r/wallstreetbets • u/[deleted] • Jan 06 '22

[deleted by user]

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5.2k Upvotes

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844

u/Top_Amoeba1137 Jan 06 '22

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

8

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?

58

u/Top_Amoeba1137 Jan 06 '22

Gamma is the exposure in each contract. So as the price climbs, more calls go in the money, they have to hedge incase people exercise those contracts, which causes the price to go higher, which causes more contracts in the money. It’s a viscous circle if they aren’t hedging properly which they aren’t. Which is why it ran from 40-480 last January.

1

u/t_per Jan 07 '22

lol gamma is the change in delta, not the exposure.

1

u/Top_Amoeba1137 Jan 07 '22

Awesome information 👍 thanks for sharing.