Bloomberg reports fastest rise in gamma as extreme speculation grips US stocks
Crypto Briefing
A record-breaking surge in stock market gamma, driven by intense speculation in specific US equities, is amplifying momentum and market volatility.Summary
Stock market gamma has reached record levels at an unprecedented speed, signaling extreme speculation concentrated in a select group of US equities. As Bloomberg macro strategist Simon White explains, this positive gamma forces options dealers to act as momentum amplifiers, buying during price increases and selling during downturns. This trend, characterized by high market breadth, bears similarities to the 2021 meme-stock frenzy. While this dynamic can suppress traditional volatility indicators like the VIX, it creates fragility, as the current uniform price movement suggests that risk assets may face sharp, collective reversals when dealer-driven mechanics shift.
(Source：Crypto Briefing)