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Great color on $GME @wsbmods from an investor in one of my groups:
"I've been thinking of this and going through the WSB reddit last 10 days or so when it all kicked off. There was one stark learning for me outside of the moon lambo yolo stuff.
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"I've been thinking of this and going through the WSB reddit last 10 days or so when it all kicked off. There was one stark learning for me outside of the moon lambo yolo stuff.
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These guys are VERY adept in option trading. For e.g. they were buying calls as directional levered longs with non recourse leverage [risk to premium only as buyer] and that made street short options, short gamma, could not cover, they kept buying calls and delta to...
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... keep hedging on up gaps in an illiquid market like GME et all. In other words Black Scholes did not/does not work in those cases as we know and it lead to outsized exarcabated moves in the market in the way they were executing these trades..super smart..super super smart
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What makes this super interesting as well is that they are going after shorts with low float on SI and buying options on them in size... there is no way dealers can delta hedge these as float just vanishes on way up and then the HF shorts have to buy to cover, causing...
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... further up moves, causing more dealer hedging....the long calls sitting back sipping pinas in the meantime.
Just a real genius well thought out attack vector I must say. Not sheer dumb luck they did it this way."
5/5 End
thx A.B.!
Just a real genius well thought out attack vector I must say. Not sheer dumb luck they did it this way."
5/5 End
thx A.B.!
