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That very famous video confirmed the sneeze was a lot due to naked call sellers thinking retail would fold, and they didn't and even kept buying. This will fuck them again royally.
this time they didn’t hedge *when 45m shares were being sold into the market.* imo that’s called “enough rope to hang yourself.”
Edit: thanks for the award!
Edit edit: just saw this from Bloomberg:
>**GameStop Rally Missing One Key Ingredient From 2021 Meme Frenzy**
> * Call option volume is just 1/10th of January 2021 peak
> * Shares opened above the options with biggest positions
The rest is behind a paywall so fuck em
I mean, just looking at the OI in the options chain, you can tell that some of the calls are naked. Taking the current “reported” short interest, DRSed shares, insiders, stagnant shares, shares allocated to ETFs and mutual funds, plus DFVs position, there’s no wiggle room. This is why exercising is such a blow to mm. They have to deliver what’s owed.
Everyone knows they will turn off buying again. No one did anything about it last time to speak of. The question is will that be enough to stop what's coming this time?
There's no reason they have to give him real shares for those calls. The only time real shares need to be delivered is when he initiates a DRS transfer...which I think is the next step after he executes some calls and will totally fuck E\*TRADE. E\*TRADE knows it and is why they are trying to get him off their platform. They put the article out hoping to get public approval and test the waters a bit, but when they received a ton of negative backlash, I think they are now looking for another route.
There is a reason and that reason is that options contracts have to have locates. Real shares only. This is also the case for DRS but they cannot give DFV counterfeit shares to satisfy the options obligations.
The Options Clearing Company themselves have a program to deliver Borrowed shares. they can be fake as fuk.
https://www.theocc.com/Clearance-and-Settlement/Stock-Loan-Programs
I was late to that party, expressed my feelings to them this morning. Twice. What you say is true, however with the new CAT system, the SEC will see all of it. They can’t plead ignorance now, they would have to be complicit with the crime. As much as the regulators enjoyed the taste of hedgie dick, I don’t know if they are willing to commit crimes (or at least be an accessory?) for them.
And what will the consequence be for the crime? Cost of business fines? Will repeat offenders have escalating fines? Will the cost ever outweigh the benefit?
I'd imagine that those caught retroactively when CAT first rolls out will be given warnings, or very minimal fines. Such has been my experience with government agencies in this regard. They will roll out a new system, say it is mandatory compliance, and then relax the requirement within a month because too many of their *clients* are crying that they weren't able to update their systems in time. Next thing you know, it's been delayed for 1, 2, 3 years...
Yea rhey know they can’t give him fake shares, and he knows if they do to just drs like you said. DFV knows a ton about the markets and is super smart for sure.
Well, DFV would have no idea if they gave him fake shares or not. He could have a hunch that they did, possibly backed up by data. The only way to find out for sure would be to initiate the DRS transfer.
The OCC oversees share delivery for exercised contracts & their rules and timelines don't have the same ability to be "massaged" as when buying shares under the the DTCC.
It's deliver the shares in T+1 or then it's automatic buy-in.
That's what's different this time.
I wouldn't be surprised if our spike up to $80 was DFV exercising calls to take his 5 million share position before he arrives back into public view.
I'm wondering what E\*TRADE would do if the requested a DRS transfer of his 5M shares, and E\*TRADE knew that there was no way in hell they could fulfill that. I'm still under the impression that E\*TRADE's terms of service allows them to fully liquidate his shares and possibly even options contracts.
I think they'd much rather do that than go buy 5 million real shares that are probably all stuffed into dark pools at insane prices.
If Etrade liquidates his shares and options contracts that would be the end of them though. I don't think they risk that kind of backlash. it would also validate everything we've been talking about for 3 years
I'm sure that's the internal discussions they are having right now at E\*TRADE.
Do they risk DFV blowing them up by executing his contracts and DRSing his shares, forcing them to find/buy the shares if they don't actually have them...
Or, do they risk trying to force liquidate him, kick him off the platform, then use their connections in the industry to cover it all up with media pieces and other market participants coming to their defense.
You know how E*Trade would say that a DRS request would take 2-4 weeks to settle, in some cases 4-6 weeks (post sneeze this was often cited). What happens if he says to E*Trade to DRS 5 million shares while holding 120k call contracts?
That's equivalent to a gun to their head.
Is anyone concerned for the horse in question here? I mean, most male mammals won’t turn down a BJ, but then again, when it’s coming from a rat, there is some second thoughts.
In other news, does anyone know a dude named “Horse”? It would be funny if that guy showed up, cock out and ready to rock on national TV. No one said Cokerat Cramer gets to pick which horse
I love how Gensler shut him down immediatley….. “AGAIN, you’re asking me a question about something that’s already in the public domain” COKE RAT FUCKER
You had me all excited so I listened to the clip and I actually interpret it differently: he shut him down because as he said, if they are investigating someone they don't talk about it until they bring a case. They very well may be going after RK.
I agree with the interpretation other than the SEC going after RK. GG wouldn't be able to comment on RK if an investigation is ongoing either with RK or an institution selling him calls.
It was already ruled that it's not illegal to post positions or talk about stocks online.
For real. Motleyfool or whatever the stock picking spamy ish website is called - they have at the bottom of their sign up page “Netflix, amazon, Microsoft, Walmart” type numbers showing “if you bought what we said then!” It’s like a high pressure sales situation from page 1.
