![Water [956x960 - 78KB]](https://pic8.co/sh/Xinyt1.jpg){kind=link}
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
Their positions are leveraged shorts, look into the positions held by Melvin Capital and take a look at the Greeks for GameStop. It's extremely over leveraged and made the veil fall off on this fucked up gambling system we have in place.
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.
Elon pointed them in the right direction. I trust even if government doesn't come through and does something stupid like bail the hedgekikes out it's at least red pilled many many dormant men.
Problem is people have been beaten down don't even realize how much they lose on taxes, inflation etc. They all became content and jaded.
But for a month or week or day depending on when they hoped on board, they all had hope and dreams and desires they've never had. They banded together as a community that was prospering together like they've never had. The felt greed and power and success. And if that's taken away. They'll never forget who did it to them.
"It was not part of their blood, It came to them very late, With long arrears to make good, When the Saxon began to hate.
They were not easily moved, They were icy -- willing to wait Till every count should be proved, Ere the Saxon began to hate.
Their voices were even and low. Their eyes were level and straight. There was neither sign nor show When the Saxon began to hate.
It was not preached to the crowd. It was not taught by the state. No man spoke it aloud When the Saxon began to hate.
It was not suddently bred. It will not swiftly abate. Through the chilled years ahead, When Time shall count from the date That the Saxon began to hate."
Or it's exactly these people who pushed them.
250,000 people on WSB.
Lots of $500-$1000 share purchases.
All people trying to call bs on this forget:
It's not the 250,000 people that matter. Thats like seeing the cowboys and not the herd.
You'd be like "why all the stampeding and dust cloud on the horizon? All I see are cowboys coming over that hill."
The 250,000 moved at once, which ended up moving the majority of robinhood users, which last I checked is 13 MILLION people.
And from there, that move spread to TD ameritrade and the rest of the fractional shares market.
And now you know why it looks like "theres no way a subreddit could move that kind of money! This smells like a trap designed by the whales on wallstreet to profit from the collapse while wallstreet blames mainstreet."
It's not. This is mainstreet learning how to play the game.
And the whales realize time is up so now the flow is gonna reverse hard, as they all see the writing on the wall and try to make a buck before the value of that buck drops to zero.
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.
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