Quote:
Originally Posted by sterlingice
What is up with all the $800 option calls? There were a ton today, a ton next week, and, yeah, another ton at 3/19. Like why $800?
SI
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3 theories - one is that they were so super cheap that people who thought this would squeeze picked them up for literal pennies, another is that shorts who were worried about it squeezing took them out as a last resort hedge against getting completely bankrupted, and the 3rd is that if you have an option call on the stock (at any price) you can legally create a synthetic short against that call which is technically "covered" even though you don't have the stock in hand because you have a hard option to buy the stock. Idk if they 3rd one is 100% accurate - there's other ways to create synthetic shares too.
($800 was also the max they'd allow - I think it's basically 2x of the highest closing price in the last 90 days or something.)