Trading Air Gaps in the Strike Matrix
An air gap is a stretch of thin positioning between price and a distant heavy level, and price crossing an air gap travels far faster than a trader expects.
What is an air gap in options positioning?
An air gap is a region of the Strike Matrix where almost no meaningful positioning sits between current price and a distant heavy level. The thin stretch offers dealer hedging nothing to push against, so price slides through the gap with little resistance.
How do you spot an air gap?
Scan the Strike Matrix for a visibly empty stretch leading toward a large cell. Checking both the gamma exposure view and the vanna exposure view matters, because a gap that appears in only one view is considerably weaker than a gap that appears clearly in both views.
What happens when price reaches the far side of an air gap?
The heavy level at the far end of an air gap is usually a substantial resistance that can halt the move on contact. The Obsidian desk therefore treats the far side of an air gap as a target to exit into rather than a level to trade through.
Can air gaps form to the downside?
Yes. A downside air gap shows thin positioning beneath price leading toward a heavy level below, and price travels down through that gap just as quickly. The Obsidian desk reads downside air gaps using exactly the same method as upside air gaps.