Volume Exposure (VE) is a powerful tool for analyzing the impact of option trades (based on traded volume) on market movement through different Greeks: Delta, Gamma, and Vega.
Volume Exposure combines option volume (number of contracts traded) with the respective Greek sensitivity to estimate how much impact these trades can have on the underlying asset. It's used by traders and market makers to measure directional bias, volatility risk, or gamma scalping pressure.
| Greek | Total Call Exposure | Total Put Exposure | Net Exposure | Sentiment |
|---|---|---|---|---|
| Delta | +2200 | -1200 | +1000 | Bullish |
| Gamma | +1100 | -1400 | -300 | Short Gamma (Volatile) |
| Vega | +800 | -400 | +400 | Long Vega (High IV impact) |
| Greek | Positive Value | Negative Value |
|---|---|---|
| Delta | Market makers are net long — directional bias is upward | Market makers are net short — bias is downward |
| Gamma | Dealers are long gamma — price stability, hedging reduces volatility | Dealers are short gamma — likely volatile, hedge adds to price moves |
| Vega | Dealers are long vega — benefit from rise in implied volatility | Dealers are short vega — suffer from rising IV, may hedge aggressively |
Traders use VE analytics to assess how much dealer hedging could amplify or suppress price moves, especially near expiry or around key strikes.
