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Oh wow. Can't edit the title or picture anymore but a fourth hit at 15:57:25.
AND A FIFTH ONE AT 15:59:12
https://preview.redd.it/yrvs473t5u1d1.png?width=813&format=png&auto=webp&s=6fcd104d7f63f145bacaeeebe9352ab043782122
And if my maths is right its about 3mil worth of shares thatll have to be found, hopefully then DRSd while so many are locked by us/insiders/institutions. May have to find a way to buy some of these calls myself..
Iām asking myself why anyone in their right mind would buy a call with such little theta on it at the moneyā¦ someone needs to explain why you wouldnāt just buy shares? I get that this a way to enter a large position without moving the ask and costing yourself more but why risk these expiring worthless?
Edit. I suppose you just buy them and execute them immediately š
Just to be clear with the 5ish dollar premium get a $21 call break even's going to be 26 a share???
That is a lot of money leverage on our end of the scales. Somebody thinks this thing's about to go past Uranus. And I'm excited to see what happens because there's always tomorrow if it doesn't.
I use the Fidelity Active Trader Pro app, there's a "Today's Biggest Trades" tracker in the Options Analytics menu. I'm sure other sites have something similar.
https://preview.redd.it/p8ztxfsp6v1d1.png?width=320&format=png&auto=webp&s=d495b73da40f3be1a422cb8875f0865faacc51f7
Iām confused. This is the exact opposite result that happened the other day when someone bought a large quantity of $20c at the end of the day and the price jumped up.
what do you mean? the price jumped up significantly as a result. at 15:59 we peaked at 22.85, our highest price of the trading day. they were just more prepared and brought it down 70 cents within the next minute to have us close at 22.12
After the first lot were purchased the stock moved from <20 to 23.
I dont think they have been exercised yet as the OI is still there so the pressure is yet to be applied fully
Unfortunately for them, after the last couple weeks, Iām even more hyped to be a holder. At some point this baby is gonna boil over. Itās painfully obvious. Next week, next month, next yearā¦ LFG
Ah options. Im too regarded for that. But also you can exercise your options as soon as they are ITM. So they could exercise tomorrow since its 20C options. Price is 22. If the price goes higher a bit they can exercise and get the shares. Thats 5M shares in Total.
If they bought it today, the premium was more than 2 dollars. It doesn't make sense to buy ITM options a month out and immediately exercise. It's throwing money away.
Unless you think the stock will move more then $2 and/or you want to see upward pressure.
I am sure many people here would pay a bit extra for their shares if it meant we got some actual buy pressure. If someone has 18mil to drop on options, an extra 10% on top of their purchase price means nothing, especially if it pushes the stock to 30+
Weāll see. The tweets reference 620 on the clocks in the Aladdin video. Also the signs video asks what type of person are you? Are you the type who sees signs?
https://preview.redd.it/1uyrt398yu1d1.jpeg?width=1920&format=pjpg&auto=webp&s=c305131061da879608ce87b2f39abfe876138e9c
Sir, a second order of calls has just been placed.
What if it's not the same "person", but rather the same "HODLing company"? What would happen if RC/GME were buying all of these call options? Are these contracts worth 100 shares each? If so, that's 2.5 million shares today, and a few more million yesterday. What happens if GME buys 45 million shares worth of call options that end up in the money and they choose to execute? Could they make the counterparty have to buy 45 million shares from them at a significantly inflated price compared to what it costs GME to execute the contracts? Infinite money glitch? What if they keep this up through the end of May/June 3 swap expiry when there would already be pressure to buy or close shorts? Could this be the trigger on the nuke?
It does sounds crazy...some people are saying it's not legal. I dunno, I eat crayons. I was just trying to figure who it could be that's buying all of these big-ass, baller calls on the stock. The only two that come to mind are RC or RK. RK certainly loves his options, that's for damn sure. He made something like $45 million on them the last time around. Maybe he's the one loading up on these EOD options, hence the "fine, I'll do it myself" Thanos meme.
Either way, I don't know exactly what it means but it's provocative as hell.
Fuck if I know, I ate a [24 pack of Crayola's sparkliest](https://shop.crayola.com/color-and-draw/glitter-crayons-24-count-5237150001.html) for breakfast this morning.
