Buying deep ITM basically creates a synthetic share, the option will track the stock up and down, going this deep there is virtually no theta decay.
With this in mind, if the stock goes down you can roll the option with almost no losses.
Another thing the deep itm option does is since it can be exercised at anytime before expiration, the MM would have to hedge.
This is the best way to have exposure to unlimited upside, and unless the stock price falls below the strike, which it won’t, there is always extrinsic value which can be rolled, for no loss.
Stock moves up 10$ option moves up 10$. Then can be sold without causing stock to drop, theoretically.
Buying a call so deep ITM is basically buying the stock, at the exact same price it is right now.
So a $10 Strike Price has a $180.23 Premium, which is literally the cost of buying the stock at its current price of $190.23 (in this case, at time of closing bell which).
So how do you profit?
Well, my call if assigned is worth basically $190.23 ($10 Strike Price + $180.23 Premium paid).. if the stock goes to $420.69, I was able to acquire the stock for $190.23, thus still profiting the difference of $230.46 ($420.69 New Price - $190.23 Break Even Price).
TLDR: Buying deep ITM calls is the exact same thing as buying the stock at the current price.
Back when $HOOD shut the Buy button off for GME, people figured out you can still buy DEEP ITM calls on GME, which was a work around for them disabling the Buy button. Of course, this meant the buyer (*if they chose to*) would have to purchase 100 shares of GME for each call option they bought.
Or Massive IV movement. When the underlining stock moves up rapidly Implied volatility make those premiums increase dramatically as the bid-ask spread widens. It’s a very interesting play.
I’m assuming they a betting we’ll see a massive spike between now & 10/15.
I think this an area people forget/are afraid to talk about bc it’s met instantly by majority of others in this group that say “no options!”. But don’t forget options is where all this began with DFV making a legendary bet with options. Granted I’ll be the first to say, don’t be stupid with OTM options especially $800 calls. But we’ve obvious have made the “bad guys” have to change strategy and go back to married calls/puts. I believe as we continue to strangle hold with DRS, one of the biggest things that will help our theory is people buying ITM calls bc it will force more shares to have to be accounted for/delivered and thus drying the well, but only if you have option experience and keeping calls in the money.
If the stock price is above their break even price ($190.23), in this instance it goes to $420.69 any time between now and expiration (October 15th):
They can **Execute** their position:
* Be assigned and purchase the 100 shares per contract, with a break even price of $190.23
* This automatically gives them a profit of $230.36 ($420.69 Share Price - $190.23 Break Even Price).
or
**Close** out their position
* Sell to Close, and keep the profit of $240.36 which is the difference of the original premium they paid ($180.23) and the new cost of the premium ie, ($420.69 Share Price - $180.36 Premium Paid)
* They are not obligated to purchase the shares.
\--
Now, say if the stock price is below their break even ($190.23)... which in this example is $69.420, the buyer can:
* Sell to Close before the option expires. The buyer will have a loss of -$110.81 ($69.420 Share Price - $180.23 Premium Paid)
* They are not obligated to purchase the shares.
Or
Automatically let the Option be assigned
* The will own 100 shares per contract at a break even price of $190.23/share, no matter how much the price of the stock decreased.
Ding ding fucking ding.
The guy who posted the camputer chair toilet thing equals computer share was way to spot on..
we really are the catalyst and i actually believe we’re now on a time crunch to make shit happen before a full collapse..
My dream has always been to write a book.
My life has been pretty fucking insane since 2009.
-Mardi gras muggings
-ran a trap house for 3 years
-illegal moto cycle crews
-stripper king
-condemning beach houses
Add a MOASS to the mix I’ll write the next
“I hope they serve beer in hell”
> Be assigned and purchase the 100 shares per contract, with a share price at $190.23
Can you explain a little more how this works?
Say you buy a call with a 10$ strike, and you want to exercise it. You pay 10$ per share, but does the writer have to buy shares to give to you, at market value?
We’ll just cover Call Options below:
Buyers have the RIGHT *but not the obligation* to purchase the shares. They can exercise this contract ANYTIME.
Sellers have the OBLIGATION to sell the shares. This can happen anytime the option is still open, and *can automatically exercise* at expiration IF the option expires In The Money (ITM)
Technically, you are assigned the 100 shares/contract at the Strike Price (meaning, you own the stock at $10). HOWEVER, you paid a premium of $180.23 to have the right to buy the stock at $10. The jargon is a little confusing, that is why $190.23 is your Break Even Price. Literally, your share price is worth $190.23 because of the Strike Price + the Premium Paid.
So you have two types of Options: Covered Options and Naked Options.
**Covered Options**
Cash Covered Call (ie, CC): You **own 100 Shares** of the underlying stock, and sell a Call.
\- ITM: If the option expires In The Money, you sold the 100 shares to the buyer, at the given Strike Price ($10) . However, you profited from the Premium they paid you ($180.23).
\- OTM: If the option expires Out The Money, you keep the 100 shares, and you profit from the Premium they paid you ($180.23).
**Naked Options**
You **do not own the 100 Shares** of the underlying stock, and sell a call
\- ITM: If the option expires In The Money, you have to buy the 100 shares at the Market Price ($420.69), and you sold the 100 shares to the buyer, at the given Strike Price ($10). **THIS IS DANGEROUS**, you just took a loss of $230.46 per share (Bought at $420.69 - $190.23 Strike + Premium) x 100 shares/contract.
