Put Wall
A put wall is the strike below the current price with the largest concentration of put open interest. Dealer hedging around that strike can slow declines into it, so it frequently 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 can slow a decline, which often produces support - but it is an estimate, and sustained selling can push through it.
What do the call wall and put wall tell me together?
They estimate the upper and lower edges of the range the dealer book is structurally inclined to defend on a given session.
Related terms
This term is part of a bigger picture: Gamma Exposure, Explained — the complete guide →