The CALL options are bought on 18 and 19 August 2022. 2,260x $80 CALL options and 1260x $60 CALL options expiring Jan 2024. Is this Ryan Cohen coming back? or is it another trader trying to Gamma squeeze the shorts out of position? is the short squeeze still on, or is someone trying to get us to hold their bags
MuscMoo
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I think the people that have been holding the bag on this one for a while forget that other people like a discount. I'm not going balls deep into this but I threw a couple bucks this morning when it dipped so hard
doctorpot1
OPMuscMoo
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just remember to manage risk it is still a risky stock to play. hope it goes to the moon!!! now that some HF had learnt from Ryan how to squeeze the shorts dry
MuscMoo
doctorpot1
OP
:
i always hedge my calls with otm puts but I stay exposed on amc, gme, and now this. only because I think this is the rare occasion that's more important than money
doctorpot1
OPMuscMoo
:
maybe it will cause a similar movement like gamestop where apes just started to buy more at BBBY, just like they keep buying at GME then this store won't close down
Hedging is good but sadly, the IV now is so high, it is so expensive to buy options.
Conn_00
:
Actually I'm quite curious & wondering why there hv ppl willing to buy call option with such a high strike price? Why they don't want to buy directly from market as current price is lower & no need pay high premium?
doctorpot1
OPConn_00
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cause cheaper then can buy a lot, and when they buy option usually is buy from market maker de. so these market maker don't like risk, what they do is they will hedge by buying or selling shares accordingly. so these guy buy tons of call option, mean they force the market maker to buy lots of share plus expose them to lots of risk. so everytime share price move only, the MM have to buy or sell share for every option they sold to hedge. as the price increases the MM will have to buy exponential more share to hedge against it as gamma increases exponentially, thus gamma squeeze
MuscMoo : I think the people that have been holding the bag on this one for a while forget that other people like a discount. I'm not going balls deep into this but I threw a couple bucks this morning when it dipped so hard
ElonBust : Interesting
doctorpot1 OP MuscMoo : just remember to manage risk![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
it is still a risky stock to play. hope it goes to the moon!!! now that some HF had learnt from Ryan how to squeeze the shorts dry ![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
doctorpot1 OP ElonBust : yea maybe someone is trying to copy Ryan's move to squeeze the shorts dry and for them to earn loads of cash![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
MuscMoo doctorpot1 OP : i always hedge my calls with otm puts but I stay exposed on amc, gme, and now this.
only because I think this is the rare occasion that's more important than money
doctorpot1 OP MuscMoo : maybe it will cause a similar movement like gamestop where apes just started to buy more at BBBY, just like they keep buying at GME![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
then this store won't close down ![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
but sadly, the IV now is so high, it is so expensive to buy options.
Hedging is good
Conn_00 : Actually I'm quite curious & wondering why there hv ppl willing to buy call option with such a high strike price? Why they don't want to buy directly from market as current price is lower & no need pay high premium?
divinepapa : Well analysed...![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
doctorpot1 OP Conn_00 : cause cheaper then can buy a lot, and when they buy option usually is buy from market maker de. so these market maker don't like risk, what they do is they will hedge by buying or selling shares accordingly. so these guy buy tons of call option, mean they force the market maker to buy lots of share plus expose them to lots of risk. so everytime share price move only, the MM have to buy or sell share for every option they sold to hedge. as the price increases the MM will have to buy exponential more share to hedge against it as gamma increases exponentially, thus gamma squeeze![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
https://www.fool.com/investing/2021/01/28/what-is-a-gamma-squeeze/
doctorpot1 OP divinepapa : I think you all already camp here to wait to see if gamma squeeze happen then quickly flip for profit liao right hahahahaha![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
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