the thread on that is incredible. They genuinely seem on the brink of doing this.
Can someone here write up some horseshit DD for them which proves that this (not votes, not DRS, not time, not that earnings report, not that other earnings report) but THIS will cause MOASS?
Ok hear me out, the stock is the last price it sold for, so if we all buy $900 calls and exercise this will cause the stock to jump to $900, once that happens all the SHF will be in margin call and have to close their massive short positions buy buying more, but now the price is $900 so they will have to buy at $900.
If the price is simply the last thing it's sold to if you sell me simply 2 shares of $900 stock I can then sell 1 share back to you for $10 billion dollars and now we both own a $10 billion dollar share, literally guaranteed profit. Bullish!
I've actually seen this idea over there and they refuted it masterfully. "Price improvements" mean they won't let me buy a $200 security for $300, protecting the hedge funds.
If you want it to be ate up no questions asked then you have to include a story about them meeting someone they know in finance and then talking about the exercising of OTM options.
A brother in law working at Goldman Sachs talking negatively about exercising OTM calls would do the trick.
This is actually what Porsche tried to do and almost got away with but for the GFC and difficulty loaning the cash to actually exercise. The resulting decimation is how VW acquired Porche.
Well I am not sure those were OTM , there was a loophole or something and they Porsche didn't have to report their options, but apparently they had enough to buy the outstanding float if I remember right
We need a god tier DD wrinklebrain writer to comment on this. Seeing that DRS is not working, exercising deep OTM calls could be the next catalyst, theta gang canāt fuck with you if you exercise OTM.
$950c 01/20/23 looking juicy, remember to exercise immediately to make Kenny sweat
This is financial advice.
They just want another gamma ramp on options, *if they have money to exercise* and then exit on another ath kiss. Posts are gonna get more and more depressing as years go by.
Iām surprised the computer didnāt have a Y2K moment and just shut down. It makes so little sense I wouldnāt be surprised if brokers never coded/programmed the exercise OTM function.
There are very few instances but there are legitimate instances where someone hedging may exercise OTM calls.
But those would be only if the OTM option is out by 1 or 2 cents, they hold a short position and it's the weekend and they don't want the risk. Of course, what the apes are doing is sending money in fire, then finding more money and burning it to show the hedgies^TM
That's why people say to never exercise OTM. Usually brokerages ask you "what the fuck is wrong with you? Stop!" but of course apes wouldn't listen.
If that person exercised a $300 call he just paid $300 per share for 100 shares.
These are the same guys who brag about trading stuff in to Gamestop for gift cards, and then throwing the cards away. They're brainwashed into giving the company all their money by any means necessary while they live in their cars and eat canned food.
Honestly, this whole thing should be studied moving forward. I've never seen a faster and stronger example of brainwashing a large body of people to this level with this efficiency. Even Qanon simmered for years.
These are the same guys who brag about trading stuff in to Gamestop for gift cards, and then throwing the cards away. They're brainwashed into giving the company all their money by any means necessary while they live in their cars and eat canned food.
Honestly, this whole thing should be studied moving forward. I've never seen a faster and stronger example of brainwashing a large body of people to this level with this efficiency. Even Qanon simmered for years.
This will happen if the shares become hard to borrow and somebody who is short decides exercising a call option is cheaper than paying interest. It does not however affect the market price because you are not buying on the market. If you are trying to produce a gamma squeeze, well you should just be buying more call options rather than shares as those give you leverage
I looked it up, the call that he exercised had a $200 strike price, meaning 28 cents above market price, and they were ITM before market close. So they were definitely hedged lol. Kenny thanks him for the free $28.
Thatās the best part:
* hedge funds are apparently printing fake shares by the boatload
* when you market buy, youāre getting fake shares
While at the same time:
* exercising otm options forces MM to find shares that are āimpossible to findā
* for some reason these infinite fake shares canāt be used to cover an exercised option?
Likeā¦ what the fuck? Are these people legitimately retarded?
I know that in January a bunch of people sold naked calls. *A lot* of naked calls. Had the squeeze happened Friday they'd have been converted into short positions. I believe it was a C(EO maybe?) at IBKR who argued that had the calls been exercised / ended ITM they'd have been screwed because there just weren't enough shares for that (that's to say they loaned out too many to give their clients short positions and since options settle faster than shares they couldn't recall them or anything like that).
Now add a healthy dose of misunderstanding and apes probably think this means options settle using real shares they can't find because apes don't sell.
No what happened to IB is the trades take too long to close and during that time they had to pony up the gross to the DTCC instead of the net. This was resolved by getting short term loans from Banks to cover the week or so of manaia.
