September 25, 2024
BlackRock Bitcoin ETF Options to Set Stage for GME-Like ‘Gamma Squeeze’ Rally, Bitwise Predicts #NewsETFs

BlackRock Bitcoin ETF Options to Set Stage for GME-Like ‘Gamma Squeeze’ Rally, Bitwise Predicts #NewsETFs

CashNews.co

When investors buy a lot of call options, anticipating a price rally, market makers, who are mandated to maintain a net market-neutral exposure, end up on the other side of the trade, holding large amounts of short call positions, often called short gamma exposure. As such, they purchase the underlying asset as the market rallies because they are obligated to deliver the underlying asset to the call option buyer.

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