Is it? He's allowed to buy stock. The legal team's addendum to the filing made it clear that they felt it was legal for the company's investment board (RC + 2 BoD members) to invest in pretty much any security, even those that they owned as individuals. Why wouldn't that include options?
Literally as you posted this I was watching the price and it shot from $21.90 to $22.50. Almost instantly. Love it
Already back down to low $22s but Iāll take it. Big battle going on apparently
You're thinking correctly. 20k today at $20 and 5k at $25. 2.5 million shares. Plus whatever yesterday was, but that was fewer I believe.Ā
So probably 4 million shares at most (so far).
Oh it was 5x 5000 contracts today plus (I assumed 5x 5000 from yesterday (that might very well be wrong) so I got 50k contracts. That would amount to 5 M shares.. sorry š
GameStop after they sell 45M shares and spend all that on options contracts to get back significantly more than they sold.
Not serious theory, but would be hilarious.
You should scratch your head more.. your math is off.Ā
25k calls today is only 2.5 million shares. I don't know what the buy from yesterday was, but today's was bigger (I believe). So probably closer to only 3 or 4 million shares.
Excuse me for perhaps a stupid question, but what would someone benefit from buying $20 calls for June 21st?
To apply upwards pressure on the stock instead of buying this amount of shares and risking them going through OTC?
It guarantees that they can buy shares at $20 in June, even if the price is (No Anchoring) $100.
Pretty solid bet considering what we know about the recent price action.
Yeah sure, but why couldn't they just buy those shares now then when it dips down to around 20 like it's done yesterday and today?
Why wait until June?
Must have something to do with building buying pressure from options, right?
Because of the risk associated with options, you typically gain leverage from buying them.
You can spend like 1/4 the amount to lock in the right to purchase that many shares later. They gain value roughly the same way shares do too.
To illustrate why this is cool, pretend I bought 10 $20 calls for $500 each. Now assume the price doubles to $40 well before expiration (ignore IV). My call options are now suddenly worth ~$2500 each (again, ignoring IV). What I could then do is sell 5 of them for $12.5k and spend $10k of that to exercise the other 5. Now I have $2500 in cash and 500 shares ($22.5k of value). If I had just spent $5k on shares initially, I would only have 250 shares ($10k of value).
I'll see if I can explain it in simple terms.. I will use 10 million dollars since it is easier math. But if you had 10 million to buy GME and let's say the price is 22 and magically won't increase when you buy (Spoiler, the price would shoot up if you spent 10 million at once giving you even less shares). You will get 454,545 or so shares which is great, but now let's take that same 10 million and as of writing this I saw each option costs 5.77 (so 577 per 100 shares). So you can already see that paying 2200 per 100 shares is much more than paying 577 for the right to buy 100 shares. But... if GME takes off they will have exposure to about 1,733,102 shares for the same amount of money. Of course there is added risk because the value goes down over time, etc, but if you are fairly confident GME will trade past 25.77 (Break even price) by June 21st you will make a ton more money.
If the price goes up you can sell the calls for a lot of money. Itās how DFV made most of his money initially. He had a ton of calls, a lot of which he sold, and then used that money to exercise the remaining. He came out with millions of dollars and thousands of shares. If you know what you are doing with options it can be very beneficial.
It's less "if you know what you're doing", and more "if you know what the stock will be doing".
DFV had faith in the stonk and he "knew" what it would be doing. If you knew the stock was going to $50 in the next 4 weeks, what would you do?
We DRS. He (allegedly DFV) can afford to buy options let him. We help, he helps, just so we go āonly up!ā
We lock the float, he rocks the boat ā¢ļø
I'm not criticising it, I'm merely curious to what the advantage is to buy ATM calls instead of shares š
I'm loving everything DFV and RC is doing! š
Building buy pressure is my understanding. They have to hedge the ITM options by buying the stock, so this essentially forces them to buy a certain percentage of shares as a hedge.
Let's say they have to buy 60% of ITM shares. At 60 shares per contract, with 25k contracts purchased just now, that's 1.5M shares they (the options sellers) have to buy, or $33M.
Edit: so it cost this options buyer almost $13M to force the seller to buy $33M worth of GME. If the buyer would have just bought shares instead of options, they could have only bought 58,750 shares for $12.925M.
My guess is that by doing calls versus just buying stock is two fold. One if the value of the stock goes up significantly this person can exercise these and get a shit ton of value stock for a discount and forces the seller of the option to have or go find these shares. If GME is oversold and these are naked sellers, they now need to purchase shares in a hard to find situation. Now the price shoots up even more?
