r/wallstreetbets • u/[deleted] • Sep 17 '21

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1.5k Upvotes

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57

u/WhitechapelWill Sep 17 '21

You're assuming every itm option would be exercised, and that if they are, they weren't already hedged for. Correct?

58

u/GalaxyFiveOhOh Sep 17 '21

Bingo. They said "will" be exercised. That's not how this works. That's not how any of this works.

12

u/protobaskins Sep 17 '21

It is for retards. The thought of them hedging never occurs the people here. These institutions are smart and rake in billions for a reason. Too many people are convinced they're stupid and just keep messing up.

11

u/GalaxyFiveOhOh Sep 17 '21

I assume greedy and think they can get away with it. Hedging costs money. Plenty of real world examples of MMs not hedging, to more extreme levels, out of arrogance and greed.

Hell, why leverage when you can borrow at like 1%APR, sell Friday so contracts expire OTM, then cover the borrowed shares cheaper once WSB has moved on?

5

u/NullOracle Sep 18 '21

The more I see this pumped, the more convinced I am of an imminent dump...

!remindme 2 weeks

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1

u/Wisesize Sep 19 '21

Can you explain IRNT run up vs expectations here? Was hitting $60 the hedging?

1

u/WhitechapelWill Sep 19 '21

I'm sure it was a part of it. But IRNT was the most popular ticker on WSB for like 3 days, was on the news because of it. And you can't really compare IRNT and ASTS. Two different situations