If enough people buy puts or short stock, the market makers start selling stock to cover the puts. Self-fulfilling prophecy. Look what happened to coal stocks under Obama. Solos shorted billions of shares under his term and had to buy the coal stocks in Obama’s last year to cover.
If enough people buy puts or short stock, the market makers start selling stock to cover the puts. Self-fulfilling prophecy. Look what happened to coal stocks under Obama. Solos shorted billions of shares under his term and had to buy the coal stocks in Obama’s last year to cover.
Short squeeze, right?