GameStop (GME.US) saw its stock price rise by 30.72% on Tuesday without a clear catalyst, reminiscent of the trading frenzy of meme stocks a year ago. As of the time of writing, the stock surged 14.59% after hours, reaching $141.11. It is worth noting that GameStop has achieved its sixth consecutive day of trading gains, reclaiming all lost ground for this month.
According to data from Quiver Quantitative, mentions of GameStop on the WallStreetBets subreddit exceeded 400 times on Reddit, higher than yesterday's 115 times. The institution also noted that there were nearly 0.8 million off-exchange short sell trades on Monday.
The short interest rate is around 18%, much lower than the level when GameStop experienced short squeezes. However, market observers point out that there is an increase in out-of-the-money call options bid, which may lead to gamma squeeze effect.
It is reported that in a gamma squeeze, option prices skyrocket, making it difficult for the original option sellers to buy back and close their positions. At the same time, with the stock price also high, if the buyers exercise the contracts, they would need to buy the actual stocks at a lower price to sell to the option buyers, ultimately resulting in massive losses.
Explaining Gamma Squeeze:
当股价经历快速变化时，挤压的条件可能已经成熟。在这种情况下，投资者可能会发现自己在正常交易模式之外买卖股票，以尽量减少损失。
伽马挤压（GA...