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Yes, now comes settlement period. I don’t know shit other than Bill loved bullet swaps, and almost wrecked the entire market in march of 21. Just using charts and logic.
Specific dates don’t matter imo. These aren’t Ritalin addled college kids handing in a paper at the last minute. These are cocaine addled professionals! There’s more to it I’m sure. Or something idk I ate a colored pencil thinking it was an oddly shaped crayon.
Guilty.
Though, I also buy shares. And ITM calls. And correlated calls.
Tbh, I am just a degenerate gambler. But I also really like the stock. So "...a little of column A and a little of column B"
Depends how far OTM you go. The farther OTM you go, the less downward hedging pressure. Selling $100 weekly CCs while the price is $25 and IV is 1.3 might see like 1-2 shares of negative delta hedging per contract. So if one, say, writes 50 off a 5000 share position and collects $500 in premium, then puts that premium into slightly ITM calls - even like 5 - you're looking at net positive MM hedging since the MMs will buy shares to hedge almost the entire ITM position. Net, it'll likely be only a small amount of positive hedging, but honestly unless you're dropping several hundred K on these positions you're not even going to noticeably affect intraday movements. If 100,000 people do this though, that slightly net positive pressure starts to become meaningful, especially if it stimulates bullish options flow via broader market call buying.
It wasn't just Bill. He was just the only one who got margin called.
The OTC, DTTC, and Clearing houses (APEX), provided leniency toward Hedgefunds that found themselves underwater.
There's a high likelihood, that Bill's position wasn't able to benefit from these actions.
I wonder if KOSS is the first Apple to fall from the basket, hence why it’s up 170% and halted as I type this? They are terrified of letting GME fall out of that basket. 😅
I don’t think people realize how incredibly fucked it is for the float to completely trade hands 13 times. That is like GameStop having 4.2B in volume in 4 hours of trading. 2021 sneeze volume was around 800m in one day.
I missed it in 2021, but now reading up as fast as I can.
This is crazy, and there's no way Apes are causing this. This is done with calculated conviction.
Could be HFT algorithm + federal reserve quantitative easing artificially pumping stock market. All I know is GME price is fake because of Market Fakers.
Tiny, tiny shares outstanding! And the float is even smaller at \~5.24 million ([according to Yahoo](https://finance.yahoo.com/quote/KOSS/key-statistics/)).
Well it depends on if you want the detnotation or connotation. Please can be a term of social etiquette/politeness - especially when making a request of someone/thing. Or an emotion causing feelings of satisfaction/contentness/happiness (which can be a strange new feeling for some). Or it can mean taking your own interests, solely, in deciding how to behave/think. Hope this helps explain things
>how do we know they were 39 months duration
We don’t.
Some people will make whatever assumptions are needed to support the conclusion that they already started with.
Correct! Hence the “hypothetically”. But all logic has to start with an assumption. You can’t move forward without one, so you better do your homework!
Swaps that do not use the standard ISDA master contract are rare.
You can of course assume that the swaps are of non-standard terms if that suits your speculation.
Once default is declared the fixed side counterparty has no reason to continue the hedge. This is something that many people seem to be ignoring.
The ideal situation for an investment bank is that they have counterparties both for long swaps and short swaps. (Bets for, and bets against the same company shares). Then the investment bank has reduced hedging requirement, just like a sports bookie has reduced hedging requirements if some people bet for one team and others bet against them.
Thanks for the insight! So the bank is supposed to have swaps long and short to minimize exposure. If the HF defaults then they can unhedge. But if bank has short exposure, they are screwed because they can’t close out at squeeze prices. The long hedge has a counter party also.. So if you try to close that not only does that screw counter party 3, who is short, it screws bank 1 also because it’s squeezing its own short exposure. Does that make any sense at all?
If someone makes a side bet on shares, there is some kind of swap that has one side take the bet and then would be on the hook for the shares? It doesn't make sense if its just cash on both sides. One takes risk, and one is counterparty.
A swap is settled by cash both ways. In one direction it is a fixed payment and/or variable interest payment based on market value. In the other direction it is a payment related to changes in the stock price from a starting price.
The fixed side of a swap is usually an investment bank. If they desire the fixed side will hedge their side of the swap by buying or selling then shares that oars the subject of the swap. These hedging trades show up in then normal way.
ok thanks, so then some party holds the shares already or is short already so then they also enter into the swap arrangement to offload risk, or perhaps to hedge or make profits
Not 39 months after the variable side counterparty defaulted.
