News for hackers. Stuff that matters.

A comment on Naked shorting: The curious incident of the shares that didn't exist (2005). Parent comment

Re:Naked shorting: The curious incident of the shares that d... by FabHK on Sunday January 31, 2021 @06:52PM (#25983904)
When you buy a call from an option trader, you're long the stock, trader is short, so they will buy shares to hedge themselves.
[ Parent | on HN ]
Re:Naked shorting: The curious incident of the shares that d... by freeone3000 on Sunday January 31, 2021 @10:22PM (#25985176)
They often do, but they don't have to. You can write an uncovered call, if you're brave or stupid -- after all, worst case you'll just market buy the shares to deliver on the day the option is tendered.
[ Parent | on HN ]
Re:Naked shorting: The curious incident of the shares that d... by lazyasciiart on Monday February 01, 2021 @01:55AM (#25986303)
No, worst case is nobody is selling shares on that day. Thats the exact scenario wsb is hoping to create.
[ Parent | on HN ]
Re:Naked shorting: The curious incident of the shares that d... by freeone3000 on Monday February 01, 2021 @02:55AM (#25986540)
Liquidity providers can always just write share IOUs and find the shares to fill them later. The market running out of stock is not a thing that can actually happen.
[ Parent | on HN ]