Affirm Holdings Surges 12.62% on $720M Gamma Squeeze as Volume Jumps 121.79% and Ranks 134th in Market Activity

Affirm Holdings (AFRM) surged 12.62% on August 4, 2025, with a trading volume of $720 million, marking a 121.79% increase from the previous day. The stock ranked 134th in overall market activity. The rally reflects a mix of technical momentum and speculative positioning in the fintech sector.

Options market activity intensified as the stock broke above key resistance levels, triggering a gamma squeeze dynamic. Over 242,962 shares changed hands, with high-leverage call options on the $72 and $73 strikes seeing significant open interest. Short-sellers faced pressure as the price surged past the 30-day moving average of $67.02 and Bollinger Upper Band at $70.77. Algorithmic hedging further amplified buying pressure in the $69.02–$69.21 support zone.

Technical indicators showed a bullish divergence in the MACD and a confirmed breakout above the 52-week low of $24.67. The RSI at 57.47 and 200-day moving average below current levels suggested short-term momentum. Traders focused on the $72 and $73 call options, which offered high leverage and gamma sensitivity, as potential catalysts for further upside. However, volatility remains elevated, with the 30-day support at $69.02 and 200-day resistance at $68.31 serving as critical watchpoints.

A backtest of AFRM’s performance following an 8% intraday surge showed positive short-to-medium-term outcomes. The 3-day win rate stood at 51.66%, while the 10-day and 30-day win rates were 50.18% and 50.00%, respectively. The maximum observed return was 9.03% over 30 days, indicating that the stock can sustain gains after sharp moves but remains subject to volatility.