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26450655 No.26450655 [Reply] [Original]

So who else is going full retard on GME come Monday? I’m the idiot who didn’t get in last week. Ready to see some lemons squeezed

>> No.26451379

>>26450655
Pls explain to retard

I don't know how those shorts even work. I assume the idea is that the contracts can't mature because no one is selling, meaning the price goes up? Or is there a set date when the contracts expire and they have to buy stonks at that price at that time?

>> No.26451544

>>26450655
yeah i think its the play

>> No.26451574

>>26450655
I bought a couple GME shares because I'm a poorfag. The fewer shares that are float, the more it squeezey. Squeezy is ez 45-500% gains by shares alone.

>> No.26451706

>>26451574
Yeah I don't get this and no one seems to be able to adequately explain. So practically speaking, the more stonks hold by retard investors, means fewer stonks that can be bought to cover expired contracts; right?

But wouldn't whales just step out when they see this on the news getting hype, because they expect even higher prices? What forces them to stay in and rack up higher losses? And when are they completely used up and when does the gain potential stop?

>> No.26452065
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26452065

>>26451379
/smg/ has been talking about this since september at least and no one believed them, now the board is full of WSB redditors pretending like it was always their idea.

Anyway it's gone like 400% since november, I don't trust people telling me it's going to 200 dollars a share or whatever.

>> No.26452135

>>26452065
I have to assume 90% of them are banking on convincing other WSBers to pile in so they can take profit off them.

Since no one seems to be able to explain why institutional investors are 'forced' to stay in GME and can't liquidate their contracts (while retail investors can still buy stock) I'll just throw some in and dip out early.

>> No.26453100

>>26450655

GME is going to have yet another gamma squeeze monday, we might see a dip at certain price thresholds but if you see GME go over $115 (at which point all calls will be in the money), we will have another gamma squeeze and it will likely trigger a short squeeze by the end of the week.

What does this mean?

Buy at $60-80 (depending on opening price on Monday), potentially sell at 4 figures (most likely 3 figures $140-600).

>> No.26453145

>>26450655
Stop trying to fud and JOIN US, NIGGER OP

>> No.26453185

>>26453100
>All calls in the money
Please spoonfeed me what this means

>> No.26453225

>>26453100

Every call option on Friday was in the money, 15 million shares worth will be held by those that held calls. Less available float making it more difficult to short. Every put expired worthless.

The maximum option strike price for GME was $60 expiring Friday. There were over 32k 60c contracts and at noon they were in the money. The total call contracts were something around 150k calls all expiring January 22nd.

This causes option writers to buy more shares to hedge the contracts they wrote.

The price was moving so fast they couldn't hedge fast enough leading to massive amounts of shares needing to be bought all at once.

This means the short squeeze still hasn't finished, potentially hasn't started based in shorts doubling down.

End of day Friday every call option was in the money, which means those shares (over 15 million shares) will need to be given to the contract holders.

Every put options was out of the money, something like 80k puts (when I checked the chain mid-day Friday) expired worthless. That's 8 million shares worth of contacts and money lost for those who held puts.

For those who had calls, the 15 million shares, they will probably settle on Tuesday and be held by those who had the calls. This is 20% of the total float that is now more or less unavailable to short. That makes it even MORE difficult for the shorts to cover and close their positions.

>> No.26453551

>>26453185

It means the stock price has risen above the maximum strike price of all call options, and in this case stayed above the maximum strike price by the time the market closed on Friday. Which means that every single call option contract that expired on Friday made money, and every single put option contract that expired on Friday became worthless.

To understand why this is significant you need to understand how option trading works in general and how this particular case affected the price of the stock.