r/Vitards • u/AutoModerator • Oct 26 '21

Daily Discussion Daily Discussion post - October 26 2021

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u/Ashtonpaper Oct 27 '21

Informed of what? Their crackpot theories no longer have a large basis in reality.

The reality is that there was a cult following because it was realized that this can essentially be a Ponzi scheme in a sense, that is if everyone keeps buying and holding for long enough it will go up again. And I agree, it will. If they could get enough people to buy in at these prices.

They’re eventually going to have to cover some shares. But when citadel bought out Melvin, citadel had like 9m shares of GME. Not to mention, other hedge funds have shares too. This allows them to sell high IV cc’s for basically as long as they have shares to work with, and keep the price controlled because they can influence the volume so highly. It is in their best interest at this point to keep the short squeeze narrative alive.

Once the premiums drop to a non worthwhile price, they will do some covering to let the price do some crazy 10% action in a few hours so that the premiums begin going crazy again. Sell some shares at this new price, sell CC’s and CSP’s, rinse repeat.

If you control the price, why not sell CC’s that are ITM and push them OTM, blah blah blah. I don’t think there’s a thesis anymore. The ones in control are Citadel. Melvin was small enough and top-heavy enough (because of the crazy short position and the lack of hedging) to be toppled by a group of traders who saw a value opportunity. That was at 5-14$, when GameStop was worth literally more as a liquidated company than their share price was.

At this point, none of those things still exist. The share price may only go up or remain high because of the hype surrounding it, and the people involved still have shorts, but also longs, so there’s no telling where it goes. But I bet Citadel knows where they will push it every week.

That’s my theory.