A new group of meme stocks is making noise — DNUT, OPEN, RKLB, and KSS — and they’re not just rising on Reddit chatter. Behind the scenes, a gamma squeeze may be fueling the rally.

If you’re seeing big moves with no big news, this might be why.

What HappenedThe so-called “DORK” stocks have surged over the past few days.

But earnings didn’t drive it. There were no game-changing announcements. What did show up? … A spike in short-dated call option activity.

❗When enough traders load up on bullish options, market makers step in — not to speculate, but to hedge. That means buying the underlying stock. And that buying can push prices higher… which triggers more hedging… and more buying.

Translation:The stock isn’t moving because it “should.” ❗It’s moving because of positioning pressure.

Why It MattersThis is what’s known as a gamma squeeze — and it’s all mechanics. Prices go vertical because of how the options market is structured, not because the companies are suddenly worth more.

These moves are often short-lived. The moment the buying pressure cools off, prices can unwind — fast.

Here’s what smart traders are watching:→ Are call volumes still rising, or slowing?→ Is the price action supported by volume?→ Are we nearing technical resistance levels?

If volume stalls or prices reverse on strength, the squeeze could be running out of steam.

The LessonA gamma squeeze is a chain reaction — not a trend. It’s driven by dealer hedging, not investor conviction. And while it can create massive upside in a short window, it often ends just as sharply.

If you're jumping in, know the setup:

Bottom Line:Momentum is fun — until the music stops. Know what’s pushing the price before you follow it.