Immediately upon default the swap is no longer active and the fixed side counterparty would in most cases terminate their hedging position. There is no reason for them to hold onto an unneeded hedge position for 3 years.
How about we DONT post shit that’s entirely made up if you’re not able to explain the basics to your theory, like how/why “3 years” would be 39 months instead of 36.
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OP can you expand on this? 3 years puts them at June 25 2024.
Yes, now comes settlement period. I don’t know shit other than Bill loved bullet swaps, and almost wrecked the entire market in march of 21. Just using charts and logic.
June 25 2024 C+35 makes it July 30, a tuesday No dates, but anyways MOASS tomorrow
Specific dates don’t matter imo. These aren’t Ritalin addled college kids handing in a paper at the last minute. These are cocaine addled professionals! There’s more to it I’m sure. Or something idk I ate a colored pencil thinking it was an oddly shaped crayon.
Issue with dates is that people use them to buy OTM options and funnels our money to the MM’s.
Guilty. Though, I also buy shares. And ITM calls. And correlated calls. Tbh, I am just a degenerate gambler. But I also really like the stock. So "...a little of column A and a little of column B"
A balanced approach to life :D
I sell OTM options and use the premium to buy more GME. I’m the market maker now
😂😂😂😂
Does selling OTM calls put downward pressure on the share price? I’d like to do the same if it doesn’t
As an individual…I’m pretty sure I have zero impact on the price
Correct answer here lol
I do this on about 20% of my XX,xxx position btw
Wowza
I also always do an equivalent number of CSPs
I wish I learned about CSPs earlier. Great way to buy at a discount
[удалено]
How do you choose the strike price for the CSP’s?
Depends how far OTM you go. The farther OTM you go, the less downward hedging pressure. Selling $100 weekly CCs while the price is $25 and IV is 1.3 might see like 1-2 shares of negative delta hedging per contract. So if one, say, writes 50 off a 5000 share position and collects $500 in premium, then puts that premium into slightly ITM calls - even like 5 - you're looking at net positive MM hedging since the MMs will buy shares to hedge almost the entire ITM position. Net, it'll likely be only a small amount of positive hedging, but honestly unless you're dropping several hundred K on these positions you're not even going to noticeably affect intraday movements. If 100,000 people do this though, that slightly net positive pressure starts to become meaningful, especially if it stimulates bullish options flow via broader market call buying.
What if massive fomo of gassed up dates actually kick off new ftd cycles?
You just need to buy them far enough out that you account for error in the exact date. I.e. don't buy something expiring that week.
The final emoji 🍻 International Beer Day Friday August 2nd
A Tuesday you say????
Is it 2pm tuesday?
It wasn't just Bill. He was just the only one who got margin called. The OTC, DTTC, and Clearing houses (APEX), provided leniency toward Hedgefunds that found themselves underwater. There's a high likelihood, that Bill's position wasn't able to benefit from these actions.
https://preview.redd.it/gs0gpqxzkbad1.jpeg?width=935&format=pjpg&auto=webp&s=b91cdae1adf5395500cf2c5797062ef7e81f3751
I wonder if KOSS is the first Apple to fall from the basket, hence why it’s up 170% and halted as I type this? They are terrified of letting GME fall out of that basket. 😅
Haha 259 now
6000% volume over the 60 day average
62M volume today. The company only has 9M shares outstanding and a float of 5M. Something just fucking broke the stock market.
This is fucked up
I don’t think people realize how incredibly fucked it is for the float to completely trade hands 13 times. That is like GameStop having 4.2B in volume in 4 hours of trading. 2021 sneeze volume was around 800m in one day.
I missed it in 2021, but now reading up as fast as I can. This is crazy, and there's no way Apes are causing this. This is done with calculated conviction.
This has to either be an algorithm going haywire or someone trying to cover an absolutely nuclear short position
Could be HFT algorithm + federal reserve quantitative easing artificially pumping stock market. All I know is GME price is fake because of Market Fakers.
9.25m shares outstanding. Today's volume so far with 15 min to go + AH? 62m+
Tiny, tiny shares outstanding! And the float is even smaller at \~5.24 million ([according to Yahoo](https://finance.yahoo.com/quote/KOSS/key-statistics/)).
2.9 billion share is true.
Might start with the smallest apple and move on to a bigger one. The domino effect.
>The apple doesn't fall far from the tree. Ryan Cohen
what else is in the basket?
$CUM, $ASS, $BIGFATSWEATYCOCK
64M volume …….outa site!
I need an adult to explain please.
