Posted on 02/19/2021 2:44:32 PM PST by Navy Patriot
If they were that far out of the money, you wouldn't need to short that many shares to hedge them
I read the guy who started the GME thing was a registered broker in MA. He acquired a huge position and then just used the reddit kiddies as useful idiots for the pump. Most of them will take the hit. The pro will walk away with millions.
I am retired and stick mainly with dividend mutual funds now. But those of us in our generation and even the generation before that saved 20% or so a year and invested had quite an opportunity.
Even during the Obama years and in spite of Obama the markets did well. It may still run a while longer but Biden and the socialists will be strangling the economy by the neck. It is just a matter of time. Even so I remain 30-40% invested and will likely stay that way.
there is another guy. Michael Burry. Supposedly he started the rise on GME
He has also been talking about a reverse gamma squeeze on TSLA.
I went to go see what he was saying and he has now deleted all his tweets.
I can’t make sense of it. $20 puts on a $800 stock
I’m sorry you lack the understanding. It’s not “just one of those things”.
It’s a whole lot of things, built over years, made by politicians, lawyers and regulators.
I’m not saying it’s the way things SHOULD be. I’m explaining to you the reality of the situation.
Cassandra@michaeljburry
Bought TSLA $20 P Mar 19 at $0.05
-80.0%
This is not me, and makes no sense to me. $TSLA is however susceptible to a reverse gamma squeeze - using puts - and performed by institutions. $TSLA’s short interest is ~2 days volume, too small for a normal short squeeze. But the $TSLA cult has made OTM puts cheap. #boomerang https://t.co/AnjopRkgkw
“Yet the market was not closed for the Wall Street banksters. Why is that?”
You are assuming lot with that short question.
Short list: There is one big clearing firm rather than hundreds of broker dealers each with their own requirements, that the entire market was closed, buying shares and selling puts, buying puts, selling calls and buying calls are all treated the same and that there is a mythical beast known as a “bankster”.
Still not buying it.
this Burry dude is a trip. He tweets and then deletes them in a few minutes
Are my eyes playing tricks or does that have a strike price of $20? Is that a typo?
Michael Burry, portrayed by Christian Bale in The Big Short, has made an eye-watering $270 million USD by trading Gamestop (GME) shares.
https://happymag.tv/michael-burry-gamestop-stocks/
Yep. $20. That is why everyone trying to figure it out with various theories.
$20 is the premium, not the strike price.
If $20 is the premium then the strike is probably $800.
No, the strike price is $20. That is what has got so many people puzzled as to what is taking place.
If the strike is truly $20 then I could the play as being buy a huge number of those @.05 and get the reddit herd suckers to bid them up to .07/.08 and cash out with a quick 30-42% profit.
Open interest in that option is over 300,000 contracts.
Maybe they wanted to reduce their margin requirement?
It could be.
People watch for unusual option activity. This one was bound to get attention.
Increase the volatility and get out.
Burry says it isnt him..but it could be.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.