/biz/ - Business & Finance

amazing....

>>26608739
Explain for brainlet.

>>26609713
>day closed at a dump
>next day opens at all time high
>hedge funds on literal suicide watch

>>26608739
Whoa

>>26609713
jews have 140% the amount of all available stonks in short positions expiring this friday, we are talking billions of $, they are forced to buy basically anything

Where do you see updated figures like this? Last I can find is from December but surely the last week will have made those numbers completely irrelevant already.

>>26608739
Anyone feel like a huge stock market crash is about to happen?

>>26609977
Not just basically, literally. Not meme literally, actually literally. Legally literally. Contractually obligated literally. Not even fine print literally.

>>26609977
So what's the best time to sell then? Friday or Monday?

>>26610121
So what happens when I set a limit sell for $10k gtc?

>>26610121
>>26609977
Not just that, they have to buy at WHATEVER we set the price at. Theoretically they could have 'infinite losses'

I can't wait to make a killing shorting this trash driven by children FOMO'ing their pocket money

>>26608739
hubris, complacency, laziness. Wanting more and more. Same reason they kept adding to their shorts even when it was as low as 3 fucking dollars and still not ending the short. Thinking they're hot shit and too big to fail.

>>26610252
They will buy other peoples shit who set lower first until they go belly up

>>26610252
It could genuinely be met. This shit is a black swan event. There is 100% people in the federal reserve running the numbers right now to make sure that the fucking market doesn't implode because of this.

>>26610121
it depends on the expiriery and when the get margin called. I doubt the hedges lined up everything to where they would need to buy %150 or even %100 of the float, but who knows how retarded they are at this point seeing recent events.

>>26610386
Hmmmm. So now it's a game of who sells at an appropriate amount. What is an appropriate amount?

>>26610121
As if law and contracts have ever stopped wall street from fucking people over. At best the hedge funds will just declare bankruptcy and the debt will be voided/uncollectable, and yet the managers will get to keep many millions in private wealth that they've isolated from their businesses, and use that to create new hedge funds.

>>26610224
friday before market close
this will be insane 2 days

>>26610376
This is the end result of nepotism

>>26610224
Friday an hour before close, this shit is legit insane cause they have to close their positions.
Will be the greatest squeeze we witness

Question: how will the circuit breakers play into this when their puts expire on friday? From what I understand, they halt trading every time the spot price goes up like 10% or whatever it is. So what happens when they need to cover their puts at whatever extortionate prices we dictate, but the price never goes that high because the circuit breakers go off and then again and again and again and again before it can 10x in a couple hours?

Not really into stonks besides getting in on this wild ride, so I have no idea.

>>26610661
Witnessed!

How is it possible to have a short position in over 100% of available stocks? Explain for a brainlet

>>26610583
Oh no, we're crashing a hedge fund with meme magic. How will I possibly recover from this?

>>26610959
same way banks can lend out more money than they actually hold

>>26610959
Judaism

>>26610484
$1488

>>26610121
so leddit bros could set their sale price at $15k per share and they have to buy it?

>>26610959

Jews

>>26610314
"I can't wait to make a killing shorting this trash driven by children FOMO'ing their pocket money" - said the hedge fund that needed to bailed out for $2 billion by other hedge funds

>>26611479
Yes, but they have buy the lower priced shares first. They'll be bankrupt by the time they reach the 15k.
Theoretically if nobody is willing to sell at all until $9999999999999 and there's nothing they can do about it.

>>26611708
they dont all get liquidated at the same time

>>26611479
In theory, yes. At this point, big sharks and smelling blood and even if reddit sells, there's an entire ocean filled with sharks buying so they can eat the whales. This is basically the cuban missle crisis of finance.

>>26610661
this is my plan, is there a way to set the sell price? I'm a smoothbrain /biz/ please explain to a retard

>>26610583
this

>>26610661
nah all the retail ledditors will also have to sell their call positions because they don't have enough money to be assigned

>>26609977
Tomorrow. The date of battle is set brothers. We ride at dawn.

So many retards are going to get burned when they realise no one wants to buy their overpriced GME stock

>>26614085
No one wants the stock, everyone wants money retard

>>26609977
theyll just declare bankruptcy and leave redditors holding a worthless bag

I’ll take Failure to Deliver for $500, Alex.

>>26608739
Quant here

1. Short dont expire you donkeys
2. Options expire. Rn massive amount of call options expire on 29.1. at strike 200.
2.a) option dealers typically delta hedge. 200 was OTM (basically until today night), and will probably be ATM tomorrow.
2.b) Dealers will rebalance tomorrow. The market is also long gamma and so the rebalance will trigger another buy wave tomorrow
2c) OTOH, since their expiry date is so close... lets say if enough market participants decide to go short they could crush the price below 200 and would make the 200$-calls worthless.. which means the option remain OTM and dealers wouldnt need to rebalance, ie no buy wave. And remember shorts dont expire, they just cost a short fee (about 0.3% per day)

In the end... who has the deeper pockets? Retail wsb autists or hedge funds (that just need to crush the price until friday)?