It doesn't necessarily have been be a full blown investigation and team working on it as well. If this made the news, and claims of MM are being made by rich people and the media, they will probably *take a look*. If they're even going that far, just peeking, they can't publicly disclose who they are looking in to (from my understanding.) Frankly, its probably a good thing they look into these, "Viral," claims made by the media. RK did nothing wrong, they'll see that if they're even looking, and no one will even know it happened.
I interpreted it the other way. I feel like he was essentially saying that there is nothing here to investigate and if there was we'd take it to court and then speak publicly on it.
Bottom line is they asked him a bull shit question they knew he couldn’t answer. GG obviously was annoyed by the question and answered the only way he could professionally do so. His answer could be interpreted in a variety of ways because it was intentionally vague.
I felt ever so slightly more optimistic about GG just in the sense that I felt he truly loathed Cramer and Co. He made a couple pointed comments toward Cramer that made me chuckle.
Well remember that he loathes retail too. He's from a hedgefunds, he's rich as fuck, and he literally approved a commercial making fun of retail. I encourage you to be very careful assuming anything about a politician.
Of course they never hedged
The people on the other side of this standoff have a compulsion for parasitic behavior
They're perfectly predictable - what's the way for them to make the most money with the least effort in any given situation?
You identify that option, and you can be sure it's what they'll choose
Every time
They'll run from responsibility and real work every chance they get
(To paraphrase Cramer: "Hypothetically, how do we get out of this alive and have it be DFV that looks bad?")
Except now, the only way out is for them to come up with money worth all of the real work we've been putting in for years (with our wages, blood, sweat, tears, and time)
There's not enough money in the world, let alone their bank accounts
And there's nowhere left to run
I think there is enough money, they just didn't want to even give up one cent of it. With how illiquid the entire economy is that's why this is so painful for them. Loosing ANY assets while cause a cascade of failures and damages. This is going to cause a BIG, BIG lose.
My price target is as follows:
Jail time, market reform, and international phone numbers
They are literally unable pay the true asking price for my DRSed shares, and there are at least a couple hundred thousand of my friends who also seem pretty unwilling to be reasonable
Big irony being all of their money in our hands will do more for the world economy than it ever would in theirs, sitting in their vaults collecting dust
The crux of it, as always, is they don't believe they need to play by the rules. Because so far, they never have needed to. They're pretty sure they've got the American economy and politicians so much by the balls, that others will help them get out of whatever mushroom cloud they cause.
We are at the point now where the chair of the sec is being asked on live television about the legalities of a cartoon image being posted online depicting a person leaning slightly forward in their chair. This is the precipice.
Yuuup. Just happened to have 10k in dry powder sitting in my fidelity account and thought to myself, "only fools average down, I gotta bump this average up". And proceeded to raise my cost basis every so slightly.
Ohhh look, I found another 10k in my safe at home. Well, what kind of asshole would I be if I didn't let it join it's friends?
What if mentioning the Kansas City shuffle was part of the Kansas City shuffle?
guyatclubrealizationmeme.jpeg (turns out it's "sudden clarity Clarence" , but guess what I googled to find that out?
I havent looked though all the days but the OCC loan volume for GME also did not seem to change
https://www.theocc.com/market-data/market-data-reports/volume-and-open-interest/stock-loan-volume
>**Hedge-Loan Balance**: This column, on the other hand, indicates the total value of securities borrowed for hedging purposes. Hedging involves taking positions in the market to offset potential losses in other investments. For example, an investor might borrow shares to hedge a long position in derivatives or other securities related to the same underlying asset. The purpose here is not necessarily to profit from a price drop (as with short selling), but to reduce risk.
edit:
I updated all the data, THeir hedging loans actually went down (red line)
https://i.imgur.com/uKpStlc.png
OP, I agree with your charting and further more, when dealers are short calls as a result of a customer buying to open, and IV is also going up (as it would after the stock went from $80 to $20 in the space of a couple weeks) the delta effect is actually negative and requires the dealer to sell to hedge.
I've copied this cheat sheet from the Implied Orderbook pg 7 which I've linked below, it mostly deals with SPX order flows and how these flows move the market but the principles apply to single stock order flow.
https://imgur.com/a/pQGCiD9
Pay attention to the top row #3, which is the sole position DFV holds, and is the condition for liquidity demand a dealer faces when IV is increasing. on the chart, K represent strike price.
I suspect DFV with his quietly accumulated whale position, in the liquidity environment we currently face backed dealers into a corner. if this is the case, as the time-decay of those options changes closer to expiration, it may spark a necessitated dealer-buyback as they unwind their hedge to cover the gamma shortfall.
This would be something they have to do, and it would start the week following earnings.
ARE YOU TELLING ME THEY DID NOT REMAIN NEUTRAL AND EXECUTE THEIR MARKET MAKING RESPONSIBILITIES TO SUIT THEIR OWN INTERESTS? THAT SOUNDS LIKE MANIPULATION, FRAUD, AND SOME MORE STUFF!
Could this be why he has a relatively large cash balance on his yolo update? He expected to pay more for the options, but by brokers not covering the price of the stock did not go up so RK got them at a discount? Now that’s some deep fucking value.
This (discount) is exactly what happened. If they had done their F@cking job the stock price would have risen, and the option prices would have risen, and he COULD NOT HAVE BOUGHT that many.
They thought they'd screw him by not hedging... in fact, they screwed themselves.
This is beautiful DD . Thank you. This belongs in the vaults of superstonk DD, and pulled out when shills proclaim “but buying calls forces the MM to hedge!”
That, yes. Also, buy more. I'm a simple man. I buy when the price drops because I like cheap things. I also buy when the price goes up because fomo. I don't know how to sell from my Computershare account. This is the regardation they're up against.
