Lin Shicheng picked up the phone.
"The second batch of sales was completed. All one million shares were traded, with a comprehensive average price of 276 yuan.
Common Stock sold a total of two million shares, leaving about 4.4 million shares. Options began to close positions."
"How much is the Options end today?" Chen Mo asked.
"Strike Price The two levels of twenty-five and thirty are all flat.
The income from each contract exceeds one hundred times, so it's time to take it. Save the forty and fifty brackets for now."
The trader began to execute Options to close the position.
On the screen, the Call Options contract held by Era Vanguard was sold one by one.
For the Strike Price twenty-five bracket, the buying cost of each contract is 0.8 US Dollar, and the selling price is eighty-five US Dollar.
One hundred and six times the profit.
Strike Price For the level of 30, the buying cost is 0.6 US Dollar, and the selling price is 78 US Dollar.
One hundred and thirty times the profit.
At 11:58, the first batch of position closing on Options was completed.
Lin Shicheng is marked on the transaction summary--
"Common Stock has sold a total of two million shares. The remaining Common Stock is about 4.4 million shares. Options has closed about one-third of its positions."
At 12:00 noon, GME reported 298 yuan, and Trading Volume exceeded 400 million shares.
Lin Shicheng asked the trader to buy lunch.
He sat in front of the screen and flipped through WallStreetBets Forum.
DFV posted a post at 11am--
"Melvin closed the position. Point72 closed the position. Citadel is running.
Short Sellers camp dropped from 70 million shares to 23 million shares.
The remaining shorts are retail shorts and new entrants like Iceberg.
They are waiting for the stock price to fall. But why should the stock price fall? They are destined to be disappointed, no one will sell!"
The first reply below the post is:
"Melvin lost five billion. Five billion. When they Short Selling GME, they thought retail investors were fools. Who is the fool now?"
The second reply is:
"Point72 also lost money. Citadel is running.
Who is next? Iceberg? Elliott? Or those retail investors Short Sellers who are selling for three hundred yuan Short Selling?"
The third reply is:
"Did Era Vanguard close the position?"
Lin Shicheng closed the forum, picked up the phone and dialed Zhao Chen.
"Three hundred yuan. The second batch is sold out. Options has sold out one-third.
Melvin and Point72 have all been cleared. The Short Selling ratio has dropped to 18%."
"Where's Citadel?"
"Running. Not finished yet."
"Where's Iceberg?"
"Nothing has happened yet. Their Short Position was built at block 48, and now it costs 300."
The floating loss exceeds 500%. Their prime broker should be calling for help."
Zhao Chen picked up the tea cup on the other end of the phone.
"Iceberg will level out in one or two days. They are more dangerous than Melvin because their positions are smaller and the tolerance given to them by prime brokers is lower."
"What about our strategy for tomorrow?"
"Tomorrow we will sell the third batch between 300 and 400 shares. The target is one million shares.
Options end continues to be flat. The two levels of forty and fifty can start to come out."
"Understood."
At 2 p. m., GME hit 308 yuan.
Investment banks began to accelerate their Gamma hedging Buying Pressure in the range of 100 to 200.
Chen Mo stared at Model and said:
"The investment bank currently nets about 15 million Short Sellers Gamma shares.
If it closes above 300 today, they need to buy at least 8 million shares to hedge tomorrow."
"Then there will still be a gap when the market opens tomorrow." Lin Shicheng said.
"Yes. And if Iceberg closes its position tomorrow, their buying volume will be between three million and five million shares.
If the two shares of Buying Pressure are superimposed, it may directly reach 400 tomorrow."
Lin Shicheng was silent for a few seconds.
"Four hundred. Then our third batch of sales may be executed between three hundred and five to four hundred."
"Zhao Chen's command is three hundred to four hundred."
"Yes. But when executing, it will be closer to 400. If it opens higher tomorrow, the first sale will be above 380."
At 3:45 p. m., GME dropped from 308 to 295, then rebounded to 302.
At 3:58, the closing price was fixed at 301.4.
Trading Volume throughout the day--250 million shares.
Lin Shicheng leaned on the back of the chair and sent the last text message of the day to Zhao Chen--
"Close 301.4.Trading Volume 810 million.
Short Selling ratio dropped to 18%. Melvin and Point72 have completed liquidation.
The second batch of one million shares was sold at an average price of 276.Options closed one third of the position.
There are approximately 4.4 million shares of Common Stock remaining."
Zhao Chen's reply came after five minutes:
"When Melvin closed his position today, I looked at their transaction details on Bloomberg Terminal.
The average purchase price is two hundred and eighty yuan, and each transaction is worth millions of shares.
Their traders' hands must be shaking when they press the buy button."
Lin Shicheng replied, "Five billion US Dollar loss. No one's hands are shaking."
The second text message from Zhao Chen followed:
"But this is the price Short Selling.
When the ratio of Short Selling exceeds 100%, Short Sellers is no longer betting against the market.
They are betting against their own margin account.
Melvin's fund manager also said on CNBC this morning that 'GME's valuation is unreasonable'.
It was liquidated in the afternoon. The market doesn't care about valuation. The market only cares about who can't hold on first."
Lin Shicheng After reading the text message, he put the phone on the table.
He stood up and walked to the window. It gets dark early in winter in New York, and the neon lights on Broadway Avenue have already turned on.
He saw several young people walking down the street wearing red GME T-shirts, holding mobile phones in their hands, and what appeared to be the page of WallStreetBets Forum on the screen.
Lin Shicheng put away his cell phone, picked up his coat and prepared to leave.
There will be a third batch of sales tomorrow. Iceberg may close its position tomorrow. The stock price may touch 400 tomorrow.
But today, Melvin died.
Point72 is dead. Citadel is running.
The Short Sellers camp dropped its shares from 70 million shares to 23 million shares.
He walked out of the office and walked into the winter night of New York.