Explainer: What is a gamma squeeze and how did it drive up AMC's stock price?


FILE PHOTO: Closed signs are seen on an AMC Theatre during the outbreak of the coronavirus disease (COVID-19), in New York City, U.S., April 29, 2020. REUTERS/Brendan McDermid

NEW YORK (Reuters) - Shares of AMC Entertainment Holdings Inc surged to a record high this week in a blistering rally that again highlighted how an arcane options market dynamic known as a gamma squeeze can super-charge stock price gains.

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