The most Bearish Scenario - $SPY 227
Updated
Hail Mary play
Low cost, high RRR
Low cost, high RRR
Note
I do have fairly high conviction we will see a great drop tomorrow or Monday. It will begin the downward spiral, or we will see it soon. Yields and VIX confirm great fear.Speculation:
1. BANG stocks are all in gamma squeeze range, and will be forced to cover naked shorts on Monday if the already ITM calls expire ITM tomorrow:
2. COMEX will need to deliver on physical on contracts for contracts which are speculated to be nonexistent (the silver squeeze):
3. There will be downward spiral, as investors gamma squeeze SPY downwards with OTM puts... and as the hedge funds liquidate their SP500 positions for the liquidity to suppress the gamma squeeze of the BANG stocks, it will just create a loop where the SPY puts will be used to further squeeze BANG. The short sellers will be forced to cover their shorts, at gamma squeeze levels... They are completely trapped.
If a stimulus is passed, and the money is poured into this infinite squeeze loop. There will be a liquidity crisis.
I sense a black swan coming...
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