>>26614193
literally the only way to make money in this is to sell to the bigger retards who are still FOMO'ing

>>26610119
That was happening anyway. If people are smart and buy bonds with it, bullshit lockdowns will end and businesses will open up. The government will literally pay business owners to reopen.

>>26610119

>>26614085
who the fuck you think is going to be buying this stock back? hint.. not retail investors

>>26614222
Thats why you tell redditors to set their limits to $1k and you go for $999

>>26609977
You do realise simply shorting a stock has no expiry date, right? Only options do.

>>26614385
>muh fundamentals


In case you haven't noticed, the fed has been printing money nonstop, and giving hedgers open license to fuck the economy based on your fundamentals. That's why politicians and boomers have been shuttering the economy (in addition to election bullshit).

Overvalued tech stocks will compress and infrastructure, municipal bonds, etc will explode.

WHAT THE FUCK NO CHEAPIES AGAIN??
BRING ME SOMETHIGN TO FUCKING BUY
ONLY $POOLZ COIN CAN BRING ME PROFIT NOW WTF
WTF IS GOING WITH OTHER ALTS?!?!?

>>26610119
Its been about a year since the pandemic hit. That's typically how long it takes for the real correction to happen. Last dip was literally just the prologue. What's about to happen is gonna be biblical. Start reading up on ancient Rome, especially the period after the five good emperors.

>>26615064
Nigger i explain you mechanics. Not fundamentals.

SHORTS DONT EXPIRE YOU DONKEYS

How much of a bloodbath will the next few days be anons?

>>26614861
yeah institutional investors are in such a rush to buy fucking $200 GameStop stock lmao. There will be no short squeeze. Bagholders are going to be sore

>>26614385
>shorts dont expire
Quantanon never heard of a margin call

The jews will cry to big daddy government and find a way to make you hold their bag. I'd suggest getting out before friday but you'll call me a shill when I'm simply a pessimistic defeatist.

>>26615262

So it's gonna be pooof and Melvins short position will magically disappear, fag?

>>26614222
>suicidal redditors
How is this a bad thing?

>>26610959
And now you understand the absolute scam that the modern economy is. Go short bitcoin on a 10x margin while you're at it btw, if this shit blows up the crypto market will implode like it did back in march. They will pump the stock market back up but no one will pump bitcoin to 32k

>>26610583
>best the hedge funds will just declare bankruptcy and the debt will be voided/uncollectable
Yeah I don't think it works that way chief.

>>26615368
Margin calls don't happen specifically on Friday though. Additionally, Melvin strategy consisted, according to Bloomberg, of BUYING put options. Therefore, if anything, the options will just expire worthless on Friday.

Some richsbros are using Reddit for a literal pump and dump scheme and they're too dumb to figure out they're the ones being played.

>>26614085
melvin will be buying our stocks

>>26615447
?? They will obviously double down on this shit because it's even more overvalued than it was at $20

>>26615228
>muh definitions

A bunch of people who think like you do and are more successful than you just ate a footlong shit sandwich and are going to eat it again and again. Shorting is now the most dangerous strategy because at any moment, in chicken tendie dens across the western world, bored redditchanner autists can decide to rape your positions and bankrupt you. Which is good since shorting isn't really investing. It's jewing.

>>26615634
yeah this is why they took out half a bil in loans

retard

>>26614385
fuck you, quant. Working for them, you are scum.

>>26615824
$2.75 billion actually :) and it already went up in smoke

>>26610959
It works like fractional reserve banking. They functionally planned to sell, buy, sell and buy the same stock multiple times as the price dropped lower and lower to cover their shorts.

>>26615634
>Melvin strategy consisted, according to Bloomberg, of BUYING put options.
...probably buying on margin
and also what >>26615824 (except for the insult)

>>26608739
they dont understand the true power of weaponized autism and poor millennials with nothing to lose.

>>26610119
>Anyone feel like a huge stock market crash is about to happen?
(picrelated, I wrote that shit)
I guess there is a great likelihood that a lot of people feel a huuuuuge wave of shit and chaos coming from behind but are afraid to look and just march on forward until they are being swept away.

If GME is the catalyst then I guess we still haven't seen anything yet.
So prepare for multiple 2x days in GME in a row with the stock reaching at least $1000. At least.

If it isn't GME then it could be the stock that started it all, TSLA. The beginning and the end so to speak. Even Burry seems to be worried about TSLA already and sees an implosion happening.

If it isn't TSLA then see you again at Dow Jones at 100.000 and S&P 500 at 10.000

>spacing like reddit

>>26608739
Anyone here know much about the legality of this? I’ve seen a lot of people saying it’s technically legal nothing in detail. Either way I can imagine the feds coming up with legislation to restrict average people from doing the same shit these hedge funds and bankers have been doing for decades with impunity.

>>26610119
They printed so much money qnd just gave it away. This is the result of that

>>26614222
if they declare bankruptcy they still need to liquidate all assets/stocks/holdings to cover as much of the short as possible.

>>26615228
melvin has puts and those puts expire on friday.

>>26608739
This is amazing stuff
What a time to be alive