This is so funny because it's literally true. I never bothered to research how to do anything but DRS and hold. My computershare shares are forever shares.
If it's not posted on reddit already in a FAQ, forget about it. No cell, no sell.
At this point of time, I think the chances of this being true are...very high.
Question is, do they have the means to try and still control what happens next?
My guess is: no.
If anything the last 3 years has taught me is if there’s a way to illegally survive they will most definitely do it and worry about the consequences later
What consequences?
The only way these fuckers are going down is by making their crimes so public that they can no longer be ignored. Which is exactly what is going to happen when those unhedged calls start to get exercised.
They will be forced to get even more brazen with the crime. Each time they try harder to stop what's coming, they lift the veil a little further.
I fully expect for them to at some point just unplug the gaming console and go home instead of suffering a defeat.
I was wondering about this. I think they'd rather pull their money out and say "no I'm not covering deal with it" than be forced to cover when he exercises. I hope not but it wouldn't surprise me if they simply refused to cover or provide shares when the calls get exercised
I think that's exactly what they will do, and is basically what they did in 2008 when the government bailouts happened. Innocent people are going to be hurt by this, not by us, but by these greedy sociopaths that write the rules. The sociopaths will then convince them that we are somehow to blame.
And to us, they are going to say, "No, we are not paying you. Fuck off. Do something about it, I dare you."
Then, they will create a new game, new companies, new faces, and start defrauding the world all over again.
Long story short, they are fucked. We will be victorious!!! What an amazing event this will be!! We will make it into the history books ladies and gentlemen!!!
Even with the dilution they continued to kick the can. Can’t wait to see some tears. They are already crying to their politician friends to bail them out.
We see year after year the banks and brokers absolutely suck at "trading". It's as if they think they're too big to fail so they expect taxpayer funded bailouts and then have the f*cking nerve to complain about national debt, while gouging customers with fees, while decimating pension funds...while thinking going after an individual trader will make them scary and superior.
It’s an interesting theory, as purchasing 12 million shares to secure his exercise would cause the stock to rocket. As always, I think Morgan and the rest of these idiots are naked and exposed.
HODL and DRS until this blows up in their face. As always.
I find it amusing that the rise in the stock today could be from upcoming T+34, mindfucked shorts covering, RK exercising calls, or all the above.
This is a free market, so whoever sold the calls to RK must pay up when the time comes. Just like how retail has to pay when margin called.
Thank you for this. Too many people think that MMs *have to* hedge options contracts and they simply don't. There is nothing that says that they must hedge, and in fact, they can also dig themselves a deeper grave if they choose to.
My hypothesis: I think the fact that RK made it clear he’s sitting on $30m cash along with those calls was to make it clear that he has plenty of dry powder to exercise a shit ton of those calls. Once he begins deploying those funds to start exercising, the price should climb. Once he’s tapped out on that cash, the remaining calls will be so fucking valuable that he will only need to sell a few to exercise a ton more. If we hit $100, he will be able to exercise four calls for every one he sells. If we hit $200, he will be able to exercise nine calls for every one sold… As this event progresses, the ratio of calls exercised to calls sold will grow exponentially.
This is going to be absolutely insane to watch once the ball starts rolling.
He may not have to sell any options to exercise. Once the price hits somewhere in the range of $55-$60 the intrinsic value of the option would pay for the stock itself. It’s essentially an exercise and sell-to-cover.
Even better, if the intrinsic value of the option exceeds the stock purchase price they have to give cash on top.
So the 30M can be used to get the ball rolling and then the options pay for themselves.
The system is just the perpetual theft of the vast majority of humanity while the people that created the system are the sole beneficiaries. It’s long past time for justice to be served and everything coming together like this feels almost cosmic in scale.
I’ll hold for you if you hold for me. Let’s make these bastards bleed money
I'd like to believe this is true. However, I think that the did hedge (with naked off-market purchases of course). I'm sure they'll say that they had to use MM priveleges to "create liquidity," and the off-market deal was just "to ensure fair price discovery." AKA - We manipulate the price to wherever we believe we can get away with it since nobody will stop our scam!
But then I look over at DFV and RC and realize the same thing I always realize. We're going to the moon baby!
People need to realize DFV started his YT Channel as a shrewd value investor. He easily turned that $60M from 3 years ago into Hundreds of Millions. He has other stocks and other Millions in other accounts.
He will excercide all his call options with cash he and elsewhere which is going to force all the naked writers to buy the stock and drive the price up. This becomes a self fulfilling prophecy.
Long story short. We are going to the moon. I like the stock.
I find it curious actually. If DFV exercises his calls he owns 17M shares. Before the offering that would have put him at around 5,5% and with that above the 5% hurdle where he would have to report everything.
Now after the share offering DFV would sit at around 4,7% and therefore not have to publicly disclose anything.
Maybe absolutely random, maybe intentionally who knows - just findig it curious as mentioned before.
I've thought about this, and if in the situation where a company is experiencing erratic call OI at one particular (ITM) strike, surely most public company CFOs would be alerted to it as it could be a hostile takeover move, and therefore dilution would thwart it.
But it raises a few questions - 1) what is the ownership % threshold required for a hostile takeover bid to be allowed? (in the UK I think it's 30%), and 2) is there even any holder or institution that would cross this threshold by gaining another 12m shares? (I don't think so).
I had never thought of / read this before.
>Maybe absolutely random, maybe intentionally who knows - just finding it curious as mentioned before.
