I dont know that they have dumped the entirety of their positions, that can take time.
It's different for options vs shorts. With options they can just roll them out into the future and do all kinds of complex shit to try and mitigate the disaster.
With shorts, they've basically borrowed shares on credit and sold them say at market value of $20, expecting the stock price to continue to decrease over time, at which time, the expiration time occurs, they would buy back the shares at a lower price and pocket the difference...say $5 if the stock price had dropped to $15. But since they are borrowing shares on credit, the potential upside loss can be infinite...when you own a share of stock, the most you can lose is the value of that share. When you are short on stock, you can owe the brokerage or clearing house potentially infinite money...there is no cap to the upside loss potential. So...what happens in tje real world is, you are extended a certain line of credit to do such transactions...and when the trade starts going against you...the brokerage or bank or clearing house or whatever issues a margin call....like...if you want to keep this trade open you need to pony up enough cash to know we are gonna get our money back and not get screwed as the trade keeps going in the wromg direction....and if you cant make your margin call...the trade gets closed out and you lose big league and it feels like you got a metal pineapple rammed up your ass...
But beyond getting margin called out...these traders all would have stop loss orders in to automatically gtfo of a trade going in the wrong direction as part of their risk management strategies....
And anyway....the fact that the price went up bt 1000% the last few days shows you, they were all heading for the exit as fast as they could tp.cover their positions, but there werent enough shares available or anyone willing to sell...which drove the price up like a rocket ship...
This is my understanding of it all and if there are finer points I missed, please some advanced street pede correct me...
Lol...my word. People can do whatever they want. I never told people to sell. I said, I'd be selling to lock in my profits. Based on how short squeezing works...its inherently a swing trade.
I dont care what anyone does with their money. I was just talking about how short squeezes work.
Feel free to do whatever you want to do. But dont call me a dumbfuck. Go take a deep breath.
How do you know they have dumped their positions?
I dont know that they have dumped the entirety of their positions, that can take time.
It's different for options vs shorts. With options they can just roll them out into the future and do all kinds of complex shit to try and mitigate the disaster.
With shorts, they've basically borrowed shares on credit and sold them say at market value of $20, expecting the stock price to continue to decrease over time, at which time, the expiration time occurs, they would buy back the shares at a lower price and pocket the difference...say $5 if the stock price had dropped to $15. But since they are borrowing shares on credit, the potential upside loss can be infinite...when you own a share of stock, the most you can lose is the value of that share. When you are short on stock, you can owe the brokerage or clearing house potentially infinite money...there is no cap to the upside loss potential. So...what happens in tje real world is, you are extended a certain line of credit to do such transactions...and when the trade starts going against you...the brokerage or bank or clearing house or whatever issues a margin call....like...if you want to keep this trade open you need to pony up enough cash to know we are gonna get our money back and not get screwed as the trade keeps going in the wromg direction....and if you cant make your margin call...the trade gets closed out and you lose big league and it feels like you got a metal pineapple rammed up your ass...
But beyond getting margin called out...these traders all would have stop loss orders in to automatically gtfo of a trade going in the wrong direction as part of their risk management strategies....
And anyway....the fact that the price went up bt 1000% the last few days shows you, they were all heading for the exit as fast as they could tp.cover their positions, but there werent enough shares available or anyone willing to sell...which drove the price up like a rocket ship...
This is my understanding of it all and if there are finer points I missed, please some advanced street pede correct me...
“ I dont know that they have dumped the entirety of their positions” Then maybe you should STFU and quit telling people to sell dumbfuck
Lol...my word. People can do whatever they want. I never told people to sell. I said, I'd be selling to lock in my profits. Based on how short squeezing works...its inherently a swing trade.
I dont care what anyone does with their money. I was just talking about how short squeezes work.
Feel free to do whatever you want to do. But dont call me a dumbfuck. Go take a deep breath.
You are trash