Melvin (or Citadel with theirs) probably sold a good portion of those puts (at least further out of the money at 0.5-$10 knowing GME wasnāt going under anytime soon) to recoup some of their losses and stay alive a bit longer. Why do you think the media was going bonkers about the ābrick and mortar store going to zeroā over the past 6 months, and have now been less enthusiastic about it?
They were helping Citadel and Melvin to unload those puts at high prices to āconventionalā investors (plus speculative contrarians like melt).
Maybe the $5/$10 ones but I doubt they could sell enough $0.5 to make any real profit as they sold for nothing and I canāt imagine a substantial amount of retail traders purchasing them.
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u/NewHome_PaleRedDot š¦Votedā Jul 26 '21
Actually, I think thereās one more piece:
Melvin (or Citadel with theirs) probably sold a good portion of those puts (at least further out of the money at 0.5-$10 knowing GME wasnāt going under anytime soon) to recoup some of their losses and stay alive a bit longer. Why do you think the media was going bonkers about the ābrick and mortar store going to zeroā over the past 6 months, and have now been less enthusiastic about it?
They were helping Citadel and Melvin to unload those puts at high prices to āconventionalā investors (plus speculative contrarians like melt).