How To Know What Strikes Are Magnets Vs Repellents

Have you ever wondered what makes stock prices move up or down—besides just news or earnings? A lot of it has to do with how big players in the market (like dealers and market makers) manage risk using options. One of the most powerful tools to understand this is something called VEX, short for Vanna Exposure.

Let’s break it down in a simple way.

What is Vanna?

Vanna is a type of Greek, which are tools used by traders to understand how the price of an option might change. Specifically:

  • Vanna tells us how an option’s delta (price sensitivity) changes when volatility changes.

That might sound complicated, so here’s an easier way to think about it:

Vanna shows how much dealers will need to buy or sell a stock when the price or volatility of that stock changes.

When you add up all the Vanna across the market at different strike prices, you get something powerful: VEX, or Vanna Exposure.

What is VEX?

VEX is a way to measure where the pressure is in the market.

  • Positive VEX acts like a magnet—it pulls the stock price toward it.
  • Negative VEX acts like a repellent—it pushes the price away.

If a strike price has a lot of positive Vanna Exposure, dealers might be forced to buy stock if the price gets close to that strike. That creates buying pressure and can move the price in that direction.

When is VEX the Strongest?

VEX is always changing, but there’s a specific time each month when it’s usually the most powerful:

Between the second week and the middle of the third week of the month.

Why? That’s when we approach OpEx, or Options Expiration—the time when most monthly options contracts expire (usually the third Friday of the month). During this period:

  • Open interest is at its peak, especially at key strike prices.
  • Dealer hedging activity ramps up, leading to more aggressive buying or selling.
  • VEX becomes a dominant force, often causing sharp moves toward or away from key strikes.

In other words, VEX is strongest when the market is most sensitive to option positioning—and that’s usually in the days leading up to OpEx.

How Does VEX Work in Trading?

Imagine this: the stock price is moving lower, and volatility is rising (this usually happens during market drops). If there’s a lot of positive VEX below the price, dealers start selling stock to hedge their positions, which makes the drop even faster.

On the flip side, if the stock is rising and volatility is falling, and there’s negative VEX above the price, dealers might sell into the move, which can slow it down or even reverse it.

So traders watch the shape of the VEX curve to figure out:

  • Where price might get “pulled”
  • Where it might struggle to break through
  • What areas might be turning points

How to Trade with VEX

Here are a few ways traders use VEX to make smart decisions:

1. Follow the Magnet

If there’s a strong positive VEX at a certain strike (like $250 for Tesla in one example), traders might expect the stock to move toward that level, especially in volatile conditions.

2. Spot the Barrier

If there’s a lot of negative VEX below or above the current price, that can be a support or resistance zone.

3. Watch for Sign Flips

As the stock moves past key strikes, VEX can flip from positive to negative, changing the entire behavior of dealers.

Be flexible. If price crosses a positive VEX area, it might suddenly face resistance instead of support. Adjust your trades accordingly.

4. Combine with Gamma

VEX is powerful, but it’s even better when combined with Gamma Exposure (how dealers hedge as price changes).

When both show pressure in the same direction, it can create explosive moves. If they disagree, you might get a choppy market instead.

How Gextron Helps

All of this data might sound complex, but tools like Gextron make it easy to visualize and use.

  • Gextron tracks VEX, Gamma exposures at every strike.
  • It shows where the magnets and repellents are.
  • It helps you build trading ideas based on dealer positioning.

Whether you’re trading Tesla, SPY, or any other stock, Gextron gives you the full picture so you’re not trading blind.

In Summary

  • VEX (Vanna Exposure) tells you how options affect price movements.
  • Positive VEX = magnet, Negative VEX = repellent.
  • Combine VEX with Gamma for even better insights.
  • Tools like Gextron make all of this simple and visual.

Learning how VEX works can turn you from a casual trader into someone who understands the hidden forces behind price moves. It’s like seeing the market’s blueprint—and now you’ve got the tools to use it.