Archive · 24 Jul 2025

Meme Stock Mania: Gamma Squeezes Fueling Market Swings

Meme Stock Mania: Gamma Squeezes Fueling Market Swings

Some stocks are going up really fast, like in a game of hot potato.

This is because people are buying them and also because of something called a 'gamma squeeze.'

Imagine you're selling tickets for a ride, and the ride's popularity goes up.

You'll need to buy more parts to make sure the ride keeps working.

That's similar to what happens with stocks and options.

When the price goes up quickly, people who sold options have to buy the stock to cover their bets, which pushes the price even higher.

But experts are worried this could mean the good times for the stock market are ending, so be careful!

Sources