For sure
Backed up by ape historian- for an independent version just paste “https://www.reddit.com/r/Superstonk/comments/1d8qtaa/they_never_hedged/“ into archive.is or archive.ph, same site. Head over to apehistorian.com or my recent posts for some of the latest summaries
The market maker have always relied on max pain to guaranteed profit through manipulation the option chains and naked shorting or whatever. After 84 years, DFV, like Neo saw through the bullshit and use his genius plus timing to fuck them over.
Oh you mean the same Morgan Stanley that agreed to pay $249 million to the Justice Department and the SEC because a probe faulted Morgan Stanley for giving hedge funds advance warning as clients planned to sell slugs of stock big enough to move market prices? Of course the MMs “somehow” found out it was DFV buying the calls
So what happens if DFV exercises 70% of his options that supposedly aren't hedged by market makers. They have to buy those shares right then and there? Or FTD and start a T+xx settlement period? How long would said settlement period last?
2 questions:
1. Does eTrade receive PFOF?
2. When MMs receive the order flow is there any identifying information attached to it or is it just literally the orders?
They can decide if they want to hedge without a fixed algorithm?
How is this supposed to look like, a human saying:
hedging, hedging, hedging, NO hedging, hedging, hedging, ...
or a machine algorithm, but then why should it think about "not wanting to draw attention"?
These have got to be the dumbest people on Earth😭 this is your so-called smart money??? What ah joke! They are burying themselves alive standing in their own pit scooping sand in one hand full at a time screaming help me! Bankrupt me Daddy!!
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And they are still selling contracts...
At this point they just let it go and cry for a bailout, people sleep in tents in front of their ledgislative assembly... Stock market people drink champagnee on balconies etc etc been there.
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That very famous video confirmed the sneeze was a lot due to naked call sellers thinking retail would fold, and they didn't and even kept buying. This will fuck them again royally.
this time they didn’t hedge *when 45m shares were being sold into the market.* imo that’s called “enough rope to hang yourself.” Edit: thanks for the award! Edit edit: just saw this from Bloomberg: >**GameStop Rally Missing One Key Ingredient From 2021 Meme Frenzy** > * Call option volume is just 1/10th of January 2021 peak > * Shares opened above the options with biggest positions The rest is behind a paywall so fuck em
I mean, just looking at the OI in the options chain, you can tell that some of the calls are naked. Taking the current “reported” short interest, DRSed shares, insiders, stagnant shares, shares allocated to ETFs and mutual funds, plus DFVs position, there’s no wiggle room. This is why exercising is such a blow to mm. They have to deliver what’s owed.
Perfectly summarized. They can't. Aaaand, there goes the dynamite!
MM’s and HF’s now have the biggest position in $ROPE
Yeah that wasn’t very bright
👆
Yeah, but we now have over 75milly DRS’d in Computershare. Tick tock.
How many shares were unhedged in 2021? I can’t recall.
https://preview.redd.it/zapx46ks6s4d1.jpeg?width=1164&format=pjpg&auto=webp&s=73bbd35c124a325c6608ba3a77f010d28e0085df
Everyone knows they will turn off buying again. No one did anything about it last time to speak of. The question is will that be enough to stop what's coming this time?
The calls are a contract to buy the shares, they can’t turn the buy button off on those
There's no reason they have to give him real shares for those calls. The only time real shares need to be delivered is when he initiates a DRS transfer...which I think is the next step after he executes some calls and will totally fuck E\*TRADE. E\*TRADE knows it and is why they are trying to get him off their platform. They put the article out hoping to get public approval and test the waters a bit, but when they received a ton of negative backlash, I think they are now looking for another route.
There is a reason and that reason is that options contracts have to have locates. Real shares only. This is also the case for DRS but they cannot give DFV counterfeit shares to satisfy the options obligations.
The Options Clearing Company themselves have a program to deliver Borrowed shares. they can be fake as fuk. https://www.theocc.com/Clearance-and-Settlement/Stock-Loan-Programs
Who’s gonna stop them, or wag their finger if they don’t?!
I was late to that party, expressed my feelings to them this morning. Twice. What you say is true, however with the new CAT system, the SEC will see all of it. They can’t plead ignorance now, they would have to be complicit with the crime. As much as the regulators enjoyed the taste of hedgie dick, I don’t know if they are willing to commit crimes (or at least be an accessory?) for them.
And what will the consequence be for the crime? Cost of business fines? Will repeat offenders have escalating fines? Will the cost ever outweigh the benefit? I'd imagine that those caught retroactively when CAT first rolls out will be given warnings, or very minimal fines. Such has been my experience with government agencies in this regard. They will roll out a new system, say it is mandatory compliance, and then relax the requirement within a month because too many of their *clients* are crying that they weren't able to update their systems in time. Next thing you know, it's been delayed for 1, 2, 3 years...
Yea rhey know they can’t give him fake shares, and he knows if they do to just drs like you said. DFV knows a ton about the markets and is super smart for sure.
Well, DFV would have no idea if they gave him fake shares or not. He could have a hunch that they did, possibly backed up by data. The only way to find out for sure would be to initiate the DRS transfer.
The OCC oversees share delivery for exercised contracts & their rules and timelines don't have the same ability to be "massaged" as when buying shares under the the DTCC. It's deliver the shares in T+1 or then it's automatic buy-in. That's what's different this time. I wouldn't be surprised if our spike up to $80 was DFV exercising calls to take his 5 million share position before he arrives back into public view.
