SPY A "gamma squeeze" for us newbies is a rapid increase in a stock price that occurs when a large number of investors buy call options, forcing market makers to purchase the underlying stock to hedge their positions, which in turn drives the stock price even higher, creating a feedback loop that can lead to a dramatic price spike; essentially, it's a situation where heavy call option buying creates a self-fulfilling prophecy of rising stock prices due to market maker hedging activity. Generated by AI
SPY Didn’t have time to post today but I traded that big drop at open since it was a classic case of a breakout failing for the newbies in here. Also keep in mind before any move, MMs are always gonna want their trade price at a discount and position based on the best r:r at a certain price lvl. So this means if they fill a gap to the upside, any priced in downside that’ll happen right after is at its cheapest price to get in bc no one is buying puts on the uptrend that happened premarket into market open
SPY 591.50 we go
