I'm investing in GameStop to help the company grow, and hopefully get some dividends one day.
Gamestop
- Thread starter Bonerfarts
- Start date
Martin Shkreli accidentally admitting to market manipulation. For a convicted felon he is one dumb mother****er.
They are scrambling at this point. It's too big.
Wasn’t Citadel the one involved in the previous GME shenanigans with Robinhood?
I agree. If he exercises those calls, they will never find them all to deliver. The week of 6/21 looking to be spicy.
Yes precisely. I believe Ken Griffin may be a bigger fraud than Bernie Madoff.
There is a line item of ~$60B “Sold not bought” on Citadel’s balance sheet. I wonder how many $GME shares are in there and how negative that position is currently.
At this point we are either going to watch a huge transfer of wealth or the powers to be are just going to do something blatantly illegal and say sorry don't care. The system wasn't designed to give money to the peasants.
When do they need to cough it up by? Like when does this hit the headlines and/or become news?
6/21 I believe is when his* calls come due.
( I'm learning about all this all the fly so if that's wrong my apologies)
Curious is this makes any news in the weeks leading up to that.
He can exercise these options whenever he wants.
If so, and he does it now and they can't provide the shares... any idea what might happen?
Correct. He can sell them all on the market, or let them expire "in the money" and that triggers him purchasing the underlying shares for the strike price.
And that's kind of the "talk" is he pimping the shorts or pimping the longs. If he sells the "longs" are out ( stock goes down) but if he holds the world might collapse.( joking but I don't know if anyone really knows what would happen)
From what I understand, the market maker (Ken Griffith's Citadel) purchases the underlying shares when they sell the call option. If people are naked selling calls (without owning the shares) that would cause a huge gamma squeeze and they would need to buy back the shares as the price continues to skyrocket.
When you buy a call option, the market maker typically acts on the other side of the trade, but not directly with you. Here's how they're involved:
Providing Liquidity:
- Market makers constantly quote buy (bid) and sell (ask) prices for various option contracts, including call options.
- Their goal is to ensure there's always someone willing to buy (provide liquidity) when you want to purchase a call option.
- When you place an order to buy a call option through your broker, the broker searches the exchange for a seller.
- Very often, the seller you end up matched with is the market maker. They might fulfill your order directly from their own inventory of options contracts.
- To manage their own risk, market makers hedge their options sales with the underlying asset.
- In the case of selling a call option, they might buy shares of the underlying stock (assuming the call option is a buy call). This helps offset potential losses if the stock price rises significantly.
- The bid-ask spread quoted by market makers represents their profit margin.
- They adjust these prices based on factors like supply and demand, volatility, and their own risk assessment.
- It's important to note that market makers aren't the only sellers of options contracts.
- Other investors might also be looking to offload their call options, and your broker could connect you with them instead.
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Another thing I read today, E Trade may have made a major mistake yesterday when they announced DFV trades on that platform,apparently they need written concent to release that info.
Close today would net him 150 mill I think they said.
But some dude with a headband saying he found a stock he likes is totally suspect....
Insider Trading from Congress - OK
Regular Joe buying stock/options and holding them - Not OK
At this point we are either going to watch a huge transfer of wealth or the powers to be are just going to do something blatantly illegal and say sorry don't care. The system wasn't designed to give money to the peasants.
Ahem:
If it gets bad enough, they’ll change the rules.
They are ****ed, there are enough players with big money on the other side to fight this.
I'm here for it.
I’d like to see the manipulators and front runners get their comeuppance, don’t get me wrong.
I’m just not holding my breath it will happen.
The system cannot give money to the peasants. They won't allow it to happen. They will do something blatantly illegal, and tell.us it's fine, before we see a transfer of wealth like this would cause.
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