|
| Seems like there’s really big basket swaps in Gme chewy and Siri.
Instead of closing their hedge (because it’s so out of the money) they roll until the last day which seems to be roughly a year out.
Tesla earnings comes around and Tesla goes up pulling up whatever stock is currently getting “squeezed”.
It runs up enough for new short sellers to jump on board driving the price down.
Gme then has an earnings day.
And this is important I think. If they do a convertible note that means arbitrage people end up shorting Gme as a hedge to buying the notes I think. And because it tied to these swaps, I’m guessing, it also ends up in a roundabout way of creating additional short pressure (along with the new shorts from the run up during Tesla earnings) that drives the price of the “short squeeze” stock otm calls even lower.
And then the legacy swap that expired a year ago and now has to be unwound hits which then drives the price up significantly and causes a massive rally in the options.
My guess as to why they keep doing it? I think the massive gains in the calls or leverage market I guess allows them to unwind as cheaply as possible.
But how to figure out which stock from the baskets is going to run? Idk
There’s a lot of isins to sort thru I guess
Right now I’m looking at
Airbnb, xyz, PayPal, mstr, hell maybe Tesla? But seems like after a major run, it takes a while before they do the same stock again
Idk I guess waiting to see which call options go crazy this week would be a good indicator. Or which ones have any volume three months out. That narrows it down fast
 (IMG_8527 (full).png)
Attachments
----------------
 IMG_8527 (full).png (36KB - 27 downloads)
| |
|
GameStop convertible notes
