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#short-squeeze

Gamma squeeze mechanism showing the feedback loop between options dealer hedging and accelerating stock price movement
Market Conditions9 min

What Is a Gamma Squeeze in Options Trading?

GameStop in 2021. Volkswagen in 2008. Periodic meme-stock explosions that leave analysts baffled. The mechanism behind many of these moves is the same: a gamma…

Bernardo RochaDecember 24, 2024
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