Share. Disclosure: ZoneTraderPro receives no compensation from SpotGamma In late January 2021, GameStop experienced a once-in-a-decade squeeze that has captivated the world’s attention. Short Squeezing and Gamma Squeezing. January 26, 2021 9:40 AM January 27, 2021 6:31 PM Braden Maccke 13 Comments Gamestop, Gamma Squeeze, GME, r/WallStreetBets, WallStreetBets. Tweet. This is what happens during short squeezes; the GME short squeeze hasn't even approached Porsche / Volkswagen levels yet. The Process 1. The squeeze can begin when a large investor, typically referred to as a whale, buys short-dated call options […] Share. The entire saga really hasn't disappeared, but … GME Gamma Squeeze Part Two? Looking at the options chain, 25k $50 call options expiring this Friday were purchased today. [ZH: It was not just GME that surged] This move was likely fueled by an options gamma squeeze as… Multiple market makers walking away from multiple stocks. GME Gamma Squeeze Round 2: Here's What Happened (& What Happens Next) Via SpotGamma.com, Yesterday GME saw another massive price move with the stock ripping over 100% from $45 up over $200 in after hours trading. Here is what I think happened today. Then the price of the GME stocks started to rise causing a chain reaction in MMs covering. What am I talking about there? Now a rise in only $8 may not seem like it has much of an impact on gamma squeeze potential but just wait.. A “Gamma Squeeze” is an outcome based on an investor using many options to drive up the prices of select stocks due to option sellers needing to hedge their trades on the underlying stocks. What's so crazy is what the GME short squeeze is doing to other stocks. This was a premeditated and programmatic exercise, orchestrated by coordinated stock and option buying across … If the stock continues to rise, the market maker's delta position also becomes increasingly negative at a faster rate due to gamma, which is why this phenomenon is known as a gamma squeeze. Now amplify that. GameStop Corp. (NYSE: GME) shares are on a wild ride, rocketing over 1,500% higher in the last month.One of the main reasons behind this incredible story is something called a "gamma squeeze." GameStop and the Dangerous Game of Gamma Squeezes ... What becomes of a name like GME if we take away the gamma squeeze? The following was written by SpotGamma and reproduced with their permission. Assuming that the delta was .5, that is 1.25 million shares that was bought to gamma hedge. Unless you have been living under a rock for the past two weeks, you have most definitely heard about the short squeeze “phenomenon” in specific tickers, such as GME (GameStop), AMC, NOK (Nokia), KOSS (Koss Corp) ERIC (Ericcson), FUBO (FuboTv), etc. A truly epic short squeeze, but a short squeeze nonetheless. ... A gamma squeeze occurs when institutional brokers and investment banks that sell these call … Now that GME is @ $130: Today was a great day, GME closed up $8.17 or 6.58% maybe not the crazy gains some hoped for, but on a down market day is pretty incredible. A gamma squeeze is a short squeeze taken to the next level; here’s why they’ve become more common and how to avoid them. The GME stock short squeeze may not yet be over. There’s no simple reason that Gamestop (NYSE: GME) became the subject of the most high-profile short squeeze anyone can remember. But this post title included gamma and fiduciary duty.

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