Is there any evidence they won't just figure a way to ride this out until it crashes. It's going to crash and when that happens it's going to be the "little guy" that bought late holding the bag.
For one, the calls look like they’re still overpriced relative to the puts. So manufacturing calls via put-call parity would be a starting point. (Spot checked the puts—they seem to break even under 100 per share out to November, so not much juice left there.)
It’s also only the leveraged funds burning out. And they don’t only own GameStop shorts. So money will be made bailing them out and cramming down their existing LPs.
This kind of a pyramidesque system almost guarantees that the most pain will be felt in the reversion to the mean, not flexion from it.
I just see a wake of losers all around from. Melvin's Hedge Fund? There are people and their portfolios behind that taking a hit.
Few people got in early and are seeing multiples in returns. Now they are on WSB "Now is the time to rebuy, GME to 1000$, GME to the moon!!!" because they needs loads of suckers to throw in late to keep propping the price up. But the later comers are going to lose their shirts.
The whole "Robin Hood" narrative is weird. Let's call a spade a spade; a few people are going to get rich at the expense of a lot of individuals over these shenanigans.
Too hot to make big money off ATM IMHO. 114% is nothing considering the risk.
r/WSB does not seem to believe it. I believe we should know for sure one way or the other by Saturday, but I could be wrong about that.