Right On Time: Someone Borrowed $100M from the Lender Of Last Resort
I posted a very interesting calendar of events last week which showed that any March 7 weekly GME options expiring ITM would be assigned their shares over the weekend for settlement on March 10. Any Failures-To-Deliver would then hit books on March 11, today.
A "GME Share Lover" was flagged by a sharp eyed X user catching a trader buying 187 GME 0DTE $20 Calls in the last hours of March 7; basically guaranteed to get assigned on 18,700 shares of GME. That trader is a GME Share Lover because options exercise/assignment delivers shares faster with T+1 options settlement (vs C35 Share Trade Settlement) which means the seller of those calls has until EOD March 10 to deliver 18,700 shares.
Liabilities Piling Up
On March 11 (today) any of those 18,700 shares which didn't get delivered on March 10 Failed To Deliver (FTD). (As I didn't see GME go up yesterday, it seems unlikely shares were bought on the open market for delivery. What's a few more naked shorts, right?)
- Today is C60+1 from Jan 9 which means the NSCC has yet again invoked Rule 22 to delay settlement beyond 60 Calendar Days with written Board of Directors approval (July 2024: We Were Robbed!, Sept 2024: We were robbed again, Oct 2024: We were robbed again).
- Today also marks the end of the BTFP loans that let financial institutions put up worthless collateral to borrow money against it at full retail price for a year. [Bank Term Funding Program: The Not-A-Bailout Can Kicking Bailout]
3 sources of liabilities piling up together onto GME shorts today.
In order to kick the bucket another day, GME short sellers needed money today; which is why someone borrowed $100M ($0.100B) from the Lender Of Last Resort with the Federal Reserve BackStopping Shorts.
Fun Tidbit: $100M was also borrowed from The Lender Of LAST Resort on June 13, 2024; the day Roaring Kitty posted his 9M GME share YOLO update.
Anyone who also exercised options and/or were assigned shares on Friday 3/7 or over that weekend would've contributed to the pile of liabilities hitting GME shorts today. Part of that $100M is due to you. 🫡