*** BREAKING NEWS ***
Renowned physician Dr. Suchandsuch, who discovered the true function of the appendix, apologizes for using the term "human appendix" in her ground breaking technical publication.
She was informed, by the experts at the WHO, that the term was hurtful and non-inclusive to people who had appendicitis followed by an appendectomy.
After the apology, given to the WHO, she corrected her paper and re-submitted it using the more inclusive term "people with plus or minus one organ", in place of the non-inclusive expression "human appendix".
People with "minus one organ" cheered the formally jeered physician en masse noting that "the relief of inclusion was immense".
Example 2 $500K 30 yr. mortgage at 7% [ Today’s fixed rate ]
Monthly payments are $3,326.51
In this second example we will see what the annual percentage rate [ APR ] is when a mortgagee sells their property after making payments
for 8 years.
At year 8 amounts paid:
$319,344.96 Total Payments [ Pymts ]
$52.541.39 Applied to reduce Principal
$266,803.57 Paid in Interest [ Int ]
The percent interest paid [ %Int ] is just the Int divided by the Pymts
[ e.g. I loan you $100 you pay me $110 in 8 years or less is a 10% loan]
%Int = Int / Pymts x 100 = 83.55%
The APR is the percent of interest paid against the principal divided by 8
years.
APR = Int / Pymts / 8 x 100
APR = $266,803.57 / $319,344.96 / 8 x 100 = 10.44%
Example 1 $500K 30 yr. mortgage at 4% [ fixed rate amortized ]
Monthly payments are $2,387.08
In this first example we will see what the annual percentage rate [ APR ]
is when a mortgagee sells their property after making payments for 8
years.
At year 8 amounts paid:
$229,159.68 Total Payments [ Pymts ]
$81,347.94 Applied to reduce Principal
$147,811.74 Paid in Interest [ Int ]
The percent interest paid [ %Int ] is just the Int divided by the Pymts
[ e.g. I loan you $100 you pay me $110 in 8 years or less is a 10% loan]
%Int = Int / Pymts x 100 = 64.50%
The APR is the percent of interest paid against the principal divided by 8
years.
APR = Int / Pymts / 8 x 100
APR = $147,811.74 / $229,159.68 / 8 x 100 = 8.06%
Call options are a zero sum market. The options themselves can always be sold back into the market. If the holder waits until the expiration date, and the options are in the money, than they will have to by the stock at the strike price and sell the stock back into the market. If the holder is out of the money, the options expire worthless.
IMO It is a planned operation. If the OPs theory is correct, USB will figure out a way to push GME stock higher, thus moving their options into the money. They can than sell those options to pay close out their naked shorts. It appears that this theory, which sounds plausible, can only be used for a limited amount of naked short covering. My thought is that USB, saving there butts, will drive GME stock skyward. USB will be ought of the naked short business for GME, and maybe a few others, but the rest will go the way of Archegos.
2 words:
Faraday Cage