I’ve tried posting in u/gherkinit daily post the past few days, but it has not made it to him. This is the culmination of a few days of posting/thinking.
My hope is either I can help strengthen the general options strategy or even learn something myself. Ideally both would happen. This is not at all about divide, but rather strengthening the community.
The general argument as I understand is options apply pressure due to hedging. Conversely, selling an option releases pressures. If that is true, I think the following works against retail:
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Cashless Exercising: net result is you sell some shares to cover the short term loan.
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Buying multiple options and selling some to cover (2 for 1 strategy) so you can exercise: to me this releases pressure via selling to close some options
Example using cashless exercising:
I have a call with 100 as a strike price, but do not have the full funds to exercise. Due to the size of my portfolio, I am allowed to cashless exercise because I meet some margin requirements. The net result is I have 10 shares and have to sell 90 to cover the cost of exercising
While you could say 10 shares is better than what you could have bought before, I think the more important lens is that there are now 90 shares available for misuse (ie loaned out, CNS, etc)
The opposite where you get 90, might actually be good.
Additional Thoughts:
· I suspect a critical point to think through is – is 50/50 good enough? Should it be 51%? What is the ideal cutoff?
· If you believe 51%+ should be the target, the 2 for 1 strategy doesn’t work because selling 1 option to cover the other results with 50% of the shares to you.
TLDR
I believe certain options strategies work against retail. How these works against retails needs to be better understood.
Prelude: This topic needs more exposure and attention. How many apes have actually experienced trading during the volatility of a squeeze? When emotions run high, planning ahead can help!
TL;DR; The DD has been done, and most apes are in ZEN mode with the recent price swings. However, the true test of diamond hands will be upon us during the squeeze. Having a defined exit strategy like the one illustrated below can help remove emotional decisions that you might regret, can contribute to MOASS, and can help put more $$$ in your pocket.
ZEN: Gamestop, Ryan Cohen, Matt Furlong & the Executive Team
GameStop is the largest video game retailer worldwide. With Ryan Cohen as the new Chairman of the board and a new technology focused board of directors, GameStop now has a unified leadership fully committed to two long term goals: "Delighting Customers & Delivering Value for Stockholders".
And as u/CocoCrisp86 says: I've come to believe that GameStop is about to cause a SEISMIC shockwave through three worlds:
- CRYPTO/NFT/BLOCKCHAIN
- ECOMMMERCE
- FINANCIAL MARKETS
- They've poached top talent from companies like Apple, Amazon, and Google—while reeling in heavyweights in the blockchain space! How has "dying brick and mortar" been able to do this, in a time when those other companies are CRUSHING it?
- There can only be one answer in my opinion: GameStop is promising these people an opportunity to be part of a revolution of sorts. A David v Goliath story. They're promising this talent that they'll get a front row seat on one of the wildest rides in human history.
Gamestop already has the footprint of 4,816 stores in 14 countries, and over 55 million PowerUp reward members. As it moves forward with its ecommerce and NFT marketplace the longer term potential for this company rivals market giants like Amazon, Apple, and Meta!
The only way for the Shorts to win is if GameStop were to go bankrupt. The Shorts can't win. Full Stop. It's just a matter of time before the millions and millions of naked, synthetic, counterfeit shares will be need to be bought back!
https://preview.redd.it/n71ny3lpkt481.png?width=1155&format=png&auto=webp&s=4907b3ab0bf833f00ee145ebe23ab5dcae5589ca
MOASS & The Infinity Squeeze:
**To force the short positions to close, the number one priority is to get the float DRSd. This means getting your eligible shares direct registered, and getti
... keep reading on reddit ➡"Forget GameStop." - MSM since January 2021
Before enumerating the possible angles of attack from those who shorted GME, it helps to organize a recap of the abilities and sources of strength of both parties.
The Individual Retail Investor (GME Long)
- Can participate in the equity markets because of his disposable income and available retail-oriented brokerages
- Due Diligence and other forms of Information. Source: social media platforms that validate, invalidate, and refine these due diligence posts; the Internet in general.
- His own discernment. Source: his own smooth brain.
