The GameStop short squeeze: Put–call parity and the effect of frictions before, during and after the squeeze

The short squeeze in GameStop attracted worldwide attention and resulted congressional hearings. increase stock from an opening price of $21 on January 26 to interday high $483 28 was not the result obvious fundamental earnings prospects. Buying pressure investors a social media site accompanied by covering, stratospheric ascent price. We use put–call parity investigate related issue no-arbitrage violations before, during, after squeeze. do find evidence abundant free money accounting for selling frictions.