Volatility Point (V)
Maximum forecasted negative gamma. Explosive move risk. Dealers amplify moves here.
The Volatility Point (V) is the forecasted maximum negative gamma zone on the Gamma Profile.
- Volatility amplification point — dealers are deeply short gamma
- Dealers buy rallies and sell dips (amplifying moves)
- Explosive move risk at and near this level
How to trade: Near V, expect amplified moves. Favor momentum strategies, long straddles/strangles, or protective hedges. Avoid selling premium.
See also: Stability Point (S), Gamma Cliff (GC)