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At some point those shorts are due - if the owner of the shorts doesn't hold the necessary stocks, it's going to be expensive. That's my understanding. What ha
by sveme 6y ago
At some point those shorts are due - if the owner of the shorts doesn't hold the necessary stocks, it's going to be expensive.
That's my understanding. What happens afterwards? No ideas. Some people want to see hedge funds burn, I would not mind that either.
- betterunix2 6y agoShort sales do not work like that. You can have a short position indefinitely, as long as you pay the margin interest and meet the margin maintenance requirements. Options positions are another story, in-the-money calls do require delivery of the shares by the expiration date, and next such date is tomorrow. Nobody is going to make the hedge funds burn. At this point the hedge funds are fleecing whoever was buying shares or options yesterday (who do you think they bought them from?).
- boatsie 6y agoExactly, “wall st” as a whole is making bank off this volatility, as well as Blackrock and Fidelity finds. The real way to actually stick it to wall st would be if all of main st sold all their equities..
- sveme 6y agoThanks for teaching me something I did not know! May the post above be forever a monument to my ignorance!