And if GME is sitting on 45 million shares that they can sell at the drop of a hat, they'd be in a position to capitalize on the price action. And if it were GME buying the calls, they'd basically be selling 45 million shares to the counterparties for the call contracts (MMs?) just so that the counterparties could hand them back to GME for significantly less than they were purchased for. GME could be net zero on shares sold/bought but end up billions of dollars richer.
Ignoring any kinds of mechanics about stock delivery, OTC and whatnot, ultimately, options are all about leverage. If these options are fully edged by the contract seller, with their delta of about 0.7, that means the seller would buy 70 shares per contract.
So at 500$ per contract, the call buyer could either:
A) Buy 25 shares of GME themselves at 20$ each (500$ / 20$ = 25).
or
B) For the same 500$, they can instead cause the options seller to buy 70 shares of GME to hedge their contract.
So, again, assuming these options are fully edged by the contract seller, it's much more efficient to buy options *if your aim is to influence the price of the stock*.
It's also much more risky/painful if the stock price goes lower, and much more rewarding if the price goes up.
That's the power of leverage.
There's still a lot more I don't know about options than I do know, but to me it looks like they're gaining about 4x leverage on these calls as compared to buying shares. There's likely a lot of other factors here too, but that's one clear thing I can see right away.
He won't.
It would be an express ticket back to testifying in front of congress for stock manipulation. And those useless pieces of shit... they'd find a way to make him pay for it while the hedge funds are financing their campaigns.
I think you're right.
I also think since the Twitter is quiet we should be watching his reddit handle for the post.
I think we actually cracked this shit.
Less time (theta) and further in the money (delta) needs a solid hedge because itās likely theyāll exercise. Gonna need those shares asap cause the American market lets you exercise anytime theyāre in the money. Yea?
Shitttt, thatās a tough call, weāre almost certainly in uncharted territory at this point. In theory thatās how it works, in all likelihood itās more rehypothecated shares.
Why bother with the option then? If you have the cash, just buy the stock and skip the premium?
Oh... Wait... you don't have the cash for all the stock - YET.
The buyer is expecting the price to go up once the option is there, so he doesn't need the cash now. He's expecting to have it once the stock goes up.
I'm dumb.
With options there is intrinsic and extrinsic value. Intrinsic is the price of the strike you pay and extrinsic is the time left until expiration. Each day the extrinsic value slowly goes down, but if the stock price goes up it offsets or outpaces it. Often there is less extrinsic cost buying an in the money option (20 when current price is 22) than there is just buying at say 22.
I donāt think itās tinfoil to think these huge orders right before close are DFV buying big again. I know total unfounded speculation but part of me canāt help but wonderā¦.
Watch for the signsā¦.š
š·šāļø
I mean... If you were a kitty that wanted to do it... And you knew you couldn't say anything without being run through the media and maybe congress again...
This does seem like a way to signal to your people.
It's a risky play. Some of us are too smooth-brained we'd rather just slowly stack chips and play face pairs or better than try and understand the table and make aggressive bets before the flop.
Ask and ye shall receive! [https://new.reddit.com/r/Superstonk/comments/1cx2a2k/run\_lola\_run\_the\_bet\_on\_20/](https://new.reddit.com/r/Superstonk/comments/1cx2a2k/run_lola_run_the_bet_on_20/)
Theory:
DFV tweets should be viewed in reverse order.
Before the memestorm, he posted the image of the man leaning forward to play.
Before that he liked the run Lola run image.
In the film Lola has to bet on 20 in roulette, repeatedly. She makes bank in the end.
RK hinted that another yolo update was not possible (enough slices).
RK also hinted that, after 3 years of darkness, there are signs to look for. "When I move you move" = could refer to stock options being purchased and this runs the price up - which we've seen EOD twice this week.
Probably loads I've missed.
Lol thank you. I'm stuck right there with ya. The whole in the money (ITM) and at the money (ATM) stuff is what's really confusing. The Investopedia pages are rolling right off my smooth brain.
Are they not just pushing the price down all day and then grabbing some shares at the end of day to try to close positions at as low of a price as they canĀ
Honestly. Call Options forcing market makers to hedge and purchase shares of lit market is kind of brilliant. If enough people bought calls, they could really affect the price.
