Gamma Squeeze
A Gamma squeeze describes a market dynamic in which options related hedging can contribute to accelerating price movement as the underlying moves and option Delta changes.
Why it matters to you
Heavy call activity can, under certain positioning conditions, require dealers or other hedgers to adjust underlying exposure as prices rise. Those hedge adjustments may add buying pressure, which can contribute to further price movement. But: High call volume alone does not prove a Gamma squeeze is occurring. The actual positioning and hedging requirements matter.