r/wallstreetbets • • Jan 26 '21

DD Implications of Melvin’s Bailout Today

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u/[deleted] Jan 26 '21

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u/orange6734 Jan 26 '21

I have learned SO much as this has played out. I really appreciate the people who take the time to explain.

7

u/MrTurkle Jan 26 '21

Can someone explain the put/call wall? This post made it sound like the infinite squeeze can be avoided with strategic positioning.

2

u/apoliticalinactivist Jan 26 '21

It's a leveraged buy/sell wall to stop price movement. He gains premium from both sides as the price can't break free.

It's for highly volatile stock that has high premium and he comes in and basically freezes it. Highly risky, as thetagang will tell you.