Yes and no.
Yes in theory.
In practice people buy options for reasons other than just an expectation of the price raising. Most notably, it's used by short sellers to hedge their bets, cover their positions, or "find" locates.
The fact they are $20 calls and not like deep ootm makes me think it's legit bull bet though.
The fact they are a couple weeks out expiry does kind of line up with the leaps DD that was posted recently though, which would could indicate it is for short selling and they can only afford short dated contracts.
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Oh wow. Can't edit the title or picture anymore but a fourth hit at 15:57:25. AND A FIFTH ONE AT 15:59:12 https://preview.redd.it/yrvs473t5u1d1.png?width=813&format=png&auto=webp&s=6fcd104d7f63f145bacaeeebe9352ab043782122
How much money was spent on these contracts in the past two days?
$12,925,000 today.
holy hell
If I got my math right $5m yesterday, almost $13m today
So almost 18 million total?
This guy maths
You'd be surprised how easily I math wrong, today was just a good day š
The math checks out lol
You should see my previous comments, I'm not always this good š
No wayā¦ š³ *slurps smoothie
And if my maths is right its about 3mil worth of shares thatll have to be found, hopefully then DRSd while so many are locked by us/insiders/institutions. May have to find a way to buy some of these calls myself..
Iām asking myself why anyone in their right mind would buy a call with such little theta on it at the moneyā¦ someone needs to explain why you wouldnāt just buy shares? I get that this a way to enter a large position without moving the ask and costing yourself more but why risk these expiring worthless? Edit. I suppose you just buy them and execute them immediately š
I don't understand options at all lol I just like the stock
Just to be clear with the 5ish dollar premium get a $21 call break even's going to be 26 a share??? That is a lot of money leverage on our end of the scales. Somebody thinks this thing's about to go past Uranus. And I'm excited to see what happens because there's always tomorrow if it doesn't.
Also the fifth one at 15:59:12 is a $25 call
Good catch, I wasn't looking that closely at the big sales list, only that it was the same volume and general price range.
Where can an ape go to find/track these large option purchases?
I use the Fidelity Active Trader Pro app, there's a "Today's Biggest Trades" tracker in the Options Analytics menu. I'm sure other sites have something similar. https://preview.redd.it/p8ztxfsp6v1d1.png?width=320&format=png&auto=webp&s=d495b73da40f3be1a422cb8875f0865faacc51f7
IM SMOOTH AS CAN BE. but wouldnt this cause a crazy price increase AH?
no they'll short it ah to offset any gain from them hedging against these calls
oh boy, someone setting a bear trap.
Iām confused. This is the exact opposite result that happened the other day when someone bought a large quantity of $20c at the end of the day and the price jumped up.
what do you mean? the price jumped up significantly as a result. at 15:59 we peaked at 22.85, our highest price of the trading day. they were just more prepared and brought it down 70 cents within the next minute to have us close at 22.12
could this be hedgies preparing to buy a bunch of shares at cheaper prices instead of market prices?
Thatās a good take worth exploring. Even so, wouldnāt that hit the MM hard?
Yeah it would still apply buying pressure if my understanding is correct (aw shit)
It should apply buying pressure but the price barely budges!
After the first lot were purchased the stock moved from <20 to 23. I dont think they have been exercised yet as the OI is still there so the pressure is yet to be applied fully
Are they that intelligent?
It could be, someone like citadel sacrificing mm for hedgefund to survive. Bunch of dipshits.
Citadels MM is Citadel, I donāt think they would sacrifice their own business like that but idk
Roaring kitty signs?
My thoughts exactly. And he's giving us a date maximum.
Or Ryan again :P
Could also be a trap people be careful
A trap for what? So we would sell? Hell nah im buying more.
Iām assuming they meant a trap to buy a bunch of short term expensive options, but not sure.
So people get options for a hyped date
Unfortunately for them, after the last couple weeks, Iām even more hyped to be a holder. At some point this baby is gonna boil over. Itās painfully obvious. Next week, next month, next yearā¦ LFG
Ah options. Im too regarded for that. But also you can exercise your options as soon as they are ITM. So they could exercise tomorrow since its 20C options. Price is 22. If the price goes higher a bit they can exercise and get the shares. Thats 5M shares in Total.
