On 2/1 with GME stock at $225 we wrote about how options dealer flows could result in the stock dropping to the $60 strike. We highlighted this strike because it was where the largest concentration of options were placed (from a gamma perspective). You can see that is is precisely what has played out: This […]
GME
Weaponized Gamma Reloaded
The latest options data revealed that equity option call buying surged this week, blowing out the previous record week. Shown in the chart below is the total number of contracts bought to open netted against contracts sold to close. This suggests that traders on net did not elect to close out of their long calls […]
GME Ran Out of Options Strikes
GME stock closed at 31.58 today, +57%. This was a bit off its high of $38.38, or 90%. This stock traded 589k calls today, >375k of which expires in 2 days. Amazingly the stock “ran out” of call strikes, with the highest strikes being $40. Traders used that 1/15 expiration, $40 strike call to trade […]