1st figure out how delta hedging works. $GME was nothing new, it was just $TSLA on a smaller scale.
Any stock with
1) weekly options
2) high short%
3) low float
is candidate for a "gamma squeeze", since u now have 3x the buyers instead of 2x like in a regular shortsqueeze
Any stock with
1) weekly options
2) high short%
3) low float
is candidate for a "gamma squeeze", since u now have 3x the buyers instead of 2x like in a regular shortsqueeze
https://twitter.com/AudiFusion/status/1353879775199244288
in a regular shortsqueeze the 2 main buyers are the bent shorts & the breakout chasers (double the demand)
In a gamma squeeze, u have 3 main buyers: The shorts, the breakout chasers, AND the option sellers (who are delta hedging). So it's pretty much a shortsqueeze on cocaine
In a gamma squeeze, u have 3 main buyers: The shorts, the breakout chasers, AND the option sellers (who are delta hedging). So it's pretty much a shortsqueeze on cocaine
So as long as someone (or a group of ppl like robinhooders) is reckless enough to buy a ton of OTM calls, near friday, on a stock w/ those 3 criteria, u have the recipe for a squeeze. They'll probably attempt another squeeze soon, with a different stock that has those 3 criteria
Eventually market makers and option dealers will get sick of the games, and start jacking up the price of the OTM calls (high IV) to stop the shenanigans. But then people will just wait until the IV comes back down in a few days or weeks and restart the process all over again 😂
• • •
Missing some Tweet in this thread? You can try to
force a refresh