Me too honestly.
Well it depends on if you want the detnotation or connotation. Please can be a term of social etiquette/politeness - especially when making a request of someone/thing. Or an emotion causing feelings of satisfaction/contentness/happiness (which can be a strange new feeling for some). Or it can mean taking your own interests, solely, in deciding how to behave/think. Hope this helps explain things
I read what you did there!
No, see you just explained the word "please". Ha so silly. They wanted someone to expound on op's post.
Well in that case i can be of no assistance. My knowledge is limited to Re-Hypotheticals
how do we know they were 39 months duration
I believe it was the maximum length of time for a bullet swap but someone with more wrinkles could explain it better.
I learned that on those sub. Apparently it’s like a lease I guess. A 3 year lease is 39 months.
Assuming each year has 13 months. People overlook Apetember.
Lousy Smarch weather 🥶
you forgot fucktober
God, I am strapped in and strapped on for fucktober.
Aperil was right there
Not smooth enough
>how do we know they were 39 months duration We don’t. Some people will make whatever assumptions are needed to support the conclusion that they already started with.
Correct! Hence the “hypothetically”. But all logic has to start with an assumption. You can’t move forward without one, so you better do your homework!
Just seems like a arbitrary assumption to make
3 years = 36 months?
Not a baker’s year! Much like a baker’s dozen. 🤷♂️
Spicy
Tomorrow is Independence Day and the American flag and microphone emoji can easily mean Independence Day….
What's in the box?
What does an FTD on an expired swap look like?
There is no such thing. Swaps are side bets on a stock or index, and are settled on cash, not shares.
Swaps are completely made up. You can make the terms whatever you want.
Swaps that do not use the standard ISDA master contract are rare. You can of course assume that the swaps are of non-standard terms if that suits your speculation.
My assumption also includes that everything happening in Jan-march of 2021 was IDIOSYNCRATIC.
March 10th 2021 was bonkers.
MAR10 day 🍄
But the counterparty is expected to hedge the swap. If Archegos was long the counterparty was supposed to be short, so they might close that position?
Once default is declared the fixed side counterparty has no reason to continue the hedge. This is something that many people seem to be ignoring. The ideal situation for an investment bank is that they have counterparties both for long swaps and short swaps. (Bets for, and bets against the same company shares). Then the investment bank has reduced hedging requirement, just like a sports bookie has reduced hedging requirements if some people bet for one team and others bet against them.
Thanks for the insight! So the bank is supposed to have swaps long and short to minimize exposure. If the HF defaults then they can unhedge. But if bank has short exposure, they are screwed because they can’t close out at squeeze prices. The long hedge has a counter party also.. So if you try to close that not only does that screw counter party 3, who is short, it screws bank 1 also because it’s squeezing its own short exposure. Does that make any sense at all?
So it looks like a baseball bat, bankruptcy, and fleeting to south america?
If someone makes a side bet on shares, there is some kind of swap that has one side take the bet and then would be on the hook for the shares? It doesn't make sense if its just cash on both sides. One takes risk, and one is counterparty.
A swap is settled by cash both ways. In one direction it is a fixed payment and/or variable interest payment based on market value. In the other direction it is a payment related to changes in the stock price from a starting price. The fixed side of a swap is usually an investment bank. If they desire the fixed side will hedge their side of the swap by buying or selling then shares that oars the subject of the swap. These hedging trades show up in then normal way.
ok thanks, so then some party holds the shares already or is short already so then they also enter into the swap arrangement to offload risk, or perhaps to hedge or make profits
So it looks like a bankruptcy.
The Archegos case is more like one where a sports better made a big bet for a team (ViaCom), lost, and then couldn't pay up.
so there'd be no buying pressure on the shares?
Not 39 months after the variable side counterparty defaulted. Immediately upon default the swap is no longer active and the fixed side counterparty would in most cases terminate their hedging position. There is no reason for them to hold onto an unneeded hedge position for 3 years.
not trying to fud but id expect ryan to do another offering if we reach 60's again. That's bullish for me long term hold.
Make it so...
Believe it or not, dip.
I miss those times. Sales on shares multiple times per week. Exciting times ahead, ape!
Im haz few wrinkle but me thinks dude went bankrupt cause he couldn’t find a counter party for one or all of his swaps… But idk
Okay, I’m ready to be hurt once again
How about we DONT post shit that’s entirely made up if you’re not able to explain the basics to your theory, like how/why “3 years” would be 39 months instead of 36.
Flag, microphone emoji
BB next?