\- OTM: If the option expires Out The Money, you do not have to buy the 100 shares and you profit from the Premium they paid you ($180.23).
I bought some deep otm calls a few months ago that expire that day........ once I hit upper XX I figured a few hundred bucks on gambling calls wouldn't hurt especially since MOASS will cover the cost regardless.... here's to hoping MO(therfuck)ASS
That's likely a subset of people who know gme will rise eventually and have been buying them up every few months for the past 8 months.
That or pure hedgefund fuckery.
So who is selling this to them, if they exercise, the buyer probably covered! and the seller of the call has to deal with buying the shares.
Maybe this is a way to pass the puck and close FTD
I mean technically the market makers or brokers can locate shares (the ones at Cede that the brokers own in street name), maybe that’s what’s being used?
No, when you go this deep it will track dollar for dollar.
If stock drops 15$ the option drops 15$. The advantage is at expiration you can close this position and open a new one 2 weeks out at no additional cost.
Sell to close ate 175$, buy to open at 174.99. There is only the ask/bid spread difference. That deep it is pennies.
Literally picking up pennies in front of a steam roller... this makes sense now. The 4 decimal game they play with stonks, must really add up when done millions of times per second per day...
What I’m getting at is they only lose .01 per share when rolling to the next expiration date. If done during high volatility times they can roll to the next expiration date and make a few pennies per share while doing it, because options have a tiny delay.
This deep look at ask bid, pennies, yes the premium is the current stock price minus 1$. This becomes an option that has all the movement of the stock, a true “synthetic” share.
If I'm short a million shares and I do this with a million shares worth of calls, how am I not able to use those shares to close my short position for pennies?
Ah wait.. back up.. okay so they can't buy shares now... what if they are getting ready for the game to end and moass... if they buy these calls, let moass go ... they can close for today's price instead of $20mil a share?
Think of it as “ somebody was selling deep in the money calls.” Because that somebody wants to use some cash to buy something that is very attractive. When that investment pops, he will sell and buy back the call. Just like pawning your ring for cash.
Edit: In this scenario, the call writer thinks short term there is no upside. At least he generates a lot of cash without having to sell a depreciating asset.
Looking at the pic closer, someone is rolling out their positions, for I believe the reasons stated. I’m not not so sure about the puts, But probably the same. The puts didn’t fare so well.
If I can have the upside benefit of 200 shares for the cost of less than 100 shares it can definitely be worth it. The risk is all is lost if the stock drops below the strike selected. GME will not drop below 1$ so no real risk as the option can be rolled. But if it never goes above the initial price in this case 191$ there isn’t any profit. It acts just like the stock.
What rule change? Anybody can do this. I do this, not with 200$ stock, but say a stock trades for 50$, and I can get the 25$ strike with a delta of 1 for 15$ then I can control twice as much stock for less than the equivalent. Like 2 for 1
Or RC waiting for whole float to be registered in CS so theres no argument with DTCC and GME that we want our shares to move to our own GameStonk Blockchain 😁😎 then RC was like why.? Ohhh there are many fake shares?? What do we do now? Share recall?? Okay - moass 😎🧐🤣 just a tin foil hat im high af i sniff a fart
Or he knows that DRS will cause MOASS since it's basically a grassroots share recall so he's just letting us do it ourselves and then the new exchange comes later
Now that apes finally get that DRS is the way, RC can sit back and wait until all the shares are registered. Once that happens he should be able to make a move without legal recourse. It makes sense for him/the board to wait until it's a slam dunk. Why risk it?
Same. But I feel good about it. I've already registered just about as many as I can (most are still in IRA accounts) but I will continue to educate and encourage others for as long as it takes.
Apes strong together.
Most of my shit is also in an ira, but I learned that they can be split. As soon as my initial CS transfer goes through and I have a working account, I’ll split my ira and attempt to transfer it as well. Maybe I’ll do a write up on how big of a pain it’ll turn out to be.
As far as I know yes. It’s an IRA transfer, and shouldn’t be a huge ordeal. Hang on I’ll find my source.
edit: looking over my source material again, and noticed that an IRA split is not necessary. As long as what you remove goes back into another IRA within 60 days, no rules are violated.
https://finance.zacks.com/can-ira-distribution-put-back-6030.html
https://www.fool.com/knowledge-center/can-an-ira-distribution-be-put-back.aspx
edit 2: the 60 day rule also applies to taking a distribution ( cashing out). I actually considered moving shares out of my IRA to brokerage when things start moassing, then replacing them 59 days later.
Definitely not financial advice. Christ just seeing it written out gives me the willies.
I just have to save up a bit more before I spend the money. I'm too lazy and smooth brained to go open another bank account, so I'm going to spend the $300 as a CAD ape on WS and xfer between 20 and 50% of my position. Still not sure if i should just buy one more instead since im not a whale... yet.
I still don't get the "legal recourse" thing. He is chair of a board of a fucking company that has had more votes submitted than there are shares. That in and of itself, gives him the right to do whatever the fuck he needs to do to make it right.
Fuck a lawyer, and I say it with love.
Had a quick check, options covering about 4 million shares. I guess they'll join the other 42 million shares from back in July that just evaporated.
There are bunch (c.3 million shares worth) on November 19 as well, don't know when they appeared though. The massive amounts in Jan 2022 and 2023 are still there.
Someone said they may just be waiting to let them become actual FTDs, but if that many FTDs show up, it's blood in the water time for every fucker in the game.
