/biz/ - Business & Finance

GME Infinite Gamma Squeeze | Gap In Option Market Structure | Once In a Lifetime Opportunity

# Context

What happened last week with GME stock price and option was a combination of a gamma squeeze \[1\] and infinite short squeeze \[2\]. For the first time in financial history all GME call options are in the money (ITM) because the highest call strike price set by the CBOE for Januaray 29, 2021 is $60.

**Note:** A primer on gamma squeeze:

h[ttps://www.reddit.com/r/wallstreetbets/comments/l2t9bf/gme\_i\_think\_this\_is\_a\_gamma\_squeeze\_where\_dealers/](https://www.reddit.com/r/wallstreetbets/comments/l2t9bf/gme_i_think_this_is_a_gamma_squeeze_where_dealers/))

Market Maker \[1\] are in a condition never observed in financial history. Hundred of thousands of retail (wsb) are buying the GME 60C across the options calendar and MM can't hedge properly because there are not enough GME shares to buy to properly financially hedge (accounting for the interest rate to borrow)

# Market Structure

To summarize the market structure:

1. Few GME shares to hedge.
2. Hundreds of thousands of (wsb) are buying the GME 60C because of the infinite short squeeze.
3. January 29, 2021 60C call option are the highest one on the option change for that date.
4. Conditions for Infinite Gamma Squeeze & Infinite Short Squeeze

As you may now realize --(MM and brokers) hope you don't -- there is a gap in the market structure that leaves them (MM/Citadel) vulnerable to massive losses.

# Infinite Gamma Squeeze

***Should*** **million of retails (wsb) buy the Januray 29, 2021 60C weekly on Monday, this will create an infinite gamma squeeze because MM still can't properly hedge, and are forced to buy shares at whatever price to hedge. MM doing so, forces brokers to margin call the shorts caught in their infinite short squeeze. Both conditions are pro-cyclical and feed on each other in an infinite feedback loop** ***so long as more an more retails buy the GME 60C.***

There is a chance that MM can dump the shares they bought to hedged the gamma steepening and call buying \[1\]. However, doing so does not make them market neutral. It effectively turns MM into a hedge fund. SEC may allow them to get away from this momentarily.

**However, after the MM dump shares in an attempt to stop the infinite gamma squeeze they will be net short GME shares and unhedged/not market neutral.** If after the MM dump, retails continue to buy GME shares up to the $60 price, MM will be caught in a *exponentially worse gamma squeeze*, which should GME go pass 60C (gamma bump) on the week of January 25, it would turn into the one of biggest tail risk event for the MM/Citidal

**tldr;**

**There is a gap in the market structure so that if millions of retails buy Januray 29 GME 60C on January 25 2021, there is a high probability of both an infinite gamma and short squeeze. This has never happened in financial history. And should millions of retail buy the January 29 GME60C 2021, the losses for MM but profits for retail will be massive. Retails could see 100000% return on their weekly GME Januray 29 call options at the highest strike price.**

**Edit1:** Apparently there may be higher call prices for the January 29 2021 option chains. Fundamentally, this analysis is still correct. Should millions of retail all choose a common higher call strike price to buy (higher than 60C), the gamma squeeze will be triggered when that prices is hit.

Example:

Should millions of retail buy the January 29 70C or January 29 75C, and the infinite short squeeze continues. If the GME 70C or 75C is hit, GME share price enters a gamma squeeze.

What the MM are hoping for are twofolds:

1. They scare retails to sell below $60. This alleviates the infinite gamma squeeze. Or;
2. Retails don't all buy the same call options. But given that wsb loves high risk, I hypothesize they will all choose the furthest OTM call options.

GME at 60 is the Maginot line next week. Should it go to 75, gamma and infinite short squeeze continues. Should it fall below it, MM have won a strategic victory.

**Edit2:**

For gamma squeeze, you look at the open interest (OI) and strike price. Should the share price get close to the price with a highest open interest, that's when the gamma steepening occurs as probability goes to 1. MM have to buy shares to remain neutral as the options are now ITM.

