Chapter 116: A Little Scattered Blood Washes Dongying's Empty Head!
CLA's successive appeals have been successfully realized, and his "fans" are increasing.
Many people will leave messages and chat under his posts when they have nothing to do, and some people copy what Chen Daojun taught him in a notebook and regard it as a classic.
On Sunday, in an interview with the media, the person in charge of Yuan Chuan's agency publicly said that those who are long Sakata's stocks are destined to be losers in life, and the institution said that if Sakata goes bankrupt, it will definitely take action.
CLA seems to have been, posting a post on the forums that has once again set off a storm.
"If you do more than Sakata, you will lose, are you teaching me to do things? 》
The title is very attractive, and netizens click on it and find that it is very informative.
The CLA first came up with the concept that retail investors have long been toyed with and played by a gang of vampires in the establishment.
Now is the time for retail investors to truly unite against the forces of evil!
Of course, CLA never said anything false, and he took out data from nowhere to remind everyone that the actual interest of Sakata Company was as high as 130%, but the rate of being shorted was more than 100%.
This shows that there is a high probability that the extra part is borrowed by institutions and hedge funds, and then lent to another institution, hoping to buy it back at a lower price after shorting.
Everyone understands that the higher the short ratio, the greater the risk.
Generally 10%-20% is a normal short ratio, so this 130% ratio risk has broken through the sky.
In the post, the CLA first proposed the concept of small scatters vs. bears.
Take the big short represented by Yuan Chuan institution as the target, and call on the majority of retail investors to pull up the stock price until the short institution liquidates and leaves.
CLA's post specifically mentions the technical term "short squeeze", which is also the key to his certainty that he can win.
"Short squeeze?"
Many investors who go online also understand the meaning, and if they don't understand, there are naturally great gods who will explain them one by one below.
However, there are not so many stocks circulating in the market, and institutions are not only shorting but also "naked shorting", which is equivalent to adding double leverage to short, making the downward pressure on stock prices tomorrow huge.
If you buy a stock in the ordinary way, it is equivalent to hitting a stone with an egg.
Shareholders looked down with questions.
Sure enough, the CLA has devised a perfect countermeasure plan to counter violence with violence.
It is to buy call options, market makers hedge risks, and then buy stocks, pull up the stock price, and form a "short squeeze".
There are three important elements in the CLA's plan, call options, market maker trading, and risk hedging.
As the name suggests, an option is the right to trade a stock at an agreed price on a specific date, and a good operation of an option will have an unexpected leverage effect.
The key elements of an option here are the three options contract price, the strike price and the stock price.
The price of the option contract is the price at which the option contract is purchased, the exercise price is the transaction price specified in the option contract, and the stock price is the stock price when the option option is exercised.
Generally, when buying an option, the buyer's expectation is that the stock price will rise, so that he can buy the high-priced stock at the agreed lower strike price and sell it in the future, so as to obtain a profit.
For example, in this case of Sakata stocks, if a retail investor buys a call option with Sakata and the exercise price is 70 yen, if the stock price rises to 100 yen after the exercise date, the retail investor can exercise the right to buy the stock at 70 yen and then sell it at 100 yen, making a net profit of 30 yen.
In this operation, there will be a party to sell the option, which can be a brokerage institution or a professional institution.
These institutions act as middlemen to match options transactions, and this process of matching transactions is called the market.
And these institutions are market makers.
The purpose of the market maker is only to earn fees, so after selling a call option with a 70 yen stock price, they will buy a certain number of shares in the stock market and keep them for backup, and when the exercise date comes, they will sell them to retail investors at the exercise price of 70 yen.
This is the risk hedging method of market makers, and of course, the actual operation process is much more complicated than this.
But in short, for every call option sold, the market maker will buy a certain amount of stock to hedge the risk they are taking.
In this process, the purpose of the market maker is only to earn fees, and the most important point is that the price of the option contract is much lower than the exercise price.
CLA mentioned in the plan that I would like people to be able to buy Sakata's call option, and the exercise price may be 70 yen, and the option contract price may only be 5 or 6 yen, which is a lot of leverage.
Dozens of times leverage!
Seeing this, many retail investors were shocked by the unrestrained thinking of CLA.
At this point, the CLA's plan to snipe the bears is obvious.
First, retail investors buy Sakata's call options from market dealers.
In order to hedge their risk, market makers will buy Sakata's shares.
Since there are not many outstanding shares of Sakata stock, the purchase of market dealers is bound to unilaterally lead to a continuous increase in the stock price.
As a result, some shorts were forced to buy stocks to repay the brokerage in order not to be liquidated, which led to a rise in stock prices for the second time.
Then more retail investors bought call options, and the outstanding shares became more and more difficult to grab, and the stock price was rapidly pushed higher for the third time.
When a virtuous circle is formed, there will be more bears entering the game.
Until the stock price is pushed to a peak.
CLA boldly proposes a number, 400 yen!
As long as Sakata's stock rises to about 400 yen, retail investors can smash the market and leave.
Some are short-selling institutions kneeling on the ground to grab the chips dropped by retail investors.
The CLA specifically made it clear.
We are not pulling up and selling, but a hammer shorting agency!
He expects the stock price to remain high even after retail investors take profits and exit the market.
In this way, Sakata does not have to worry about the risk of delisting.
After all, such a high stock price can make companies that have repurchased a lot of shares feel free to sell some stocks in their hands for a long time.
At the end of the post, the CLA called on all retail investors that Sakata's stock price is at a nearly five-year low, and the short-selling institutions should have made a lot of profits and may be preparing to buy back the shares and prepare to settle away.
So now is the perfect time to snipe those establishments, shut down the doors and fight the dogs, just tomorrow!
