Finnxwyz
06-08

Hhh

@OptionsDelta：
GameStop (GME) timed the 12pm stream strategically - Kittey plans to leverage options expiration for a squeeze. On Friday's open, brokers will conduct risk checks for the latter half of the session. If the sell calls become in-the-money, insufficient margin will trigger margin calls. There are two scenarios for sufficient margin. Market makers will hedge by buying shares based on gamma exposure, potentially causing a gamma squeeze. For retail selling calls, while they don't delta hedge based on a model, we've all seen the panic buy-to-cover in the comments when the stock rips against their short calls. It amounts to the same buy pressure. Objectively, Kittey's latest FOMO campaign succeeded, with GME options volume exploding to 5th highest across all tickers at 1.519 million contracts. However, at-the-money call openings aren't extremely high. For example, the 45 strike saw 40,600 traded but only 3,723 new openings, with 10,200 total open interest. Which call strike has the highest open interest? The $GME 20240607 128.0 CALL$ with 57,500 contracts. It's implying an incredible 1143.11% implied volatility, or 253.4% annualized selling premium. Whether Kittey's artificial wave can propel GME over $60 remains to be seen. Stay tuned.
GameStop (GME) timed the 12pm stream strategically - Kittey plans to leverage options expiration for a squeeze. On Friday's open, brokers will conduct risk checks for the latter half of the session. If the sell calls become in-the-money, insufficient margin will trigger margin calls. There are two scenarios for sufficient margin. Market makers will hedge by buying shares based on gamma exposure, potentially causing a gamma squeeze. For retail selling calls, while they don't delta hedge based on a model, we've all seen the panic buy-to-cover in the comments when the stock rips against their short calls. It amounts to the same buy pressure. Objectively, Kittey's latest FOMO campaign succeeded, with GME options volume exploding to 5th highest across all tickers at 1.519 million contracts. However, at-the-money call openings aren't extremely high. For example, the 45 strike saw 40,600 traded but only 3,723 new openings, with 10,200 total open interest. Which call strike has the highest open interest? The $GME 20240607 128.0 CALL$ with 57,500 contracts. It's implying an incredible 1143.11% implied volatility, or 253.4% annualized selling premium. Whether Kittey's artificial wave can propel GME over $60 remains to be seen. Stay tuned.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

  • Top
  • Latest
empty
No comments yet