Best "deep OTM puts" explanation I've seen!

  1. Except the entity you’re paying interest to is actually made of your friends you play squash with and their children want to get into Harvard, and because you have Ivy League connections, they don’t give a rats ass whether you actually return the shares, because (a) they weren’t even their own shares either—they were yours and mine—and (b) they’d much rather keep things civil so they can keep their lineage in the Club.

  2. They could probably even sell the contracts to themselves (another company limb or something)

  3. I disagree with this, these rich fucks only care about getting more capital themselves and dont do shit for free.

  4. Then let's beat them with their own limbs. It's not really assault bc they owed us their legs, and we'll lease their limbs back to them, so technically they're hitting themselves. They really should stop.

  5. I didn't know a lot when this first started, but I know that I could go buy puts today and I won't owe interest on shit. I will lose that premium if they aren't in the money and I hold them until expiration. My thoughts would be that they just have these contracts written up with the agreement that they would never be exercised, and then they just expire worthless. I don't know if they can manipulate the premium at all, but that would be interesting to know.

  6. This has been been public knowledge since 2013 when the SEC warned investors about it and explained how the crime was taking place:

  7. And this is how they believe they can outlast the GME hodlers. Pay between 1% and .001% of loss ever so often till “we get bored and sell or need the money and sell”. Nope. They handed us all money to use (besides the money from our own earnings/savings), and when we invested it instead of being mindless consumers and buying gucchi bags, or upgrading our 4 door leased vehicles to fancy 2 door sporties, they got ‘flip over the board game’ H-angry…. Geez such babies

  8. This isnt the first time we seen this. Last january a huge shitload of deep otm puts expired and they either instantly rolled them over or hid them in swaps because there was no real price discovery

  9. When you sell borrowed shares, do you pay the interest rate/cost to borrow that it was when you sold the borrowed shares or the current market's cost to borrow interest rate?

  10. Buying 1mil shares doesn't necessarily raise the price if you can find a willing counterparts to sell those shares in a dark pool. Remember GME in around the sneeze had huge institutional ownership. Then look at the numbers after Q2 there was a huge selling of institutional shares. Some of these will have been used to cover some shorts. They wouldn't buy in the open market if they can avoid it and many tutes would want to cash out after such a surge in share price

  11. Best of both worlds! Do the happy tree friends episode where you cut your leg off only to be the wrong one!

  12. Except that's not how we discovered what the DOOMPs are used for? Go back to Criand's DD post about this. There's a buyer side and a seller side to puts. In his DD, the DOOMPs are done by the buyer. I understood the DD as saying, "Hey! We owe some shares to a party but currently we got some PUTs that we may exercise which are covering for those, and we don't want to give those shares up because we don't want to be exercising naked puts, but we have the shares, I promise!" They are using the excuse of saying they bought puts to show they own shares just being tied up in a hedge from the puts, even though you can own a put without shares. There is no distinction between way OTM, or ITM for these puts when they are using it as an excuse for not delivering.

  13. This makes even less sense to me. How does buying a put prove you own (or will own) a stock? All it does is give you the right to sell shares you don't have. At least when you sell a put you might be required to buy shares, but covering shorts by buying puts makes zero sense to me

  14. I still don't understand why they are puts and not calls. Doesn't a put mean they are on the hook to sell someone shares, while a call means they are able to buy and receive shares?

  15. This "Deep OTM puts strategy" to cover short positions - isn't it indirect confirmation that they do not expect the price to fall to low single digits?

  16. Or, hear me out, they saw a ticker ran 1000% in a few days and saw buying puts as an easy way to make money on the way down. You know that most contracts aren’t exercised, and their value can also go up hundreds-to-thousands of percent without the share price even getting close to touching their strike price, right?

  17. U less you are market maker for puts then you sell yourself them for basically free and then reimburse yourself with the bs fees they pay people for making liquidity. Forget the word for it but they have even paid individuals money for doin shit with options.

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