/biz/ - Business & Finance

>>30238416
>margin call
I don't know if that applies here, they already sold the contract, they'll have to comply if it ever becomes ITM anyways.
but I also don't know much about MMs.
>hedge funds are purchasing ITM calls and exercising them
well you'd have to have purchased the contracts in the past, assuming they weren't naked the hedge would buy the stocks then as well, raising the price and tightening the float %.
I don't think it's what you mean, but the MMs wouldn't have 25M shares before selling the contract, they would have at most bought them after selling it. Actually buying the shares is against the interest of the hedge fund because buying 25M would certainly raise the price and make the contracts self-fulfilling prophecies, especially in these amounts.
The more I think about it the less likely I think it is for the MMs to be neutral.
>without actually causing the price to rise
well the MM would have to have bought the 25M and raised the price somewhere in the timeline. maybe from other shorters themselves who didn't hedge their bets with calls.
There's so many calls that a ridiculous part of the float % would have to be just MM's holding.