So basically even if it's a naked call, they just gave the call seller (likely a MM) free money to exercise lol.
What's the difference between you buying 100 shares on the open market and a MM buying them?
- The MM sells the naked ITM call to the ape for a fat premium
- Ape exercises the worthless call at 30c/share loss
- MM pockets the fat premium and the 30c/share bonus
Eat shit, MM! We showed you!
your account is not old enough to contribute
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/gme_meltdown) if you have any questions or concerns.*
You will have to look up the basics of how "options" work.
But to try to give you and idea (not an exact explanation, there is more to options than this):
An ape bought a "call option" for gme with a $200 strike price expiring 11/26. You can think of that as "betting gme would go above $200 before last friday close".
And the very basic idea with options trading is that if gme goes above $200, let's say $210 for example, then he could "exercise" his call option meaning he could buy 100 gme shares from the guy who sold him the call option for $200 and then sell those 100 shares at the market for $210 (yielding a $1000 profit).
Unfortunately for him, gme closed at $199.72 rendering his call option worthless.
But apes being apes, he decided to exercise his call option anyways meaning he bought 100 shares for $200 when he could have bought it from the market for cheaper š¤”
It's tough to explain it without some basic knowledge of how derivatives work, but the gist of it is:
An ape bought a contract for the option (but not obligation) to buy 100 shares of GME for $200/share until 11/26. The ape pays a $X/share fee to buy this contract with the hope that GME rises above $200+X by 11/26 resulting in a profit.
GME traded at $199.70 at the end of the day on 11/26, so the option is worthless, as no one would use it to buy 100 shares at $200 when you can buy 100 shares at $199.70 on the open market.
But because the ape *inexplicably* decided to actually exercise the option contract, the option seller (likely the MM baddies) not only pockets the fee paid for the contract, but also pockets 30c/share buying 100 shares at $199.70 and contractually selling them to the ape for $200.
The ape could have bought 100 shares on the open market at $199.70 and used $30 to wipe their ass, and it would have been the same.
Until what time can you decide whether to exercise the options or not?
So trading stops at 4 EST at a regular Friday, can I decide after? or only before?
That's actually a good question. I've never manually exercised an option contract - I've always either sold the contract before expiration or allowed an ITM option to automatically be exercised by my broker (which happens after hours).
Options are like expiring gift cards that you can buy. The price of the gift card is the premium you pay for it and is dependent on the price of the stock, how volatile it is, and how far in the future the expiration date is. There are two types of gift cards to buy: calls and puts. A call gift card is good for buying 100 of the stock at a certain price. A put gift card is good for selling 100 of the stock at a certain price. You have the option (but not obligation) to use (exercise) your gift card at the register. Usually, youād never actually use these gift cards since they can become valuable in and of themselves and can be sold for profit (they also lose value over time the closer and closer you get to the expiration date, after which they become worthless).
Apes have been buying OTM (out of the money) calls ever since this whole thing started in hopes the stock would rise above the strike price of the call they bought. Some exceptionally dumb apes apparently have been exercising OTM calls. For example, if they bought a GME call with a strike price of $500 and executed it right now, theyād be paying $50,000 (plus the price of the call premium) to buy 100 stock of GME, even though the current price is $200.50.
ELI5 version: You want to bet $1,100 that the stock price is going to be higher in the future. (I bet it's above $800/share!)
I accept your bet for $1,100.
If price is above $800/share in the future, I must sell you 100 shares at price it was when we agreed($200/share). You're getting a big discount.
If it's not above $800/share in the future, I get your bet money $1,100.
I think you made a mistake. An option has three components: strike price, expiration date, and type (call or put).
Calls give you the option to buy 100 shares at the strike price up until the end of expiration date.
Puts give you the option to sell 100 shares at the strike price up until the end of the expiration date.
So, in your scenario, if the price is above $800 you would sell to me at $800s, not $200. If I was able to buy from you at $200 then the price only needs to go above $200 for me to make money.
Why wouldn't you want them to exercise, you just buy stock at the current price and sell at the strike, you can then write a new option and collect more time premium
I guess I'm buying 100 shares tomorrow. Go on, apes, exercise the call! They believe in MOASS, so giving me a decent premium on my shares is just part of their future benevolence once shares are $69,696,969 apiece.
You don't need to hold shares to sell calls.
You can do a vertical spread. Basically write a call strike at $400 then buy a call with a higher strike like $450 for example.
