The gamma squeeze
What happens when banks are forced to cover bets in the options markets?
Unhedged · Financial Times & Pushkin Industries
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Show Notes
Nvidia continues its rocket-like rise: Investors have piled in, as have day traders who play the stock with options. This is causing banks and market makers to load up on shares in order to cover trades. It's a feedback loop traders call the gamma squeeze, and some are concerned it’s distorting markets. Today on the show, Katie Martin talks about Nvidia and the gamma squeeze with correspondent George Steer. Also we go long the ECB and short proposals for a Texas stock exchange.
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Read a transcript of this episode on FT.com
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