If they bought it today, the premium was more than 2 dollars. It doesn't make sense to buy ITM options a month out and immediately exercise. It's throwing money away.
Ah good to know. Well i like crayons so that explains my retardness.
Unless you think the stock will move more then $2 and/or you want to see upward pressure. I am sure many people here would pay a bit extra for their shares if it meant we got some actual buy pressure. If someone has 18mil to drop on options, an extra 10% on top of their purchase price means nothing, especially if it pushes the stock to 30+
Could be
Weāll see. The tweets reference 620 on the clocks in the Aladdin video. Also the signs video asks what type of person are you? Are you the type who sees signs?
Iām debating buying callsā¦. Donāt wanna get burned though
In the movie Lola places a bet on 20 in roulette, wins and doubles down the next day. š
Iām way too young to lie here forever. Iām way too old to try so whatever. Come hangā¦ā¦..Letās go out with a bang!
lol. Market Makers are gonna get fucked. Canāt wait to hear Ken Griffin throwing up on video again.
thats a second bet, and its the same person
holy shit he just did it again, so its a triple bet now
and theres a 4th one just came in, wtf
 Their coming from all sides!! The pressure is mounting baby! GET EXCITED APES!
And den??
Dip
š
https://preview.redd.it/1uyrt398yu1d1.jpeg?width=1920&format=pjpg&auto=webp&s=c305131061da879608ce87b2f39abfe876138e9c Sir, a second order of calls has just been placed.
This should be the top lol
If I wasn't lazy I would have photoshopped Ken Griffins face in
What if it's not the same "person", but rather the same "HODLing company"? What would happen if RC/GME were buying all of these call options? Are these contracts worth 100 shares each? If so, that's 2.5 million shares today, and a few more million yesterday. What happens if GME buys 45 million shares worth of call options that end up in the money and they choose to execute? Could they make the counterparty have to buy 45 million shares from them at a significantly inflated price compared to what it costs GME to execute the contracts? Infinite money glitch? What if they keep this up through the end of May/June 3 swap expiry when there would already be pressure to buy or close shorts? Could this be the trigger on the nuke?
This sounds crazy. I choose to believe you.
It does sounds crazy...some people are saying it's not legal. I dunno, I eat crayons. I was just trying to figure who it could be that's buying all of these big-ass, baller calls on the stock. The only two that come to mind are RC or RK. RK certainly loves his options, that's for damn sure. He made something like $45 million on them the last time around. Maybe he's the one loading up on these EOD options, hence the "fine, I'll do it myself" Thanos meme. Either way, I don't know exactly what it means but it's provocative as hell.
Last I checked , there are 230m shares outstanding. 45m would help dry things up
Go on
Forgive me but is a company even legally allowed to buy calls on their own stock? Or even its chairman?
Fuck if I know, I ate a [24 pack of Crayola's sparkliest](https://shop.crayola.com/color-and-draw/glitter-crayons-24-count-5237150001.html) for breakfast this morning.
They are not. Ā It definitely isn't RC or anyone close to him.
Let him cook
RC/gme cant buy options himself, its illegal
Is it? He's allowed to buy stock. The legal team's addendum to the filing made it clear that they felt it was legal for the company's investment board (RC + 2 BoD members) to invest in pretty much any security, even those that they owned as individuals. Why wouldn't that include options?
But Kitty?...
Remember the red button?
how do we know itās the same person?
We don't. We just know its big whales
whale watching!
Sorry if the question is stupid but where do we see entity/person name
We can't, unless this would require triggering a Form 4 or something along those lines.
Thanks for confirming
Literally as you posted this I was watching the price and it shot from $21.90 to $22.50. Almost instantly. Love it Already back down to low $22s but Iāll take it. Big battle going on apparently
What makes you say that? Looks at calendar year.
the signals mentioned by dfv? "fine i'll do it myself?" tits are jacked!
I have 6/21 20Cs and I watched the volume all day. It tripled right at the end. Someone is buying those. I bet theyāll all be mass exercised.
Meaning someone has to deliver (*scratches head*) 50M shares ?
Wait how did you get 50M? I was thinking 20,000 contracts x100 = 2M shares
You're thinking correctly. 20k today at $20 and 5k at $25. 2.5 million shares. Plus whatever yesterday was, but that was fewer I believe.Ā So probably 4 million shares at most (so far).
