Volatility Regime

A volatility regime is the prevailing character of market moves - dampened and range-bound, or amplified and trending. In options market structure, the regime is closely tied to dealer gamma positioning: a positive-gamma regime compresses moves, while a negative-gamma regime amplifies them.

Rather than predicting direction, a regime describes how the market is likely to behave: whether shocks get absorbed or accelerated. Because dealer hedging leans against price in a positive-gamma regime and with price in a negative-gamma one, the gamma sign is a core input to reading which regime is in force.

Regimes persist until the underlying positioning changes - often around expirations, large flows, or a break of the gamma flip level. Recognising a regime change early is frequently more valuable than calling any individual session, because it reframes how every subsequent catalyst is likely to land.

Regime reads are estimates of tendency, not guarantees. They provide context for interpreting price action; they are not directional predictions or trading advice.