I briefly eyeball counted the number of all calls and puts from March 2013 to Jan 2015. There are about 47000 calls and about 48000 puts. Even if ALL calls were bought and all puts were sold by the shorts, the options still do not cover the 11.5 million shares shorted. So how are them shorts going to cover ?
Even if one believes in ones short thesis , one should have hedged. Anyone know what they are doing ? or are they really that stupid ?
Normally, you might hedge... like, say, if you were shorting a real company, like Amazon.
BUT - in the case of this non-business, scammer- managed, charade of a company, hedging costs
is a waste of money. No need. This hollow thing is going to 0, no question...just a matter of when. Buy puts if you don't want to short (I never actually short a stock -- too little upside vs. leverage/limited downside in puts).
I don't plan to make 100% on the move to 0, I plan to make about 15x my money. If I get the timing wrong the first time, plenty of time and upside to put it on again.
Been doing this for a long time, including against Lehman, Countrywide, and tens of other overleveraged bubble real estate banks and builders a few years back(and the dotcom and tech-wrecks of 2000). Patience is required but the pay-day is ENORMOUS!
Gotta play to win! Of course, you need to be on the right side of the bet. But that's an easy call here.
I meant even if all puts were bought by the shorts.
Obviously not all options were bought by the shorts. I hold a few myself. Even if they hold half of the calls and puts, theta still leaves almost 7 million shares unhedged.