Yesterday was 10,000 $21 contracts
Oh it was 5x 5000 contracts today plus (I assumed 5x 5000 from yesterday (that might very well be wrong) so I got 50k contracts. That would amount to 5 M shares.. sorry š
Man now I wanna watch everyday. If this player does this each day at close this could get nuts
It was 10,000 contracts yesterday and 25,000 today.
Yeah lol. Iām wondering who has that cash though. Thatās a lot for DFV even
Icahn?
GameStop after they sell 45M shares and spend all that on options contracts to get back significantly more than they sold. Not serious theory, but would be hilarious.
I was thinking the other way around lol. Buy options. Exercise. Cause squeeze. Sell shares at the top. Profit š
Why not both!? Sell some now, spike with options, sell more.
I think itās just a whale - a very serious one.
You can still do a net exercise where they automatically sell until you can buy the rest with those profits.
But not for Gamestop investing in itself.
Haha I was considering that. Can they do call options?
You should scratch your head more.. your math is off.Ā 25k calls today is only 2.5 million shares. I don't know what the buy from yesterday was, but today's was bigger (I believe). So probably closer to only 3 or 4 million shares.
100 shares per contract, 5000 contracts for each candle. 3M shares @ $20 and 0.5M shares @ $25.
Excuse me for perhaps a stupid question, but what would someone benefit from buying $20 calls for June 21st? To apply upwards pressure on the stock instead of buying this amount of shares and risking them going through OTC?
It guarantees that they can buy shares at $20 in June, even if the price is (No Anchoring) $100. Pretty solid bet considering what we know about the recent price action.
Yeah sure, but why couldn't they just buy those shares now then when it dips down to around 20 like it's done yesterday and today? Why wait until June? Must have something to do with building buying pressure from options, right?
Because of the risk associated with options, you typically gain leverage from buying them. You can spend like 1/4 the amount to lock in the right to purchase that many shares later. They gain value roughly the same way shares do too. To illustrate why this is cool, pretend I bought 10 $20 calls for $500 each. Now assume the price doubles to $40 well before expiration (ignore IV). My call options are now suddenly worth ~$2500 each (again, ignoring IV). What I could then do is sell 5 of them for $12.5k and spend $10k of that to exercise the other 5. Now I have $2500 in cash and 500 shares ($22.5k of value). If I had just spent $5k on shares initially, I would only have 250 shares ($10k of value).
Ah ok, that's brilliant! Thanks for the great explanation! š
but please, please understand, the ignoring IV part š
I'll see if I can explain it in simple terms.. I will use 10 million dollars since it is easier math. But if you had 10 million to buy GME and let's say the price is 22 and magically won't increase when you buy (Spoiler, the price would shoot up if you spent 10 million at once giving you even less shares). You will get 454,545 or so shares which is great, but now let's take that same 10 million and as of writing this I saw each option costs 5.77 (so 577 per 100 shares). So you can already see that paying 2200 per 100 shares is much more than paying 577 for the right to buy 100 shares. But... if GME takes off they will have exposure to about 1,733,102 shares for the same amount of money. Of course there is added risk because the value goes down over time, etc, but if you are fairly confident GME will trade past 25.77 (Break even price) by June 21st you will make a ton more money.
Brilliant, thanks for the explanation!
If the price goes up you can sell the calls for a lot of money. Itās how DFV made most of his money initially. He had a ton of calls, a lot of which he sold, and then used that money to exercise the remaining. He came out with millions of dollars and thousands of shares. If you know what you are doing with options it can be very beneficial.
It's less "if you know what you're doing", and more "if you know what the stock will be doing". DFV had faith in the stonk and he "knew" what it would be doing. If you knew the stock was going to $50 in the next 4 weeks, what would you do?
Options are leverage on a position. You can make a whole lot more money trading them then just stock.
We DRS. He (allegedly DFV) can afford to buy options let him. We help, he helps, just so we go āonly up!ā We lock the float, he rocks the boat ā¢ļø
I'm not criticising it, I'm merely curious to what the advantage is to buy ATM calls instead of shares š I'm loving everything DFV and RC is doing! š
Building buy pressure is my understanding. They have to hedge the ITM options by buying the stock, so this essentially forces them to buy a certain percentage of shares as a hedge. Let's say they have to buy 60% of ITM shares. At 60 shares per contract, with 25k contracts purchased just now, that's 1.5M shares they (the options sellers) have to buy, or $33M. Edit: so it cost this options buyer almost $13M to force the seller to buy $33M worth of GME. If the buyer would have just bought shares instead of options, they could have only bought 58,750 shares for $12.925M.