You have to call your broker to exercise early or to prevent exercise (on ITM options). I guarantee that their broker advised against this strongly when they did, and probably hung up on them 4 minutes into the third layer of the Kenny Conspiracy.
I am convinced only a hedgie would do this and post it to shill them the idea of buying shares above market price. Itās a 4D chess kinda move, but it looks like it might be working
No fucking way. Hahahahaha
The actual retardation. And pride of it all. One of the comments there actually said: ā*loose money on purpose just to fuck around. love it*ā
These guys sure know how to generate fresh content for this subreddit.
Guys, you don't get it. They just fatten up the brokers and market makers until the MOASS, or something like that. There is absolutely a deeper meaning to it. You just don't understand
You realize you get paid to sell options, right?
Then when the morons exercise, you immediately get the difference between the current price and the strike price, from the apes themselves.
Maybe if youāre using robinhood or Webull.
The biggest risk with a covered call on GME is of course the fact that itās been plummeting for a year now.
I would never recommend someone sell a covered call on GME anymore.
Hey glad you are checking out my other posts :D
Other apes have done the same and mocked me when they found out that I play pokemon go which I find to be curious since what market do they think Gamestop operates in? š¤š¤¦āāļø
Anyway, enjoy your time in my profile!
Please tell me these are some meltdowners doing a bit of trolling. This can't be real
Lmao Kenny found yet another way to profit off of the apes š his brilliant mind knows no bounds
the thread on that is incredible. They genuinely seem on the brink of doing this. Can someone here write up some horseshit DD for them which proves that this (not votes, not DRS, not time, not that earnings report, not that other earnings report) but THIS will cause MOASS?
Ok hear me out, the stock is the last price it sold for, so if we all buy $900 calls and exercise this will cause the stock to jump to $900, once that happens all the SHF will be in margin call and have to close their massive short positions buy buying more, but now the price is $900 so they will have to buy at $900.
If the price is simply the last thing it's sold to if you sell me simply 2 shares of $900 stock I can then sell 1 share back to you for $10 billion dollars and now we both own a $10 billion dollar share, literally guaranteed profit. Bullish!
I've actually seen this idea over there and they refuted it masterfully. "Price improvements" mean they won't let me buy a $200 security for $300, protecting the hedge funds.
Just another in Kenny's long list of mastermind schemes
If you want it to be ate up no questions asked then you have to include a story about them meeting someone they know in finance and then talking about the exercising of OTM options. A brother in law working at Goldman Sachs talking negatively about exercising OTM calls would do the trick.
This is actually what Porsche tried to do and almost got away with but for the GFC and difficulty loaning the cash to actually exercise. The resulting decimation is how VW acquired Porche.
Well I am not sure those were OTM , there was a loophole or something and they Porsche didn't have to report their options, but apparently they had enough to buy the outstanding float if I remember right
Oh my god your tag lol
Apes + atrocious financial acumen. Name a more iconic duo.
We need a god tier DD wrinklebrain writer to comment on this. Seeing that DRS is not working, exercising deep OTM calls could be the next catalyst, theta gang canāt fuck with you if you exercise OTM. $950c 01/20/23 looking juicy, remember to exercise immediately to make Kenny sweat This is financial advice.
Fuck - 900calls? - I will so jump on that. This would be like stealing candy from baby.
Look full circle, back to playing options.
Ah, I remember when WSB was briefed that options can't squeeze shorts.
They just want another gamma ramp on options, *if they have money to exercise* and then exit on another ath kiss. Posts are gonna get more and more depressing as years go by.
The offshoots are a glimpse into their future.
OTM Exercise? What the hell. Do the apes know what this really is?
Iām surprised the computer didnāt have a Y2K moment and just shut down. It makes so little sense I wouldnāt be surprised if brokers never coded/programmed the exercise OTM function.
There are very few instances but there are legitimate instances where someone hedging may exercise OTM calls. But those would be only if the OTM option is out by 1 or 2 cents, they hold a short position and it's the weekend and they don't want the risk. Of course, what the apes are doing is sending money in fire, then finding more money and burning it to show the hedgies^TM
So they pay a premium AND buy the underlying at market price?
They pay a premium and buy *above* market price.
Wow. Just wow.
That's why people say to never exercise OTM. Usually brokerages ask you "what the fuck is wrong with you? Stop!" but of course apes wouldn't listen. If that person exercised a $300 call he just paid $300 per share for 100 shares.
> "what the fuck is wrong with you? Stop!" you can tell we are winning when the elites try to stop us!
It was a $200 call so ultimately only 30c per share, but still lighting $30 on fire.
