What Is A Gamma Squeeze? A ton of investing terms exist that you might not be familiar with. A “squeeze” is one of those. Whenever a company experiences hasty changes to its stock price, it creates the perfect environment for a squeeze.
A squeeze in investing terms means that the investors of that stock are “squeezed” into an unfamiliar position. This is usually due to a high buying demand for that stock. The investors that shorted the stock are now rushing to exit their position. As one can imagine, this drives the price to go even higher.
There are two types of squeezes in the investing world – a short squeeze and a gamma squeeze. The stock market is a great place for amateur traders to make money. So understanding how a gamma and a short squeeze works are important. Let’s explain both.[Read more…] about What Is A Gamma Squeeze? The 1 Answer You Need