Bumpity bump

this isn't WSB
Monday is sell day for GME anyway

>>26469332
Theyre crypto retards don’t even bother

so should I buy like 15 shares of GME for 915$ at 61$ per share ??
is that even worth it ?
I'm too poor or stupid for calls
whats the price target ? I hard retardders its 5000$ a share fuck outta here
but then again idk

>>26469332
Tell me what to buy

>>26469104
I read all that but because I'm retarded I didn't understand much, as a summary question are you saying this situation is a win for investors no matter what happens because it's that absurd?

I've already seen so many comments about BAEX. baex! Do you use it? The exchange offers NASDAQ, Uber, Amazon, Disney and other shares that can bring a good benefits. But firstly, I wanna know your mind

this is not crypto, (((they))) are just going to shut it down and settle it out of the markets.do yo

somehow I think its not that easy as redditors say it is and some backroom dealings have already been at play or have occured
to cuck redditors and speculators out of whatever money they invest

can any bizlords deciper this stonk mumbo jumbo in stupid ultra laymens terms I'm thinking of hucking 1000$ on GME on monday but is it even worth it just to get shares and not calls ?

>>26470289
(((they))) never lose, and believe me this blood has attracted big fish

>buy redditor bags
no ty

>>26470554
heh I might just cancel my limit buy for GME

by they do you mean MM/ Citadel ?
there not going to be backed into a corner by reddit faggots a thousand lawyers are probably ready for monday
or maybe your wrong and GME stonk goes parabolic and most of biz rope themselves for not buying at least a few shares when it hits like 10,000$ per share

I hope these reddit fags making gains get redpilled on taxes

>>26470787
>10,000$ per share
oh boy, no way this happens. Trading will be halted and your brokerage will report you to IRS for not being a good goy.

>>26469104
kek, i'm in

ill buy just 1k stocks

>>26469104
It's too late. Buy AMC

>>26470289

it is that easy. these hedge managers are incredibly arrogant. and this is their modus operandi.
what they did is make a promise that the share price will fall to a certain price in a certain time frame. if that price occurs they win and make a lot of money. however if the price goes up instead at the time where they promised it would be low, and the amount of promises is higher than the amount of freely available shares, they are forced to buy shares back at whatever price that they are available. once this starts to happen, the price of the share will start to skyrocket infinitely because by having to buy the shares they are decreasing the supply

they are basically getting cucked very very hard if people hold on to their shares long enough

>>26470871
COPE
O
P
E

Got off too early

>>26470070
Who is the retard then

>>26471036
so should I do it or no

so...should i buy?

buy if you think it's smart. the stock was shorted heavily. I'll be putting all the money I can in on Monday - but I'm prepared to lose it

>>26471443

apart from involving the SEC or claiming fraud there isn't much that the people who have a short position can do
if you get in at <100 you will most likely see 5x-10x? it depends on how strong the people will hold
in any case the big hedges are getting fucked
its better than spending money on a shitcoin anyhow

just buy some GME to send a message if you can afford it

if you arent experienced just buy shares/stocks dont bother with calls

>>26469104
Wtf is this I'm not American how do I profit off this?

>>26470289
It should be noted Redditors are going to hold to a retarded number like $420.69 that won’t happen, buy too late, and be too stubborn to sell when it’s declining all the way. People will get fucked like with everything
Be sensible with how much it’ll rise

>>26471964
what the hell is the target price I keep hearing infinite moon rocket here
5000$ ? psssssh
might as well huck at least 1000$ market buy on 9AM monday

buying $800 worth of GME, selling if it reaches tripple digits

>>26470289
/smg/ has been long gamestop since September and no longer reccomends buying at these prices

buy Bed Bath and Beyond stock instead, it has high short interest (like GME), is buying back stock and paying down debt (like GME), and is shorted by Melvin Capital (like GME)

>>26469914
prepare to go bankrupt boomer

>>26472112

https://en.wikipedia.org/wiki/Short_squeeze


i dont know what price it will rise to in the end, however what you should keep in mind is that short positions are forced to buy at whatever price is available, and there are more short positions than there are available shares

if people hold long enough shorters are getting raped

they will try every trick in the book to get out of it lol

keep in mind that the people doing these shorts are part of big hedge funds, they aren't small people like you and me, these hedges literally make money off killing businesses and forcing people into unemployment

this is glorious, i dont even care if im going to lose all my money , i just want to see these fat kikes lose for once

>>26472326
this shit hasn't even started, see
>>26472345

>>26472448
I'm still holding GME that I bought at $12 but buying more at $65+ is disgusting

>>26472621
Just don't sell until the squeeze actually happens. Place some limit orders for your exit prices

>>26472621
you are idiotic
this is a once in a lifetime event

Blackberry next. It's time to break markets.

