David Dodds
Administrator
This week ended last week under $40. Sure there are some huge option contracts at $800, but 51,237 contracts come in at $120. Retail has been buying under $125. So where are these 5,123,700 shares going to come from?Honestly I think people throw around the term "gamma squeeze" way too loosely now.
The first gamma squeeze on the first run-up happened because everyone was caught offguard to the extent that literally EVERY SINGLE call option for GME was MASSIVELY in the money. Like I believe that week the highest call option written was $60 and GME closed Friday at over $120.
This is nothing like that. This reminds more of an even lesser version of about two weeks ago when everyone was sure $320 was a massive gamma squeeze. Everyone yelled about how $320 had to be defended, how the stock was going back and forth above and below it all day. It eventually closed at $328 and....nothing.
Right now calls have been written all the way up to $800. Open interest on calls $120 and below represents barely 35% of all open interest on GME calls, which means at $120 65% of GME calls will expire worthless. That is extremely different than the gamma squeeze that kicked all of this off when 0% of GME calls expired worthless, and all of the 100% that had to be filled were 100%+ out of the money. Even a few weeks ago with that $320 gamma theory 70%+ of all open calls were ITM and it didn't budge the share price at all.
Just my $.02. GME could still moon for a variety of reasons, but I see nothing even resembling even a small gamma squeeze here, personally.
My personal opinion is there are way more people that have cost averaged into stronger diamond hands this time around. And the shares are not available. Once the shares are recalled for votes, the gig of synthetic shares is going to up.
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