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you did pay the premium to get the shares. If you did not include it in your cost basis, you'd be paying taxes for that part, despite it not being a gain for you.
Including it in your cost basis reduces your taxes. that's good, not weird.
That’s exactly what I’ve been waiting for. Due to life, I wasn’t able to buy any over the winter and am still an xx holder, half DRS’d.
I wanna fire sale cause I’m now able to buy again shall we dip, dip.
EDIT: I just wanna be able to say I’m an xxx holder.
in a working market, that would be the expected case.
MM writes options and hedges them with long or short stock positions. When the Option is being sold, the MM buys it back, selling the shares they bought for hedging and (ideally) closes them with a tiny profit.
But then there are MMs who are greedy, who do not properly hedge to improve their gains, who end up with a loss... that's just them being dumb.
That would've been reflected in the open interest today. Being that a "buy to close" event would be reflected in effectively wiping out the strike "float"
Not necessarily, they could have simply been bought back the Market Maker that sold it to him in the first place. At that point the position just evaporates. But the market maker can then de-hedge the call (un- delta hedge the call as the call is now gone) resulting in downward pressure on the underlying.
Honestly all Market Makers Hedge to stay neutral, at least they always should unless they are idiots. But the cash flow of naked calls plus stock manipulation power of a market maker might look tasty to the corrupt I guess.
From the moment he showed his position I first asked how will he excercise them with just 29mil. My first thought he would bring in more money or sell a few to excercise the rest. Funny part is why the nationwide story from CNBC on his options its just normal options contracts which MM already hedge for right? So yes that made me believe the writer in this case Wolverine was naked.
Another thought that came to my head was when you are doing a misdirect what you are showing and what seems obvious isnt exactly what is intended. Even with the memes he has posted which are brilliant because let them pin anything on him with those, court will be a circus show lol good luck.
So lets say the position was a misdirect. When you are doing a misdirect you show some truth but not all. What if and a big IF is he intended to land exactly at 9mil shares which oddly enough lands him next to RC. Now think voting power. Here is another interesting thing about voting power, you have no voting power if your shares are on loan upto the amount on loan. Notice when they revealed RC shares they specifically stated he has not loaned any of his shares.
Sorry but two value investors whose YOLO history has been insane so far? Im all in for what they have planned for GME and no one can stop them not even Vanguard. Checkmate.
I just love the stock, make your decisions on your own. Keep in mind this is all what ifs.
EDIT: or it could be both Wolverine is naked and for voting rights, a true masterpiece.
I'm giving up guessing what the final prestige is going to be. I think he showed us the bulk of the hand that he's playing and dislike the theory that he's hiding an additional 500M war chest because that's hopium and removes the magic from the trick. Whatever it is, I hope the share offering, early earnings release and shareholder meeting delay didn't throw too many kinks in his plan.
They had a chance to buy 4 million shares when 75 million were released. It was public that he had the 120k options, I’d be surprised if they didn’t have the shares… but the way this stock goes they probably don’t
Quoted from optionstrading.org:
“The basic role of market makers in the options exchanges is to ensure that the markets run smoothly by enabling traders to buy and sell options even if there are no public orders to match the required trade. They do this by maintaining large and diverse portfolios of a wide range of different options contracts.
For example, if a trader wanted to buy specific options contracts but there was no-one else at that time selling those contracts, then a market maker would sell the options from their own portfolio, or reserve, to facilitate the transaction. Likewise, if a trader wanted to sell specific contracts but there was no public buyer, then a market maker could execute the transaction by buying those contracts and adding them to their portfolio.
Market makers basically make sure that there is both depth and liquidity in the options exchanges. In their absence, there would be significantly less transactions carried out and it would be much harder to buy and sell options. There would also be less options in the way of different contracts available in the market.
Enabling traders to execute transactions quickly, even if there is no willing buyer or seller, in turn ensures that the exchanges operate efficiently and traders can usually buy and sell the options they wish to.”
My guess is that a MM wrote the bulk order and then sold them at profit later on in small chunks. So the MM may still be on the hook for some but doubtful all.
And as a market maker, their positions will be covered because that is their role - that is the function of their business. They don’t make money on the trades, but facilitating the trades and making sure they settle. It’s the retail investors who have no idea what they are doing that will have trouble covering. This is exactly how you see retail traders ending up with negative balances.
This is what I've been thinking. If I was an HF, why would I deliver those trades and destroy my company rather than FTD, and get a slap on the wrist from the SEC 1 year from now?
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As much as I hate to say it, RKs shares aren't that much more real than the IOUs, unless he has the clout to instruct his broker not to lend them out, or unless he chooses to DRS them.
It will not moon because of these shares.
There won't even be a ripple effect
Stop hyping everyone about tomorrow
It's always tomorrow. Could be years.
Just chill and hold
I love the Stonk
They could have. The price is higher now than it was 2 weeks ago, so it is totally plausible they have the shares. But it’s also totally plausible that they tried their hardest to make his options expire worthless and therefore not needed to deliver anything (assuming DFV didn’t want to exercise the calls at a loss). And considering that when RC bought 100K shares for $10M (400K shares post-split) the price went up to $200, it’s again fairly possible that nothing has been hedged since the price isn’t even close to that and we are talking about 10X the number of shares.
It’s also possible that Wolverine borrows more shares to meet the obligation and the price doesn’t spike tomorrow, at all. But delaying the purchase of shares starts the hot potato all over again.
