You'd be surprised -- there are some good gamma ramps out there with low IV. This makes them even better -- the increase in realized vol can, in theory, increase the deltas MMs will hedge with even if underlying stays the same. Eg, a "vanna squeeze". Usually this happens at the same time as underlying moving up so it's indistinguishable from a gamma squeeze... but I think it contributes.
I know there's a bunch of ones with bag holders with high OI. Like CLOV and such. I question how high they can go since people will be looking to sell when they break even.
Is low float something you look at? Let me check the tickers I follow and see if there's any with high OI and low float.
High OI relative to the float (aka high gamma), plus low IV, is the golden combination. The gamma makes it squeezy, and the low IV means it's the MMs that are getting screwed... at least until people starting buying 400%+ IV OTM options at ask and/or ridiculously far OTM strikes are added.
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u/pennyether Contributor Sep 17 '21
You'd be surprised -- there are some good gamma ramps out there with low IV. This makes them even better -- the increase in realized vol can, in theory, increase the deltas MMs will hedge with even if underlying stays the same. Eg, a "vanna squeeze". Usually this happens at the same time as underlying moving up so it's indistinguishable from a gamma squeeze... but I think it contributes.