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Heavy gamma exposure also helps move the market by forcing dealers to hedge in some particular direction.
by PartiallyTyped 1y ago
Heavy gamma exposure also helps move the market by forcing dealers to hedge in some particular direction.
- toomuchtodo 1y agoDuring the memestock craze, retail traders were able to create a gamma squeeze due to this forced hedging. https://www.nasdaq.com/articles/what-gamma-squeeze-understand-gamestop-play https://www.nasdaq.com/articles/what-gamma-squeeze-understan...
- PartiallyTyped 1y agoAnd it was glorious! MMs sure learned though. Premiums have exploded now.