Thread by @MrDavidNIO

WARNING ⚠️ Reddit subs are not same as what they were 2 years ago. So be careful when you follow them. There are posts to mislead people.

So what happened today?
Majority of PUTs expired worthless. Retail investors still don't understand how to play, those who know mislead.

As a result of today's trading few millions of new short positions will be assigned to those who hold ITM PUTs. Who wants to be the bag holder of #GME short positions? Definitely not apes. They will race to close those positions.Those who hold ITM calls will be assigned long pos.

Great there are new short and long positions got assigned. Long positions holders are most likely to diamond hands as the world now knows about @Gamestop's intention to be an e-commerce company. So those new short position holders are in deep trouble. Next week could be amazing!

Why? OK We need to look at option market. When buying calls means synthetic long positions are created. Synthetic long positions can be used to put buying pressure if you attach a LIMIT Sell order with a higher price. Most retailers don't do that,so shorts and brokers use retail.

When shorts buy a PUT option it creates a synthetic short. In other words synthetic shorting happens through option market. What happens when you short #GME? Data shows apes are buying those majority of shorted shares including synthetic shorts. Today nearly 30m shares worthless.

So what happens to those who bought long #GME positions for the past year while shorts were shorting using those synthetic? Market needs to buyback those 30m synthetic shares purchased during synthetic shorting via PUTs now worthless. It's going to be a warzone.

This process will begin as of Monday with T+2. So short sellers can try to short even more on Monday in premarket while the option market is closed.That's why share price shoots up if there is a huge buy in premarket or after hours while the synthetic share machine is turned off.

Yes nothing will happen to those who hold worthless puts and calls. But everytime calls and puts expire OTM , market will try to do a correction. This is why there is hype on reddit subs to encourage call options. Proper way to Hedge is if you hold long shares buy OTM PUTS.

When you buy OTM PUTs and when they become ITM PUTs you must close them before expiry, otherwise you'll be assigned a short position. They are driving the price down by making retail to buy call options and then try to make them worthless.

What drives the price up?
1.Buying pressure created by Limit Sell Orders with higher prices.
2.Buying PUT options & closing them for profits. When you close PUTs for profits shorts lose money. Specially OTM PUTs to Hedge long position
3.Selling Calls with high Limit Sell Price

Everyone talks about options, until this post I haven't seen a single person educating anyone with the mechanism of option trading. Buying calls is promoted as a good thing, Not really unless you buy and then exercise those calls.Closing PUTs at dip buyback the synthetics shares

Can't Stop
Won't Stop
GameStop

They are fighting for an already lost kingdom. Game is very simple, They need to buy back real shares, until we sell or company issue new shares they can't buy back to close those short positions. Covering is NOT Closing! Don't forget,Never doubt