Dash12
:
Call options gives him the right not the obligation to get the shares once exercised. He has more calls than shares available for purchase from my understanding. So once time to exercise comes the ppl he bought the calls from is gonna be forced to buy shares of Gme to give to him driving the price up
Dash12
OneDirection
OP
:
Yes should be bad as long as the price stays above 21$ sense that’s his strike price if it goes below 21 he’s calls will expire useless
Dash12
OneDirection
OP
:
No problem definitely would look into more if I was you options can be confusing at first but the strike price is just the price he picked saying the stock will be above this price ($21) on what ever date he picked (I think end of the month) so as long as he’s right and the price is above his number (21) he can exercise the call options each option being worth 100 shares. He has thousands of call options creating a lot of shares to be purchased if price stands
牛坡 : Investments and speculative combinations, 100% investors should not be very vocal
Dash12 : It will force market makers to buy stock to cover his calls causing a gamma squeeze
OneDirection OP Dash12 : Thanks bro. Can you please explain in plain language? Beginner here
Dash12 : Call options gives him the right not the obligation to get the shares once exercised. He has more calls than shares available for purchase from my understanding. So once time to exercise comes the ppl he bought the calls from is gonna be forced to buy shares of Gme to give to him driving the price up
OneDirection OP Dash12 : Thanks for the explanation. I think I am almost got it. Means it’s bad for the shorties specifically?
Dash12 OneDirection OP : Yes should be bad as long as the price stays above 21$ sense that’s his strike price if it goes below 21 he’s calls will expire useless
OneDirection OP Dash12 : Thanks a lot for the explanation. I think I will need to do a research to understand this
Dash12 OneDirection OP : No problem definitely would look into more if I was you options can be confusing at first but the strike price is just the price he picked saying the stock will be above this price ($21) on what ever date he picked (I think end of the month) so as long as he’s right and the price is above his number (21) he can exercise the call options each option being worth 100 shares. He has thousands of call options creating a lot of shares to be purchased if price stands
OneDirection OP Dash12 : That’s very promising. Thanks a lot for your help to explain this situation
Dash12 OneDirection OP : Anytime buddy got any more questions hit me up
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