Is Melvin Capital Done For?
Idk how many of you have been following, but GME might be the biggest short squeeze since Tesla. Yesterday, there was an epic gamma squeeze because MMs sold 60 0dte calls (up over 20,000% at one point), which might only be the beginning. Now, the short float right now is absolutely insane, and I know that Melvin Capital is down something like 15% already from this bet (or a combination of this and other positions). Literally every single call option Friday expired ITM, so it appears that brokerages will be offering 115 1/29 calls at Monday's open. Given how much retail loves risk, I cannot imagine that this will not eventually happen again, especially because MMs can't be caught with their pants down selling 115 naked calls. And then with the gamma squeeze initiated, that will trigger the inevitable short squeeze that has been building. There might even be a 1% chance this causes a credit crisis due to some MM blowing up and spreading across the entire industry. Either that or just the fact that millions of WSB retards will be buying shares at Monday's open might send this to the moon. My apologies for turning WSO into WSB, but I thought this was very interesting and we are in for a crazy week ahead. Thoughts? Are bears doomed?