There has to be people willing to sell in order for someone to buy.

What they are talking about is there being no available shares being offered while people are trying to buy constantly.

At that point, the price of the stock starts jumping heavily because the demand is infinitely higher than the supply.

It is the opposite of what happens when people start trying to sell and no one wants to buy. In that case, the price drops until a taker is found.

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Posted by biggie

Member since May 2013

88 posts

Posted on 1/28/21 at 9:37 pm to teke184

We keep talking about a gamma squeeze and the need for call writers to deliver shares, which would make the stock parabolic. If we look back to last Friday when it closed at 65, all call options were in the money. The highest call strike price was 60. We're looking at significantly higher differences in strike prices for weeklies this week versus last week.

Let's say we're in the same situation and the underlying is above all strike prices. Will Joe Blow, who bought a call with $520 strike price for 10 bucks on Tuesday or Wednesday, be able get $52,000 into his account quick enough to fund it? Is he a new trader who has no idea how options work at expiration? Will his broker liquidate the contracts when he doesn't have sufficient margin? In this volatility, they won't be waiting for an hour before the bell like normal.

So those call options need to be sold to someone. Who else would have the liquidity to purchase them besides the Citadels of the world? My theory is that the brokers will margin call the call holders very early tomorrow, due to the call holders not having sufficient capitol to purchase... or the brokers will just outright liquidate at some point. The Citadels of the world would then purchase these calls back to close at extremely low prices due to many other retail traders being the same position.

Sure another hedge fund could step in to purchase those contracts, but we know what the implications of parabolic pricing would due to the overall market. GME isn't the only equity in these funds' holdings. I think we've seen how much collusion and evil is possible today from the Street to not discount this.

And even today with very few retailers being able to trade, we still see 50MM trades. The big guys have cooked up something. I'm not sure what it is, but they've had basically a whole day to do it. We'll find out in the Netflix documentary I guess.

Good luck to all