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Tomorrow’s Quad Witching Day might actually be the perfect storm for this UWMC Gamma Squeeze on the 6/18 calls

First things first, a gamma squeeze is when there is a shitload of options open and expiring ITM forcing a bunch of shares to be bought up and causing the share price to go up and then triggering all the options at the next strike to exercise, it's a snow ball effect, combine that with approximately 20 percent short you could get a mini short squeeze too.

Now, Quadruple witching refers to a date on which derivatives of stock index futures, stock index options, stock options, and single stock futures expire simultaneously. Quadruple witching days witness heavy trading volume, in part, due to the offsetting of existing futures and options contracts that are profitable. Gamma Squeeze, plus mini short squeeze, plus Quad Witching expiry day which only happens once every quarter? Sign me up.

Sooooo here is where it gets juicy, UWMC has over 40k options open at the 9c strike and another 40k at 10c, and another 40k at the 11c thats approximately 4 million shares that have to be bought if the share price is over 9… which it is, 8 million shares if its over ten… which it very well could be, and 12 million shares if it tests 11… all that would have to be bought sometime tomorrow to cover the open calls…. This is a perfect storm, Low IV too, seriously look how cheap the 6/18 10c on UWMC and see how close to the money it is? It's a no brainer. There is going to be heavy volume tomorrow and UWMC is going to snowball all the way to 12, I think it peaks out around 12.40 tomorrow up about 25%

TL;DR UWMC is gonna moon over 12 tomorrow, buy buy buy buy

submitted by /u/Studcracker
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