Oct. 25 at 12:58 PM
$COUR Very predictable after a few retail investors claimed they bought calls.
🔹 1. When retail traders buy calls:
They’re not buying the stock directly — they’re buying options.
But the market makers who sell these calls must hedge their exposure by buying the underlying stock (to stay delta-neutral).
→ That hedging demand often pushes the stock price up in the short term.
This is called a “gamma squeeze” if the buying is large enough (e.g., GME, AMC episodes).
🔹 2. As time passes or if the stock doesn’t rise:
If the stock stays flat or declines, those calls lose value quickly (theta decay).
Market makers will unwind their hedges — meaning they sell the stock they previously bought.
→ That selling can push the stock price down.
So ironically:
The initial surge in call buying can lift the price,
but later, as calls expire worthless or traders take losses, it can cause downward pressure.
🔹 3. If everyone’s super bullish (too many calls bought):