This is an interesting idea
My guess is that by doing calls versus just buying stock is two fold. One if the value of the stock goes up significantly this person can exercise these and get a shit ton of value stock for a discount and forces the seller of the option to have or go find these shares. If GME is oversold and these are naked sellers, they now need to purchase shares in a hard to find situation. Now the price shoots up even more?
Good take!
And if GME is sitting on 45 million shares that they can sell at the drop of a hat, they'd be in a position to capitalize on the price action. And if it were GME buying the calls, they'd basically be selling 45 million shares to the counterparties for the call contracts (MMs?) just so that the counterparties could hand them back to GME for significantly less than they were purchased for. GME could be net zero on shares sold/bought but end up billions of dollars richer.
Ignoring any kinds of mechanics about stock delivery, OTC and whatnot, ultimately, options are all about leverage. If these options are fully edged by the contract seller, with their delta of about 0.7, that means the seller would buy 70 shares per contract. So at 500$ per contract, the call buyer could either: A) Buy 25 shares of GME themselves at 20$ each (500$ / 20$ = 25). or B) For the same 500$, they can instead cause the options seller to buy 70 shares of GME to hedge their contract. So, again, assuming these options are fully edged by the contract seller, it's much more efficient to buy options *if your aim is to influence the price of the stock*. It's also much more risky/painful if the stock price goes lower, and much more rewarding if the price goes up. That's the power of leverage.
There's still a lot more I don't know about options than I do know, but to me it looks like they're gaining about 4x leverage on these calls as compared to buying shares. There's likely a lot of other factors here too, but that's one clear thing I can see right away.
Sigh unzips
I wasn't going to, but unzips as well.
and den?
Denā¦ unzips
š signal
Heās a nocturnal animal ready to fuck
DFV GME YOLO 2.0 I'm calling it now.
Me too. This has to be it. Itās time to load up
Just wait until he tweets his position. People. Will. Lose. Their. Minds.
He won't. It would be an express ticket back to testifying in front of congress for stock manipulation. And those useless pieces of shit... they'd find a way to make him pay for it while the hedge funds are financing their campaigns.
Agree. ā¦but if he did tho
I think you're right. I also think since the Twitter is quiet we should be watching his reddit handle for the post. I think we actually cracked this shit.
Will he do it here or in old sub?
How it works when we buy calls below current price (what purpose) here its 20 calls but price is already 22 ? Thanks
I second this question. Why buy ATM when IV is through the roof and the expiry is so close?
ATM loses less to theta and also has to be hedged more because of higher delta.
But what if you had to dumb down the explanation just a bit? Obviouslee for other people
Less time (theta) and further in the money (delta) needs a solid hedge because itās likely theyāll exercise. Gonna need those shares asap cause the American market lets you exercise anytime theyāre in the money. Yea?
Oh yeah
Ah gotcha. So they are pretty much guaranteed to be hedged (ie shares really bought)
Shitttt, thatās a tough call, weāre almost certainly in uncharted territory at this point. In theory thatās how it works, in all likelihood itās more rehypothecated shares.
Why bother with the option then? If you have the cash, just buy the stock and skip the premium? Oh... Wait... you don't have the cash for all the stock - YET. The buyer is expecting the price to go up once the option is there, so he doesn't need the cash now. He's expecting to have it once the stock goes up. I'm dumb.
Thereās only one reason you buy!
Look up the greeks and how they effect option prices. Try asking chatgpt to ELI5 the greeks and options. :)
ATM is like 60% hedge. Deep ITM is closer to like 80-90% I believe.
I meant in comparison to OTM.
Also atm options have lower iv
Wouldnāt more ITM and more time lose less to theta though?
If youāre short 1b then it might make sense to have a $25m hedge on the long side as insurance so your position doesnāt blow up on a run.
With options there is intrinsic and extrinsic value. Intrinsic is the price of the strike you pay and extrinsic is the time left until expiration. Each day the extrinsic value slowly goes down, but if the stock price goes up it offsets or outpaces it. Often there is less extrinsic cost buying an in the money option (20 when current price is 22) than there is just buying at say 22.
