/biz/ - Business & Finance

>>58530012
>Can someone explain why the calls are such a big deal? Who's selling them, who bought them. What if they're not ITM or does that not matter?


>>58530012
Because it creates a gamma squeeze when the calls are executed.

It gives the buyer the right to buy shares of company ABC at price XYZ. When executed, the Market Maker is now forced to seek out stock in ABC to give to the executor at price XYZ.

Take this knowledge and compound it with the fact that is stock shorted above 100%...

Hope this helps.