Call Ladder

Understanding the Call Ladder

The term "Call Ladder" refers to a distinct pattern observed in the gamma distribution of a specific stock. This formation is marked by:

  • A concentration of call gamma spread across consecutive strike prices that are set above the current trading price.

  • A noticeable absence of put gamma.

In July 2021, $SPRT surfaced on the GEX Dashboard scanner due to its pronounced negative SA-GEX to Volume ratio. The "Call Ladder" was highlighted in the Gamma Formation section.

When a stock is tagged with "Call Ladder", it's essential to analyze the gamma formation. This can offer insights into the stock's potential to sustain upward momentum. Key indicators include:

investors will often sell their puts as options expiration approaches, forcing dealers to Buy To Close the puts and buy the underlying stock.

Ensure that the Gamma Exposure isn't nearing its expiration.

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