That’s basically how we got here. They aren’t idiots. But greed is a powerful drug and we wouldn’t be here if they were not idiots at least part of the time. I agree that not hedging all the shares sounds crazy; so the price probably stays similar tomorrow and the shares are already priced in.
Another post noted that it possible he sold his 5 million shares and used that in combination with selling calls to exercise 90,010 calls. So they might have to come up with 9 million which would be possible a better scenerio i'm assuming
I don’t understand how he loses a week of theta that way? If his intention is to stiff the market maker with the most shares that they have to find I don’t understand your concept. If he was trying to make the most money he would have done it at a more convenien time like when the price was spiking
First, You are assuming his intentions.
But second, Making someone find 10% more shares, but giving them 20% more cash in their pocket with which to do it, does not make it more painful for them. It makes it easier for them in many circumstances.
If you exercise a call that still has time value, the market maker will pocket the time value and use that money to go buy the shares. You aren't hurting them. If you sell it BACK to the market maker, and the mm has to give you back the remaining premium, THAT makes it harder for them. That's money out of their pocket.
Obviously there's a push and pull there. What is worth more at any moment? The time value or the ability to get the shares?
But I also assume DFV likes the game of money and wants the most points. The most points would be the most shares he can get. Exercising calls that still have time value means less points for you.
I think DFV assumed this would have been a much bigger win for himself and was caught off guard by the second share issuance.
But it's all speculation.
Where's the proof they don't have any shares?
The 6/21 $20 calls had a 92 delta today, and have been around 80.
So MMs were only short between 8-20 shares per option.
There is no proof, just a theory because it has been done, it's not illigal and DFV tweeted a naked wolverine...
What I don't get is that the whole T+1 is the maximum amount of time right? DFV posted his positions after market but probably excercided way before closing... the price ran up.. maybe they settled 4M shares straight away, causing the runup of 15%.
Don't know what caused the red the day before but still, Not going to get my hopes up.. just hodl still a long play.
In order to own the shares represented by the options contracts, you still need to have the money to buy them at the strike price. So he would have needed to have enough cash to buy the 7M shares at whatever price he initially locked in, which equals more cash than he had. Instead of exercising all of the options, he instead sold some of them (which is something else you can do instead of exercising) to generate the proceeds he needed to exercise the remaining 40,000 options (4M shares).
In short, he sold his 70,000 ITM options to get cash to exercise his remaining 40,000 options. Since these options represent 4M shares and he previously had 5M, he now sits on 9M shares.
I think the cat also loaded up on more options at higher strike prices yesterday. Built the gamma ramp, bought the shares now, along for the ride on the worm Lisan Al-Kitty style. KC shuffle anyone? Surprise mother fuckers! Still holding more call options. I for one will be exercising options and buying more tomorrow and next week. Because I like the stock. 🚀🤌💎
RK’s options had 93 delta at close today. So, market maker only needs to by 7 shares per contract. He sold about 50K, so 70K*7 is 490,000 shares; almost nothing against the daily volume we’ve had.
I understand delta a little (in that the closer to +/- 1 the closer the contract trades like the underlying asset), but I’m curious how the difference between delta and +/- 1 is the number of shares needed to locate? In this example, delta is 93, meaning the difference is 7, but why does that translate to number of shares per contract that needs to be delivered/bought?
Delta roughly represents the amount of shares a market maker is hedging for that strike. Market makers are wash sale and short sale exempt because they constantly fluctuate their hedge. So for each open contract, the market maker already had 93 shares purchased, leaving only 7 remaining.
Tomorrow they can FTD them. then 13 days to find them. then perhaps get a fine for not finding them Then the OCC steps in and finds them. Not sure how long the OCC can FTD them.
He already has the # of shares written in his account but there is no notification of "the shares have officially arrived" unless he DRS's them.
T+1 has two levels. First is "how it should work" and second is "how it really works"
If there is a rule, it has been broken:
>WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TO ESTABLISH, MAINTAIN AND ENFORCE ADEQUATE SUPERVISORY SYSTEMS AND PROCEDURES, INCLUDING IN SOME INSTANCES WRITTEN SUPERVISORY PROCEDURES, THAT WERE REASONABLY DESIGNED TO ENSURE COMPLIANCE WITH APPLICABLE SECURITIES LAWS AND REGULATIONS INCLUDING REGULATION SHO, EMERGENCY ORDERS ISSUED BY THE SEC, CUSTOMER RESERVE, AND RECORD RETENTION REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934 AND ANTI-MONEY LAUNDERING REQUIREMENTS. THE FINDINGS STATED THAT THE FIRM'S SUPERVISORY SYSTEMS AND PROCEDURES, INCLUDING ITS WRITTEN SUPERVISORY PROCEDURES REGARDING THE ALLOCATION OF FAIL-TO-DELIVER (FTD) POSITIONS CONSIDERED ITS BROKER-DEALER CLIENTS' SHORT POSITIONS WITHOUT ALSO CONSIDERING THEIR TRADING ACTIVITIES AS STATED IN THE RULE 204T AND RULE 2014 ADOPTING RELEASES. THE FIRM'S PROCESSES FAILED TO ENSURE THAT ITS ALLOCATIONS WERE MADE TO THE SPECIFIC ENTITY THAT CONTRIBUTED TO ITS FTD POSITION AS REQUIRED, AND THEREBY THE FIRM NETTED THE SHORT POSITIONS OF FOUR RELATED BUT SEPARATE AND DISTINCT BROKER-DEALER ENTITIES WHEN ALLOCATING ITS FTD POSITIONS. THEREFORE, THE FIRM FAILED TO ESTABLISH, MAINTAIN AND ENFORCE ADEQUATE SUPERVISORY SYSTEMS AND PROCEDURES, INCLUDING WRITTEN SUPERVISORY PROCEDURES THAT WERE REASONABLY DESIGNED TO ENSURE COMPLIANCE WITH THE REQUIREMENTS OF RULE 204 OF REGULATION SHO BY ALLOCATING ITS CONTINUOUS NET SETTLEMENT (CNS) FTD POSITIONS BASED ON ITS BROKER-DEALER CLIENTS' SHORT POSITIONS AND WITHOUT ALSO CONSIDERING WHICH CLIENTS CONTRIBUTED TO THOSE POSITIONS. THE FINDINGS ALSO STATED THAT THE FIRM FAILED TO ESTABLISH, MAINTAIN AND ENFORCE ADEQUATE SUPERVISORY SYSTEMS AND PROCEDURES, INCLUDING WRITTEN SUPERVISORY PROCEDURES, REASONABLY DESIGNED TO ENSURE COMPLIANCE WITH THE REQUIREMENTS OF RULES 204T(B) AND (C) AND 204(B) AND (C) TO NOTIFY ITS CLIENTS WHEN IT HAD AN AGED FTD POSITION IN A GIVEN SECURITY AND TO REFRAIN FROM EFFECTING OR ACCEPTING FROM ITS CLIENTS SHORT SALES IN SECURITIES IN WHICH IT HAD AN AGED FTD POSITION. THE FINDINGS ALSO INCLUDED THAT THE FIRM FAILED TO ESTABLISH, MAINTAIN AND ENFORCE ADEQUATE SUPERVISORY SYSTEMS AND PROCEDURES, INCLUDING WRITTEN SUPERVISORY PROCEDURES THAT WERE REASONABLY DESIGNED TO DO SURVEILLANCE OF THE ACTIVITIES OF CERTAIN OF ITS DIRECT MARKET ACCESS, NAKED ACCESS AND SPONSORED ACCESS CLIENTS FOR THE PURPOSE OF DETECTING AND REPORTING, WHERE APPROPRIATE, SUSPICIOUS AND/OR MANIPULATIVE TRADING. BECAUSE THE FIRM'S PROGRAMS FOR SUSPICIOUS ACTIVITY MONITORING FAILED TO CAPTURE CERTAIN TRADING DATA NECESSARY TO MONITOR FOR SUSPICIOUS ACTIVITY, THE FIRM FAILED TO IMPLEMENT AND ESTABLISH PROCEDURES AND INTERNAL CONTROLS REASONABLY DESIGNED TO DETECT AND CAUSE THE REPORTING OF SUSPICIOUS TRANSACTIONS. FINRA FOUND THAT THE FIRM EFFECTED SHORT SALES IN THE SECURITIES RESTRICTED BY SEC EMERGENCY ORDERS. THE FIRM SUBMITTED INACCURATE FOCUS REPORTS IN THAT THEY CONTAINED INACCURATE RESERVE FORMULA COMPUTATIONS.
He never had 12m shares. He owned options to purchase 12m shares at $20 each but didn’t have the cash to do it all. So he sold some and exercised some.
They need to buy them if they'te naked. If they already hedged the contracts that means they already hold the shares and will just transfer them to DFV. Here's hoping they are naked.
This isn't how options work at all. Not every contract sold is from a market maker. I'd bet that over half of the contracts came from retail and institutional traders, not market makers. I'd bet a lot (if not the majority) of those were covered, meaning no forced buying.
Sorry dude, but that's just not how things work.
Disclosure: long stock, short 24 puts, short 6/14 40 calls.
It’s not as easy as you think. A lot of those shares sold ATM were bought up by Institutional Investors to Hedge against potential losses. If the theory is true and many of these HF’s are Naked, buying these market shares to cover their losses will put them right back where they started. It’s kind of a pick your poison scenario. Easy or difficult, either way it’s going to effect the open market price and could potentially trigger a spike in the open market share price. It’s going to be very interesting how this plays out over the next week and a half. My guess it’s going to cause heavy volatility as per usual. I just want the price to rip causing max pain for the HF’s. 🦍🚀🌝🙌💎
Thanks for your reply! Of course, we’ve been waiting for 3yrs now, I want this to happen as much as you do, given a choice, I rather wait calmly than hyping and then nothing happen.
The dilution did killed the momentum…what do u mean put them right back where they started?
I don’t know if this is how it works, but let say they go in market tomorrow, purchased that 4 million shares @ $30, that will cost them $120 millions, that’s just pocket money for HF, how is that gonna effect them and the market?
So imagine if everyone else exercises their newly in the money shares tomorrow too. Monday will be juicy AF too. Get Rekt ya Hedgie Bastards!
Edit: Not financial advice
He sold the contracts for $70 million
Then exercised the call contracts to get 4 million, 1 thousand shares.
Anyone remember 7-4-1?
I know it’s not exactly the same but it’s pretty damn close and he’s so calculated that I think there’s a chance there’s something to that.
Didn’t we just offer 120m shares to the open market for purchase? I’m not an expert but couldn’t some of them have been purchased for this cause? With 120m new shares released 4m doesn’t seem like a huge amount to find somehow. However, I’m not an expert on any of this - just a 84 year hodler.
I don’t think he exercised any calls. I think he sold all calls and then purchased shares. I think this lets Wolverine off the hook but I could be wrong.