>>26471090
ok?

>>26472854
and PLTR
what a time to be alive

>>26472854
>>26473035
One at a time, don't let them split our forces

The MM will just halt it 10 times till it’s $35

>>26472385
BASED

>>26473142
This. They kill any upward momentum.

>>26473218
It’s gonna get ugly, the MM will not put up with this shit. They will bring it down. I’m not saying it will not go up more, but in the end they win.

>>26471036
I've been banking with GameStop for years because I knew they would one day destroy the banks. It's basically like knowing Netflix is going to destroy Blockbuster. Banking with GameStop is the future boomers

>>26473142
MM can't do shit, if they pull some shit the autistic hivehind will nail them for collusion with SEC

>>26472385
The fat kikes never lose
Try again

>>26472112
I see a chance it could drop by 50%, but also a change for good upside, so I'm putting in 2x the amount I'd be comfortable losing.

Bros should I throw £5k at this it's all my money (or more likely just £500 kek).

But for real should I do a market order or wait until opening and see what happens? First time buying stocks.

>>26473362
You don’t know shit, they will always win. MM will halt it a bunch

>>26469104
Bump

Gamers Rise Up!

>>26469104
I guess I'll purchase 1 share and see what happens.

I think the kikes wont have it and they/ll halt the trading.

>>26472385
Based
Dumping 1k on GME on Monday
Thanks for the service anon

>>26473545
Wait for a dip or buy a stock before it pumps not after. Lol

>>26473554
>>26473995
this person is short GME

>>26469104
The saddest part is that this guy works for Gamestop corporate and has to shill like this to pump his worthless stock.

>>26474057
Projection. Paid by people short GME

You know whats awful, when a company that got you in its doors by selling you 2 for 10 used games suddenly wants like 30$ each game because they are going out of business so why not pour gas on the fire. Perfect example of a company failing to adapt and doing the exact opposite of helping itself.

115c 1/29 Monday morning

>>26474057
uh

>>26473511
Even assuming people pussy out which is very unlikely given the current sentiment on Reddit, and it collapses to $30, all you have to do is average down and wait for Cohen to recover it.

I don't see a way that this doesn't at least double in the short term, if an infinity squeeze does happen it will be amazing to watch but I don't know if I will have the balls to hold through that.

>>26471033
Unironically this. AMC to the moon

>>26474057
lolwut bullish for GME

$10'000 @ market open, stop loss @ $5'000

Not normally my thing but it has potential to explode so why not.

The short squeeze already happened. Fresh shorts just locked in. Won't be another move like this for a while.

>>26474575
idk if I should huck my 1K into GME or AMC
or would the big brain move be 50/50 ? on monday ?

>>26475012
says you

>>26475148
GME, AMC is China, movies out of Pedowood are shit anyway.

>>26475012
gamma squeeze, not short squeeze. Money is around the corner.
t. $1200 of GME is my first ever stock

>>26469104
nigger did you just copy paste a wsb post on here
i am long gme with 100% of my net worth but this is gay as fuck

>>26469289
If there aren't enough GME shares for MMs to purchase to sell calls, why would they still sell calls? WSB can't keep buying $60 calls if nobody is willing to write them anymore

How long are you expecting to be in? In and out in a day? A week?

>>26475148
BB

You’ll be in before everyone else

>>26473351

>>26475787
is that bed bath and beyond or black berry ?

