Dan Passarelli, CEO - Market Taker Mentoring

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Bloomberg's "Five Things to Know Today" had a poll that they did about 'Are Meme Stocks Still Alive?'

Everybody knows that answer: Of Course They Are!  We got proof positive of that today by looking at Best Buy.

Best Buy is one of those stocks that showed up on Options Raider a whole bunch of times over the past couple of weeks; had some pretty profound moves over the past couple of weeks as well.

Today it lit up Options Raider in tons of different strikes and it really jumped quite a bit. It's up over 30% on the day. Why is that? We can go look at some of the news on it. But here's what it really all comes down to with some of these meme stocks: 

It comes out to just this massive amount of call buying.

Look at the volume of calls that traded today in Best Buy in just the first two expirations here. Many many times the open interest, this provides a lot of legs.

When retail customers buy these calls, market makers sell them and they may have to buy stock to hedge, which pushes the stock up. Furthermore, those market makers end up getting short a lot of what's called Gamma. And when stocks go up and market makers are short Gamma, they have to buy more stock. And that's some of what we're seeing going on here today in Best Buy. Not just a short squeeze, but also a Gamma squeeze.

So I have got my eye on Options Raider. It really gave us a lot of early signals here in Best Buy and I'm going to stick with that and keep at it. Hope that helps.