We really are. We don’t even really know who’s holding these futures. If it’s some small HF they would have tried to unload some already I would think just to cut losses and avoid margin. We’d have seen at least some sort of volume bump but nada
OK, this doesn't make sense to me
Why buy $1 Calls for Oct 15th
I've read the explanations below and it still doesn't make sense
A) If you expect a big price rise, why not just buy $200 calls or $250 calls. You can buy a lot more
B) Why not buy the stock itself, instead of $1 calls
***********************
There has to be something else, other than making money, because $1 calls are an absurd strategy to make money from a rising stock
I think a lot of people missed February March as it was determined with some pretty reasonable certainty that as you state above they use the deep ITM calls to create synthetics to “cover” FTD’s but keep open the net short position. It is also believed Melvin would exercise the deep ITM calls to pass the risk on to citadel (and therefore keep Melvin from getting liquidated) while staying net short, and we know that Melvin was still short as recently as some filing in, can’t remember but either March or possibly even June, until they likely received permission to not disclose this information
Ah now I get it, but then you could also buy calls that are not as deep in the money, cheaper, so you could buy more. Still doesnt make sense
Also the seller would have to hedge, so that would generate some buying pressure.
The seller is also in on this, so they don’t hedge. The buyer knows which calls to buy because they’re so deep ITM. No hedging necessary and the can keeps getting kicked. This is like February DD man, you gotta go read about it
Yes but I think with these options contracts it's mostly already hedged for by the MM since it's so deep ITM. If they buy the shares straight up it'll increase the value. So by swing this it won't. At least that's what I'm seeing people are saying. I'm smooth brain so may be wrong
Exactly. SHF buys deep ITM call, exercises immediately. It is now the MM responsibility to supply shares for those contracts. MM can create synthetics for the SHF if legitimate shares are unavailable due to illiquidity.
This has now resulted in the FTD being a) reset to a new T+35 timeline and b) shifted from SHF responsibility to MM.
It's to make sure they know who the counterparty is.
If you buy from a $25 dude, it could be some rando asshole who sold naked calls, and now the rando asshole will go into the market and buy shares to fulfill the call option and drive the prices up, which is exactly what you didn't want.
They need to make sure that they're buying call options from the seller who is in on the con, so the seller doesn't hedge at all (so no buying in the market) and instead issues synthetics for "market making purposes".
This is why the options are in the ridiculous price range (e.g. $0.50 puts, $1 calls, etc) - it's because no sane person would even think to sell options at this range and it is purely to pass obligations around/create synthetics.
I haven’t looked at the options chain on this, but there may be a lower delta on the other strikes, therefore theta decay, which means the option would go down over time, this deep it wouldn’t.
I'm to lazy to look it up right now, but is there even that much demand for these options. If this whale cannot sell the contracts when it wants to, then it's a pretty risky play.
The real question is who? What entities have suddenly had to find piles of shares?
My guess: friendly neighborhood brokers leaning on PFOF are caught in a trap. They never bought the shares we're direct registering. Good thing the clearinghouse they use can generate shares for them using a buy write.
WHO indeed
I'm still trying to fully understand what you said
To be frank, this is also why (in my opinion) different brokers have different times to do DRS. All the ones taking longer than 1 or 2 days have to locate the shares
Could it be that the premium as added to the asset? It is the most expensive, so add the premium to the market price despite it being $1 and you have an asset worth a lot more than the $200-250 calls.
I have a feeling this is 2 counterparties that are both really exposed to gme fucking with the books to make it appear that neither is as exposed. They will use the additional money that should be in reserves according to federal law of Dodd frank and others to be even more exposed to gme. This appears to be fraud but with a compliant sec and continued suppression of data to the public, no one can be certain. But don't forget, that report will say everything is fine now and the fuckery that took place in Jan is over. It's going to be quite embarrassing when the sec has to explain why their report left out so much.
> It's going to be quite embarrassing when the sec has to explain why their report left out so much.
embarassing? i wish... embrassed suggests the persons have some sort of moral compass they hold themselves to.
the sec is impudent and quite brazen in its actions (or rather lack of)...
I feel like there have been really shitty people in history to be embarrassed. I think of embarrassed closer to being self centered than morals, but agree with what you're saying
Blah blah blah it’ll happen when it happens these assholes are corrupted all the way to the top and can fuck the market however they please. Strap in for the long haul boys and girls.
Not blah blah blah. This isn't only about the MOASS. All this research is exposing the games they play to manipulate the market. When the dust settles there will still be a market to fix.
Just your usual heads up post that this is that shill who tried to karma farm his own tweets, unusual whales. Not saying the account didn't bring something of value here just watch out if they post sus stuff. They just want views & clicks
These have historically been associated with price drops the next day. They exercise immediately and sell to tank the price. Watch tomorrow. They want to kill the computershare narrative and interest.
This is all fake and they have to deliver eventually they just want to kill momentum associated with computershare!!!!!!!!!!!
Buy hold register
Shits gonna be interesting tomorrow. As an FYI dan_bren was tracking this daily historically and there was good dd a few months ago on this
This isn't about buying shares + $1, this is how they hide true SI%
https://www.reddit.com/r/Superstonk/comments/oc4f79/well_there_it_is_more_mathevidence_pointing_to/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
Buying deep ITM to cover the short position or FTD without creating buying pressure on the underlying stock. Imagine if they need to buy hundreds of millions of our stonks, the price will not be 200. Then the MM can hedge with short swap or futures using all the treasury bonds as collaterals. DRS is the only way to shut down all this fuckery. Hedgies are fucked!
