How to Spot a "Squeezequake" Before it Erupts
By Brandon Chapman, CMT
These events have strange names, but the profit potential is no laughing matter. In fact, "squeezequakes," when they happen and you spot them correctly, can be a game-changer!
See, in my MasterMind class, I help traders identify what I call "Ghost Prints," the telltale signs whales and other big market players leave behind that can point out significant options trades. These trades can create scenarios whereby you can see a "gamma squeeze" in the price of a stock.
"Gamma squeeze? Ghost print? Squeezequake?" I can hear you ask. Well, this shorthand helps me define massive money-making opportunities.
A gamma squeeze can happen when there are thousands of contracts bought in a hurry. Now, there's a market maker on the other side of that trade and that market maker is exposed. That's not a position they want to be in, so they in turn hedge their risk by buying stock.
And when a gamma squeeze ignites in a stock that already has significant short interest - that is what I call a "squeezequake."
These can be extremely powerful. I'd bet you're watching stocks right now that are experiencing these sorts of dynamics and you didn't even know it.
Tonight, we'll take a deeper dive into three stocks that are showing the first rumblings of a "squeezequake" this week…
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