If I understand correctly, Hedge funds have been selling excessive 'put' options so it gives the impression that a stock is in a downward trend. This bleeds a lot of companies dry and makes the fund money. A sort of soft manipulation.
Gamestop had over 100% short positions. /r/WSB said fuck that, buy Gamestop and prevent MMs from taking advantage of the company while screwing over these Hedge Funds. The options are a form of contract that they can't just let go of and expire on a designated date to sell a stock at a given price.
Since the stock price has gone from ~$17 to over $300, these hedge funds have already lost several billion dollars. And it's still gaining momentum.
If I understand correctly, Hedge funds have been selling excessive 'put' options so it gives the impression that a stock is in a downward trend. This bleeds a lot of companies dry and makes the fund money. A sort of soft manipulation.
Gamestop had over 100% short positions. /r/WSB said fuck that, buy Gamestop and prevent MMs from taking advantage of the company while screwing over these Hedge Funds. The options are a form of contract that they can't just let go of and expire on a designated date to sell a stock at a given price.
Since the stock price has gone from ~$17 to over $300, these hedge funds have already lost several billion dollars. And it's still gaining momentum.