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If nobody sells, any seller can charge ANY price they want. 1 trillion per share. When more is shorted than exists, you’re in a let good place to know that the
by jbverschoor 6y ago
If nobody sells, any seller can charge ANY price they want. 1 trillion per share.
When more is shorted than exists, you’re in a let good place to know that there’s no such thing as the last biggest fool.
- adolph 6y agoIf nobody buys, does the trillion dollar seller make a sound?
- jjeaff 6y agoOnly if insolvency makes a sound. If the shorts don't have the trillion dollars to buy that stock to pay back the debt by the deadline then they are sol.
- ericd 6y agoWhat deadline exists for shorts, assuming these aren't puts?
- jbverschoor 6y agoToday was the monthly option expiration day. But of course not all options expire at the same time
- joncrane 6y agoShorting doesn't only mean short stock. You can be short call options, and if they are in the money, the holder of the contract can exercise his or her option, which forces the seller of the contract to provide shares at whatever price. For every long call option contract, there is a counterparty who is subject to unlimited upside price risk, just as a traditional stock shorter. The difference is the contract has an end date. I would argue that options account for more of the pressure/volatility of these recent stock prices than the shares themselves.
- jbverschoor 6y agoIf they sold a call option which is exercised, they’d HAVE to buy