Yea except by the time the stock has zommed up 1000%, they've already paid. They've paid out the ass to cover their short positions. Since there was such a massive short interest and so little float, as they attempted to cover their large short positions, there is basically zero supply except at retardedly high prices.
Anyway, by now, they have likely dumped their positions and covered their shorts....its probably mostly retail investors and others who are long on the stock now holding insanely, insanely, insanely overvauled shares.
The hedge funds took it on the chin hard...having to get our at really terrible prices...
The price is going to collapse down as quickly as it zoomed up. Now is the time.to cash the hell out. Actually, this morning would have been the time to do it.
It's all over now and its going to come screaming down fast.
Imagine you got in on the beginning of this crazy short squeeze? Droppes $10k into it...and got out this morning....you'd be up to $100k.
Don't know if there were options trades going on, too, bur anyone who bought high premium calls when the inderlying was at $20 and cashed out today could have made like 300-500x their money I'm guessing...woops...the wall street traders got stomped in the nuts hard.
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...
Yea except by the time the stock has zommed up 1000%, they've already paid. They've paid out the ass to cover their short positions. Since there was such a massive short interest and so little float, as they attempted to cover their large short positions, there is basically zero supply except at retardedly high prices.
Anyway, by now, they have likely dumped their positions and covered their shorts....its probably mostly retail investors and others who are long on the stock now holding insanely, insanely, insanely overvauled shares.
The hedge funds took it on the chin hard...having to get our at really terrible prices...
The price is going to collapse down as quickly as it zoomed up. Now is the time.to cash the hell out. Actually, this morning would have been the time to do it.
It's all over now and its going to come screaming down fast.
Imagine you got in on the beginning of this crazy short squeeze? Droppes $10k into it...and got out this morning....you'd be up to $100k.
Don't know if there were options trades going on, too, bur anyone who bought high premium calls when the inderlying was at $20 and cashed out today could have made like 300-500x their money I'm guessing...woops...the wall street traders got stomped in the nuts hard.
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