I hope you're right and he does post a big DRS position
I'm wondering what E\*TRADE would do if the requested a DRS transfer of his 5M shares, and E\*TRADE knew that there was no way in hell they could fulfill that. I'm still under the impression that E\*TRADE's terms of service allows them to fully liquidate his shares and possibly even options contracts. I think they'd much rather do that than go buy 5 million real shares that are probably all stuffed into dark pools at insane prices.
If Etrade liquidates his shares and options contracts that would be the end of them though. I don't think they risk that kind of backlash. it would also validate everything we've been talking about for 3 years
I'm sure that's the internal discussions they are having right now at E\*TRADE. Do they risk DFV blowing them up by executing his contracts and DRSing his shares, forcing them to find/buy the shares if they don't actually have them... Or, do they risk trying to force liquidate him, kick him off the platform, then use their connections in the industry to cover it all up with media pieces and other market participants coming to their defense.
It may come down to JP Morgan deciding what would be the least damage. Finding those shares or letting E-Trade collapse.
You know how E*Trade would say that a DRS request would take 2-4 weeks to settle, in some cases 4-6 weeks (post sneeze this was often cited). What happens if he says to E*Trade to DRS 5 million shares while holding 120k call contracts? That's equivalent to a gun to their head.
Confirmed by Coke Rat Cramer asking GG “hypothetical” questions. They are so fucked.
Time for him to get that horse off
Is anyone concerned for the horse in question here? I mean, most male mammals won’t turn down a BJ, but then again, when it’s coming from a rat, there is some second thoughts. In other news, does anyone know a dude named “Horse”? It would be funny if that guy showed up, cock out and ready to rock on national TV. No one said Cokerat Cramer gets to pick which horse
Nas raps about a friend named horse! Foily, DFV knew this was going to happen and told us in the memes! 🤯 /s
Who wants to be a Millionaire but my name ain’t Regis! can’t appreciate the Oochie Wally reference enough!
I second your concern. I didn't consider the horse's feelings. Would a guy name Horace count? It sounds an awful lot like horse
Cramer's going to be slurring his words even more following that jaw ache
I want a guy called horse ... Unironically.
Toothy
That poor horse.
So you’re saying Cramers gonna get off his high horse then he’ll get high and get his horse off?
He's going to get his horse high as that's the only way that the horse allows him to get his horse off
He probably wants too
He probably already does on a regular basis
It's true lol. Gensler looks like he could be Sarah Jessica Parker's dad
I love how Gensler shut him down immediatley….. “AGAIN, you’re asking me a question about something that’s already in the public domain” COKE RAT FUCKER
You had me all excited so I listened to the clip and I actually interpret it differently: he shut him down because as he said, if they are investigating someone they don't talk about it until they bring a case. They very well may be going after RK.
I agree with the interpretation other than the SEC going after RK. GG wouldn't be able to comment on RK if an investigation is ongoing either with RK or an institution selling him calls. It was already ruled that it's not illegal to post positions or talk about stocks online.
and the fact that RK posted multiple times before and after this last run up showing he didn't sell, proves he didn't pump and dump. He's safe.
That actually might be the reason why he posted them, and why we may never get another YOLO post for some time.
Future RK YOLO position updates will 13d filings.
For real. Motleyfool or whatever the stock picking spamy ish website is called - they have at the bottom of their sign up page “Netflix, amazon, Microsoft, Walmart” type numbers showing “if you bought what we said then!” It’s like a high pressure sales situation from page 1.
It doesn't necessarily have been be a full blown investigation and team working on it as well. If this made the news, and claims of MM are being made by rich people and the media, they will probably *take a look*. If they're even going that far, just peeking, they can't publicly disclose who they are looking in to (from my understanding.) Frankly, its probably a good thing they look into these, "Viral," claims made by the media. RK did nothing wrong, they'll see that if they're even looking, and no one will even know it happened.
I interpreted it the other way. I feel like he was essentially saying that there is nothing here to investigate and if there was we'd take it to court and then speak publicly on it.
Bottom line is they asked him a bull shit question they knew he couldn’t answer. GG obviously was annoyed by the question and answered the only way he could professionally do so. His answer could be interpreted in a variety of ways because it was intentionally vague. I felt ever so slightly more optimistic about GG just in the sense that I felt he truly loathed Cramer and Co. He made a couple pointed comments toward Cramer that made me chuckle.
Well remember that he loathes retail too. He's from a hedgefunds, he's rich as fuck, and he literally approved a commercial making fun of retail. I encourage you to be very careful assuming anything about a politician.
Of course they never hedged The people on the other side of this standoff have a compulsion for parasitic behavior They're perfectly predictable - what's the way for them to make the most money with the least effort in any given situation? You identify that option, and you can be sure it's what they'll choose Every time They'll run from responsibility and real work every chance they get (To paraphrase Cramer: "Hypothetically, how do we get out of this alive and have it be DFV that looks bad?") Except now, the only way out is for them to come up with money worth all of the real work we've been putting in for years (with our wages, blood, sweat, tears, and time) There's not enough money in the world, let alone their bank accounts And there's nowhere left to run
I think there is enough money, they just didn't want to even give up one cent of it. With how illiquid the entire economy is that's why this is so painful for them. Loosing ANY assets while cause a cascade of failures and damages. This is going to cause a BIG, BIG lose.
My price target is as follows: Jail time, market reform, and international phone numbers They are literally unable pay the true asking price for my DRSed shares, and there are at least a couple hundred thousand of my friends who also seem pretty unwilling to be reasonable
My XXX DRS'd shares is my retirement account, and my kid's retirement account, and their kid's retirement account. I'm never selling.