>>26475968
blackberry

i would not be surprised if every single person trying to trade options on gamestop gets audited or interviewed by the SEC for collusion to manipulate stock prices
not putting my dick into this hornets' nest, fuck right off

>>26474552
I really want to see it happen
I'm dumping my spare 600$ that I use for swinging meme stocks tommorow

>>26475968
BB is Blackberry but you should buy Bed Bath and Beyond (BBBY) as well

Avoid AMC at all costs

wth the golden bull is for gamestop and not btc

>>26472854
My Jew friend told me to buy Blackberry a year and a half ago.

>>26475548
>GME is my first ever stock
>Im going to tell you how complicated scenarios involving derivatives work
lol, there's gonna be a lot of tears in a few days

>>26473321
Yep anyone thinking this is an endless money train are about to take the financial blackpill

>>26476215
Not surprised in this clown world anymore
Willing to put 1K into this on Monday just shares tho
Inb5 it makes me a millionaire and gme is 61000$ EOD EOW

folks on you, I'm out that scam
dont think such protocols can bring you anything except scam shit
I better will listen to my fellas and follow Cascade on Base protocol
top market volume on Uni and top results among other platforms for last months

>>26473142
pull ze plug

>>26476358
confused bots is bullish for the gamestop protocol

>>26476300
>reading comes with experience

You guys going in with leverage??

>>26476952
my only leverage is goign in with money im ok with losing.

Risk reward is too high at this point. Don't underestimate big money MM's.

>>26471036
Why would they not just sell tomorrow at 60usd? If I can buy stonks why wouldnt they be able to terminate their contracts tomorrow? They know of ThE PLaN

>>26476952
you're a moron if you use leverage on something this volatile. everyone with GME shares right now (including me) is basically sitting on a pile of gunpowder tossing a torch back and forth while market makers desperately pour water onto the gunpowder to prevent it going off. the next week is going to be very exciting

>>26477119
What can they possibly do?

>>26477119
>Basing your decision on the technicals
>Not basing your decision on how many retards on Reddit believe in the technicals

Fuck all this muh institutional investors memeshit. Im piling cash in because Reddit boomers and teens are delusional enough to think its gonna go to 500

>>26477138
im using margin but my cost basis is 20$ so im comfy af

yeah, i'm putting a couple hundred in at open
gonna have to wait for my kraken wire to get a bigger stack

>>26477656
nice
>>26477719
i might through another $1500 in on monday morning. every bit of upward pressure helps. its just such a wacky situation

Already cashed out. BB is the next juicy stock.

>>26477656
margin can be traded by brokers so you're part of the problem if you aren't buying with cold hard cash.

Will Meade called GME and JMIA

trading on margin is counter intuitive

>>26469104

I'm longing a company with real revenues

>>26477437
Can't GME issue more stocks? To raise money?

>>26478595
Makes no sense until price is stable.

>>26478639
Why?
They're overpriced now already.
They can raise a bunch of money easily.

gme is dumping to $20 tomorrow, can't wait to see redditors rope en masse

>>26469104
can someone explain this to a retarded person?
Is Reddit just doing a gigantic open pump and dump?

>>26478987
Without the dump. It will never go back to 20$, not even $30 i think

>>26478987
not a p&d, just taking advantage of a unique situation. but imo, paperhands will give in really fast.

>>26478752
if you ran the books for GME would you honestly make an offering right now. This short squeeze is good publicity.

Imagine the tens of thousands of normies that will have inevitably queued their life savings on robinhood in a single market buy. What will happen the second this drops once their pump is over? These are the worst of the worst. If you're going in now I guess you have to hope they have spent the weekend reading into the situation enough to stay in the game.

95% of them probably don't even know about the 25k rule either. I expect a lot of people to get locked in or out because of this.

>>26479505
normies can only help the squeeze due to the inevitable people who will have paper hands

Never did options
But anything to screw the big guys

What do I buy?
Explain to me like I am 5

The news of GME has been marinating over the weekend and it's getting more and more coverage everyday. You don't think come tomorrow there are going to be more retards looking to FOMO their whole value + institutions trying to get in on the squeeze? Several brokerages are already increasing the margin percentages AND short interest is literally 130% which means the firms that were trying to stock are paying a shitton of money just to not settle their shorts.
It's imminent.

>>26469104
GME squeeze is going to be so gargantuan the nyse is going to try to roll it back. institutional shorts are literally going to go bankrupt this week. it's clear as day.

