Allow this "shill" to point out some factors driving the price action here, and you can dispute them with logic and facts or resort to more name calling:
After hours trading has few participants. That means low liquidity. Low liquidity yields larger price moves.
Corporate actions naturally drive large price moves because they fundamentally alter the value in big ways.
This corporate action is basically a merger of a split that was done just a year ago.
In the case of APE/AMC these swings are exacerbated because they're both heavily shorted and have many layers of derivatives being traded on them. They are thus stocks tremendously divorced from underlying business realiities.
So yeah, a double digit price swing is not at all out of play here and there's no need to become emotional & resort to ad-homs when someone points it out. Emotional reasoning really doesn't get a person anywhere in a Q forum.
Most of the deep dive chatter has died down but if you just lurk all the meme stock related forums they'll break it down when someone notices something new. And you can likely find some of the old deep dives perma-linked.
Basically certain financial entities are permitted to create derivative products. Take for example an ETF. It's a product meant to easily allow you to buy and sell a set of other stocks. What happens though is there are delays in actually acquiring the underlying asset, and very little enforcement occurs when those failures occur.
Now once that phantom asset is created, all the other products can be piggy backed off it. So you can then take out an option on the phantom ETF. Or a swap on the option (swaption). Swaps are basically flimsy agreements and have all the same potential fail to delivery failure (i.e. they don't have to have the underlying to enter the contract). Then you have other insanity like single ETFs:
The short of it is these products are built on assumption after assumption after assumption, but the whole meme trade is based on the idea that Wall Street is faking their books and they don't have the underlying shares to deliver on all the fancy ETFs/options/swaptions/swaps/futures/crypto they claim to have. The transparency is non-existent. The regulation is fake.
"Prices swings on that kind of corporate action are not unusual."
So you're arguing the normal price swing for a major corporate action is what? Low single digits?
It also bumped 23% last February when the conversion plan got delayed.
https://www.investorsobserver.com/news/qm-news/8518810385038173
Allow this "shill" to point out some factors driving the price action here, and you can dispute them with logic and facts or resort to more name calling:
After hours trading has few participants. That means low liquidity. Low liquidity yields larger price moves.
Corporate actions naturally drive large price moves because they fundamentally alter the value in big ways.
This corporate action is basically a merger of a split that was done just a year ago.
In the case of APE/AMC these swings are exacerbated because they're both heavily shorted and have many layers of derivatives being traded on them. They are thus stocks tremendously divorced from underlying business realiities.
So yeah, a double digit price swing is not at all out of play here and there's no need to become emotional & resort to ad-homs when someone points it out. Emotional reasoning really doesn't get a person anywhere in a Q forum.
Where can I read more about this?
Most of the deep dive chatter has died down but if you just lurk all the meme stock related forums they'll break it down when someone notices something new. And you can likely find some of the old deep dives perma-linked.
https://www.reddit.com/r/Superstonk/new/
https://www.reddit.com/r/ThePPShow/new/
Basically certain financial entities are permitted to create derivative products. Take for example an ETF. It's a product meant to easily allow you to buy and sell a set of other stocks. What happens though is there are delays in actually acquiring the underlying asset, and very little enforcement occurs when those failures occur.
Now once that phantom asset is created, all the other products can be piggy backed off it. So you can then take out an option on the phantom ETF. Or a swap on the option (swaption). Swaps are basically flimsy agreements and have all the same potential fail to delivery failure (i.e. they don't have to have the underlying to enter the contract). Then you have other insanity like single ETFs:
https://www.investopedia.com/single-stock-etf-5667162
The short of it is these products are built on assumption after assumption after assumption, but the whole meme trade is based on the idea that Wall Street is faking their books and they don't have the underlying shares to deliver on all the fancy ETFs/options/swaptions/swaps/futures/crypto they claim to have. The transparency is non-existent. The regulation is fake.
Thank you so much for so much detail, it was going to be hard for me to find that exact perfect explanation