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To: TigerClaws

Perhaps someone more knowledgeable can explain this to me. The big boys expected/wanted GameStop‘s stock to go down, so they sold it short.

Wouldn’t it have been safer to just buy put options? I’m sure I’m missing something here.


14 posted on 01/28/2021 11:04:46 AM PST by Leaning Right (I have already previewed or do not wish to preview this composition.)
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To: Leaning Right
Wouldn’t it have been safer to just buy put options? I’m sure I’m missing something here.

Not enough money there. Sure, you can make money betting on a winning horse. You can make more money if the race is rigged.

27 posted on 01/28/2021 11:17:47 AM PST by PAR35
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To: Leaning Right

Good question. Method might be related to such things as time limits on options and the potential for greater gains.

Its a complicated decision for sure.

https://www.investopedia.com/articles/trading/092613/difference-between-short-selling-and-put-options.asp#:~:text=Put%20buying%20is%20much%20better,because%20of%20the%20limited%20risk.&text=Also%2C%20a%20put%20buyer%20does,a%20limited%20amount%20of%20capital


29 posted on 01/28/2021 11:19:25 AM PST by Starboard
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To: Leaning Right

Safer, probably. But that option only applies to the little guy. Hedge funds can do whatever the hell they want.


41 posted on 01/28/2021 11:31:07 AM PST by nonliberal (Caput gerat lupinum)
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