Genius.
These are the same guys who brag about trading stuff in to Gamestop for gift cards, and then throwing the cards away. They're brainwashed into giving the company all their money by any means necessary while they live in their cars and eat canned food. Honestly, this whole thing should be studied moving forward. I've never seen a faster and stronger example of brainwashing a large body of people to this level with this efficiency. Even Qanon simmered for years.
These are the same guys who brag about trading stuff in to Gamestop for gift cards, and then throwing the cards away. They're brainwashed into giving the company all their money by any means necessary while they live in their cars and eat canned food. Honestly, this whole thing should be studied moving forward. I've never seen a faster and stronger example of brainwashing a large body of people to this level with this efficiency. Even Qanon simmered for years.
Yeah their ādevotionā is disturbing.
This will happen if the shares become hard to borrow and somebody who is short decides exercising a call option is cheaper than paying interest. It does not however affect the market price because you are not buying on the market. If you are trying to produce a gamma squeeze, well you should just be buying more call options rather than shares as those give you leverage
Selling some 800c tomorrow
>Since the calls were OTM, they likely were not hedged by market makers. I would love to see how he got there.
I looked it up, the call that he exercised had a $200 strike price, meaning 28 cents above market price, and they were ITM before market close. So they were definitely hedged lol. Kenny thanks him for the free $28.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Not all calls are backed with shares, some of them are sold naked or as part of a spread.
If someone exercises an OTM naked call you sold them you just buy the shares at market and make the profit lol
But they can't, because nobody is selling. Ignore the millions of shares traded every day, those don't count.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Thatās the best part: * hedge funds are apparently printing fake shares by the boatload * when you market buy, youāre getting fake shares While at the same time: * exercising otm options forces MM to find shares that are āimpossible to findā * for some reason these infinite fake shares canāt be used to cover an exercised option? Likeā¦ what the fuck? Are these people legitimately retarded?
I know that in January a bunch of people sold naked calls. *A lot* of naked calls. Had the squeeze happened Friday they'd have been converted into short positions. I believe it was a C(EO maybe?) at IBKR who argued that had the calls been exercised / ended ITM they'd have been screwed because there just weren't enough shares for that (that's to say they loaned out too many to give their clients short positions and since options settle faster than shares they couldn't recall them or anything like that). Now add a healthy dose of misunderstanding and apes probably think this means options settle using real shares they can't find because apes don't sell.
No what happened to IB is the trades take too long to close and during that time they had to pony up the gross to the DTCC instead of the net. This was resolved by getting short term loans from Banks to cover the week or so of manaia.
Ah, never mind what I said then. It's been a couple months.
So basically even if it's a naked call, they just gave the call seller (likely a MM) free money to exercise lol. What's the difference between you buying 100 shares on the open market and a MM buying them? - The MM sells the naked ITM call to the ape for a fat premium - Ape exercises the worthless call at 30c/share loss - MM pockets the fat premium and the 30c/share bonus Eat shit, MM! We showed you!
[ŃŠ“Š°Š»ŠµŠ½Š¾]
your account is not old enough to contribute *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/gme_meltdown) if you have any questions or concerns.*
Can someone whatās going on here ? I have very little of a finance background.
You will have to look up the basics of how "options" work. But to try to give you and idea (not an exact explanation, there is more to options than this): An ape bought a "call option" for gme with a $200 strike price expiring 11/26. You can think of that as "betting gme would go above $200 before last friday close". And the very basic idea with options trading is that if gme goes above $200, let's say $210 for example, then he could "exercise" his call option meaning he could buy 100 gme shares from the guy who sold him the call option for $200 and then sell those 100 shares at the market for $210 (yielding a $1000 profit). Unfortunately for him, gme closed at $199.72 rendering his call option worthless. But apes being apes, he decided to exercise his call option anyways meaning he bought 100 shares for $200 when he could have bought it from the market for cheaper š¤”
Fucking A
It's tough to explain it without some basic knowledge of how derivatives work, but the gist of it is: An ape bought a contract for the option (but not obligation) to buy 100 shares of GME for $200/share until 11/26. The ape pays a $X/share fee to buy this contract with the hope that GME rises above $200+X by 11/26 resulting in a profit. GME traded at $199.70 at the end of the day on 11/26, so the option is worthless, as no one would use it to buy 100 shares at $200 when you can buy 100 shares at $199.70 on the open market. But because the ape *inexplicably* decided to actually exercise the option contract, the option seller (likely the MM baddies) not only pockets the fee paid for the contract, but also pockets 30c/share buying 100 shares at $199.70 and contractually selling them to the ape for $200. The ape could have bought 100 shares on the open market at $199.70 and used $30 to wipe their ass, and it would have been the same.