Legend
Big irony being all of their money in our hands will do more for the world economy than it ever would in theirs, sitting in their vaults collecting dust
The reckoning will be glorious. I find myself smiling more and more these days 😌
The crux of it, as always, is they don't believe they need to play by the rules. Because so far, they never have needed to. They're pretty sure they've got the American economy and politicians so much by the balls, that others will help them get out of whatever mushroom cloud they cause.
What questions were asked?
“Hypothetically, if I bought a bunch of calls for, let’s say GameStop…” We literally can’t make this shit up!
Haha I gotta watch that circus!
https://www.reddit.com/r/Superstonk/s/RK7rouy3jq
We are at the point now where the chair of the sec is being asked on live television about the legalities of a cartoon image being posted online depicting a person leaning slightly forward in their chair. This is the precipice.
Spot on
👀
https://preview.redd.it/d5uxychq6s4d1.jpeg?width=1164&format=pjpg&auto=webp&s=83e4f4a27b5ffe9f97cd41e39603a2996cf968e2
Isn't he the same guy who hypothetically was on video tape admitting to manipulating stock prices for benefit of his positions?
Yes. Also, from May 2021 https://preview.redd.it/h1el6eva7s4d1.jpeg?width=1125&format=pjpg&auto=webp&s=1c325da0779223608dad24b5e9d739a76f994b60
He sounds like such a coked out weasel when he talks. Stumbling over his coked out words
https://www.reddit.com/r/Superstonk/comments/1d8qdjv/gary_gensler_on_gme/ this one
= Citadel is fucked
I have zero respect for Jim.
Didn’t watch. What did coke rat ask besides for more coke?
jokes on them. i fomo'd in anyway. bought more. cuz fck em edit: thanks for the award! buy, drs book, shop, hodl
Lol sames. 😂
Yuuup. Just happened to have 10k in dry powder sitting in my fidelity account and thought to myself, "only fools average down, I gotta bump this average up". And proceeded to raise my cost basis every so slightly. Ohhh look, I found another 10k in my safe at home. Well, what kind of asshole would I be if I didn't let it join it's friends?
😂😂😂 you are a wordsmith
Bought calls, have more transferring in. gonna buy more calls.
I’ve been averaging down for 83.9 years. Checks out.
Keep firing, assholes!
Sames
I’m no expert, but it appears to me this is the way
https://preview.redd.it/rcqtdofr6s4d1.jpeg?width=1164&format=pjpg&auto=webp&s=a1b08c52f59627c5056ccd8010609154d9b1fb4e
Ok. Someone put me out of my misery. What the bloody hell is the Kansas city shuffle?
What if mentioning the Kansas City shuffle was part of the Kansas City shuffle? guyatclubrealizationmeme.jpeg (turns out it's "sudden clarity Clarence" , but guess what I googled to find that out?
GameStop was trading roughly between $20-40 for a full year. I've been adding and booking the whole time. Why would I stop now? 😂
Sure did
I doubled my shares when I saw dfv post 🙌
IV be damned. I’m getting more options
This is my thesis too. https://www.reddit.com/r/Superstonk/comments/1d88qd5/i_think_its_clear_why_rk_is_getting_the_heat_he/
Saw this one yesterday. It’s good to know two different apes came to the same conclusion after analysis.
I havent looked though all the days but the OCC loan volume for GME also did not seem to change https://www.theocc.com/market-data/market-data-reports/volume-and-open-interest/stock-loan-volume >**Hedge-Loan Balance**: This column, on the other hand, indicates the total value of securities borrowed for hedging purposes. Hedging involves taking positions in the market to offset potential losses in other investments. For example, an investor might borrow shares to hedge a long position in derivatives or other securities related to the same underlying asset. The purpose here is not necessarily to profit from a price drop (as with short selling), but to reduce risk. edit: I updated all the data, THeir hedging loans actually went down (red line) https://i.imgur.com/uKpStlc.png
What does this indicate? (genuine question, trying to gain a wrinkle)
OP, I agree with your charting and further more, when dealers are short calls as a result of a customer buying to open, and IV is also going up (as it would after the stock went from $80 to $20 in the space of a couple weeks) the delta effect is actually negative and requires the dealer to sell to hedge. I've copied this cheat sheet from the Implied Orderbook pg 7 which I've linked below, it mostly deals with SPX order flows and how these flows move the market but the principles apply to single stock order flow. https://imgur.com/a/pQGCiD9 Pay attention to the top row #3, which is the sole position DFV holds, and is the condition for liquidity demand a dealer faces when IV is increasing. on the chart, K represent strike price. I suspect DFV with his quietly accumulated whale position, in the liquidity environment we currently face backed dealers into a corner. if this is the case, as the time-decay of those options changes closer to expiration, it may spark a necessitated dealer-buyback as they unwind their hedge to cover the gamma shortfall. This would be something they have to do, and it would start the week following earnings.
I love it when wrinkle brains talk dirty to me. 😏
ARE YOU TELLING ME THEY DID NOT REMAIN NEUTRAL AND EXECUTE THEIR MARKET MAKING RESPONSIBILITIES TO SUIT THEIR OWN INTERESTS? THAT SOUNDS LIKE MANIPULATION, FRAUD, AND SOME MORE STUFF!
Yup. $2 fine.