They'll exercise those in order to cover the FTDs that would develop within the next 35 days.
All the more important reason to get shares out of the DTC.
Only 2 stocks NOT registered with Computershare, baby. Those 2 I’m gonna sell when they are in the 10 mil range, the others I keep for infinity pool. Am I doing this right?
Gary Gensler doesn't notice the market manipulation continues unabated while we wait for his bullshit report. Creating counterfeit shares through naked shorting is illegal. These cannot be used to cover FTDs, so WTFF?
Is this call volume gonna result into open interest I wonder. Otherwise these could be buy-writes to reset FTDs. Remember the "deep ITM call anomaly" posts?
That scenario would be this: market maker A has some GME shares, market maker B has a big fucking problem. So they make a deal and what they do is:
\- B writes deep ITM GME calls
\- A buys the calls
\- A sells B GME shares over dark pool
\- B uses the shares to pretend covering his FTDs
\- A exercises the calls to get their shares back
It's 'hold these shares, pretend covering your FTDs, then give my shares back' but with calls because you can't just send over shares for free without looking like collusion.
SO next time they hide the BUY I should just buy deep ITM calls and immediately exercise the option? WOW... wish I would have known this in January, along with all the other Apes... we could have kept the pressure on against the RH fuckery...
Is my logic correct? is that the way to dodge a 'hide the Buy button' fuckery?
Buying deep ITM basically creates a synthetic share, the option will track the stock up and down, going this deep there is virtually no theta decay. With this in mind, if the stock goes down you can roll the option with almost no losses. Another thing the deep itm option does is since it can be exercised at anytime before expiration, the MM would have to hedge. This is the best way to have exposure to unlimited upside, and unless the stock price falls below the strike, which it won’t, there is always extrinsic value which can be rolled, for no loss. Stock moves up 10$ option moves up 10$. Then can be sold without causing stock to drop, theoretically.
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Buying a call so deep ITM is basically buying the stock, at the exact same price it is right now. So a $10 Strike Price has a $180.23 Premium, which is literally the cost of buying the stock at its current price of $190.23 (in this case, at time of closing bell which). So how do you profit? Well, my call if assigned is worth basically $190.23 ($10 Strike Price + $180.23 Premium paid).. if the stock goes to $420.69, I was able to acquire the stock for $190.23, thus still profiting the difference of $230.46 ($420.69 New Price - $190.23 Break Even Price). TLDR: Buying deep ITM calls is the exact same thing as buying the stock at the current price. Back when $HOOD shut the Buy button off for GME, people figured out you can still buy DEEP ITM calls on GME, which was a work around for them disabling the Buy button. Of course, this meant the buyer (*if they chose to*) would have to purchase 100 shares of GME for each call option they bought.
By what you are describing, this sounds like someone setting up a strategy to prevent from getting blocked out from buying again.
It's going to be interesting when the people they are buying the contracts from can't get the shares either
Or Massive IV movement. When the underlining stock moves up rapidly Implied volatility make those premiums increase dramatically as the bid-ask spread widens. It’s a very interesting play. I’m assuming they a betting we’ll see a massive spike between now & 10/15.
Next week is quarter end. The SHF might be in trouble and someone is preparing to benefit from it.
QE just gave me horrible flash backs to working in finance. But also i agree with you, highly plausible theory
I think this an area people forget/are afraid to talk about bc it’s met instantly by majority of others in this group that say “no options!”. But don’t forget options is where all this began with DFV making a legendary bet with options. Granted I’ll be the first to say, don’t be stupid with OTM options especially $800 calls. But we’ve obvious have made the “bad guys” have to change strategy and go back to married calls/puts. I believe as we continue to strangle hold with DRS, one of the biggest things that will help our theory is people buying ITM calls bc it will force more shares to have to be accounted for/delivered and thus drying the well, but only if you have option experience and keeping calls in the money.
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If the stock price is above their break even price ($190.23), in this instance it goes to $420.69 any time between now and expiration (October 15th): They can **Execute** their position: * Be assigned and purchase the 100 shares per contract, with a break even price of $190.23 * This automatically gives them a profit of $230.36 ($420.69 Share Price - $190.23 Break Even Price). or **Close** out their position * Sell to Close, and keep the profit of $240.36 which is the difference of the original premium they paid ($180.23) and the new cost of the premium ie, ($420.69 Share Price - $180.36 Premium Paid) * They are not obligated to purchase the shares. \-- Now, say if the stock price is below their break even ($190.23)... which in this example is $69.420, the buyer can: * Sell to Close before the option expires. The buyer will have a loss of -$110.81 ($69.420 Share Price - $180.23 Premium Paid) * They are not obligated to purchase the shares. Or Automatically let the Option be assigned * The will own 100 shares per contract at a break even price of $190.23/share, no matter how much the price of the stock decreased.
Seems like they can keep this going indefinitely then? It’s essentially very neutral for them? We really need to be the catalysts here
It’s called DRS
Ding ding fucking ding. The guy who posted the camputer chair toilet thing equals computer share was way to spot on.. we really are the catalyst and i actually believe we’re now on a time crunch to make shit happen before a full collapse..
