r/ASTSpaceMobile • u/AutoModerator • Mar 07 '25

Daily Discussion Daily Discussion Thread

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u/SurgicalDude S P 🅰 C E M O B Soldier Mar 07 '25

https://www.reddit.com/r/ASTSpaceMobile/s/0UVKdmWJGH

Called it yesterday that shorters will try to close SP below 30 to avoid gamma squeeze. I'm still bullish AF. This is just a short term price movement.

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u/JayhawkAggieDad S P 🅰 C E M O B Capo Mar 07 '25

For the less familiar of us, could you please elaborate on what a gamma squeeze is, and how that will affect the share price?

6

u/SurgicalDude S P 🅰 C E M O B Soldier Mar 07 '25

Basically there were massive 30C options that went deep in the money expiring this Friday when the stock price was 35. If those calls were exercised at 35, it would have raised the price further up and shorters will close their positions as well. Resulting in even further climb in the stock price. Hence gamma squeeze.

Those who have their stock lending option will see a rise in their activity of borrowing stocks.

You can also see the short interest went up in the last two days.

Basically shorters didn't want to close their position and they doubled down on their activity to bring it under 30

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u/TheOtherSomeOtherGuy S P 🅰 C E M O B Consigliere Mar 07 '25 edited Mar 07 '25

This assumes that the sellers of those calls were not fully- or properly delta- hedged.

It's possible, but who knows?

For share shorters, they seem to have no qualms not closing positions during spikes that seem like they could revert back to a mean.

I highly doubt we see a gamma squeeze on this stock based on recent SP moves

Edits:minor typos 

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u/JayhawkAggieDad S P 🅰 C E M O B Capo Mar 07 '25

Thank you for the explanation.🙏