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Risk & Position Management
Gamma Squeeze
Definition
A rapid stock-price spike driven by option market-makers hedging short-call exposure. As the share price rises, dealers must buy more underlying to remain delta-neutral, accelerating the squeeze. The 2021 US meme-stock rally was the textbook example.
Related Terms
Short Squeeze
A rapid increase in a stock's price caused by short sellers rushing to cover their positions. When many shorts try to buy shares simultaneously, it can drive the price up dramatically, forcing more shorts to cover.
Implied Volatility
The market's forward-looking estimate of a stock's volatility, derived from option prices. Elevated IV signals expected price swings — useful for sizing short positions and timing squeeze setups.
See short selling in action
Explore real-time ASIC short position data for ASX stocks.