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i can't stop laughing about the fat-cats getting screwed by a bunch of reddit dorks
Unless some of them were who orchestrated it. Are we supposed to believe hedge funds don't know what stop losses are and just go all-in on shorting failing companies? This is stuff people do when they first learn what margin trading is, not professionals.
Maybe they want things to fall apart
you can't set trailing stops on derivatives to my knowledge. derivatives are complete Vegas style betting for stocks. how can you sell something you don't yet own??? nowhere else can you do this.
I used to run iron condors (put and call spreads at 30days out.. before obummer brought all kinds of volatility to the market) and it worked, but these fat-cats are completely fuxked... and I love it. They went completely one-sided shorts, the little guys ganged up and artificially drove the price up which squeezed the fat-cats into buying, which further forced the price up. this is revealing how fake the stock market is just like the rest of our society.
Where are you seeing that these were derivatives? To my knowledge these are flat-out shorts. Derivatives don't contribute to short volume or short interest. There would also be no point in squeezing because they would never have to buy any stock
Ha, I mentioned pretty much this in my reply to op.
I am glad the mask is slipping, however, remember that Biden, especially in his mental state now, is far worse than Obama and Obama passed laws like the Dodd-Frank act to protect the machine and fat-cats. The political recoil is going to be painful.
You can't put a stop loss on an option, you can do a stop limit order, however this is assuming someone wants to buy out your contracts. You can also put a counter long or short position to counteract the market going against your option, however, it wouldn't have been enough to offset such a large loss.
The main issue here is the fact that they're shorting the market which is much harsher than a standard "put" option. They essential got loans to get leverage for betting against a company, they can maintain their position if they do not default on their loan payments. Keep in mind those payments are going to go higher and higher as time+price increases against their initial bet.
If they end up defaulting on their loans they (or the insurer) will have to exercise the right to buy those shares at current market price which would completely btfo the majority of hedge funds atm.
Somewhere else said the system is designed with buttons that can be pushed at anytime to blow the economy apart. It's just the "wrong" people found them and pushed them, instead of who (((should have))) pushed them.
Or it's exactly these people who pushed them. If you look into it you'll see this same thing is occurring across Europe. Even stocks like Blockbuster are getting squeezed out of nowhere. Reddit and 4chan have weaponized autism but certainly not on this scale. It's always a few oddities here and there, not on this scale.
Are we supposed to believe hedge funds don't know what stop losses
You underestimate their arrogance and their certainty that nothing will ever rock the boat on a stock thats failing.
They thought they were invincible.
It was not the real fat-cats, it was the 101 IQ wannabes. They thought they were being clever by being sketchy and once again proved the axiom, "Just because you can doesn't mean you should."
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