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TopicStock Topic 22
Colegreen_c12
02/24/21 4:26:38 PM
#451:


Nanis23 posted...
I admit I don't know how Gamma Squeeze work
Is this some sort of a short squeeze? why would it squeeze so soon?

I think i described it a few topics ago but basically it has to do with people selling naked calls. The further OTM they are the more likely you will see naked ones. A gamma squeeze is when a stock price spikes hard and people that are short those naked calls now need to buy actual shares so they can honor their short position. This buying raises the price more causing more people buying shares to cover their short positions.

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