>>26469332
diamonds

>>26479634
Shares on opening monday

>>26479751
yes le epic reddit army is going to liquidate the institutions

>>26469238
>>26469289
>>26469332
holy shit, go back

Are we expecting a dip at opening, or should I go in at $65 immediately?

>>26479634
just buy shares and do not sell them. the market makers need them to cover the calls they sold. dont sell your shares to them, just hold until short squeeze kicks in. then hold tight

>>26480164
Reddit retards decided they did all the big brain analytics and are convinced it's gonna go tripple digits. So yeah. Buy in and sell at 500 tops.

>>26480164
It was $61 after hours so unless it pumps pre-market you'll already have your dip. Question is are you willing to wait for another dip when you know it will go to triple digits anyway? Personally I sold some of my shares on Friday but will buy most of them back at open. If there is a dip I will use the rest of my cash to take advantage of it/sell and possibly sell some of my green stocks to cash in.

>>26469798
please, fucking go back.
bumping your own shitty thread after 15 minutes of well deserved inactivity, just fucking kys

>>26480331
I’ll keep a look out on the first half hour of the market opening and see how it goes. Hopefully I can buy a dip.

>>26480331
can i just buy tonight and it will go through automatically when market opens, or do i need to buy tomorrow morning?

>>26480681
If you're waiting for a dip and it behaves like it did on Friday you'll hate yourself for not just buying at open. If I had no shares right now I'd use at least 50-75% of my cash at open and then watch. The price is still relatively low and sentiment is at an all time high.

>>26480748
Pretty sure most brokers fill orders as soon as possible at the next open

>>26480680
>stop actually talking about a once in a lifetime financial event!! we need more rubic threads!
fuck off faggot

>>26479818
Yeah?
That’s it?

I got a couple k I can part with

>>26480769
Very true. I’ll put in a buy at $62 for opening and spend the rest of the cash in the minutes afterwards. Really hoping it goes up a lot during the week.

>>26481030
Just don't panic and sell at a loss if it swings a lot on no news. Look at the volkswagen short squeeze, which started right after a huge dump (though it could also rocket right away on monday which is why I prefer buying asap and just holding)

>>26469104
What are we wallstreet bets?

>>26481149
I’m not it in for the money
I’m In it for revenge

Why the fuck is this shit pumping? Isn't this a dying corporation?

>>26481296
read the thread faggot

>>26481239
DD posts on reddit are a way better source of information than /biz/, look at all the FUD in this thread. there's no substance

all this talk about gme and rlx opened from $12-$31, can't wait to make more next week from my chinese vape stock

>>26481407
>rlx
you suggest shares or call options?

>>26481490
it's brand new there aren't any options available

>>26469104
>the biggest short squeeze in history
Were you in a coma last March?

Imagine all of plebbit wsb end up in prison getting raped by niggers. Biz will have some new recruits if they survive

nigger

>>26469104
Aren't their stores closing?
No thanks

>>26481695
why would anyone go to prison you retard

>>26481695
Oh no only institutional investors are allowed to rig the game!!!

>>26481814
why do you dumbfucks leave replies in a thread that you havent read? we arent buying because we believe in the company

Which price are all you guys buying at on Monday opening?

By the way to everyone holding or buying shares, when the inevitable trading halts trigger don't pussy out. Friday would have ended higher if it weren't for scared retailers who couldn't take the pressure. Set your own price target but don't panic during a halt and start selling below your target.

>>26482436
What targets are we looking at?
Realistically
What’s the upside

I’m only doing this to watch citron commit suicide on livestream but would like to know where it’s going

brainlet beginner here, should I put in an order to buy some GME shares on robinhood right now?

>>26482607
yeah

>>26481403
>DD
Due Dilligence or Daily Discussion?
Leddits seem to just spam rockets and circlejerk. Not far from what's going on here

>>26482646
its at 65, what if it shoots up as it seems its going to tomorrow morning? wont it make the purchase at a more expensive price?

>>26482646
>>26482607
disregard that I suck cocks

>>26469289
I will buy one just because I hate citadel

>>26473545
market order for opening

>>26482683
It means you will get fewer stocks, sure. Better to own 12 stocks that reach $1k than own 0 stocks cos you wanted to save $100.

