The last line we can agree on. I’ve got my series: 77, 6, 63, 66, etc.
any investor doing naked calls or puts knows the risk is unlimited. UNLIMITED.
this is what’s happening to those “hedge fund managers”. They’re the ones shorting GameStop and AMC and are taking on the “risk”.
the buyers, are buying shares and they’re buying it because they like GameStop or amc. And it’s hella cheap. And they’ve done their homework. They see the amount on the other end of shorting and they’re betting against the “man” so to speak.
suddenly the short or bears are left in a bind. They borrowed those shares (to short) and now need to cover. The price is higher because it’s a secondary market of bid/ask. This is like how doordash jumped from an ipo of $65 to almost two hundred plus within the first hour of opening.
they don’t like the outcome? Then they should not have taken such a speculative position.
if you’ve read WSB long enough, you’ll notice they are very speculative. They will make huge bets and they’ll show the huge losses.
if they lose out—they lose out. They don’t cry to the market makers or the brokerage houses so that trading is halted.