The issue is they shorted it too much for that to be viable, I believe.
That's the weakness of shorting- it's faster, but more risky. The lowest a stock can go is 0 so the only thing you risk by doing things normally is the money you put in.
With shorting, the losses could theoretically be infinite. There is no limit to how high a stock can rise.
I'm not sure what you're trying to say here. You were wondering why they didn't close their contracts at a small loss. I don't think it will be a small loss. The loss depends on how long people hold before selling. They're required to buy everything more than once so it could potentially be infinite. I'm not talking about you personally and IDK where you're getting your numbers.
Doesn't this make you wonder why they didn't just close all their contracts and take a small loss rather than let this keep going?
They can't it's a huge loss. They are paying interest on it and praying to Baal.
The issue is they shorted it too much for that to be viable, I believe.
That's the weakness of shorting- it's faster, but more risky. The lowest a stock can go is 0 so the only thing you risk by doing things normally is the money you put in.
With shorting, the losses could theoretically be infinite. There is no limit to how high a stock can rise.
Small? 140% of the total stocks were shorted. It's potentially infinite.
I've never said I've made infinite dollars buying a call. A $2000-6000 loss per contract is far less than $30000-40000.
I'm not sure what you're trying to say here. You were wondering why they didn't close their contracts at a small loss. I don't think it will be a small loss. The loss depends on how long people hold before selling. They're required to buy everything more than once so it could potentially be infinite. I'm not talking about you personally and IDK where you're getting your numbers.