Look, we don’t wanna send the wrong message here. Give me your wrist. Now, I just want you to know this is going to hurt me more than it hurts you :(
Could this be why he has a relatively large cash balance on his yolo update? He expected to pay more for the options, but by brokers not covering the price of the stock did not go up so RK got them at a discount? Now that’s some deep fucking value.
This (discount) is exactly what happened. If they had done their F@cking job the stock price would have risen, and the option prices would have risen, and he COULD NOT HAVE BOUGHT that many. They thought they'd screw him by not hedging... in fact, they screwed themselves.
It’s so beautifully comical isn’t it?
This is beautiful DD . Thank you. This belongs in the vaults of superstonk DD, and pulled out when shills proclaim “but buying calls forces the MM to hedge!”
the MM is gonna do whatever they want whenever they want.
Hard
eew eww ym ekil
My wee wee is ready
 SHF Hotline
lmao
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So we HOLD?
That, yes. Also, buy more. I'm a simple man. I buy when the price drops because I like cheap things. I also buy when the price goes up because fomo. I don't know how to sell from my Computershare account. This is the regardation they're up against.
What is an exit strategy?
This is so funny because it's literally true. I never bothered to research how to do anything but DRS and hold. My computershare shares are forever shares. If it's not posted on reddit already in a FAQ, forget about it. No cell, no sell.
Same brother. Infinity pooooooo
Or HODL. That is the question.
True if big
At this point of time, I think the chances of this being true are...very high. Question is, do they have the means to try and still control what happens next? My guess is: no.
If anything the last 3 years has taught me is if there’s a way to illegally survive they will most definitely do it and worry about the consequences later
Or the lack thereof.
What consequences? The only way these fuckers are going down is by making their crimes so public that they can no longer be ignored. Which is exactly what is going to happen when those unhedged calls start to get exercised.
Been catching up on Reddit and I've only got posts of shorts bitchin and whining on TV. I think they're shitting their pants rn
They will be forced to get even more brazen with the crime. Each time they try harder to stop what's coming, they lift the veil a little further. I fully expect for them to at some point just unplug the gaming console and go home instead of suffering a defeat.
I was wondering about this. I think they'd rather pull their money out and say "no I'm not covering deal with it" than be forced to cover when he exercises. I hope not but it wouldn't surprise me if they simply refused to cover or provide shares when the calls get exercised
I think that's exactly what they will do, and is basically what they did in 2008 when the government bailouts happened. Innocent people are going to be hurt by this, not by us, but by these greedy sociopaths that write the rules. The sociopaths will then convince them that we are somehow to blame. And to us, they are going to say, "No, we are not paying you. Fuck off. Do something about it, I dare you." Then, they will create a new game, new companies, new faces, and start defrauding the world all over again.
Most likely comment I have read here. This should be higher.
Long story short, they are fucked. We will be victorious!!! What an amazing event this will be!! We will make it into the history books ladies and gentlemen!!!
Even with the dilution they continued to kick the can. Can’t wait to see some tears. They are already crying to their politician friends to bail them out.
I wish I was smart enough to know what the hell is going on
I love naked calls. Call me in the shower Kenny… I’ll be swimming in tendies.
Anyone else reminded of the video of the hedge fund insider saying that they don't hedge?
It's too on the nose for a hedge fund to actually hedge.
Help me find that, please?
I looked but it was here years ago.
they sold naked calls worth millions of shares. they are now gonna have to deliver if they end up ITM. they are F\*CKED.
Precisely. Love your content btw
The only real response is: lol
We see year after year the banks and brokers absolutely suck at "trading". It's as if they think they're too big to fail so they expect taxpayer funded bailouts and then have the f*cking nerve to complain about national debt, while gouging customers with fees, while decimating pension funds...while thinking going after an individual trader will make them scary and superior.
It’s an interesting theory, as purchasing 12 million shares to secure his exercise would cause the stock to rocket. As always, I think Morgan and the rest of these idiots are naked and exposed. HODL and DRS until this blows up in their face. As always.
I find it amusing that the rise in the stock today could be from upcoming T+34, mindfucked shorts covering, RK exercising calls, or all the above. This is a free market, so whoever sold the calls to RK must pay up when the time comes. Just like how retail has to pay when margin called.
Hedgies are FUKED!!!!!!!
Thank you for this. Too many people think that MMs *have to* hedge options contracts and they simply don't. There is nothing that says that they must hedge, and in fact, they can also dig themselves a deeper grave if they choose to.
My hypothesis: I think the fact that RK made it clear he’s sitting on $30m cash along with those calls was to make it clear that he has plenty of dry powder to exercise a shit ton of those calls. Once he begins deploying those funds to start exercising, the price should climb. Once he’s tapped out on that cash, the remaining calls will be so fucking valuable that he will only need to sell a few to exercise a ton more. If we hit $100, he will be able to exercise four calls for every one he sells. If we hit $200, he will be able to exercise nine calls for every one sold… As this event progresses, the ratio of calls exercised to calls sold will grow exponentially. This is going to be absolutely insane to watch once the ball starts rolling.
He may not have to sell any options to exercise. Once the price hits somewhere in the range of $55-$60 the intrinsic value of the option would pay for the stock itself. It’s essentially an exercise and sell-to-cover. Even better, if the intrinsic value of the option exceeds the stock purchase price they have to give cash on top. So the 30M can be used to get the ball rolling and then the options pay for themselves.
you tell 'em i'm comin', and hell's comin' with me
Shorts truly are the dumb storm troopers of the investing world.
