IF he could afford to.
GME YOLO is MIA
- Thread starter Butterfly
- Start date
Oy! I'm falling down on this again. So you have an option to get a stock at an instant profit of 10 million bux if you exercise it. So you might need a million in your account to do it? Why?
And even if that is true, can you get like JP or Wells Fargo or whomever to underwrite your instant profit trade?
You options people are insane.
Because that's what the contract says, that the option buyer agreed to, by buying the option.
Yes that's because options are insane. They give you the option to earn windfall of profit with a fraction of the money but when you discover you are actually able to make that much amount of the money you discover you actually need to be able to have a huge amount of money first in order to claim the profit otherwise you can't. Your option actually gets liquidated beforehand or you have to instruct not to exercise which is letting go of the profit. It's like you buy a lottery ticket with a prize-winning of $50 million for $5 but when you notice your lottery ticket is actually the winning ticket, they tell you you need to pay $40 million first in order to claim the prize otherwise you can't and the ticket gets taken away from you or you give up on the prize.
This is essentially what's happening after they raise the margin requirement on buying the stocks and the buying restriction. This is basically what killed the rally otherwise the price of GME is $500 by now. They didn't do this for the investors mind you. They did this to protect the MM which took the other side of the investors so they won't default. The clearinghouse is all on MM's side. It's the MM who should've been required to pay more collateral because they are the ones who were losing money but no they turn around and force retail brokers like RH to pay more collateral when majority of the traders with RH were all holding profitable positions. They literally turned profitable trades of retail investors into lot less profitable trades or even losing trades.
TLDR and stuff...I am about to go insane on this logic concept. I need to head to bed to sleep, so I will posit this in a slightly different way.
I have an option to have a stock for 1 million profit, instantly, when I redeem the coupon. In order to do this, in order to redeem my instant 1 million prize, I need to have 1 million in my account already?
WTF!
Nite yall. GO KC CHIEFS!
Yes, whatever is needed to buy the stock first via exercising the option.
Hope this is short enough for you to read.
To get Overnight's attention, put it on Youtube.Yes, whatever is needed to buy the stock first via exercising the option.
Hope this is short enough for you to read.
obviously this is above your head, there are plenty of cases being prosecuted with little compliance shit like that all the time, every day. You just don't know about them or see them, so you think they are not there. Go to the SEC and look at those prosecution cases. Full of idiot amateur bitcoins and idiots promoting securities they are not "registered" to sell etc...
obviously with all the violations and evidence, this is not the place to review them. It's going to be a few thousands page of Roaring Kitty lawyers to address and prove he is not guilty. It will make an interesting read for sure.
says who? you, with no experience in compliance and no understanding of SEC regulations or state regulations? typical clueless amateur LOL