I think historically, short selling was encouraged in order to create liquidity in the market, not to bet on the price going down. This is why even though everything is digital now and could be reconciled almost immediately, there’s 2 days grace period to allow them to settle all the trades.
Maybe they are using them in some complex way to disguise another postion, but there’s no way of knowing that just from looking at a number of puts. The buyer of the put doesn’t need to have borrowed any shares either. So you can’t look at a number of puts and assume that that equates to a number of borrowed shares
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I guess we also don’t know who has these options.
On one hand you could say they will choose not to exercise the option to buy because the “current price” is below the buy value. But on the other hand, if you know that supply is limited and they won’t actually be able to get the shares, maybe that’s the trigger that forces them to pay over the odds to honour the option and causes the price to rise above the option price that then makes it worth exercising.
It’s all above my pay grade really!
What I’ve been trying to explain is that with a put no one can be forced to pay over the odds to buy shares. The buyer is the one who has the power to choose whether the option gets exercised. If the price is “over the odds” they can just let it expire
I’m not saying there are no anomalies, or that no one is trying to disguise a short position somehow, but to me it seems like the number of puts is irrelevant in the context of a short squeeze
The Puts will not be what causes a potential squeeze. It is believed that these Put options are being used to drive down the price as the Market Maker who underwrites the option will be forced to short the shares to cover themselves in case these options do become ITM and they potentially need to be delivered
You missed the important bit in my quote:
If the people offering to sell the shares don’t actually have them and somebody exercises their right to buy at that price, the original people WILL have to find the shares from somewhere, and that could increase the market price if they don’t actually have them. So my point is that even though normally people wouldn’t exercise their options if the current price is below the option price, in these conditions they might do so just to try to cause increased demand which could increase the value beyond the option price.
But, like you say, only if that option is exercised. And it’s all very hypothetical, because nobody knows what the true situation is.
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but that’s not how puts work, it’s an option to sell. no one has a right to buy. The option holder has a right to sell at the strike price.
If it was a call someone would have a right to buy and the seller could end up in trouble
This is when you would exercise a put. if the share price is below the strike price you can buy on the open market and sell at the strike price for a profit. But if shares weren’t available due to a squeeze the price wouldn’t be below the strike price anyway
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My head aches
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not a bad day so far +15.21 (+10.06%),
but,
not good enough.
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$200 is the big wall, pass that and it’ll be worth a fair number of people’s while to sell, anticipating another drop to around previous levels and perhaps considering buying back in then after realising some gains.
If it gets up there and holds, attracting new buyers excited to see things moving upwards again, then who knows
186.30 +17.37 (10.28%) aftermarket
It got up to $197.75!
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I think this comment was meant for here 
https://community.freetrade.io/t/guess-the-gme-top-price/44491/33?u=big-g
Normally Europe does a solid job in premarket before the yanks bollocks it all for us, be interesting to see how much it can be nudged before open if it holds around $185-190 tonight
This might takes longer than we thought to 
. I do expect some big action tomorrow as its the end of FTD cycle. Hfs will have their tricks to suppress the price (what’s new? lol). Personally i think MOASS is being put on hold until dtcc nscc 801 gone through. My predict date will be 1 month from today around 26th May. If it moon before? Great. If not, make fun of me all yall want 
. Either way im hodling stronk.
P/s: no update about the 25k bracket limit 
.
Until proper hard data backs up our being in a massive squeeze situation again, I wouldn’t be counting on it, like making your big investment decisions based on that. It was on the cards at one point, certainly (to at least some degree, if not quite to the extent the unanchored fantasists have dreamt up), but the conditions are no longer exactly the same if we’re actually being honest here.
The most excitable DD sources are highly speculative indeed, and the paranoia infused throughout some of it twists around itself so much as to make basically anything possible. If you’re looking for short to medium term gains, this is a gamble on a curious case of stock volatility more than anything else - don’t lose sight of that. There is no ‘inevitable’ outcome where this stock is worth $500+ or whatever inside this year, it’s just something worth keeping an eye on for heavy movement like last night’s aftermarket stuff.