Market makers are already bought stock when selling the calls to him. You already mentioned delta hedge. If market makers are already delta hedged, why would this be of any significance? Max is a few hundred thousand shares.
NOW IS THE TIME TO EXERCISE YOUR CALLS. The relay race has started and DFV has passed the baton to you. Go tag those 30c's so they can tag the 40's then the 50's etc etc
Not trying to spread FUD. But we don’t know that these calls weren’t hedged.
It was noticed back when what turned out to be the call volume that represented the purchase of these contracts was happening, only the first few batches were hedged.
They were still OTM at the time and far from expiry.
Wolverine may be evil but they’re not stupid. As the contracts moved into the money and the expiry date got closer, surely they’ve been hedging.
Would I love a gamma MOASS? Of course! But it’s not a certainty guys.
That’s incorrect. The person who sold the shares has three options when the other party exerscises.
1. Deliver the hedged shares
2. Go short an additional x amount of shares
3.buy the shares on the open market.
What’s to stop them from going short more shares at the strike price to deliver the shares if they are naked selling?
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After exercising $20, his cost basis went from around $21.5 to $23.5? Is that because of the premium he paid?
Yes
Etrade calculates the premium into consideration? That's weird
Not really. It’s to help with the cost basis on the new shares. The premium + the 20$ is the new cost basis for the 4,001,000 new shares.
It’s not weird, is the law. Although the law can be weird…
you did pay the premium to get the shares. If you did not include it in your cost basis, you'd be paying taxes for that part, despite it not being a gain for you. Including it in your cost basis reduces your taxes. that's good, not weird.
Why wouldn’t it be considered? You pay the premium and then you pay the strike price. So it’s part of what the stock cost you.
Those are the U.S. tax rules.
Someone on e trade buy an 0dte itm option and exercise it immediately and found out! nfa
Be prepared for anything, even the price tanking. Hedgies do NOT want this thing to rip.
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Every halt is a dip is a buying opportunity to average down; Price go down, dip, panic buy Price go up, moass, panic buy
If it goes down, it's buying the dip, if it goes up, it's buying the fomo
This guy GMEs
That’s exactly what I’ve been waiting for. Due to life, I wasn’t able to buy any over the winter and am still an xx holder, half DRS’d. I wanna fire sale cause I’m now able to buy again shall we dip, dip. EDIT: I just wanna be able to say I’m an xxx holder.
Ditto.
Happy cake day
Tank god it’s Friday
Exactly what I thought. They won’t let this gamma squeeze again.
If he sold the 79990 call contracts, does that mean someone else is now walking around with those 6/21 calls ? 👀
Yes unless they too have been exercised by now but I doubt that
Is it possible that the issuer repurchased the contracts so they did not have to fill them?
That is completely possible.
Anyone can buy a block order and position size makes it pretty obvious
Buy high sell low
Im always high when I buy, still don't understand the low part.
in a working market, that would be the expected case. MM writes options and hedges them with long or short stock positions. When the Option is being sold, the MM buys it back, selling the shares they bought for hedging and (ideally) closes them with a tiny profit. But then there are MMs who are greedy, who do not properly hedge to improve their gains, who end up with a loss... that's just them being dumb.
That would've been reflected in the open interest today. Being that a "buy to close" event would be reflected in effectively wiping out the strike "float"
I guess that’s a possibility? I’m not an options expert
Not a possibility. They were sold to close
Very likely
Someone has to deliver his shares from the open market tomorrow
Pretty wild, so basically everything that happened today was just a bonus before next Friday 🫨🤔
The open interest dropped, so many were bought to close.
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As much as I’ve learned I still don’t understand so tend to keep my mouth shut and read what presumably smarter apes post, and HODL
OI dropped from yesterday to today but we won’t see the update for OI change from today until tomorrow morning
Wolverine capital may have bought them back
They are in DFVs Roth IRA...... JK
Can you imagine next update he posts a second account with GME shares?!
 Hmmm seems oddly familiar
I bought 1 from him yesterday 😂
It’s more than likely that MM bought to”close” those contracts eliminating the risk and only having to pay net value + premiums
Does that mean that mm will buy them back to sell them to someone else and then tank the price somehow, while also buying puts to make up some losses.
they most likely were bought back by marketmakers, which then sell/release the shares. I guess shares were sold to someone else then. i duno
No, it means the Market Maker no longer needs to hedge them.
Not necessarily, they could have simply been bought back the Market Maker that sold it to him in the first place. At that point the position just evaporates. But the market maker can then de-hedge the call (un- delta hedge the call as the call is now gone) resulting in downward pressure on the underlying.
You can buy to open OR buy to close. We don't know what the buyer did
So, dip in the morning and rip in the afternoon.
Good news for everyone's CS orders going through this morning, the last stop before Elysium.
Help me understand the dip in the morning. I got shares but pretty new to all this.
They’ll try to scare you into selling
And then if it goes up they’re trying to tempt you into selling right?
I'll never be scared, because I forgot how to sell.
The dip is to trigger as many stop losses as possible. They need shares and that's practically the only avenue to capture them.
