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A comment on SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally. Parent comment

Re:SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally by quickthrowman on Friday September 04, 2020 @12:37PM (#24376503)
And then the options expire, MMs unwind their hedges and gamma comes back down. There’s no infinite gamma trick
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Re:SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally by AndrewBissell on Friday September 04, 2020 @12:43PM (#24376574)
Yes, obviously the reflexivity does not proceed ad infinitum, but these dynamics are often responsible for extremely violent moves in the short term. The effects can be even more pronounced right before expiration.

http://m.koreatimes.co.kr/pages/article.amp.asp?newsIdx=7768...

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Re:SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally by quickthrowman on Friday September 04, 2020 @12:50PM (#24376628)
Indeed, gamma squeezes can produce lots of volatility near OpEx. And call rolling can just push the gamma further out for another squeeze come the next OpEx.
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