Gamma context, not a guaranteed squeeze
A gamma squeeze depends on dealer positioning that is not fully visible from public data. ConvexRadar surfaces conditions that can accompany squeeze setups, such as gamma per premium and call-side pressure, and presents them as context to review.
Why several inputs matter together
Call pressure alone can be misleading. ConvexRadar combines gamma per premium, IV rank, dollar flow, liquidity, side bias, and catalyst timing so a potential squeeze setup is reviewed as a fuller picture rather than a single metric.
Evidence-based and risk-aware
ConvexRadar is research software, not trade advice. It frames gamma squeeze conditions as evidence to evaluate and never claims a squeeze will happen or that a contract will move in a given direction.
The mechanism, stated plainly
A gamma squeeze is a hedging feedback loop. When traders buy call options, the market makers on the other side are short those calls and typically hedge by buying shares of the underlying. How many shares depends on delta.
Gamma is the rate at which delta changes as the underlying moves. As price rises toward and through the strikes where those calls sit, delta increases, and the hedge requires buying more stock. That buying can push price higher, which raises delta again, which requires more buying.
The loop needs specific conditions: meaningful call open interest clustered near current price, enough gamma for delta to move quickly, and an underlying whose ordinary trading volume is small enough that hedging flow actually moves it. A mega-cap absorbs hedging demand that would visibly move a small-cap.
What is observable and what is not
The honest constraint on every gamma-squeeze tool, including this one, is that dealer positioning is not public. The chain shows open interest at each strike. It does not show who holds which side.
Standard gamma-exposure models assume calls are dealer-short and puts are dealer-long. That assumption is reasonable on average and wrong in individual cases, sometimes badly. When it is wrong, the model points the opposite way to reality.
So a gamma-squeeze screen identifies chains whose structure is consistent with squeeze conditions. It cannot confirm that dealers are positioned as the model assumes, and it cannot tell you a squeeze will occur. Anyone presenting gamma-exposure output as a measured fact about dealer books is overstating what the public chain contains.
Conditions worth reviewing
ConvexRadar reports gamma per premium alongside call pressure so the structural picture arrives with the cost of expressing it.
- Call open interest concentrated at strikes just above current price rather than scattered across the chain.
- High gamma per premium — structural sensitivity relative to what the position costs.
- Short-dated expirations, where gamma is largest and hedging adjustments most abrupt.
- A float and average volume small enough that hedging flow is material against normal turnover.
- Rising call volume against existing open interest, suggesting the concentration is being added to.
Why most candidates never squeeze
Chains that satisfy every structural condition resolve uneventfully most of the time. The underlying drifts sideways, the calls decay, dealers unwind hedges gradually, and nothing happens. The setup is necessary and nowhere near sufficient.
Squeezes also require a catalyst to start the move toward the strikes. Structure describes what could happen if price gets there. It says nothing about whether it will.
The correct use of this screen is as a filter for further review, not a list of expected moves. ConvexRadar reports conditions and their limitations, and treats the outcome as unknown — because it is.
Trading options involves risk. ConvexRadar is research software and does not provide financial advice or guarantee trade outcomes.