‘Gamma Squeezes’ Are In Play as Options Drive a Two-Faced Market
- Trading in single-stock derivatives helps spur wild meme moves
- Benchmark index is calm as options, volatility bets fade away
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A once-obscure but increasingly influential dynamic in the options market may explain why U.S. equities have been so two-faced lately.
As meme mania rages, companies such as AMC Entertainment Holdings Inc. are whipsawing traders like never before. Yet at index level stocks are the most placid in years, with the S&P 500 Index posting its sleepiest stretch since 2017.