Gamma Squeeze
A gamma squeeze is a price spiral where dealer hedging of short call (or put) gamma forces them to buy rallies and sell dips, amplifying the move that created the gamma.
Definition
Gamma Squeeze refers to a gamma squeeze is a price spiral where dealer hedging of short call (or put) gamma forces them to buy rallies and sell dips, amplifying the move that created the gamma. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
It is a named object desks use to frame risk, positioning, or process. When a gamma squeeze is a price spiral where dealer hedging of short call (or put) gamma forces them to buy rallies and sell dips, amplifying the move that created the gamma shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what gamma squeeze is saying. If a gamma squeeze is a price spiral where dealer hedging of short call (or put) gamma forces them to buy rallies and sell dips, amplifying the move that created the gamma moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Keep the definition fixed, then challenge it with cross-checks before sizing. Prefer a short written null hypothesis for Gamma Squeeze: what would falsify the current reading in the next window?
Ask the macro AI about this object
Opens Copilot with Codex + RAG context, or send the object into Alpha Factory intake.