3 ms·
>> I'd imagine there's plenty of funds willing to short GME at $300 Plenty? What type of mathematical model would support a move like that? Are hedge funds pre
by kreeben 6y ago
>> I'd imagine there's plenty of funds willing to short GME at $300
Plenty? What type of mathematical model would support a move like that? Are hedge funds predicting a government bailout? Or are they certain retailers will close on Monday?
- gruez 6y ago>Plenty? What type of mathematical model would support a move like that? Do you really need a mathematical proof of this? If a stock is $30 and you think the FMV is actually $20. Then you'd expect to make $10 from shorting it. If it's at $300 you'd expect to make $280. So the higher the price, the more money you expect to make from it, and the more tempting it is. >Are hedge funds predicting a government bailout? Or are they certain retailers will close on Monday? No not really, a sibling comment explains it better than I can: https://news.ycombinator.com/item?id=25984493 https://news.ycombinator.com/item?id=25984493