What is a Gamma Squeeze? Understand the GameStop Play

“Gamma squeeze” is a relatively obscure term understood by experienced options traders. However, as of late, gamma squeezes are occurring more often than ever on Wall Street, so investors should educate themselves on the term. What is a Gamma Squeeze?In options markets, a gamma squeeze occurs when a stock swiftly rallies due to market maker hedging.Options 101To clearly understand gamma squeezes, investors must first have a handle on the inner workings of the options market. Options are financial derivative ...