What does the term "Gamma squeeze" mean in the world of the stock market? What is meant by a "gamma squeeze"? Over the past few weeks, you may have heard the term "gamma squeeze" being used, especially in regards to the big upwards moves seen in stocks such as Gamestop and Tesla....
Any stock with high short interest (let’s say, 30%+) and relatively low daily trading volume (i.e., a high short-interest ratio/days-to-cover) could potentially be well-positioned for a short squeeze, but this alone doesn’t mean it will happen. In order for a short squeeze t...
But OPEC+ has signalled an important shift in the direction of policy. Having repeatedly thrown the shale sector a lifeline in 2023, OPEC+ is preparing to squeeze it again in 2025. Via Zerohedge.com More Top Reads From Oilprice.com: Oil Price Plunge Hits BP and Shell Shares 76% of...
Europe's biggest blockchain and digital assets event to find out why the halving is so important, what it will mean for the price of bitcoin and how this halving cycle may be different to before. And we'll also get the latest on the future of crypto exchange Binance. And finally...
In such cases, investors cover a stock using the “buy to cover” strategy. The strategy involves buying a similar number of shares they have borrowed to cover the shorted shares in case the price unexpectedly rises instead of falling. That way, they avoid the short-squeeze. And they can ...
A short squeeze occurs when many traders short a stock (assume that the stock price will go down) but the stock price goes up instead. One of the most famous short squeezes of all time occurred with GameStop Corporation’s (NYSE: GME) in early 2021, when retail investors surged Game...
Delta is an option’s sensitivity to movements in the underlying asset’s price. What does it mean to be long Gamma? Gamma is the rate of change in Delta for every $1 change in the underlying price. Gamma represents the acceleration at which an option's price increases or decreases. To...
Boxesare another example of using options in this way to create a synthetic loan, an options spread that effectively behaves like a zero-coupon bond until it expires. What Does Exercising an Option Mean? Exercising an option means executing the contract and buying or selling the underlying asset...
In theory, a higher NYSE short interest ratio indicates morebearishsentiment toward the exchange and the world economy as a whole by extension. Getting Caught in the Short Squeeze Somebullishinvestors see high short interest as an opportunity. This outlook is based on theshort interest theory. The...
Bear Squeeze: A bear squeeze is broader and refers to a situation where bearish traders (including those holding short positions or other downside bets) are forced to exit their positions due to an unexpected and sharp upward movement in prices. A bear squeeze can involve short sellers and trad...