The GameStop Gamma Wall Breaks Down as Virus Variants Ring Alarm Bells

Published on
January 29th, 2021
Duration
55 minutes

Robinhood on Shaky Ground and Potential Market Destabilization to Come


The GameStop Gamma Wall Breaks Down as Virus Variants Ring Alarm Bells

Daily Briefing ·
Featuring Jack Farley, Lily Francus, Ash Bennington, and Ed Harrison

Published on: January 29th, 2021 • Duration: 55 minutes

In the intro, Real Vision senior editor Ash Bennington speaks to Lily Francus, derivatives trader and PhD candidate in Bioinformatics at the University of California San Diego, about the unique market mechanics that have characterized the run in GameStop Corp ($GME). In the main segment, Ash welcomes managing editor Ed Harrison and editor Jack Farley to debate whether the Robinhood ban on trading is unfair and if it reveals unseen holes in the functioning of capital markets. Jack provides data on options flow in $GME, and the three explore whether the wall of gamma will break down or get even higher, agreeing that Monday will be a turning point as this is when $GME calls with higher strike prices could get written (and can be bought by retail traders). Ash and Ed discuss how susceptible the various COVID-19 variants are to the vaccines and how their ominous spread will impact the reflation trade.

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