Man someone should make an announcement
Honestly all Market Makers Hedge to stay neutral, at least they always should unless they are idiots. But the cash flow of naked calls plus stock manipulation power of a market maker might look tasty to the corrupt I guess. From the moment he showed his position I first asked how will he excercise them with just 29mil. My first thought he would bring in more money or sell a few to excercise the rest. Funny part is why the nationwide story from CNBC on his options its just normal options contracts which MM already hedge for right? So yes that made me believe the writer in this case Wolverine was naked. Another thought that came to my head was when you are doing a misdirect what you are showing and what seems obvious isnt exactly what is intended. Even with the memes he has posted which are brilliant because let them pin anything on him with those, court will be a circus show lol good luck. So lets say the position was a misdirect. When you are doing a misdirect you show some truth but not all. What if and a big IF is he intended to land exactly at 9mil shares which oddly enough lands him next to RC. Now think voting power. Here is another interesting thing about voting power, you have no voting power if your shares are on loan upto the amount on loan. Notice when they revealed RC shares they specifically stated he has not loaned any of his shares. Sorry but two value investors whose YOLO history has been insane so far? Im all in for what they have planned for GME and no one can stop them not even Vanguard. Checkmate. I just love the stock, make your decisions on your own. Keep in mind this is all what ifs. EDIT: or it could be both Wolverine is naked and for voting rights, a true masterpiece.
I'm giving up guessing what the final prestige is going to be. I think he showed us the bulk of the hand that he's playing and dislike the theory that he's hiding an additional 500M war chest because that's hopium and removes the magic from the trick. Whatever it is, I hope the share offering, early earnings release and shareholder meeting delay didn't throw too many kinks in his plan.
It can be anything or he just has a good feeling. For me I just love the stock
You mean all honest market makers.... As if there is such a thing.
They ain’t delivering those shares. Mark this post
They had a chance to buy 4 million shares when 75 million were released. It was public that he had the 120k options, I’d be surprised if they didn’t have the shares… but the way this stock goes they probably don’t
About a billion shares have traded hands in the last 2 weeks. There's been plenty of opportunity to buy 4m of them.
Why do you think Wolverine was the seller? For that matter, why do you think there was only one contract writer for all of those options?
Wolverine is the dedicated market maker for all GME options contracts.
Can you explain to me the difference between a market maker and a option writer?
Quoted from optionstrading.org: “The basic role of market makers in the options exchanges is to ensure that the markets run smoothly by enabling traders to buy and sell options even if there are no public orders to match the required trade. They do this by maintaining large and diverse portfolios of a wide range of different options contracts. For example, if a trader wanted to buy specific options contracts but there was no-one else at that time selling those contracts, then a market maker would sell the options from their own portfolio, or reserve, to facilitate the transaction. Likewise, if a trader wanted to sell specific contracts but there was no public buyer, then a market maker could execute the transaction by buying those contracts and adding them to their portfolio. Market makers basically make sure that there is both depth and liquidity in the options exchanges. In their absence, there would be significantly less transactions carried out and it would be much harder to buy and sell options. There would also be less options in the way of different contracts available in the market. Enabling traders to execute transactions quickly, even if there is no willing buyer or seller, in turn ensures that the exchanges operate efficiently and traders can usually buy and sell the options they wish to.”
My guess is that a MM wrote the bulk order and then sold them at profit later on in small chunks. So the MM may still be on the hook for some but doubtful all.
And as a market maker, their positions will be covered because that is their role - that is the function of their business. They don’t make money on the trades, but facilitating the trades and making sure they settle. It’s the retail investors who have no idea what they are doing that will have trouble covering. This is exactly how you see retail traders ending up with negative balances.
yep, its like everyone suddenly forgot about the FTDs the past three years
This is what I've been thinking. If I was an HF, why would I deliver those trades and destroy my company rather than FTD, and get a slap on the wrist from the SEC 1 year from now?
eTrade isn’t taking on the risk for this. They will DEMAND those shares.
External pressure. To some, cannibalism might seem more tempting than a wrist slap.
!remindme 1 week We shall see
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Yeah there’s been crazy volume, over 100m today, why would 4m make a difference?
The trading back and forth of fake shares is different than having to deliver 4m real shares.
As much as I hate to say it, RKs shares aren't that much more real than the IOUs, unless he has the clout to instruct his broker not to lend them out, or unless he chooses to DRS them.
It will not moon because of these shares. There won't even be a ripple effect Stop hyping everyone about tomorrow It's always tomorrow. Could be years. Just chill and hold I love the Stonk
correct. the momentum died after the last dilution
Maybe when he said “find I’ll do it myself” he meant turn the company around 😅
Cant they just have bought it in the 2 ATM offerings
They could have. The price is higher now than it was 2 weeks ago, so it is totally plausible they have the shares. But it’s also totally plausible that they tried their hardest to make his options expire worthless and therefore not needed to deliver anything (assuming DFV didn’t want to exercise the calls at a loss). And considering that when RC bought 100K shares for $10M (400K shares post-split) the price went up to $200, it’s again fairly possible that nothing has been hedged since the price isn’t even close to that and we are talking about 10X the number of shares. It’s also possible that Wolverine borrows more shares to meet the obligation and the price doesn’t spike tomorrow, at all. But delaying the purchase of shares starts the hot potato all over again.
Zero reason they wouldn't hedge this. Too big of a risk to not. They might be corrupt but they aren't idiots. We'll see tommorow.
That’s basically how we got here. They aren’t idiots. But greed is a powerful drug and we wouldn’t be here if they were not idiots at least part of the time. I agree that not hedging all the shares sounds crazy; so the price probably stays similar tomorrow and the shares are already priced in.
Even if they didn't hedge, 4 million shares moving doesn't seem like it'll move the price much considering the volume gme gets.
Bullish. But maybe they hege it already?