No need to be completely disheartened if you have your feet on the ground, as clearly we can still see significant positive price action now and then with occasional powerful bull runs that can’t so easily be held down with auto-shorting, whale manoeuvres, increased confidence in GME’s value as a growth stock, and of course the urgent mass FOMO effect fuelled by hype whenever it might look like “it’s happening!!!” (if those most liable to be swayed by all that aren’t already deep in it and have any liquid capital left to toss on it).
There are various points of serious resistance yet to be breached since the last proper spike; if/when those price walls are actually broken, the influx of new buys will need to be strong enough to brace against a significant selling tide, as that will represent the best point in quite a while (in the eyes of the impatient, it’s hardly any time at all in ‘normal stock’ terms!) for many to realise some actual juicy gains. Sure, there are lots of ‘diamondhands’ shareholders in this, but their proportion is overstated if you ask me - I haven’t sold even a fraction of a GME share in these most recent couple of months or so, but I’m hardly in that club; the moment it becomes too good a deal for me to turn down, this transforms from a longterm holding into a ‘quick’ trade, or most of it does anyway. As long as the company’s moving in the direction it has been, I’m cool with whatever, hopefully any price crash that may happen at some point takes it way beneath fair value to provide another huge bargain opportunity
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GameStop quietly completed their 3.5m share ATM sale last night raising them $551m capital. This means they are now sitting on 600-700 million in string-free cash for the transformation. Happy they were able to complete the offering without affecting the price over time, only to end with a nice little booster on the announcement. Very attractive fundamentals. 
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I’m selling on the way down.
Why would any sane person, who knows a short squeeze of Citadel is happening, ever paper hands on the way up?
We are talking about hodlers rigtt now, you know, the ones who have seen it up at 480 and then back down to 40.
Until hodlers see citadel insolvent, selling ain’t happening.
With respect to the “hard” data (whatever that is) it seems to be that the shorts have not covered.
Has anyone actually over-extended themselves with this trade? Or are the advice givers fantasising this in their heads? If anyone has, please, let us know.
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How do you know it is happening for definite? Nothing is certain because the circumstances can change at any moment.
The hard data is exactly what it sounds like, clear irrefutable evidence in the numbers that a squeeze is under way, rather than speculative independent research, some of which falls apart on closer inspection. The machine learning model that everyone pinned their $130k+ per share dreams on is one such crumbly aspect of the DD that hyped this beyond reason.
As for advice-givers fantasising, there are numerous posts on reddit about YOLO-ing loans into GME and suchlike. There’s a guy living in his van who’s pumped his whole life into it and is committed to diamond-handing. I mean, good luck to him?
I’m not really that arsed what anyone else does, I’m just discussing things from my own point of view. Not putting all your eggs in one basket and counting your chickens before they hatch isn’t a controversial piece of ‘advice’ really, but I don’t tell anyone what to do with their money, I just suggest what I think’s wise in the situation with the limited amount of proven up-to-date info available.
If a squeeze to end all squeezes happens then great, I certainly won’t be complaining - I’ll still be in it myself, having covered my cost basis. But anyone saying it’s inevitable is lying to you, or misguided themselves. They may well end up winning big along with everyone who took their hasty conclusions as gospel, but you could do the same going all-in on red/black at a roulette table. The odds are different here, granted, but there is no inevitable short squeeze by x date, that much should’ve been made clear by now.
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Very well said!!! There are so many alts, bots and duplicate accounts talking s%$£ out there it is concerning. I would also guess a lot of the biggest APES are actually quite clever and know it will only get to say 800, IDK but as an example, and will cash out to make a GREAT amount of money whilst simultaneously telling everyone it will go to 25k and worry about FT etc.
By using the words paper hands, diamond fingers and APES it hooks people like a QANON story. Most people wont admit that it is the small amount of truth in the Qanon BS that hooks the people in. GME works on the same principle.
Yes a squeeze is possible/probable but the ironically FAKE news around it has made far too many people risk money they now believe has earnt them a right to be rich
I hope they are right but as in most things like this the truth is probably in the middle. If I get my Plus subscription paid from my one share I will be a very happy bunny 
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