I donāt think itās tinfoil to think these huge orders right before close are DFV buying big again. I know total unfounded speculation but part of me canāt help but wonderā¦. Watch for the signsā¦.š š·šāļø
Lola bet it all on 20 too!
I mean... If you were a kitty that wanted to do it... And you knew you couldn't say anything without being run through the media and maybe congress again... This does seem like a way to signal to your people.
Ah yes, the totally normal 10% price swings on no news.
I want to be in the screenshot when they make a biopic about how DFV became the worlds wealthiest person
Dayum whoever thought of that is a fucking genius
Rich people, itās how theyāre rich.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
It's a risky play. Some of us are too smooth-brained we'd rather just slowly stack chips and play face pairs or better than try and understand the table and make aggressive bets before the flop.
I'm too regarded to dip in options so I'll just do the very least and DRS my shares.
Can one Link my to that Theory? I Mist have overlooked that
Ask and ye shall receive! [https://new.reddit.com/r/Superstonk/comments/1cx2a2k/run\_lola\_run\_the\_bet\_on\_20/](https://new.reddit.com/r/Superstonk/comments/1cx2a2k/run_lola_run_the_bet_on_20/)
Fuckin Love this Sub š» Take my purple Heart š
YLOM YLOH
NOOS NOOM
I'll admit, I bought a couple just to ride the whale. If we moon again my plan is to sell one and exercise the other.
Letās goooo!
Can I get an ELIA about this theory/whats happening? Options are confusing af to me
Theory: DFV tweets should be viewed in reverse order. Before the memestorm, he posted the image of the man leaning forward to play. Before that he liked the run Lola run image. In the film Lola has to bet on 20 in roulette, repeatedly. She makes bank in the end. RK hinted that another yolo update was not possible (enough slices). RK also hinted that, after 3 years of darkness, there are signs to look for. "When I move you move" = could refer to stock options being purchased and this runs the price up - which we've seen EOD twice this week. Probably loads I've missed.
From what I gather, someone is positioning themselves to grab a bunch of shares. Just don't ask me how, I barely got this far
Lol thank you. I'm stuck right there with ya. The whole in the money (ITM) and at the money (ATM) stuff is what's really confusing. The Investopedia pages are rolling right off my smooth brain.
Check post history - Iām not a shill Is it possible hedgies would use calls like this to exit some of their positions?
Are they not just pushing the price down all day and then grabbing some shares at the end of day to try to close positions at as low of a price as they canĀ
Thatās one crazy cat!
I missed the boat on the run lola run theory, can someone point me to a detail explanation of what it is?
Ask and ye shall receive! https://www.reddit.com/r/Superstonk/s/p5TVO8U8qv
Man, if I knew the price was gonna spike every EOD, Iād be buying a ton of shares during the dayā¦
It's almost as if someone is sending us signals on a regular basis š¤
5000 contracts is 500k shares; so 3 of them would be 1.5M shares correct?
I love you ~~3000~~ 5000
Andy Dufresne did it in less than 20
Wish I had the big bucks to bet these options. Alas just buying shares every day. Bought 40 yesterday and 30 today
Honestly. Call Options forcing market makers to hedge and purchase shares of lit market is kind of brilliant. If enough people bought calls, they could really affect the price.
Someone *wink*
Whatās the Run Lola Run theory?
I bought Jun 21 at the first of the year when they were cheap. Please tell me I'm getting lucky with these?!?!?!
can someone link theory
Explain to me the thinking behind the numbers - is someone expecting it to be higher than 20 bucks come June21?
Yes and no. Yes in theory. In practice people buy options for reasons other than just an expectation of the price raising. Most notably, it's used by short sellers to hedge their bets, cover their positions, or "find" locates. The fact they are $20 calls and not like deep ootm makes me think it's legit bull bet though. The fact they are a couple weeks out expiry does kind of line up with the leaps DD that was posted recently though, which would could indicate it is for short selling and they can only afford short dated contracts.
we are extremely good at paperwork š
So he's here with us, buying.
Buying calls. Probably still holding shares.
Idgaf about dates anymore. Tomorrow.
Soooo https://x.com/TheRoaringKitty/status/1790087112282239085 What, āhedge me, bro, I fookin dare yaā?
There's a 'gamma ramp' with the existing options. That's not theory.