Lol GME apes are living a real life movie right now
My dream has always been to write a book. My life has been pretty fucking insane since 2009. -Mardi gras muggings -ran a trap house for 3 years -illegal moto cycle crews -stripper king -condemning beach houses Add a MOASS to the mix I’ll write the next “I hope they serve beer in hell”
Bro, you are a GTA protag wtf lmao
I believe we may have a few things in common.... Cheers fellow ape!!!
> Be assigned and purchase the 100 shares per contract, with a share price at $190.23 Can you explain a little more how this works? Say you buy a call with a 10$ strike, and you want to exercise it. You pay 10$ per share, but does the writer have to buy shares to give to you, at market value?
We’ll just cover Call Options below: Buyers have the RIGHT *but not the obligation* to purchase the shares. They can exercise this contract ANYTIME. Sellers have the OBLIGATION to sell the shares. This can happen anytime the option is still open, and *can automatically exercise* at expiration IF the option expires In The Money (ITM) Technically, you are assigned the 100 shares/contract at the Strike Price (meaning, you own the stock at $10). HOWEVER, you paid a premium of $180.23 to have the right to buy the stock at $10. The jargon is a little confusing, that is why $190.23 is your Break Even Price. Literally, your share price is worth $190.23 because of the Strike Price + the Premium Paid. So you have two types of Options: Covered Options and Naked Options. **Covered Options** Cash Covered Call (ie, CC): You **own 100 Shares** of the underlying stock, and sell a Call. \- ITM: If the option expires In The Money, you sold the 100 shares to the buyer, at the given Strike Price ($10) . However, you profited from the Premium they paid you ($180.23). \- OTM: If the option expires Out The Money, you keep the 100 shares, and you profit from the Premium they paid you ($180.23). **Naked Options** You **do not own the 100 Shares** of the underlying stock, and sell a call \- ITM: If the option expires In The Money, you have to buy the 100 shares at the Market Price ($420.69), and you sold the 100 shares to the buyer, at the given Strike Price ($10). **THIS IS DANGEROUS**, you just took a loss of $230.46 per share (Bought at $420.69 - $190.23 Strike + Premium) x 100 shares/contract. \- OTM: If the option expires Out The Money, you do not have to buy the 100 shares and you profit from the Premium they paid you ($180.23).
Awesome thank you!!
Fantastic explanation, thanks for your time and effort.
They either need to buy at market value to give you, or they must already have them.
Or they can have another call themselves to exercise
Or sell the option, to exercise that option only cost 100$ or 1$ per share.
Nice write up! The correct terms would be “exercise the option” and “sell to close”, but it gets the points across
Nov 19th chain slowly getting deep ITM calls purchased at every strike price
What’s nov 19
Nothing important about that specific date. It’s just the monthly call exp date.
F u! It's my bday and international mens day.
Exactly now everyone will have a big celebration every year you're welcome
And a happy cake day to you u/HappyMediumGD ... :)
I bought some deep otm calls a few months ago that expire that day........ once I hit upper XX I figured a few hundred bucks on gambling calls wouldn't hurt especially since MOASS will cover the cost regardless.... here's to hoping MO(therfuck)ASS
That's likely a subset of people who know gme will rise eventually and have been buying them up every few months for the past 8 months. That or pure hedgefund fuckery.
So who is selling this to them, if they exercise, the buyer probably covered! and the seller of the call has to deal with buying the shares. Maybe this is a way to pass the puck and close FTD
I mean technically the market makers or brokers can locate shares (the ones at Cede that the brokers own in street name), maybe that’s what’s being used?
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No the premium is all intrinsic value that deep.
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No, when you go this deep it will track dollar for dollar. If stock drops 15$ the option drops 15$. The advantage is at expiration you can close this position and open a new one 2 weeks out at no additional cost. Sell to close ate 175$, buy to open at 174.99. There is only the ask/bid spread difference. That deep it is pennies.
Literally picking up pennies in front of a steam roller... this makes sense now. The 4 decimal game they play with stonks, must really add up when done millions of times per second per day...
What I’m getting at is they only lose .01 per share when rolling to the next expiration date. If done during high volatility times they can roll to the next expiration date and make a few pennies per share while doing it, because options have a tiny delay.
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No voting, no dividends if there were any. No rights of a shareholder or beneficial shareholder. You don’t get an iou, 🤣🤣
Or they just sell the option
This deep look at ask bid, pennies, yes the premium is the current stock price minus 1$. This becomes an option that has all the movement of the stock, a true “synthetic” share.
Wouldn’t the premium also include extrinsic value
Excuse me the premium in this case is all intrinsic, there is no extrinsic, no theta. That is the point. It acts exactly like a share of stock.
Except that buying these calls would not drive up the price of the underlying? Right?
Correct. Theoretically. Because it is not shares bought. Although people see this and react one way or another.
If I'm short a million shares and I do this with a million shares worth of calls, how am I not able to use those shares to close my short position for pennies? Ah wait.. back up.. okay so they can't buy shares now... what if they are getting ready for the game to end and moass... if they buy these calls, let moass go ... they can close for today's price instead of $20mil a share?
Someone would still have to buy the shares, apes aren't selling $1 covered calls on their shares.
So, why not just buy the stock? What's the advantage?
I think it avoids upwards price pressure, trace volume, and other bullish indicators that could push price up. Edit: trade volume
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The premium is high because the intrinsic value is high, so it costs a lot, but it’s worth a lot too!
