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Senior Advisor

A problem with Gamestop etc.

is that the pain isn't solely being felt by hedgies and many of them are probably already out, have covered with options etc.

The big problem is in the options pits in Chicago. The majority of the mass buying was in call options, which requires the professionals who write them to offset by buying stock via arcane mathematical formulae and those positions are adjusted as the market fluctuates. This and a couple of the other short squeeze candidates are several standard deviations out of bounds.

If you 're just a nihilistic anarchist who hates hedgies and you'd probably also hate well off traders at the CBOE, even if they are just facilitating a utility that you make use of. But anyway, that's where the real pain is today.

BTW, total call options on all stocks outstanding, put/call ratios etc. are currently off the charts crazy.

I conclude that there is real systemic risk underlying this quaint tale that everybody is treating like a pet rock story. Not saying it will blow everything up, just saying in could. That is the actual nature of "black swans". Nobody sees them coming even if they've noted the black swan feed that's been scattered everywhere.