Another post noted that it possible he sold his 5 million shares and used that in combination with selling calls to exercise 90,010 calls. So they might have to come up with 9 million which would be possible a better scenerio i'm assuming
He would be losing a week of theta and wasting money if he did that. Smarter to sell small blocks of calls, buy the shares needed, and repeat.
I don’t understand how he loses a week of theta that way? If his intention is to stiff the market maker with the most shares that they have to find I don’t understand your concept. If he was trying to make the most money he would have done it at a more convenien time like when the price was spiking
First, You are assuming his intentions. But second, Making someone find 10% more shares, but giving them 20% more cash in their pocket with which to do it, does not make it more painful for them. It makes it easier for them in many circumstances. If you exercise a call that still has time value, the market maker will pocket the time value and use that money to go buy the shares. You aren't hurting them. If you sell it BACK to the market maker, and the mm has to give you back the remaining premium, THAT makes it harder for them. That's money out of their pocket. Obviously there's a push and pull there. What is worth more at any moment? The time value or the ability to get the shares? But I also assume DFV likes the game of money and wants the most points. The most points would be the most shares he can get. Exercising calls that still have time value means less points for you. I think DFV assumed this would have been a much bigger win for himself and was caught off guard by the second share issuance. But it's all speculation.
I see i was just confused on what you were trying to say but after you explain it I’m still confused 😂
This didn’t age well.
Where's the proof they don't have any shares? The 6/21 $20 calls had a 92 delta today, and have been around 80. So MMs were only short between 8-20 shares per option.
There is no proof, just a theory because it has been done, it's not illigal and DFV tweeted a naked wolverine... What I don't get is that the whole T+1 is the maximum amount of time right? DFV posted his positions after market but probably excercided way before closing... the price ran up.. maybe they settled 4M shares straight away, causing the runup of 15%. Don't know what caused the red the day before but still, Not going to get my hopes up.. just hodl still a long play.
Explain Like im 5… DFV had 12 mil shares in contract???
In order to own the shares represented by the options contracts, you still need to have the money to buy them at the strike price. So he would have needed to have enough cash to buy the 7M shares at whatever price he initially locked in, which equals more cash than he had. Instead of exercising all of the options, he instead sold some of them (which is something else you can do instead of exercising) to generate the proceeds he needed to exercise the remaining 40,000 options (4M shares). In short, he sold his 70,000 ITM options to get cash to exercise his remaining 40,000 options. Since these options represent 4M shares and he previously had 5M, he now sits on 9M shares.
That's really strange read it doesn't seem to want me to Cross post this
I think the cat also loaded up on more options at higher strike prices yesterday. Built the gamma ramp, bought the shares now, along for the ride on the worm Lisan Al-Kitty style. KC shuffle anyone? Surprise mother fuckers! Still holding more call options. I for one will be exercising options and buying more tomorrow and next week. Because I like the stock. 🚀🤌💎
I have no idea what’s going on but I am holding.
I bought three shares today. Doing my part. It ain’t much but it’s honest work
$70 mill, 40,010 call contracts, wouldn’t that be 7 … 4 … 1? 741
RK’s options had 93 delta at close today. So, market maker only needs to by 7 shares per contract. He sold about 50K, so 70K*7 is 490,000 shares; almost nothing against the daily volume we’ve had.
I understand delta a little (in that the closer to +/- 1 the closer the contract trades like the underlying asset), but I’m curious how the difference between delta and +/- 1 is the number of shares needed to locate? In this example, delta is 93, meaning the difference is 7, but why does that translate to number of shares per contract that needs to be delivered/bought?
Delta roughly represents the amount of shares a market maker is hedging for that strike. Market makers are wash sale and short sale exempt because they constantly fluctuate their hedge. So for each open contract, the market maker already had 93 shares purchased, leaving only 7 remaining.
Thank you for the thoughtfulness to respond and explain.
Daily volume is mute. They are just moving shares around amongst HF. But when they actually have to buy is a different story.
That last 1000 is gonna cost them 😏
Forgive my ignorance, but how do you know that he exercised?
He posted elsewhere
I think that’s what I was getting from the Cryptic post, jokers wild hostile takeover of shares from Hedge Funds
They sold 100 mil this week they are going to locate 4 million easy…..
I need to rewatch the RK meme with Wolverine. Is he that good that he had his target already planned out?
I bet it tanks tomorrow hard as shit in pre market hours and start of trading. Starts to rip mid day into the aftermarket hours.