- His conviction / Ability to stay zen. Source: his own discernment and due diligence, DFV's example, the action of GameStop insiders, the strong financial condition of GameStop Corp., memes, hype videos, seeing other individual retail investor's actions and convictions.
Hegies (GME Short)
- Lots of money (they don't really own)
- Can push FUD via MSM and forum infiltration
- Naked short selling with the help of shares held under the name of Cede & Co.
With the respective strengths now listed, an individual investor can draw rough ideas about the possible angles of attack that the Hedgies can do.
In relation to the individual investors ability to participate in the equity, the Hedgies already did what is probably the worst that they can pull so far, worse enough for Congress to present a hearing before the public, and that is turning off the buy button. When worse comes to worse, I am thinking that it might not be beyond them to turn it off again, or even worse, automatically sell those positions. They did the outrageous and unexpected back in January 2021, and so I am assuming the worst from these guys.
With respect to the due diligence reports and other sources of information, as well as the individual ability to discern correct information, if I was a hedgie, it would be wise to play both short-term cons and long-term games. Turn coating mode
... keep reading on reddit ➡
"To work out a grand strategy, you have to know what motivates him or the source of its power" - The 33 Strategies of War by Robert Greene
Hedgies R Fuk
The truth is, there was supposed to be no conflict, just a plain one-sided leeching off of the capital of American companies and the money of the ignorant investing public. There can be no conflict if one side has no idea that they are under attack, living blissfully under the illusion that they have no enemies. Whenever that kind of thing happens, there's no conflict taking place, just massacre.
The retail investors who originally went long on GME are still blissfully unaware of what they were going to thrust into. I, for one, thought that it will be just a quick loot at maybe USD10,000 or even lower. I'll sell at those prices and go. All of that changed when the enemies revealed themselves on the 27th and 28th of January 2021, when virtually all brokers disabled the buy button. I can still remember the excitement that turned to rage that morning like it was just yesterday. Many other things also happened, such as the allegations of infiltrating subs, the allegedly fake posts about loss porns, the regrets, and posting of gains. Those are just fringes because ultimately, it was the turning off of the buy button that signaled the existence of this war. Isn't it everybody's right to buy whatever stock they want at whatever price they want, whenever they want? Turns out that was a lie. And so people started digging up. First it was Robin Hood, then Melvin Capital, then Point72, and ultimately Citadel, the Market Maker and the Hedge Fund. Names are now being dropped, enemies now identified.
It was then that I, as a retail investor, learned that this went this far because of naked short selling. It was also found out that many short sellers of GME didn't have the money to cough up to close the number of shares they were supposed to buy back. So then it was found out that if insurance can't cover them, then there
... keep reading on reddit ➡"He who knows the enemy and himself will never in a hundred battles be at risk." - Sun Tzu, probably
Identifying the participants in the war for MOASS might seem like a complex task. Because of what has been known since the buy button was disabled, some seem to think that the battle is between retail, and everybody else, including the SEC, the Fed, the Banks, the MSM, virtually everyone. This causes some serious doubt into the minds about the possibility of MOASS. Be that as it may, but ultimately, there are really only two parties in MOASS: those who'd rather have it happen, and those who don't. The conditions these parties may want for MOASS to happen may vary, but ultimately, MOASS is just an are you with me or you are the enemy situation. It must be noted that not enemy has to be destroyed or attacked, some just has to be pressured into doing what the pro-MOASS side wants. To simplify the situation, I will first identify the primary pro-MOASS party: the individual retail investors who are long GME.
The GME longs. We call them apes, retards, crayon-eaters, and whatnot. This is not so much a group as one would normally call, as there is literally no leader on this side. Outsiders might think that this side is being led by the "wrinkle brains", but that isn't quite even these people are occasionally called out on their ideas. Even some of the posts from these people are ignored. On the other hand, there are also some good ideas or DD's (short for Due Diligence posts) that are largely ignored. The summary of ultimate thesis of this side is that GME is short sold by a number way beyond the outstanding shares, and since short sellers are ultimately future buyers, albeit hoping for a lower price, the very lopsided imbalance between the forced demand by short sellers who will have to close their short positions and the very limited supply of shares that any shareholder will choose to sell, if at all, will skyrocket the price due to the very basic law of supply an
... keep reading on reddit ➡