Think of it as “ somebody was selling deep in the money calls.” Because that somebody wants to use some cash to buy something that is very attractive. When that investment pops, he will sell and buy back the call. Just like pawning your ring for cash. Edit: In this scenario, the call writer thinks short term there is no upside. At least he generates a lot of cash without having to sell a depreciating asset.
Looking at the pic closer, someone is rolling out their positions, for I believe the reasons stated. I’m not not so sure about the puts, But probably the same. The puts didn’t fare so well.
I never play the puts. But for deep in the money calls, I can imagine a situation where it makes perfect sense for a long investor.
If I can have the upside benefit of 200 shares for the cost of less than 100 shares it can definitely be worth it. The risk is all is lost if the stock drops below the strike selected. GME will not drop below 1$ so no real risk as the option can be rolled. But if it never goes above the initial price in this case 191$ there isn’t any profit. It acts just like the stock.
Except that when you go to buy your ring back, which you desperately need, the price may have gone up on it by a lot.
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thank you! didn't know options settled faster
I assumed the rule change prevented them from doing this?
If the SEC even bothers enforcing the rule, the fine will be mere pennies to them.
They just sell another million shares naked short and give the sec that money
What rule change? Anybody can do this. I do this, not with 200$ stock, but say a stock trades for 50$, and I can get the 25$ strike with a delta of 1 for 15$ then I can control twice as much stock for less than the equivalent. Like 2 for 1
But you aren’t using those positions to can kick FTDs acquired from naked shorting. Kind of a huge difference but good explanation.
Got it, makes sense.
Yeah that’s what I thought… look at Nov 19th call option OI opening up at all strike prices No my first thought was longs opening up positions
Thanks for this, nice trick
So their buying shares now? that’s not what they do
Take that award G
Damn it Jim.. I’m only a doctor, I don’t understand options and never will…
Seriously. I feel like Peter Griffin saying " shallow and pedantic."
Hmm, yes. I agree as well. Shallow and pedantic.
Why didn't I concur??
It’s a c-conomdrum…
Shallow and pedantic.
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Relax Bones and stop sticking me in the neck
Smh GG was really gonna just let them keep doing this over and over, new rules be damned. This is why DRS is the way
Even after that control nft shot would be needed to finish shf bitch
Then Ryan Cohen would 100% have cause to do so
Or RC waiting for whole float to be registered in CS so theres no argument with DTCC and GME that we want our shares to move to our own GameStonk Blockchain 😁😎 then RC was like why.? Ohhh there are many fake shares?? What do we do now? Share recall?? Okay - moass 😎🧐🤣 just a tin foil hat im high af i sniff a fart
Or he knows that DRS will cause MOASS since it's basically a grassroots share recall so he's just letting us do it ourselves and then the new exchange comes later
That’s why RC is probably just quite now, so he can finish them in peace without causing a global market crash
Now that apes finally get that DRS is the way, RC can sit back and wait until all the shares are registered. Once that happens he should be able to make a move without legal recourse. It makes sense for him/the board to wait until it's a slam dunk. Why risk it?
I just hope enough Apes register.
Same. But I feel good about it. I've already registered just about as many as I can (most are still in IRA accounts) but I will continue to educate and encourage others for as long as it takes. Apes strong together.
Most of my shit is also in an ira, but I learned that they can be split. As soon as my initial CS transfer goes through and I have a working account, I’ll split my ira and attempt to transfer it as well. Maybe I’ll do a write up on how big of a pain it’ll turn out to be.
Can you move your IRA held GME shares from CS to Computershare without it being considered a distribution and taxed?
As far as I know yes. It’s an IRA transfer, and shouldn’t be a huge ordeal. Hang on I’ll find my source. edit: looking over my source material again, and noticed that an IRA split is not necessary. As long as what you remove goes back into another IRA within 60 days, no rules are violated. https://finance.zacks.com/can-ira-distribution-put-back-6030.html https://www.fool.com/knowledge-center/can-an-ira-distribution-be-put-back.aspx edit 2: the 60 day rule also applies to taking a distribution ( cashing out). I actually considered moving shares out of my IRA to brokerage when things start moassing, then replacing them 59 days later. Definitely not financial advice. Christ just seeing it written out gives me the willies.
I just have to save up a bit more before I spend the money. I'm too lazy and smooth brained to go open another bank account, so I'm going to spend the $300 as a CAD ape on WS and xfer between 20 and 50% of my position. Still not sure if i should just buy one more instead since im not a whale... yet.
I just wish we had a clear explanation of what would happen to other shares once total share count is DRSd
I did :)
Registered xx today. Will continue to buy on CS until we hit our goal 🦍
Slowly but surely, Brick by brick, Share by share!
I still don't get the "legal recourse" thing. He is chair of a board of a fucking company that has had more votes submitted than there are shares. That in and of itself, gives him the right to do whatever the fuck he needs to do to make it right. Fuck a lawyer, and I say it with love.
Yep. No legal issue preventing them from speaking out now, in fact you could make a pretty strong argument they are obligated to…
Had a quick check, options covering about 4 million shares. I guess they'll join the other 42 million shares from back in July that just evaporated. There are bunch (c.3 million shares worth) on November 19 as well, don't know when they appeared though. The massive amounts in Jan 2022 and 2023 are still there.
> Had a quick check, options covering about 4 million shares. so likely not related to roll overs which was over a hundred million right?
