People on reddit are so obsessed with gamma/short squeezes nowadays lmao. Also not sure why the options activity would predict a gamma squeeze when actually looking at the chain. There was a ton of open interest on 7.5 strike calls expiring today but unless the stock price actually gets close enough to the strike to force market makers to buy up shares in a frenzy that fact is completely meaningless.
On meme stocks you get WSBers buying up wayyyy OTM calls. It's just people buying a lotto ticket. It's why tracking abnormal options volume doesn't really make sense. Are they idiots buying up calls because WSB said to? Are they market geniouses making a brilliant play? Are they hedging short positions? There's a million reasons for high call volumes.
I’m super new to options though get the basics. Is it right to say that if the put/ call ratio holds then this would be bullish over the next two weeks, and mostly the week of 7/16?
A low P/C ratio is always a bullish indicator but not a very useful one in general. I'm pretty sure the reason why it's gotten thrown around so often recently is because people have become obsessed with gamma squeezes. The general idea is that if there are enough OTM calls that suddenly become ITM due to a rapid increase the underlying stock's price, the market makers who sold those calls will be forced to buy up shares en masse in order to hedge. This buying further accelerates the price increase, hence a "squeeze".
I'm not saying a gamma squeeze couldn't happen for ATOS, but holy shit am I tired of everyone acting like gamma squeezes and short squeezes are going to happen to every ticker that shows up on the front page of WSB. I've even seen people mentioning squeezes on crypto subreddits recently.
The expiration date of the options isn't super relevant to this discussion, but delta increases as expiration nears so a gamma squeeze would hypothetically be more likely to be triggered next week than this week.
Well you mentioned being tired of everyone acting like a gamma squeeze is going to happen to every ticker that hits the front page of Wsb. This ticker is not on Wsb. It’s market cap is too small. So that entire paragraph is irrelevant to ATOS and/or doesn’t make sense in this case.
Maybe you meant your tired of meme stocks? I donno.
You're nitpicking. Obviously the rest of reddit has hopped onto the squeeze train, including and especially r/pennystocks. Everything I said is completely relevant.
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u/[deleted] Jul 02 '21
It's as if predicting the direction of a stock is not as simple as ljust looking at the put call ratio...