News for hackers. Stuff that matters.
Re:GameStop Is Rage Against the Financial Machine by onlyrealcuzzo on Wednesday January 27, 2021 @11:47PM (#25938318)
No. It's a lot more complicated than you buy a call option and the brokerage buys 100 shares immediately.
Re:GameStop Is Rage Against the Financial Machine by 0xB31B1B on Thursday January 28, 2021 @02:40AM (#25939249)
Yea, but we’re describing the basic mechanics of what’s happening, we don’t need to get into the details of delta hedging. The basic mechanic is that large groups of folks buying Out of the money calls results in the sellers of those options buying shares to offset risk in the trade. In effect, in an env where lots of shares are locked up due to shorts, an cash efficient way to cause a squeeze is to buy out out of the money options, causing more shares to be bought to offset risk, sending the price up.