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A comment on GameStop: Anger as trading in GameStop shares is restricted. Parent comment

Re:GameStop: Anger as trading in GameStop shares is restricted by pen2l on Thursday January 28, 2021 @11:58AM (#25944840)
Sorry for ignorant question here not acquainted to stock market mechanisms, but: why the time imposition of tomorrow? Who dictates that storters have to return shares and when?

Frankly I thought with puts you state time limits, and with shorts you decide for yourself when you’ll have to give shares back. If that is not so, then I guess I finally understand why everyone says shorts are super risky.

[ Parent | on HN ]
Re:GameStop: Anger as trading in GameStop shares is restricted by EpicEng on Thursday January 28, 2021 @12:01PM (#25944897)
They don't have to cover shorts tomorrow, but there are ITM calls that will be expiring. The idea behind the shorts is to keep the price high until these funds have no choice but to cover.
[ Parent | on HN ]