Which corresponded perfectly with the start of the explosion higher in the stock… It wasn’t just GME either, AMC is up 40%… Lifting the entire basket of WSB faves… Make me an offer. I'm trying to make money here. Did that earlier today don't tell my mom. According to S3 Partners via CNBC, short sellers are down about $91 billion for the month of January. All of this continues to build that snowball that's started to get mighty big. I respect your question and I hope you get some semi-intelligent responses that you deserve. WSB grew like 5 million+ users and so on. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME). Keep a close eye on the social media platform and on GME stock. Option contacts are not usually sold by individuals but rather market makers, biggest of whom being option houses out of Chicago. Market makers buying shares to cover ITM options. What we do know is that MASSIVE amounts of money have been changing hands over this past week in GME. This move was likely fueled by an options gamma squeeze as we’ll explain here. Anything near term, also: ... See Reddit in... Reddit App Open. Hopefully we hold strong tomorrow and it continues. This equates to 3,598,900 shares or 7.97% of total float. Gamma squeeze. What is a gamma squeeze: For those who don't know what a gamma squeeze is but have heard it thrown around let me give a brief ELi5. Wow, message received. Gamma squeezes revolve around options, I wont go into too much detail here on what those are, but basically you purchase a contract which gives you the option to buy the stock at a set price on a future date regardless of what that stocks current price is. What about GME @ $150: Closing Friday above this level brings thousands more contracts ITM. Press question mark to learn the rest of the keyboard shortcuts. We all saw what happened with RH, and whats crazy is its possibly the tip of the iceberg for actions they took, its just the action that we were able to see. XRT borrowed shares are expected to be around ~2M. It would do everyone well to read this post from our r/options brethren.. Read the comments as well and be prepared to be humbled by some big brain shit. I’m a fucking 16 year old tryna find out what’s going on and firstly writing it down helps me to understand it better and people reply’s will help me learn even more. And yes, maybe Ryan Cohen will employ Cramer’s crypto strategy in … I'm interested in reading those replies also. That could explain some of the activity this afternoon. Question. Keep buying and holding your shares, but don't forget that calls are what starts the gamma squeeze. This significant call buying began to form the basis for the first of two dramatic upward stock movements within the “Weaponized Gamma Squeeze” setup. Now a rise in only $8 may not seem like it has much of an impact on gamma squeeze potential but just wait.. GME @ $100 (Last Fridays Close, Option Expiry): At this level going into Friday we could expect 22,427 in open interest in ITM GME contracts this week. SLV call options squeeze the gamma and move the futures market which impact the physical. Could you provide a link what that means? 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. A solid 13,562 more contracts than at the $100 level. I also want everyone to know that is is meant to be a dialog. These market makers thought GME was garbage and sold way more contracts than they could feasibly handle because what are the odds GME @ $15 goes to $150... Market makers selling these contracts need to buy shares to hedge, which of course will cause that price to rise more and more. The Reddit crash had the r/WallStreetBets crowd fired up. You'll get a lot of ninnies telling you to read the DD (do that) and that you are a shill. Gamma estimates the change in delta if the stock moves by $1, effectively measuring the acceleration of delta as the option gets closer to ITM. Shill? Gamestop ($GME) Stock: Get Ready for The Biggest Short Squeeze of Our Lifetime, Press J to jump to the feed. I will help you. 3/5 1400c for me. So the 3M shares MM will buy up on a gamma squeeze will likely make GME shares alot harder to borrow. As it appears a ‘gamma squeeze’ was manufactured once again as deep OTM Calls (expiring Friday) were heavily bid today… The huge volume options trades hit around. Ya. 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. (2) January 13th-20th [Loading Up]: Members of the Reddit/WSB community started purchasing large amounts of call options. They have a complex price model which values contracts at set prices for said contract based on probability of them becoming ITM (in the money) of course, the higher the stock price for the contract the lower the cost because the odds of that happening is low. No not really, but it sure does increase the odds of that happening. So this probably won’t be interesting to any of you but I’m just a fractional share holder as I don’t have the capital for a share atm but am only young trading of me dads account. Lol. First, note the existing options positions in GME, from the day prior to yesterdays squeeze (Tuesday, 2/23). I will buy more shares so you can reach the strike price :) APES TOGETHER STRONG. The three elements for an honest-to-goodness short squeeze in GameStop (NYSE: GME) were there for Reddit … Stupid question, but If you buy 1 call and want to exercise it, do you need $80,000 in your account to actually exercise it? According to Yahoo Finance, as of December 31, 2020, 71.2 million shares were shorted with a float of 47.01 million and shares outstanding of 69.75 million. GameStop was a prime candidate for this type of feedback loop. Vote. Yesterday GME saw another massive price move with the stock ripping over 100% from $45 up over $160 in after hours trading. We use cookies on our websites for a number of purposes, including analytics and performance, functionality and advertising. I don’t get why people are downvoting my shit either? I am not trying to pump this stock because … 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. I don’t know what that means but I agree. Does this information guarantee the stock takes off to the moon and beyond? But I’m just trying to get my head around why this stock is stonking. As promised in the discussion thread I would post some updated info on what Friday could bring in terms of ITM options. The first reason is because the company had a significant amount of short interest. I only play at 150cc. If you look at the option chain, should GME hit $50, it'll quickly go to $60 on a gamma squeeze, and MM will be forced to buy up 3M shares as we hit $60. ... the world of Reddit and GameStop ... For instance, on GME… This reduces call buying, and therein reduces the leverage retail has. The rest is history, GME closed at $65, and every single call that … About 2,242,700 to be exact or about 4.97% of the TOTAL FLOAT. GME Gamma Squeeze – What Happened? Close. 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. So holding 1 share forever and waiting to sell at the top combined is the best way to cover our ass and maximize gains for everyone. Any how, ill put away my tinfoil hat. This would transcend the GME squeeze and absolutely make history. This move was likely fueled by an options gamma squeeze as we’ll explain here. Now we're getting nutty. Literally all we have to do it hold, less supply, exponentially more demand, GME Options Exp. Now a rise in only $8 may not seem like it has much of an impact on gamma squeeze potential but just wait.. First, note the existing options positions in GME, from the day prior to yesterdays squeeze (Tuesday, 2/23). If tomorrow closes above $150 and every contract is exercised 10% of total float will be called on. This is what will cause the squeeze? A group of traders on Reddit's WallStreetBets (WSB) forum is targeting GameStop yet again, laying new plans for a "gamma squeeze" on the stock. Not even the auto news feeds pop up with GME. 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. With the steady price rise we've been seeing, it could be these market makers are slowly buying up shares to hedge, COULD is operative and this is entirely speculation. For the first time in financial history all GME call options are in the money (ITM) because the highest call strike price set by the CBOE for Januaray 29, 2021 is $60. 2021-03-05 (This Friday), More posts from the wallstreetbets community, Press J to jump to the feed. One updoot for you to help counteract the dozens of meanies who will downvote you. Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", purchased around $53,000 in call options on GameStop's stock in 2019 and saw his position rise to a value of $48 million by January 27, 2021. There’s no simple reason that Gamestop (NYSE: GME) became the subject of the most high-profile short squeeze anyone can remember. We probably cannot even fathom how these market behemoths are willing to protect themselves. Even if nothing happens tomorrow and we close @ $130 there is still 50% more contracts ITM than last week. Yesterday GME saw another massive price move with the stock ripping over 100% from $45 up over $160 in after hours trading. GME Short Squeeze What Comes Next Part 3 Hello all, Before I begin I would like to address something I have been encountering on my posts in the comments section. I typed “The Way” into Waze and this is where I ended up. TL;DR the number of possible contracts ITM could be DOUBLE last weeks expiry. MORE THAN DOUBLE @ $100. Yes, perhaps Reddit investors could drive a gamma squeeze, sending this stock not only to the moon, but toward Pluto. Source: Calculated the cost of options) very high. According to Yahoo Finance, as of December 31, 2020, 71.2 million shares were shorted with a float of 47.01 million and shares outstanding of 69.75 million. This meaning there is lots of demand but little supply. Reddit's 'Roaring Kitty' Doubled His Stake in GameStop ... and not only would GameStop be caught in a "gamma squeeze," but that other heavily shorted stocks would get sucked ... GME … This high demand is pushing the stock up which will eventually cause the shorts to get a margin call? GME @ $130: We can expect 35,989 contracts to be ITM if tomorrow closes above $130. GME Can’t Gamma Squeeze As we outlined last week, GME can’t squeeze because the market makers are keeping implied volatility (i.e. Yeh I know media coverage isn’t there but it’s certainly a very much talked about stock and many people know about it and are watching it. I know you are just reaching out