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Reading the WSB group right now... as I’m procrastinating getting ready to sleep. It’s a clown show in there though lol. Every other word is calling themselves retards, autistics and using the word “stonks” lol I liked them more when I didn’t see all their posts. Doesn’t change the fact what robinhood did was unethical and that I hope the shorts lose. There is going to be equal amount of blood spilled when this is over though.
You don’t know this. If they were in danger of meeting capital requirements it’s entirely warranted and a poorly run business but not unethical
For what AMC is selling for right now, its worth the bet IMHO. If it hits the $1000 mark or even just $100. You win.
If not you lose a few hundred
If the measly 10 shares i just bought helps destroy a scum bag hedge fund, even better.
For every itm call that’s exercised there is a buy and a sell offsetting netting to 0 shares. The OCC handles the assignments to firms so are you sure there are massive buys going to to facilitate this?
for every exercised ITM call, the seller (usually the market maker) will need to provide 100 shares of the underlying stock to the buyer of the call.
today every single call option for GME at strike price 320 and below expired ITM, the sellers of these calls are on the hook to deliver these shares by monday/tuesday (i believe there is a 2 day window). i am fully expecting a gamma squeeze on monday or tuesday. if you look at the chart for today's price action for the last hour- you will see that the hedge funds/mm's tried hard to prevent the price from going above 300 and when that broke they tried to resist passing 320. in normal instances they wouldve been able to do this easily by shorting it down, however there were no available GME shares to short at this point.
so picture this: you have a stock that is shorted over 100% of its available float, you have massive retail buying and majority are holding their shares and are not selling.
now you have market makers trying to buy the shares that they owe for the ITM expired calls, in addition to the short sellers trying to cover their shorted shares (they are paying a ton of borrowing interest for these shorted shares fyi so they are bleeding every day that goes by).
you have a perfect storm and feedback loop of buyers buying and exercising ITM calls, causing a gamma squeeze which will drive up prices and eventually lead to a margin call from the short seller's brokers leading to the biggest short squeeze in history
why do you think all these trading platforms are placing so many trading restrictions on GME? simply because there is such a limited availability of GME shares
Last edited by awaken470; 01-29-2021 at 05:35 PM..
for every exercised ITM call, the seller (usually the market maker) will need to provide 100 shares of the underlying stock to the buyer of the call.
today every single call option for GME at strike price 320 and below expired ITM, the sellers of these calls are on the hook to deliver these shares by monday/tuesday (i believe there is a 2 day window). i am fully expecting a gamma squeeze on monday or tuesday. if you look at the chart for today's price action for the last hour- you will see that the hedge funds/mm's tried hard to prevent the price from going above 300 and when that broke they tried to resist passing 320. in normal instances they wouldve been able to do this easily by shorting it down, however there were no available GME shares to short at this point.
so picture this: you have a stock that is shorted over 100% of its available float, you have massive retail buying and majority are holding their shares and are not selling.
now you have market makers trying to buy the shares that they owe for the ITM expired calls, in addition to the short sellers trying to cover their shorted shares (they are paying a ton of borrowing interest for these shorted shares fyi so they are bleeding every day that goes by).
you have a perfect storm and feedback loop of buyers buying and exercising ITM calls, causing a gamma squeeze which will drive up prices and eventually lead to a margin call from the short seller's brokers leading to the biggest short squeeze in history
why do you think all these trading platforms are placing so many trading restrictions on GME? simply because there is such a limited availability of GME shares
You don’t know this. If they were in danger of meeting capital requirements it’s entirely warranted and a poorly run business but not unethical
Except Robinhood's CEO got on CNBC, Bloomberg and anywhere else they'd have him and he straight out said it wasn't a capital issue, so either the act itself was unethical or his explanation of it was. Either way the business is deservedly toast.
Except Robinhood's CEO got on CNBC, Bloomberg and anywhere else they'd have him and he straight out said it wasn't a capital issue, so either the act itself was unethical or his explanation of it was. Either way the business is deservedly toast.
Reading the WSB group right now... as I’m procrastinating getting ready to sleep. It’s a clown show in there though lol. Every other word is calling themselves retards, autistics and using the word “stonks” lol I liked them more when I didn’t see all their posts. Doesn’t change the fact what robinhood did was unethical and that I hope the shorts lose. There is going to be equal amount of blood spilled when this is over though.
I think most of these guys are around 18-21 maybe younger in some cases, hence the silly comments etc.
I think most of these guys are around 18-21 maybe younger in some cases, hence the silly comments etc.
There's surprisingly a good number of older people on WSB. Not only by them saying they have 25+ years experience but by the sound of their voice and the way they speak. They're less crazy than the 20 year olds but they also provide a great deal of information and essentially help teach everyone how markets work.
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