Put Wall
The put wall is the strike below the current price that holds the largest concentration of put open interest. Dealer hedging around that strike tends to slow declines into it, so the put wall often behaves as a near-term support cushion.
Heavy put open interest at a strike means dealers on the other side are often positioned to buy the underlying as price falls toward it, which can cushion declines. A well-defined put wall is where downside moves tend to decelerate and, on many sessions, reverse.
The put wall is the downside mirror of the call wall. Together they bracket the range the dealer book is inclined to defend. When a drawdown tags the put wall and holds, it is a sign the structural cushion is intact; when it slices through, the downside cushion has thinned.
As with all wall estimates, the put wall reflects an inference about positioning rather than a hard floor. It marks where support is structurally likely, not where it is guaranteed.
Frequently asked
Will price always bounce at the put wall?
No. The put wall is where dealer hedging tends to slow a decline, not a floor price cannot break. In a negative-gamma regime the same hedging can accelerate a move straight through it.
What do the call wall and put wall tell me together?
Together they bracket the strike range where dealer hedging is most likely to contain price - the put wall as a lower cushion and the call wall as an upper ceiling - outlining the session's expected structure.
Related terms
This term is part of a bigger picture: Gamma Exposure, Explained — the complete guide →