Friday, January 29, 2021 10:26:25 AM
This situation reminds me of one hell of a short squeeze in Royal Dutch Shell shares in the 90's. Options were just introduced and no one was really taking them into consideration. One observant stock options trader noticed that there were more call options issued than there were shares available that could be delivered, so he started buying in the money call options, big. On settling day the counterparties could not deliver the shares so they settled on a big sum of money, of course much more than the difference between the strike price and the stock price on settlement day.
That was also the last labor day for that option trader.
That was also the last labor day for that option trader.
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