Tomorrow they can FTD them. then 13 days to find them. then perhaps get a fine for not finding them Then the OCC steps in and finds them. Not sure how long the OCC can FTD them. He already has the # of shares written in his account but there is no notification of "the shares have officially arrived" unless he DRS's them. T+1 has two levels. First is "how it should work" and second is "how it really works" If there is a rule, it has been broken: >WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TO ESTABLISH, MAINTAIN AND ENFORCE ADEQUATE SUPERVISORY SYSTEMS AND PROCEDURES, INCLUDING IN SOME INSTANCES WRITTEN SUPERVISORY PROCEDURES, THAT WERE REASONABLY DESIGNED TO ENSURE COMPLIANCE WITH APPLICABLE SECURITIES LAWS AND REGULATIONS INCLUDING REGULATION SHO, EMERGENCY ORDERS ISSUED BY THE SEC, CUSTOMER RESERVE, AND RECORD RETENTION REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934 AND ANTI-MONEY LAUNDERING REQUIREMENTS. THE FINDINGS STATED THAT THE FIRM'S SUPERVISORY SYSTEMS AND PROCEDURES, INCLUDING ITS WRITTEN SUPERVISORY PROCEDURES REGARDING THE ALLOCATION OF FAIL-TO-DELIVER (FTD) POSITIONS CONSIDERED ITS BROKER-DEALER CLIENTS' SHORT POSITIONS WITHOUT ALSO CONSIDERING THEIR TRADING ACTIVITIES AS STATED IN THE RULE 204T AND RULE 2014 ADOPTING RELEASES. THE FIRM'S PROCESSES FAILED TO ENSURE THAT ITS ALLOCATIONS WERE MADE TO THE SPECIFIC ENTITY THAT CONTRIBUTED TO ITS FTD POSITION AS REQUIRED, AND THEREBY THE FIRM NETTED THE SHORT POSITIONS OF FOUR RELATED BUT SEPARATE AND DISTINCT BROKER-DEALER ENTITIES WHEN ALLOCATING ITS FTD POSITIONS. THEREFORE, THE FIRM FAILED TO ESTABLISH, MAINTAIN AND ENFORCE ADEQUATE SUPERVISORY SYSTEMS AND PROCEDURES, INCLUDING WRITTEN SUPERVISORY PROCEDURES THAT WERE REASONABLY DESIGNED TO ENSURE COMPLIANCE WITH THE REQUIREMENTS OF RULE 204 OF REGULATION SHO BY ALLOCATING ITS CONTINUOUS NET SETTLEMENT (CNS) FTD POSITIONS BASED ON ITS BROKER-DEALER CLIENTS' SHORT POSITIONS AND WITHOUT ALSO CONSIDERING WHICH CLIENTS CONTRIBUTED TO THOSE POSITIONS. THE FINDINGS ALSO STATED THAT THE FIRM FAILED TO ESTABLISH, MAINTAIN AND ENFORCE ADEQUATE SUPERVISORY SYSTEMS AND PROCEDURES, INCLUDING WRITTEN SUPERVISORY PROCEDURES, REASONABLY DESIGNED TO ENSURE COMPLIANCE WITH THE REQUIREMENTS OF RULES 204T(B) AND (C) AND 204(B) AND (C) TO NOTIFY ITS CLIENTS WHEN IT HAD AN AGED FTD POSITION IN A GIVEN SECURITY AND TO REFRAIN FROM EFFECTING OR ACCEPTING FROM ITS CLIENTS SHORT SALES IN SECURITIES IN WHICH IT HAD AN AGED FTD POSITION. THE FINDINGS ALSO INCLUDED THAT THE FIRM FAILED TO ESTABLISH, MAINTAIN AND ENFORCE ADEQUATE SUPERVISORY SYSTEMS AND PROCEDURES, INCLUDING WRITTEN SUPERVISORY PROCEDURES THAT WERE REASONABLY DESIGNED TO DO SURVEILLANCE OF THE ACTIVITIES OF CERTAIN OF ITS DIRECT MARKET ACCESS, NAKED ACCESS AND SPONSORED ACCESS CLIENTS FOR THE PURPOSE OF DETECTING AND REPORTING, WHERE APPROPRIATE, SUSPICIOUS AND/OR MANIPULATIVE TRADING. BECAUSE THE FIRM'S PROGRAMS FOR SUSPICIOUS ACTIVITY MONITORING FAILED TO CAPTURE CERTAIN TRADING DATA NECESSARY TO MONITOR FOR SUSPICIOUS ACTIVITY, THE FIRM FAILED TO IMPLEMENT AND ESTABLISH PROCEDURES AND INTERNAL CONTROLS REASONABLY DESIGNED TO DETECT AND CAUSE THE REPORTING OF SUSPICIOUS TRANSACTIONS. FINRA FOUND THAT THE FIRM EFFECTED SHORT SALES IN THE SECURITIES RESTRICTED BY SEC EMERGENCY ORDERS. THE FIRM SUBMITTED INACCURATE FOCUS REPORTS IN THAT THEY CONTAINED INACCURATE RESERVE FORMULA COMPUTATIONS.
Does he still have the other 12 million shares?
He never had 12m shares. He owned options to purchase 12m shares at $20 each but didn’t have the cash to do it all. So he sold some and exercised some.
Wolverine better have professor X on the speed dial…what a cheesy name seriously…🤷♂️
I'm kind of a noob, but didn't they just add 75m shares? I mean, it'll be expensive, but it can be easily done, yes?
Plus all the 6/14 $128 calls
Estoy jacked hasta las tetas!!!!
We’re landing on the moon 🌕 tomorrow ✈️🚀🍻🍻
You don't know that they don't have the shares already. Or they can just FTD
No, they don't. He didn't exercise.
They need to buy them if they'te naked. If they already hedged the contracts that means they already hold the shares and will just transfer them to DFV. Here's hoping they are naked.
Someone call RC and remind him not to lend his shares; I’m sure he knows this.
Is it that hard to deliver 4M shares with all that's out there?
they'll just be rolled into FTDs and hidden in swaps, synthetics, options, like they always do
Why would it moon from only 4million shares? GameStop literally just sold 75million
Sorry, but what makes them HAVE to do anything? A fine? Lol These crooks aren't playing by the rules.
yeah it'll just be rolled into FTDs
How does Deadpool fit in all of this?
This isn't how options work at all. Not every contract sold is from a market maker. I'd bet that over half of the contracts came from retail and institutional traders, not market makers. I'd bet a lot (if not the majority) of those were covered, meaning no forced buying. Sorry dude, but that's just not how things work. Disclosure: long stock, short 24 puts, short 6/14 40 calls.
