Oct. 25 at 4:02 AM
$CRNT i asked chat to map out gamma ramp scenario
🚦 First: What triggers a Gamma Ramp?
Market makers who sold those 6,106 contracts (610,600 shares of exposure) must hedge as CRNT moves up.
Hedging formula:
Shares to hedge ≈ Open Interest × 100 × Delta
As price rises → Delta rises fast → they must buy more, chasing price.
That feedback loop = gamma ramp.
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✅ Current Situation (base case)
Price:
$2.54
Delta: 0.37
OI: 6,106
Current hedge need:
610,600 × 0.37 ≈ 226,000 shares
So they’re likely already partially hedged.
⸻
🎯 Scenario Map: What Happens as Price Climbs
CRNT Stock Price Est. Delta Hedge Share Requirement Shares MM Must Buy (approx.) Pressure Level
$2.60 ✅ breakout alert 0.45 610,600 × .45 = 275,000 +50,000 buys Moderate pressure begins
$2.75 🔥 0.55 336,000 +61,000 buys Acceleration zone
$3.00 ⚠️ strike hit 0.65 397,000 +61,000 buys Starts forcing panic covers
$3.25 🚀 0.75 458,000 +61,000 buys Feedback loop gets real
$3.50 🧨 0.85 519,000
Every 10¢ pop = forced buying
