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Markets Are Calm, Then Suddenly Go Crazy: Some Investors Think They Know Why: The "Gamma Trap"

FYI: There’s a powerful force at work in markets that helps explain why stocks seem to do nothing for long periods and then suddenly lurch into activity.

Market players have noticed this force—known by some as a “gamma trap”—and have been devising tools to estimate its size and direction in order to predict how markets will move and to trade around it.
Regards,
Ted
https://www.wsj.com/articles/markets-are-calm-then-suddenly-go-crazy-some-investors-think-they-know-why-11562666400
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