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5:00The Market Maker's Hedge (and the Gamma Squeeze)
When you buy a call option, someone must hedge it, and that hedging is what sent GameStop vertical.
When you buy a call on Robinhood, a market maker, firms like Citadel Securities or Susquehanna (SIG), almost always sells it to you. They don't want a bet on the stock; they want the bid-ask spread. So the instant they sell you the call, they hedge.
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