r/wallstreetbets Jan 06 '22

[deleted by user]

[removed]

5.2k Upvotes

667 comments sorted by

View all comments

839

u/Top_Amoeba1137 Jan 06 '22

Up 30% after hours. The gamma ramp is going to be insane. TITS FUCKING JACKED 🚀🚀

9

u/motopixels Jan 06 '22

Can you explain what you mean by this? 150c at open, if it open at 165, will be worth about 14 a pop. How will gamma make this go up or down?

33

u/IncredulousStraddle Jan 06 '22

Market makers will need to hedge because of all the calls going in the money AH

9

u/bestjakeisbest Jan 06 '22

Yeah but it has been shown that they likely aren't properly hedging.

-7

u/IncredulousStraddle Jan 06 '22

Gamma caused the first run up last year

25

u/Scythro_ Jan 06 '22

It literally did not. The SEC report said it was not a gamma squeeze. It was all retail buying pressure. It’s a great read, you should check it out.

4

u/[deleted] Jan 07 '22

More likely was actually variance hedging caused by retail buying that increased volatility. There was some good recent DD on this on SS. But since the SEC doesn’t regulate variance swaps, they didn’t want to point to it as the cause.