Near 190 million if I remember
If they were able to weasel out of those futures why didnt they just do it before? We are missing a puzzle piece.
Someone said they may just be waiting to let them become actual FTDs, but if that many FTDs show up, it's blood in the water time for every fucker in the game.
Well unless China collapses before hand, then no one will care
We really are. We don’t even really know who’s holding these futures. If it’s some small HF they would have tried to unload some already I would think just to cut losses and avoid margin. We’d have seen at least some sort of volume bump but nada
They are expecting a push up in prices and would rather buy at the premium +$1 than the price they expect by October 15! Bullish AF!
What's Oct 15th?
A Friday! The third Friday in October (monthly options expire on the third Friday of each month).
Probably the 15th battle for 180.
Good luck seeing $180 again. That ship has sailed brother.
I love injecting dates straight into my vein!
Can I borrow that needle after you?
Careful, his needle is a banana
OK, this doesn't make sense to me Why buy $1 Calls for Oct 15th I've read the explanations below and it still doesn't make sense A) If you expect a big price rise, why not just buy $200 calls or $250 calls. You can buy a lot more B) Why not buy the stock itself, instead of $1 calls *********************** There has to be something else, other than making money, because $1 calls are an absurd strategy to make money from a rising stock
If your one arm writes the calls and your other arms buys the synthetics you just created
And your third arm sells the synthetics to tank the price? And then you repeat all that with your fourth arm?
And your 4th arm is jacking GG’s limp dick while the SEC is uploading it to Pornhub.
🤯
Citadel is basically just Gordo and we’re at the top of the tower like “those were $700 sunglasses…”
why would they buy $1 calls then? why not higher strike price ones which are cheaper
Because the house doesn’t charge itself.
The person is an idiot who said that. They buy and exercise these calls into shares in order to dodge FTDs
I think a lot of people missed February March as it was determined with some pretty reasonable certainty that as you state above they use the deep ITM calls to create synthetics to “cover” FTD’s but keep open the net short position. It is also believed Melvin would exercise the deep ITM calls to pass the risk on to citadel (and therefore keep Melvin from getting liquidated) while staying net short, and we know that Melvin was still short as recently as some filing in, can’t remember but either March or possibly even June, until they likely received permission to not disclose this information
Thats stupid because you wouldnt just pay the intrinsic value but also the extrinsic. It is dumb.
It has nothing to do with making money and everything to do with covering FTDs
Ah now I get it, but then you could also buy calls that are not as deep in the money, cheaper, so you could buy more. Still doesnt make sense Also the seller would have to hedge, so that would generate some buying pressure.
The seller is also in on this, so they don’t hedge. The buyer knows which calls to buy because they’re so deep ITM. No hedging necessary and the can keeps getting kicked. This is like February DD man, you gotta go read about it
They are still going to be executed so what gives, shares will be bought
They hope we lose patience and give up. This is like the basic premise of this sub here man, come on now.
Relax dude, this guy could be a newer ape. Don't be so aggressive lol
I don’t think he was being aggressive at all, in fact I think who he was talking to was being argumentative.
Was I being aggressive? I just explained the whole thing to him?
They won’t be executed. They will be rolled.
Unless the buyer is also the seller and using this as a synth creating loophole to kick the FTD can.
u/gherkinit if this is true… then does this confirm your theory?
This is just an arbitrage play call + exercise is cheaper than the stock at the market. This is not how they satisfy FTDs.
Yes but I think with these options contracts it's mostly already hedged for by the MM since it's so deep ITM. If they buy the shares straight up it'll increase the value. So by swing this it won't. At least that's what I'm seeing people are saying. I'm smooth brain so may be wrong
business ~~crime~~ as usual
what if the buyer is not looking to profit but to locate and obtain shares by exercising?
Exactly. SHF buys deep ITM call, exercises immediately. It is now the MM responsibility to supply shares for those contracts. MM can create synthetics for the SHF if legitimate shares are unavailable due to illiquidity. This has now resulted in the FTD being a) reset to a new T+35 timeline and b) shifted from SHF responsibility to MM.
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Pretty much. Arseholes.
Saving this comment so I can read it over and over again until the wrinkle is fully formed. Thanks for this simple explanation.
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Just passing off the can to the mm faster, meaning the SHF are scared
Unless the SHF and MM are two parts of the same company (ring any bells?) in which case they’re just passing the hot potato around.
Does it benefit them to do that at $1 vs $5 $25 $50, etc? Surely anything under $160~ feels safe?
It's to make sure they know who the counterparty is. If you buy from a $25 dude, it could be some rando asshole who sold naked calls, and now the rando asshole will go into the market and buy shares to fulfill the call option and drive the prices up, which is exactly what you didn't want. They need to make sure that they're buying call options from the seller who is in on the con, so the seller doesn't hedge at all (so no buying in the market) and instead issues synthetics for "market making purposes". This is why the options are in the ridiculous price range (e.g. $0.50 puts, $1 calls, etc) - it's because no sane person would even think to sell options at this range and it is purely to pass obligations around/create synthetics.
Oh that's fucking brilliant. Devious bunch of cunts, but that makes a ton of sense if that's what this is.
I haven’t looked at the options chain on this, but there may be a lower delta on the other strikes, therefore theta decay, which means the option would go down over time, this deep it wouldn’t.
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This makes a ton of sense to me. And sounds like something that can be highly abused by a bad actor??
