What Is A “Gamma Squeeze” And How Can Options Cause One?

About this episode

This episode explains the concept of a gamma squeeze and its impact on stock prices, particularly in relation to options trading.

Have you ever seen a stock price suddenly take off like a rocket and wondered what was happening behind the scenes? In this episode, we tackle the viral market phenomenon that moved billions for stocks like GameStop and AMC. We break down the technical "plumbing" of the options market to show you how a flood of call buying forces market makers into an accelerating feedback loop. We’ll explain the two critical "Greeks"—Delta and Gamma—and why market maker hedging can act like throwing gasoline...

Topics covered

• Gamma Squeeze
• Options Trading
• Market Makers
• Delta
• Gamma
• Call Buying

Keywords

• Gamma Squeeze
• Options
• Market Makers
• Delta
• Call Buying
• Stock Price

Sponsors

OptionGenius.com

Mentioned in this episode

Places: GameStop, AMC

More episodes of Options Trading Podcast

• How Many Shares Does One Options Contract Represent? · March 9, 2026 · 12 min
• Do I Need To Own The Stock (Or Have Funds For 100 Shares) To Trade Its Options? · March 8, 2026 · 13 min
• What Are LEAPS (Long-Term Equity Anticipation Securities) Options? · March 7, 2026 · 15 min
• What Happens If I Get Assigned on an Option I Sold (Short Position)? · March 6, 2026 · 18 min
• What Is A “Poor Man’s Covered Call” Strategy? · March 5, 2026 · 18 min
• What Does It Mean To “Roll” An Options Position, And Why Would I Do It? · March 4, 2026 · 15 min