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The Corner

QBSacker

Joined: 03/04/1999 Posts: 15109
Likes: 16078


This is a multi-layered F-U scheme and the little guys have it figured


out pretty darn nicely, and they're doing so legally which is what makes it at the very least incredibly interesting to watch. Nobody can force holders of GME to sell; but when in-the-money call writers have their options expire, they are forced to buy shares. With few sellers, those hedge funds in such a negative position are basically f$%ked. Losses are going to continue to mount up as long as the Neets and their movement hold out. I expect them to hold out a long time - they have literally zero downside in doing so. They're out for blood and it's going to happen.

Where this gets really strange is when you look at the gold futures markets. COMEX gold futures move somewhere around 80-100x the value of actually-deliverable gold bullion. It doesn't matter though because as futures contracts roll up each month, COMEX traders roll their positions into the next-forward month contracts - they're not forced to make delivery. However, given such a low ratio of deliverable gold bullion to futures contract values, if these Neets get a hold of THAT market and require physical delivery, all bets are off. There could be an enormous financial bloodbath of the big commodities funds. That's not in the works yet but there is a lot of noise about that from the same disorganized group that pulled off the GME and AMC stunts.

(In response to this post by SchmHoo)

Posted: 01/27/2021 at 9:29PM



+3

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Current Thread:
  Watched the NewReport last night on PBS -- GoochlandHoo 01/28/2021 08:22AM
  See e.g. tulip run up in -- Spudnut 01/27/2021 9:14PM
  Not sure people planted tulips as an F U movement -- Chesapeake HOO 01/27/2021 9:43PM
  They are -- Spudnut 01/27/2021 9:46PM
  But the end result will be -- Spudnut 01/27/2021 9:50PM
  Think it’s flawed logic -- hoos2008 01/27/2021 8:51PM
  Don't the shorts have a time limit, though? -- SchmHoo 01/27/2021 9:00PM
  Yes. -- 135Dobie 01/27/2021 9:15PM
  Assuming option expiry on Friday ** -- hoos2008 01/27/2021 9:02PM
  The Redditors have delivered their demands. -- JMHoo 01/27/2021 8:44PM
  LOL..."eat a dick" ** -- GoochlandHoo 01/28/2021 06:16AM
  #reddit ** -- Trigon 01/27/2021 9:09PM
  Or buy stocks. That works too. ** -- QBSacker 01/27/2021 9:35PM
  Mostly what's the current situation? -- SchmHoo 01/27/2021 8:23PM
  Sort of. Yes. I responded above about margin. ** -- 135Dobie 01/27/2021 9:00PM
  Copy and paste from a friend -- WamplerR 01/27/2021 10:09PM
  Thank you! ** -- CavMan1 01/28/2021 09:46AM
  I think it’s that simple -- WamplerR 01/27/2021 8:38PM

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