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depends on when the positions are liquidated. everyone who bought yesterday is fighting exchanges whose only option for GME is "sell" because buying is restric

depends on when the positions are liquidated. everyone who bought yesterday is fighting exchanges whose only option for GME is "sell" because buying is restricted. I don't know how some of these shorts will find 20 million shares by tomorrow.

gruez 6y ago
>I don't know how some of these shorts will find 20 million shares by tomorrow. you're confusing shorts with options. shorts don't expire. They can be held indefinitely as long as you have the margin to keep up with the losses.
- benmanns 6y ago
  If you short more stock than exists, eventually you need to find it. Prime brokers will allow you to naked short but you have to locate shares or buy back in pretty quickly.
- jacksnipe 6y ago
  Shorts have delivery dates.
  - gruez 6y ago
    They do? >There are no set rules regarding how long a short sale can last before being closed out. >The lender of the shorted shares can request that the shares be returned by the investor at any time, with minimal notice, but this rarely happens in practice so long as the short seller keeps paying its margin interest. https://www.investopedia.com/ask/answers/05/shortsaleclosed.asp https://www.investopedia.com/ask/answers/05/shortsaleclosed....
- Haunted_Cabbage 6y ago
  Shorts don't expire, but the short sellers can call in on that short and there's also interest at exceptionally high rates.
deleted 6y ago
[deleted]
SV_BubbleTime 6y ago
> everyone who bought yesterday is fighting exchanges whose only option for GME is "sell" because buying is restricted I can’t really understand how the exchange is saying “no, you’re not allowed to buy, but you can sell all you want” is legal.
- betterunix2 6y ago
  First of all, the exchanges could never impose that rule, because in order to sell you need to have someone buying. It is discount brokerages imposing the rule, and they are doing so because they saw what looked like market manipulation and are not interested in helping with that sort of thing. They could have stopped trading entirely, but that would have been worse for their customers, who would have watched their positions lose value and been helpless to do anything about it.
  - WrtCdEvrydy 6y ago
    Robinhood is currently operating under Restricting the GME stock. The only option is to sell, there are no 'buy options'
    - betterunix2 6y ago
      Who do you think those shares are being sold to? Robinhood's brokerage side is restricting trades, but their exchange (the "shadow" exchange they use to make money without charging commissions) is still allowing buy orders, or else they have effectively suspended GME on their exchange and have to route the sell orders elsewhere. Again, it is not possible for an exchange to only allow selling of a stock, because every share sold is a share someone else is buying.
      - SV_BubbleTime 6y ago
        Yea... you know other exchanges that “I” can’t use, like Canadian ones are still allowing buying right?
fock 6y ago
they could always deal with the lenders, which don't gain anything if their borrowers go bankrupt and they won't even get back their pennystock. And I think these lenders already deal with them quite a bit. And obviously there's still a lot of shares with WSB and I don't see how the current situation prevents offering shares for the rocket-like USD1k.
pen2l 6y ago
Sorry for ignorant question here not acquainted to stock market mechanisms, but: why the time imposition of tomorrow? Who dictates that storters have to return shares and when? Frankly I thought with puts you state time limits, and with shorts you decide for yourself when you’ll have to give shares back. If that is not so, then I guess I finally understand why everyone says shorts are super risky.
- EpicEng 6y ago
  They don't have to cover shorts tomorrow, but there are ITM calls that will be expiring. The idea behind the shorts is to keep the price high until these funds have no choice but to cover.

gruez 6y ago

>I don't know how some of these shorts will find 20 million shares by tomorrow. you're confusing shorts with options. shorts don't expire. They can be held indefinitely as long as you have the margin to keep up with the losses.

benmanns 6y ago
If you short more stock than exists, eventually you need to find it. Prime brokers will allow you to naked short but you have to locate shares or buy back in pretty quickly.
jacksnipe 6y ago
Shorts have delivery dates.
- gruez 6y ago
  They do? >There are no set rules regarding how long a short sale can last before being closed out. >The lender of the shorted shares can request that the shares be returned by the investor at any time, with minimal notice, but this rarely happens in practice so long as the short seller keeps paying its margin interest. https://www.investopedia.com/ask/answers/05/shortsaleclosed.asp https://www.investopedia.com/ask/answers/05/shortsaleclosed....
Haunted_Cabbage 6y ago
Shorts don't expire, but the short sellers can call in on that short and there's also interest at exceptionally high rates.

deleted 6y ago

[deleted]

SV_BubbleTime 6y ago

> everyone who bought yesterday is fighting exchanges whose only option for GME is "sell" because buying is restricted I can’t really understand how the exchange is saying “no, you’re not allowed to buy, but you can sell all you want” is legal.

betterunix2 6y ago
First of all, the exchanges could never impose that rule, because in order to sell you need to have someone buying. It is discount brokerages imposing the rule, and they are doing so because they saw what looked like market manipulation and are not interested in helping with that sort of thing. They could have stopped trading entirely, but that would have been worse for their customers, who would have watched their positions lose value and been helpless to do anything about it.
- WrtCdEvrydy 6y ago
  Robinhood is currently operating under Restricting the GME stock. The only option is to sell, there are no 'buy options'
  - betterunix2 6y ago
    Who do you think those shares are being sold to? Robinhood's brokerage side is restricting trades, but their exchange (the "shadow" exchange they use to make money without charging commissions) is still allowing buy orders, or else they have effectively suspended GME on their exchange and have to route the sell orders elsewhere. Again, it is not possible for an exchange to only allow selling of a stock, because every share sold is a share someone else is buying.
    - SV_BubbleTime 6y ago
      Yea... you know other exchanges that “I” can’t use, like Canadian ones are still allowing buying right?

fock 6y ago

they could always deal with the lenders, which don't gain anything if their borrowers go bankrupt and they won't even get back their pennystock. And I think these lenders already deal with them quite a bit. And obviously there's still a lot of shares with WSB and I don't see how the current situation prevents offering shares for the rocket-like USD1k.

pen2l 6y ago

Sorry for ignorant question here not acquainted to stock market mechanisms, but: why the time imposition of tomorrow? Who dictates that storters have to return shares and when? Frankly I thought with puts you state time limits, and with shorts you decide for yourself when you’ll have to give shares back. If that is not so, then I guess I finally understand why everyone says shorts are super risky.

EpicEng 6y ago
They don't have to cover shorts tomorrow, but there are ITM calls that will be expiring. The idea behind the shorts is to keep the price high until these funds have no choice but to cover.