A combination of the words "gay" and "homo" which could be construed as slightly pejorative, but is often used simply in jest. 1: A term used among friends, either gay or straight to make fun of each other for doing or saying something stereotypically gay. 2: A term used by masculine-acting gay men to describe stereotypically gay men or overly feminine gay men.
1: Dude, did you just say that you like Madonna? You're such a gaymo! 2: Hey, check out the guy in the lycra shorts. What a gaymo.