>>26482361
it's like the standard /biz/tard reply. they are so hyped up on fucking speed and cocaine that they only spend 30 seconds in a thread at most

>>26481239
/smg/ was shilling GME since August and even before not as heavily

Any UK t212 users here?

I plan to wait for am obvious upward trend. Throw in 2k then bail out of it dips below my target price. Not going to net me big numbers but maybe 500 or so judging by yesterday's performance.

>>26482590
150$ at least unironically

>>26483255
eToro here. IMO you're dumb to not just ride it - the shorts are a clear powderkeg.

I'm am in.
Gme, gonna put 30% of my port behind it

This had to happen right when I'm in some tight financial straights. Taking as much risk as I can with this, sending in $200. Chump change, but I can part with it. Thanks for the heads up, anons

>>26472062
buy GME faggot, it's that simple. Also hold until its x10 or better x20

I realized some gains when GME hit $20, and felt pretty good about it. And when it started moving up again I picked up a bunch more to end up at an average cost of $33/share. On Friday, all of my limit sells got triggered, ranging from 55-70 dollars. I plan to buy back in tomorrow, with pic related limit orders. I think I should set a second set of orders based on the assumption it gaps up instead of dips in the AM.

I literally did not understood anything apart from some institutions should buy back when sone day cones at whatever price. Why all of this is so hard wtf. Anyway can i participate if i'm not american?

>tfw sold when i 2x my money

>>26483325
As in ride the dips? My plan seems ideal for my risk tolerance.

>>26484170
Should have sold half at 2x if you wanted to be a pussy.

>>26484191
Selling during the dips gives the shorts cheaper stocks to buy up and close. Holding just forces them to buy at a higher price.

>>26469332
Okay so i'm not really an investorfag or anything but I had some $$$ in my 401k to invest into something and two months ago i bought like $1000 worth of GME.
What should I do to take maximum profit from this?

>>26484399
hodl

>>26469238
I don't browse reddit but money is money. someone said GME is still shorted at 140%+.

dunno if that is true but god damn this squeeze will be massive. a lot of /smg/ doesn't want to go all in on this once in a lifetime opportunity thinking the squeez has already happened or its too late. retards.

>>26484604
can't help people being too pussy to try their luck on a once in a lifetime meme vs whale game. Even if we lose we tried. It's just money. What the fuck happened to "for the lulz" anyway?

>>26484683
fuck it I just hucked 920$ for 15 shares on monday limit buy for 61$ at 9am on RBH
if it imploded WHO GIvES A FUCLK

>>26484918
I'm hungry.

>>26484918
nice brah, scared money dont make no money.
I might even liquidate BB for more meme fire power. Memes are real in 2021 clown market. Best profit off of them before queen yellen shuts it down.

>I'm hungry af now

lol @ the retards in here who think money actually matters anymore.

So many of us faggots have gotten rich this past year just by investing.

The US Govt is gonna devalue our currency into nothing. Just wait faggots. You're gonna be worthless scum under this Biden administration. They will not let you rise. They will not let you ascend.

You will never make it.

>>26469104
DROPPED $550 LET'S FUCKING GO.
Realistic price prediction?

>>26485551
ok doomer, no one cares what you think. I just hope you bought GME or else gtfo

>>26469104
>>26485660
i havent decided my exit strategy yet, 300? 400? 500? Will it truly go to infinity if the hedgefunds can't even pay for shares above a certain price?

>>26485843
of course I'm loaded up on GME. Doesn't mean that I'm not aware of the fact that the big money entities aren't going to take this lightly

we're going to get rawdogged hard by powers beyond our imagination

>>26485906
>we're going to get rawdogged hard by powers beyond our imagination
are you retarded or why do you think this has just started with Biden? it's been going on since reagan you retard faggot. Buy more GME and shut your doomer mouth. WAGMI

>>26486001
>it's been going on since reagan
It's been going on since before the american revolution. It really accelerated with Woodrow Wilson

>>26486001
They're going to be going in dry and take away the power of our money soon. That's the difference faggot