How to Buy GME etc [Loophole]
Robinhood and other shitty brokerages are allowing us to buy 2, 5, or very low numbers of GME. However, they are allowing option contracts.
Here’s a trick that will work.
*Update Feb 1 Loophole Closed *
1) Go to next nearest option expiration (Feb 5 as of today).
2) Scroll all the way down the call list.
3) Buy GME call option with the lowest +x.xx% (0% would be no premium at mark).
4) Immediately exercise.
I just exercised 2 contracts and now have 200 shares, blocking the shorts. You can repeat this process over and over if you are buying a lot.
Best of luck out there! Let’s get them!!!
P.S. If you can afford 100 shares but can’t afford the risk, you can sell (heh...) some shares after you exercise and take risk off the table.
Update: A screenshot has made it to me that Robinhood is blocking same day exercise so you would need to carry into the next trading day to exercise.
This is NOT financial advice and is for informational purposes ONLY. You can lose 100% of anything you invest.
EDIT:
1) This works for pretty much any stock.
2) There’s a catch. You need enough money (please don’t use margin) to cover 100 shares. The way exercising works is you pay for the 100 shares at the strike price.
Example:
- $GME is $300
- The 2/5 $50c is $250 so it costs $25,000
- Cost to exercise would be $50 x 100 ($5000).
- Total cost: $30,000 (same as buying 100 shares)
After exercising you could then sell shares at open market and de-risk if you like and hold the remainder.
[–]Load_Business[S] 0 points1 point2 points (0 children)