RPT-EXPLAINER-What is a gamma squeeze and how did it drive up AMC’s stock price?
(Repeats EXPLAINER originally published on June 3, no changes)
NEW YORK, June 3 (Reuters) – Shares of AMC Entertainment Holdings Inc surged to a record high this week in a blistering rally that again highlighted how an arcane options market dynamic known as a gamma squeeze can super-charge stock price gains.
WHAT IS OPTIONS GAMMA?
AMCs rally was partly fueled by heavy trading of equity options. These financial derivatives give buyers the right to buy or sell shares at a fixed price in the future,…
