Stability Point (S)
Maximum forecasted positive gamma zone. Strongest mean-reversion and stabilization pressure.
The Stability Point (S) is the forecasted maximum positive gamma zone on the Gamma Profile.
- Strongest stabilization point in the gamma landscape
- Dealers actively buy dips and sell rallies around S
- Lowest volatility expected near this level
How to trade: Near S, expect price to mean-revert. Favor range-bound strategies, iron condors, or selling premium.
See also: Volatility Point (V), Flip Point (F)