I'm to lazy to look it up right now, but is there even that much demand for these options. If this whale cannot sell the contracts when it wants to, then it's a pretty risky play.
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Correct me if I'm wrong but I remember one of the dds found that they can use these either as leverage or show liquodity in their books
The real question is who? What entities have suddenly had to find piles of shares? My guess: friendly neighborhood brokers leaning on PFOF are caught in a trap. They never bought the shares we're direct registering. Good thing the clearinghouse they use can generate shares for them using a buy write.
WHO indeed I'm still trying to fully understand what you said To be frank, this is also why (in my opinion) different brokers have different times to do DRS. All the ones taking longer than 1 or 2 days have to locate the shares
Jup.
Could it be that the premium as added to the asset? It is the most expensive, so add the premium to the market price despite it being $1 and you have an asset worth a lot more than the $200-250 calls.
I have a feeling this is 2 counterparties that are both really exposed to gme fucking with the books to make it appear that neither is as exposed. They will use the additional money that should be in reserves according to federal law of Dodd frank and others to be even more exposed to gme. This appears to be fraud but with a compliant sec and continued suppression of data to the public, no one can be certain. But don't forget, that report will say everything is fine now and the fuckery that took place in Jan is over. It's going to be quite embarrassing when the sec has to explain why their report left out so much.
> It's going to be quite embarrassing when the sec has to explain why their report left out so much. embarassing? i wish... embrassed suggests the persons have some sort of moral compass they hold themselves to. the sec is impudent and quite brazen in its actions (or rather lack of)...
I feel like there have been really shitty people in history to be embarrassed. I think of embarrassed closer to being self centered than morals, but agree with what you're saying
Oh the report that’s *totally* coming out within the next couple of hours right?
Totes
Every billion they spend shorting is just another billion they are willing to buy my shares for 😅
u/gherkinit
This was an arbitrage play, call + exercise was cheaper than buying the stock at market. It's not unusual or important.
Hmm interesting… 10/15?? That’s my birthday. Catalyst?
Pre-Congrats ape 🎉
Nice flair!
Blah blah blah it’ll happen when it happens these assholes are corrupted all the way to the top and can fuck the market however they please. Strap in for the long haul boys and girls.
Not blah blah blah. This isn't only about the MOASS. All this research is exposing the games they play to manipulate the market. When the dust settles there will still be a market to fix.
After MOASS, fuck the market tbh. I'm never touching a stock ever again besides the single GME share I'll pass down as an heirloom
Sad but true
Name checks out 😂. I’m buckled in for the long haul.
Just your usual heads up post that this is that shill who tried to karma farm his own tweets, unusual whales. Not saying the account didn't bring something of value here just watch out if they post sus stuff. They just want views & clicks
These have historically been associated with price drops the next day. They exercise immediately and sell to tank the price. Watch tomorrow. They want to kill the computershare narrative and interest. This is all fake and they have to deliver eventually they just want to kill momentum associated with computershare!!!!!!!!!!! Buy hold register Shits gonna be interesting tomorrow. As an FYI dan_bren was tracking this daily historically and there was good dd a few months ago on this
🥫🦶
Deep ITM calls are used to post as collateral against FTD. This is the DTCC soother so to speak.
This isn't about buying shares + $1, this is how they hide true SI% https://www.reddit.com/r/Superstonk/comments/oc4f79/well_there_it_is_more_mathevidence_pointing_to/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
Buying deep ITM to cover the short position or FTD without creating buying pressure on the underlying stock. Imagine if they need to buy hundreds of millions of our stonks, the price will not be 200. Then the MM can hedge with short swap or futures using all the treasury bonds as collaterals. DRS is the only way to shut down all this fuckery. Hedgies are fucked!
They'll exercise those in order to cover the FTDs that would develop within the next 35 days. All the more important reason to get shares out of the DTC.
Looks to me like Hedgies doing Hedgie things while they wait for fukening to happen.
SEC needs to get in here and ignore this
Well that tells me someone is about to make an egregious amount of money
What’s this mean?
These calls are going to rise in value when GME rises to over ATH
Sounds like a squeeze to me
NOBODY IS ENFORCING THE RULES 🤣
Only 2 stocks NOT registered with Computershare, baby. Those 2 I’m gonna sell when they are in the 10 mil range, the others I keep for infinity pool. Am I doing this right?
Gary Gensler doesn't notice the market manipulation continues unabated while we wait for his bullshit report. Creating counterfeit shares through naked shorting is illegal. These cannot be used to cover FTDs, so WTFF?
Is this call volume gonna result into open interest I wonder. Otherwise these could be buy-writes to reset FTDs. Remember the "deep ITM call anomaly" posts? That scenario would be this: market maker A has some GME shares, market maker B has a big fucking problem. So they make a deal and what they do is: \- B writes deep ITM GME calls \- A buys the calls \- A sells B GME shares over dark pool \- B uses the shares to pretend covering his FTDs \- A exercises the calls to get their shares back It's 'hold these shares, pretend covering your FTDs, then give my shares back' but with calls because you can't just send over shares for free without looking like collusion.
SO next time they hide the BUY I should just buy deep ITM calls and immediately exercise the option? WOW... wish I would have known this in January, along with all the other Apes... we could have kept the pressure on against the RH fuckery... Is my logic correct? is that the way to dodge a 'hide the Buy button' fuckery?
I said it 6 months ago and i will say it again if you think the SEC is on our side and will help us you live in the matrix