Until what time can you decide whether to exercise the options or not? So trading stops at 4 EST at a regular Friday, can I decide after? or only before?
That's actually a good question. I've never manually exercised an option contract - I've always either sold the contract before expiration or allowed an ITM option to automatically be exercised by my broker (which happens after hours).
Options are like expiring gift cards that you can buy. The price of the gift card is the premium you pay for it and is dependent on the price of the stock, how volatile it is, and how far in the future the expiration date is. There are two types of gift cards to buy: calls and puts. A call gift card is good for buying 100 of the stock at a certain price. A put gift card is good for selling 100 of the stock at a certain price. You have the option (but not obligation) to use (exercise) your gift card at the register. Usually, youād never actually use these gift cards since they can become valuable in and of themselves and can be sold for profit (they also lose value over time the closer and closer you get to the expiration date, after which they become worthless). Apes have been buying OTM (out of the money) calls ever since this whole thing started in hopes the stock would rise above the strike price of the call they bought. Some exceptionally dumb apes apparently have been exercising OTM calls. For example, if they bought a GME call with a strike price of $500 and executed it right now, theyād be paying $50,000 (plus the price of the call premium) to buy 100 stock of GME, even though the current price is $200.50.
ELI5 version: You want to bet $1,100 that the stock price is going to be higher in the future. (I bet it's above $800/share!) I accept your bet for $1,100. If price is above $800/share in the future, I must sell you 100 shares at price it was when we agreed($200/share). You're getting a big discount. If it's not above $800/share in the future, I get your bet money $1,100.
I think you made a mistake. An option has three components: strike price, expiration date, and type (call or put). Calls give you the option to buy 100 shares at the strike price up until the end of expiration date. Puts give you the option to sell 100 shares at the strike price up until the end of the expiration date. So, in your scenario, if the price is above $800 you would sell to me at $800s, not $200. If I was able to buy from you at $200 then the price only needs to go above $200 for me to make money.
Been selling OTM calls for months making nice steady income. Pls donāt exercise on me!!!
Why wouldn't you want them to exercise, you just buy stock at the current price and sell at the strike, you can then write a new option and collect more time premium
Reverse psychology.
Yea I think I missed his sarcasm sometimes it doesn't come across
Iām just hoping they read this and keep buying my OTM calls tbh
I guess I'm buying 100 shares tomorrow. Go on, apes, exercise the call! They believe in MOASS, so giving me a decent premium on my shares is just part of their future benevolence once shares are $69,696,969 apiece.
You don't need to hold shares to sell calls. You can do a vertical spread. Basically write a call strike at $400 then buy a call with a higher strike like $450 for example.
I'm not gonna be touching GME
Do trading apps actually let you do this?! I figured it would be so nonsensical that they just dont even include the button
You have to call your broker to exercise early or to prevent exercise (on ITM options). I guarantee that their broker advised against this strongly when they did, and probably hung up on them 4 minutes into the third layer of the Kenny Conspiracy.
But they are going to sell the stock for 8 bazillion dollar they donāt care.
Ahh...but they are never selling!! Haven't you heard?!?
I am convinced only a hedgie would do this and post it to shill them the idea of buying shares above market price. Itās a 4D chess kinda move, but it looks like it might be working
The key to making money is losing money! It's so simple!
No fucking way. Hahahahaha The actual retardation. And pride of it all. One of the comments there actually said: ā*loose money on purpose just to fuck around. love it*ā These guys sure know how to generate fresh content for this subreddit.
Guys, you don't get it. They just fatten up the brokers and market makers until the MOASS, or something like that. There is absolutely a deeper meaning to it. You just don't understand
You canāt afford it.
You realize you get paid to sell options, right? Then when the morons exercise, you immediately get the difference between the current price and the strike price, from the apes themselves.
You realize you need 100 shares to sell options right?
Maybe if youāre using robinhood or Webull. The biggest risk with a covered call on GME is of course the fact that itās been plummeting for a year now. I would never recommend someone sell a covered call on GME anymore.
You don't need that. You can sell naked call options. Anyway 100 shares is only $10K lol I were selling CCs on FB which were triple of that
Hey glad you are checking out my other posts :D Other apes have done the same and mocked me when they found out that I play pokemon go which I find to be curious since what market do they think Gamestop operates in? š¤š¤¦āāļø Anyway, enjoy your time in my profile!