- The stock price of Atossa Therapeutics Inc (NASDAQ: ATOS) increased by over 4% pre-market. This is why it happened.
The stock price of Atossa Therapeutics Inc (NASDAQ: ATOS) increased by over 4% pre-market. There appears to be a coordinated gamma squeeze spurred by discussions on social media platforms like Reddit and StockTwits.
Atossa Therapeutics had announced last week that it is set to be added to the Russell 2000 and Russell 3000 Indexes. And this milestone will take place at the conclusion of the 2021 Russell Indexes’ annual reconstitution, effective after the U.S. market opens on June 28, 2021, according to a preliminary list of additions posted June 4, and June 14, 2021.
Reddit user FatAspirations pointed out in a Reddit thread that passive funds will buy up millions of shares depending on the relative market cap of ATOS to the total market cap of the Russell 2000.
A gamma squeeze is when there is widespread buying of short-dated call options in a company stock. The spiral upwards drives more call buying and increases the stock price even more. Yesterday the stock price of ATOS increased 10.09%, going from a previous close of $5.35 to $5.89.
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