
The gamma squeeze
Unhedged
00:00
Understanding the Gamma Squeeze Phenomenon in the Stock Market
The chapter explains how a 'gamma squeeze' affects stock prices, using Nvidia as an example, and discusses the impacts of options trading on stock movements. It explores the risks and benefits of investors using options contracts for short-term speculation, particularly zero day options, and raises concerns about market momentum and high investor expectations. The conversation touches on fund managers' strategies and the accountability surrounding potential stock sell-offs amidst speculative bets and gamma hedging.
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