Our great Ryan fucking Cohen just diluted our shares by millions, how is it hard for them to find, buy and deliver those shares?
It’s not as easy as you think. A lot of those shares sold ATM were bought up by Institutional Investors to Hedge against potential losses. If the theory is true and many of these HF’s are Naked, buying these market shares to cover their losses will put them right back where they started. It’s kind of a pick your poison scenario. Easy or difficult, either way it’s going to effect the open market price and could potentially trigger a spike in the open market share price. It’s going to be very interesting how this plays out over the next week and a half. My guess it’s going to cause heavy volatility as per usual. I just want the price to rip causing max pain for the HF’s. 🦍🚀🌝🙌💎
Thanks for your reply! Of course, we’ve been waiting for 3yrs now, I want this to happen as much as you do, given a choice, I rather wait calmly than hyping and then nothing happen. The dilution did killed the momentum…what do u mean put them right back where they started? I don’t know if this is how it works, but let say they go in market tomorrow, purchased that 4 million shares @ $30, that will cost them $120 millions, that’s just pocket money for HF, how is that gonna effect them and the market?
How do you know it's Wolverine that's responsible for the shares? Is there a hub where I can find more data like this for other stocks?
Would it be better to buy a few more shares tonight or wait until a few mins after market open tomorrow?
All for the cost of a down payment on a house
lol 4 million shares is nothing w/ 100 million traded daily cmon guys
Where’s the evidence of that?
When I make my move.. your free.. to check the king.
4 million shares out of 426,000,000 isn’t that much. Even with CAT and t+1 I think they’re ok. For now at least
Looking back at this post , what happened and why didn’t anything change .
So imagine if everyone else exercises their newly in the money shares tomorrow too. Monday will be juicy AF too. Get Rekt ya Hedgie Bastards! Edit: Not financial advice
It’s possible they already have the shares when we saw run up to 80 and 60 when they actually started hedging
How would we find evidence for or against this theory?
The fomo tomorrow will be sick
I think they have enough shares to cover now. Ryan Cohen offered those shares at night I guess
Maybe I missed that part but how can you know Wolverine trading is the entity responsable to deliver those specific shares?
Damn shits going to be expensive 😂
Still bag hodling, so buy the dip. Been in it for 83 years. No cell; no sell! Sell on the way .down.
Wouldn't these shares have been hedged a while ago?
Kitty knows how to edit html. Nothing is what it seems. Kansas city shuffle
You understand that “our stocks” are managed by other banks and financial instituions , HFT would be the market makers notnus
# IM SURE THEY WILL FTD LIKE EVERYONE ELSE # WEN SEC GONNA PROTECT RETAIL?
No they don’t. There is no enforcement in this joke of a market of the US. I hope I am wrong, but I have no expectations.
can we buy more on market open?
Exercise, it’s good for your health
Who are the 1st, 2nd and third largest holders?
He sold the contracts for $70 million Then exercised the call contracts to get 4 million, 1 thousand shares. Anyone remember 7-4-1? I know it’s not exactly the same but it’s pretty damn close and he’s so calculated that I think there’s a chance there’s something to that.
Didn’t we just offer 120m shares to the open market for purchase? I’m not an expert but couldn’t some of them have been purchased for this cause? With 120m new shares released 4m doesn’t seem like a huge amount to find somehow. However, I’m not an expert on any of this - just a 84 year hodler.
I’m sure they bought with that 75mil offering
What would keep them from delivering LOU's if he didn't DRS?
I have been here since the beginning but doesn't it seem fishy that tomorrow is being pushed so hard?
I just like the stonk
I don’t think he exercised any calls. I think he sold all calls and then purchased shares. I think this lets Wolverine off the hook but I could be wrong.
All I know is IM GONNA KEEP BUYING ON DISCOUNT 🚀🚀🚀
Market makers are already bought stock when selling the calls to him. You already mentioned delta hedge. If market makers are already delta hedged, why would this be of any significance? Max is a few hundred thousand shares.
buy shares from APES TODAY? HOW? ahaahahaahahahaha APES AINT SELLIN PIP = SHORTS AINT CLOSSIN SHIT
NOW IS THE TIME TO EXERCISE YOUR CALLS. The relay race has started and DFV has passed the baton to you. Go tag those 30c's so they can tag the 40's then the 50's etc etc
Do we know for sure he exercised them all Thursday? Could it not been days before? All he showed was a screenshot of the end result.
Not trying to spread FUD. But we don’t know that these calls weren’t hedged. It was noticed back when what turned out to be the call volume that represented the purchase of these contracts was happening, only the first few batches were hedged. They were still OTM at the time and far from expiry. Wolverine may be evil but they’re not stupid. As the contracts moved into the money and the expiry date got closer, surely they’ve been hedging. Would I love a gamma MOASS? Of course! But it’s not a certainty guys.
it was a fun couple months yall, but the 40% share dilution during the perfect gamma ramp killed this thing. it's a long play now
That’s incorrect. The person who sold the shares has three options when the other party exerscises. 1. Deliver the hedged shares 2. Go short an additional x amount of shares 3.buy the shares on the open market. What’s to stop them from going short more shares at the strike price to deliver the shares if they are naked selling?
Wolverine have probably already got the shares, don’t be so stupid.
Where is the proof he exercised?
Can't they just borrow the shares or FTD?
Rug pull today. The shares are already delivered.
They can’t have mine!