Let's once again consolidate the reasons behind SMCI's huge decline in the last two Fridays

1. Retail investors and institutions burst into buying a company's call options

2. Options market makers prevent the exercise of power and are forced to buy the underlying stock

3. The normal buying behavior of options market makers becomes a driving force for stock prices

4. General prices have soared, and retail investors and institutions are buying more bullish options

5. Options market makers are forced to buy the underlying stock again

6. The above process was repeated, and in the end, GamMasqueeze was formed, and everyone in the market was buying and selling

7. Options market makers have bought too many underlying stocks, accumulating huge risks

8. Options market makers then carry out delta hedging. Options market makers adjust their trading quotes. Options market makers can indirectly influence the market price of options. If the market price changes, the calculated IV will also change accordingly according to the options pricing model (such as the Black-Scholes model). This means that although market makers cannot directly set IV, their pricing strategies and market behavior can influence the market price of options, which in turn indirectly affects the level of IV. Options market makers have made buying calls less profitable; retail investors and institutions are no longer buying bullish options

9. Because no one is buying the call, options market makers will sell their shares. This creates selling pressure. Retail investors and institutions begin to stop making profits, stock prices fall, and retail investors and institutions begin to buy and put

11. Options market makers need to hedge their positions, so they are forced to sell their underlying shares, further triggering options market makers to sell their underlying shares at an accelerated pace

12. The above process is repeated over and over again, which forms the opposite GAMMA squeeze, and everyone in the market is buying and losing

13. It stepped on the road and ushered in a huge decline in a very short period of time