for answers. I happen to have one for sale. Context. And it would be so easy to do. So if I I’m thinking correctly GME is heavily shorted by millionaire hedge funds now with the media coverage or generally every retail investor watching GME there is a lot of volume for the stock. Here is what I did: Pulled the option chain data into excel, ran some numbers on open interest and found some crazy info. I keep receiving some hate concerning my opinions and I want to be crystal clear that they are just that; opinions. The first reason is because the company had a significant amount of short interest. Always did up until today. What does shill mean?? So if I I’m thinking correctly GME is heavily shorted by millionaire hedge funds now with the media coverage or generally every retail investor watching GME there is a lot of volume for the stock. That's the gamma squeeze that everyone has been talking about, where MM's couldn't cover fast enough. . This week will be exciting. There's been crazy volume at times, particularly today, the day before contract expiry. Over 4 million shares could be called on for these exercised options only adding to the ever increasing snowball. Apparently we'll have days to decide even on the downtick after the squeeze, so no worries about time. That's the amount of confirmation bias that I needed, Bias..... Bi...as...bi... Bi....buy.... Buy more GME! GME Gamma Squeeze. A Gamma squeeze happens when out-the-money calls start being purchased rapidly, as options sellers (aka, market makers) and big money short-sellers, start hedging against either the call contracts market makers sold, or an imminent short squeeze. I only paid $940 and it’s currently worth $8. Crazy. That sure is a lot of possible stocks that need to be purchased if those contracts are exercised. In fact, closing above this price means there would be 46,397 contracts ITM. But its entirely impossible to ignore that if every contract were to be exercised, 10% of all the shares in circulation would be needed and if anyone knows anything about supply and demand, it means more contracts will come ITM next week, and then more again the week after and so on. Maybe we will see another wave of the Reddit … Braden Maccke Gamestop, Gamma Squeeze, GME, r/WallStreetBets, WallStreetBets. GameStop was a prime candidate for this type of feedback loop. This was a premeditated and programmatic exercise, orchestrated by coordinated stock and option buying across … Please correct if I’m wrong I just wanna try and get my head around what is actually happening. Summary: Since last Friday (2021-02-26, last option expiry) the number of contracts possibly ITM has DOUBLED I repeat DOUBLED. Posted by just now. January 27, 2021 6:31 PM. The handling and speed gets crazy after that. Gamma squeeze. What happened last week with GME stock price and option was a combination of a gamma squeeze [1] and infinite short squeeze [2]. Well not every contract will be exercised, even ITM. Open google now and nothing. Reddit 53 mins OptimizeRx Corporation (OPRX) CEO William Febbo on Q4 2020 Results – Earnings Call Transcript Seeking Alpha 55 mins Magnite’s (MGNI) CEO Michael Barrett on Q4 2020 Results – Earnings Call Transcript Seeking Alpha This means that a whopping 4,639,700 shares or 10.27% of total float. According to MarketChameleon, yesterday calls represented 64.4% of options volume (compared to puts at 35.6%, because some of you can't count to 100), whereas today calls represented only 49.5% of … Contracts are typically in lots of 100 shares per. The following was written by SpotGamma and reproduced with their permission. Gamma is highest for ATM options. this ape think your head is wrapped around it. GME Gamma Squeeze. What we could be witnessing is the beginning of the beginning, the first domino's. What does this mean? The degenerates over at r/wallstreetbets have targeted heavily shorted shares of GameStop Corp. (NYSE: GME) to make short sellers like Citron pay… And pay dearly they have. These market makers have also likely been finding shares to hedge for some time now as well. If people could just reply and tell me what I’m doing wrong or saying wrong? Press question mark to learn the rest of the keyboard shortcuts. 52 mins Potential for GME "Reverse Gamma Squeeze" tomorrow? A gamma squeeze is behind a large part of the recent meteoric rise in the share price of ... GME $137.74 up $5.39 (4.07%) ... How Much Tax Do I Owe on Reddit Stocks? The gamma squeeze This a chart of Delta plotted against share price for the Jan. 29, $200 strike call option at 600% Implied volatility (IV) with 3 days to expiry. The term gamma squeeze gets thrown around a lot, but I don't think everyone really understands the underlying mechanics. I assume it means something like noob? 800c? Ill say it again for those in the back DOUBLED**.**. Now when they get this margin call they will eventually be forced to buy back the shares they borrowed at a much higher price. Jan. 30, 2021 4:27 PM ET GameStop Corp. (GME) By: Kim Khan, SA News Editor. Not financial advice, this is just for fun. ... Gamestop was all about Call Option gamma squeeze. This is what caused the absurd spike from $50 to $75 in just an hour and a half.
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