Here Is The Gamma Bomb That Just Sparked Tesla's Insane Meltup

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by Tyler Durden
Monday, Oct 25, 2021 - 06:44 PM

If you, like us, are watching the insane meltup in TSLA which not only topped $1 trillion in market cap today, but has gained more than $140 billion since opening, a value that is almost as big as the market cap of GM and Ford, and is now rising by $1 billion every 5 seconds...

... the last thing you care about is what is behind this move (clearly it is not fundamentals). Still, some may ask just what is the driving force in this market that allows a $1 trillion company to trade like a pennystock, and gain over $100 billion in market cap the answer - to no one's surprise - is gamma, and specifically $900 call shorts who were trapped by today's jerk higher and who have been unable to exit their positions in time, creating a gamma vacuum above $900...

... that sparked a covering feedback scenario which has sent the stock surging and forcing yet another Volkswagen-like squeeze.

The full explanation in the clip below courtesy of our friends at Spot Gamma.