Ev Williams
speaker
383 appearances
2 recordings
2 series
first heard Jun 2026
last heard 18 Jun
Ev Williams’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsRecordings per month over the last 12 months — 2 in all, peaking in Jun 2026 with 2.
Appearances
Exactly.
And so what a gamma squeeze is, if I buy a call option, I'm buying the right to buy a stock at a certain price.
And so there's some market maker on the other side of that trade writing me the option.
And what they need to do on their side in order to hedge their risk is buy some of the stock directly.
And so what a gamma squeeze is, is when you have a ton of people buying a ton of call options on a stock, you then have a bunch of counterparties, a bunch of market makers that then have to go structurally buy the stock in order to hedge their risk.
And then you create this cycle, this like self-reinforcing loop
where the more call options people are buying, the more forced buying there is from market makers, which then forces more or counterparties, which then encourages more retail people to buy more call options because the stock is going up.
And so when there's only 4% of the float trading, only 4% of the shares trading, it's so thinly traded that...
Something like a game of squeeze where you have this forced buying reinforced loop can happen very quickly.
So that's not to say that the stock's going to collapse or anything, but when you have this sort of situation, when a company starts trading, especially a really hot company, the price action, even though it's very fun to talk about because Elon can make Warren Buffett's net worth in a day or whatever, nothing matters until the lockup's gone because that's the only time that anyone can actually...
you know, it's almost like a private, it's like a private mark.
Like it looks good.
You love to look at it.
You put it in your little spreadsheet, but you can't take it to the bank.
And so it matters much less than, than, you know, what, what, like the stock price in six months from now, like that is what we should be talking about.
And that's going to be the barometer by which we can grade, you know, investors and insiders.
And there's been plenty of IPOs before where, you know, people do the victory lap, you know, on day one of the IPO, the stock goes down 60%.
And then it's a different situation once, once the lockup's up.
I would probably, just because of the retail mania around the stock in particular, I would personally probably take the under in six months.
Not because I don't think that the company is going to be valued extremely well.
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