January 27, Wednesday.
New York time was 6:50 in the morning. When Lin Shicheng walked into the office, Chen Mo was already there.
The six screens in front of Trading Desk are all lit, including one dedicated to Iceberg Research's social media page.
"Is there any movement in Iceberg?" Lin Shicheng put down the bag.
"Not yet. But their prime broker started intensively contacting investment banks at 6 o'clock this morning, asking about GME's available bond sources."
Chen Mo turned the screen and said, "After asking around, no one has coupons. The number of GME coupons that can be borrowed has dropped to less than one million shares."
Lin Shicheng sat down and quickly looked through the pre-market data.
GME pre-market bidding jumped to 328 yuan from yesterday's closing price of 301.4 yuan.
Buying Pressure depth is eleven times the selling order.
More importantly, the Short Selling data he received last night showed--
The total position of the Short Sellers camp dropped from 23 million shares to 21 million shares, but Iceberg's Short Position remained motionless.
"The position that Iceberg built at 48 is now 328. The floating loss exceeds 58%."
Lin Shicheng stared at the screen,
"Their margin has long been insufficient. The tolerance given by prime broker lasts until today."
"Melvin took three days. Point72 took one day. How long can Iceberg last?"
"Can't survive today's opening."
At 7:03 in the morning, Lin Shicheng dialed Zhao Chen's phone number.
"Three hundred and twenty-eight before the market. Iceberg is not even yet, but the prime broker is already urging.
But the borrowing resources are less than one million shares, so they can't roll out their positions even if they want to."
Zhao Chen was silent for two seconds on the other end of the phone.
"Today's strategy adjustment. The third batch of selling target is one million shares, but the price range has narrowed from 300 to 400 to 350 to 400.
If the opening price jumps to above 350, the first order will be placed directly at 380."
"Can't you wait until the stock price reaches 400?"
"No wait." Zhao Chen's voice was very calm,
"The Short Sellers camp has basically collapsed.
The remaining Short Sellers are retail investors and institutions like Iceberg. Their positions are not heavy and there is little pressure to liquidate.
After Iceberg closes, the upward momentum of the stock price will weaken. We need to sell out the third batch before the momentum weakens."
"Understood. Where is the Options side?"
"The two brackets of 40 and 50 are all flat today.
The two gears of 25 and 30 have been leveled for one-third, and the rest will continue to be used.
Today's goal is to close two-thirds of the positions on Options."
"Received."
At 9:15, it was the last round of pre-market bidding. GME was fixed at 334 yuan.
At 9:28, CNBC's camera cut to the studio.
The host speaks very fast--
"GameStop exceeded 330 before the market opened. US Dollar.
We got news that Iceberg Research may be forced to close its position today.
Iceberg is at forty-eight US Dollar Short Selling GameStop. If they close their position today, the loss will be more than 600%.
This will be the third Short Selling institution to fall in this round of Short Squeeze market."
At nine-thirty, the market opens.
The first transaction price of GME was 336 yuan. Thirty seconds later, it exceeded 340 yuan.
On the trading screen of Lin Shicheng, the Buying Pressure depth of the order book is stacked at the position of 340 blocks, with nearly 6 million shares piled up.
Investment banks' Gamma hedging Buying Pressure in the range of 100 to 200 is still continuing, while new Gamma exposures in the range of 300 to 350 have begun to accumulate.
"Three hundred and forty-three." Chen Mo stared at Model and said,
"The investment bank now nets about 20 million Short Sellers Gamma shares. I
If ceberg closed its position today, their buying volume would be between 3 million and 5 million.
If the two shares of Buying Pressure are superimposed, they may directly hit 400 today."
At 9:47, GME touched 347 yuan.
Lin Shicheng picked up the phone and dialed Trading Desk.
"The third batch of sales has begun. The target is one million shares, and the price is between 350 and 400.
The first order is 380 shares, and each order does not exceed 30,000 shares."
The trader starts executing.
On the screen, the sell orders of Era Vanguard flowed into the market like a trickle--
At a position above 350 yuan, each sale will cause the price to briefly fall back by two or three yuan, and then be quickly pushed back by Buying Pressure.
At 10:08, GME touched 358 yuan.
CNBC's scrolling news strip read --
"Iceberg Research is reported to be closing positions in GameStop Short Position, and the average buying price is about 350 US Dollar."
Lin Shicheng When he saw this message, the pen in his hand stopped for a moment. Three hundred and fifty yuan.
Iceberg closed the position at 48 yuan Short Selling and at 350 yuan.
Each share lost 302 yuan. Their total Short Position was about 5 million shares.
In this battle, Iceberg lost more than 1.5 billion US Dollar.
"Iceberg is closing positions. Forty minutes after the market opened, their prime brokers were sweeping the market. The buying volume was about 200,000 shares per minute."
"How is their fund manager feeling now?"
"Want to die."
At 10:20, GME exceeded 360 yuan.
On Lin Shicheng and Trading Desk, the progress bar of the third batch of sales has reached 40%.
Four hundred thousand shares have been traded, with an average price of 362 yuan.
The remaining 600,000 shares are still pending orders.
At 10:33, GME touched 373 yuan.
Iceberg's position closing order was finally completed. The last one million shares were bought between 360 and 375.
Short Selling The proportion dropped sharply from 18% to 15%.
The Short Sellers camp's total position dropped from 21 million shares to 16 million shares.
"Iceberg is cleared."
Chen Mo stared at the screen,
"Short Sellers camp has only 16 million shares left.
Most of them are retail investors Short Sellers and new institutions Short Sellers who have invested more than 300 yuan."
At eleven o'clock, GME touched 385 yuan.
Lin Shicheng picked up the phone.
"The third batch of sales was completed. All one million shares were traded, with a comprehensive average price of 358 yuan.
Common Stock sold a total of three million shares, leaving about 1.9 million shares. Options continued to close its positions."
"How much is the Options end today?" Chen Mo asked.
"The two gears of 40 and 50 are all flat. The remaining two gears of 25 and 30 are still on.
Today's goal is to close two-thirds of our positions cumulatively."
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 level of 40, the buying cost of each contract is 0.5 US Dollar, and the selling price is 120 US Dollar.
Two hundred and forty times the income. Strike Price The level of 50, the buying cost is 0.4 US Dollar, and the selling price is 105 US Dollar.
Two hundred and sixty-two times the profit.
At 11:47, the second batch of position closing on Options was completed.
Lin Shicheng is marked on the transaction summary--
"Common Stock has sold a total of three million shares. The remaining Common Stock is about 1.9 million shares. Options has closed about two-thirds of its positions."
At 12 noon, GME reported 378 yuan, and Trading Volume exceeded 700 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--
"Iceberg closed the position. They closed the position at forty-eight Short Selling and three hundred and fifty.
The loss exceeded 600%. This is the third corpse in the GME Short Squeeze market.
Melvin is the first one, Point72 is the second one, and Iceberg is the third one.
Who's next?"
Lin Shicheng closed the forum, picked up the phone and dialed Zhao Chen.
"Three hundred and seventy-eight. The third batch is sold out. Options has sold out two-thirds.
Iceberg has been cleared. Short Selling ratio dropped to 15%."
"Where's Citadel?"
"Still running. Their Short Position has dropped from three million to less than one million. It should be finished today."
"After Iceberg is leveled, there are not many Short Sellers left."
Zhao Chen picked up the teacup on the other end of the phone,
"If the transaction price rises tomorrow, all positions will be closed and left."