Opendoor call volumes hit 1 million for first time ever as gamma squeeze accelerates

The door might be open, but there’s a traffic jam as everyone tries to rush through it.

Shares of Opendoor Technologies are up more than 60% on Monday, briefly breaching $4, as enthusiasm over the potential turnaround story — and the desire to chase momentum in a stock that mooned last week — continue to produce massive flows into the name.

Daily volumes and the total value of money spent trading the stock each hit a record before the session was two hours old. That’s despite the company having been about 7x larger back in 2021.

And call volumes breached 1 million for the first time ever, setting a daily record for the fifth consecutive session.

Opendoor is the easiest example of the gamma squeeze we discussed earlier playing out.

Call options volumes are accelerating and migrating up the chain, with increasing demand for the options that are out of the money but getting closer to being money-good.

For instance, the most active contract today is the call option with a strike price of $4.50 that expires this Friday. This contract had no open interest prior to today. All of these are new bets, made today, with the rush into these wagers with embedded leverage putting upward pressure on the shares.