallies into this level)
- If price ABOVE: Acts as stability floor (dealers buy dips at this level)
- Strong mean reversion pressure near these levels
Common mistake: Don’t confuse with traditional support/resistance. P1/P2 create stabilizing pressure, not hard walls.
See also: Negative Peaks (N1/N2), Absolute Peaks (A1/A2)