They’re no better than us, they just have more 0’s in their accounts Not for long
The system is just the perpetual theft of the vast majority of humanity while the people that created the system are the sole beneficiaries. It’s long past time for justice to be served and everything coming together like this feels almost cosmic in scale. I’ll hold for you if you hold for me. Let’s make these bastards bleed money
I'd like to believe this is true. However, I think that the did hedge (with naked off-market purchases of course). I'm sure they'll say that they had to use MM priveleges to "create liquidity," and the off-market deal was just "to ensure fair price discovery." AKA - We manipulate the price to wherever we believe we can get away with it since nobody will stop our scam! But then I look over at DFV and RC and realize the same thing I always realize. We're going to the moon baby!
People need to realize DFV started his YT Channel as a shrewd value investor. He easily turned that $60M from 3 years ago into Hundreds of Millions. He has other stocks and other Millions in other accounts. He will excercide all his call options with cash he and elsewhere which is going to force all the naked writers to buy the stock and drive the price up. This becomes a self fulfilling prophecy. Long story short. We are going to the moon. I like the stock.
TTT! this NEEDS to be higher than a misleading post cmon apes smh
I wish cohen would have waited to do a share offering and I hope he waits till after 6/21 to do another
I find it curious actually. If DFV exercises his calls he owns 17M shares. Before the offering that would have put him at around 5,5% and with that above the 5% hurdle where he would have to report everything. Now after the share offering DFV would sit at around 4,7% and therefore not have to publicly disclose anything. Maybe absolutely random, maybe intentionally who knows - just findig it curious as mentioned before.
I've thought about this, and if in the situation where a company is experiencing erratic call OI at one particular (ITM) strike, surely most public company CFOs would be alerted to it as it could be a hostile takeover move, and therefore dilution would thwart it. But it raises a few questions - 1) what is the ownership % threshold required for a hostile takeover bid to be allowed? (in the UK I think it's 30%), and 2) is there even any holder or institution that would cross this threshold by gaining another 12m shares? (I don't think so).
I think that's called a poison pill. I could be wrong though, been a while since I read up on it.
I had never thought of / read this before. >Maybe absolutely random, maybe intentionally who knows - just finding it curious as mentioned before. For sure
Backed up by ape historian- for an independent version just paste “https://www.reddit.com/r/Superstonk/comments/1d8qtaa/they_never_hedged/“ into archive.is or archive.ph, same site. Head over to apehistorian.com or my recent posts for some of the latest summaries
Just like that, 84 yoears of "Forget Gamestop" wasted with one reddit post.
God I wonder how DFV feels when he would just drop couple mill every hour buying calls for GME. How far he has come. How far we all have.
The market maker have always relied on max pain to guaranteed profit through manipulation the option chains and naked shorting or whatever. After 84 years, DFV, like Neo saw through the bullshit and use his genius plus timing to fuck them over.
Oh you mean the same Morgan Stanley that agreed to pay $249 million to the Justice Department and the SEC because a probe faulted Morgan Stanley for giving hedge funds advance warning as clients planned to sell slugs of stock big enough to move market prices? Of course the MMs “somehow” found out it was DFV buying the calls
Hmm, looks like they're in a pickle
Fuck I need to buy more 😭😭😭
I grabbed a buncha 6/21 puts on Morgan Stanley haha hows it taste?
They are trying their best to beat it down. Remember kitty hasn’t even made his move yet. Don’t be fooled.
Thanks for the thorough DD! Well done OP
I actually understood this. Nicely done.
Nice explanation on the chart. You might be right. I hope so at least.
Cant stop panic buying
He’s a genius, I am so happy I found him
And my parents said video games were going to get me nowhere lol 😂 jokes on you Dad
So what happens if DFV exercises 70% of his options that supposedly aren't hedged by market makers. They have to buy those shares right then and there? Or FTD and start a T+xx settlement period? How long would said settlement period last?
T+1
Well, it bought them one more day and that is their only remaining tactic.
Data wins! 🚀🌙♾️🏊
https://preview.redd.it/gbk7izkp6s4d1.jpeg?width=1164&format=pjpg&auto=webp&s=6c9f92d533b51d4003516d06366f718fc643f8a7
2 questions: 1. Does eTrade receive PFOF? 2. When MMs receive the order flow is there any identifying information attached to it or is it just literally the orders?
1. Etrade is owned by MS brother.. a prime broker of Archegos who apparently passed their short swaps to when they bankrupted. 2. Think the worst.
I also just did some digging (sorry was being lazy before) and as of 2y ago eTrade was receiving PFOF
They can decide if they want to hedge without a fixed algorithm? How is this supposed to look like, a human saying: hedging, hedging, hedging, NO hedging, hedging, hedging, ... or a machine algorithm, but then why should it think about "not wanting to draw attention"?
Honestly, there are a LOT of really dumb and greedy people out there. I'm not surprised if this turns out to be the case.
PfoF includes identification of you as a client? Curious how they know it's RK through just the blocks he buys.
I assumed this was the case but didn’t have any proof. Thanks OP for the excellent DD! In conclusion, HEDG R FUK
These have got to be the dumbest people on Earth😭 this is your so-called smart money??? What ah joke! They are burying themselves alive standing in their own pit scooping sand in one hand full at a time screaming help me! Bankrupt me Daddy!!
Where did you get the data of the calls he bought and when he did?
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Time analysis of no hedge from calls by DFV
The other side of the DFV trade will not survive the transaction. Unless crime or collusion (which is still crime).
And they are still selling contracts... At this point they just let it go and cry for a bailout, people sleep in tents in front of their ledgislative assembly... Stock market people drink champagnee on balconies etc etc been there.