This article of CLA was even copied by many people crazily, and then all kinds of publicity.
The CLA post was like a rallying cry, almost immediately echoed, more and more people participated in the discussion, and retail investors' long-standing grievances against institutions, especially short-selling institutions, finally broke out.
Countless netizens left messages under the post, saying that they had received the call of the stock god, and since they must be able to make money, they are bound to blow up shorts.
Many retail investors have organized themselves to either buy stocks or call options.
More and more professionals are seeing the post, silently jit it down and doing it.
The war of the century has finally begun.
Yasuo Hamanaka heard the news from his subordinates, and he looked disdainful: "Do you know why retail investors never succeed in the climate, it's because they are like a plate of loose sand, give them a lesson!" ”
"I just need to increase my efforts to smash the market, and they will cry and shout to my mother to short with me."
"Hey! The subordinates must give them an unforgettable lesson! ”
……
Monday.
Although he knew the plan, after all, it was the first time to experience such a thrilling long and short duel, and Shin Nosuke was still a little nervous.
He carefully observed the situation of the stocks on the computer, and the stock of Sakata Company was traded in millions of lots, and the turnover rate gradually increased.
A group of retail investors who do not speak of martial arts and morality, after buying stocks in the morning, go non-stop to buy options, causing market traders to buy stocks one after another to hedge risks.
Hamanaka Tainan and they were not to be outdone, relying on "naked short selling", they borrowed a lot of stocks.
When there are more bullets, people want to turn their pistols into gatlings.
In the face of the rain of bullets and bullets of the institution, the retail investors bravely charged.
Sakata's stock is on a roller coaster, fluctuating up and down at the 80 yen level for a day.
There are many chips on the short side, and the power of retail investors is large, and they have thrown out a zigzag trend in one day, but in the future, the stock price still maintains an upward trend overall.
Even at the end of the session, there were many funds that entered the market and successfully stood at the price of 80 yen.
When will retail investors be able to confront institutions head-on without falling behind?
The shareholders who bought options on the day saw that there were no big orders at all, and they were all supported by small orders of retail investors.
Against the bears, this is too much in line with the taste of the Dongying people.
At this time, another netizen named Musashi Kojiro in the forum also spoke out, he said in the forum: "I am optimistic about Sakata, I will rush to respect first." ”
Musashi Kojiro also posted his position, a call option of 5 million yen.
Many retail investors have asked why Kojiro is so fierce.
Kojiro replied directly: "Wait and see!" ”
Investors continue to buy with them.
On Tuesday, the bulls and bears competed again.
Especially in the short institutions, another "bully" has appeared, and a big short called "Miyagawa" claims that he is also in the short camp.
This is "Miyagawa", which has the strength to short 17 listed companies in one year!
There is no other nonsense, other institutions are in good spirits and continue to increase their efforts to short, let go of shorting.
The CLA calls on retail investors to hold on to the chips in their hands and not sell them, that is, to "short-sell" institutions.
After a day of tug-of-war, it was not suppressed, but it rose by 10 yen to 90 yen per share.
That night, many retail investors ushered in a carnival and posted on the forum to celebrate.
The agency is instigated, is the story over here?
Of course not!
Such behavior is simply a provocation to those short-selling institutions, and they naturally will not show weakness.
It's just scattered people, how dare they compete with big capital like them?
Therefore, those institutions have been saying that this company will be doomed, the market needs fresh blood, it cannot be occupied by old enterprises, and they must kill it!
As soon as these remarks were released, they angered the shareholders represented by CLA even more, and they blessed the stocks in their hands, no matter how those financial institutions invested capital to close their positions, they also resolutely refused to sell.
Of course, Chen Daojun's team is indispensable behind this.
He not only asked the media to continue to promote conscientious enterprises, but also accused these institutions of disgusting operations, which directly stimulated greater public opinion.
On Wednesday, the bears seemed to have joined forces, and the intensity of the short was unparalleled.
It is equivalent to playing football and attacking the whole army, and even the goalkeeper rushed out to play football!
Defense or something, there is no such thing as a defense, and there is no retail investor in the eyes at all.
The idea of the institution is very simple, to complete its work in one battle, directly kill the hand, and smash the plate frantically, when the time comes, the small scattered people will wail all over the field, stampede meat cutting and selling, and the empty heads of the agency will talk and laugh between the bowls.
When the shorting is over, the money of the "gentry" will be returned, and the money of the leeks will be divided into threes and sevens.
It's a pity that this time the "bullies" Yuan Chuan and Miyagawa met the "bandits".
The CLA forum raised its arms.
Follow me, continue to buy, and resolutely don't sell!
As long as the stock price is constantly raised, the more retail investors will earn, the more miserable the bears will die!
After Kim Il Tae reported on the bears' operations, Chen Dojun chuckled.
"I'll bet all the rest of the money on me, regardless of the cost!"
"Yes!"
Chen Daojun had already taken out some of the money to buy call options, and he only invested 1 billion yen, and if it was more, the trader would not be able to spare his energy.
That's it, it's enough for short-selling institutions to drink a few big pots!
On the same day, the bears' offensive was repulsed again, and the stock price rose to a new level, reaching 100 yen per share.
Thursday.
It has become increasingly difficult for the air side to resist the attack.
Sure enough, at the price of 105 yen, the bears failed to resist the concerted efforts of retail investors, and at 1 p.m., when the stock price stood firmly above 115, some institutions were instigated, and even the bears quietly withdrew the sell order.
The people's hearts are scattered, the team is not easy to lead, and the two short institutions are helpless.
Eventually, at the end of the day, the stock price reached 145 yen.
That night, on the forum, Musashi Kojiro posted his income chart.
In just four days, his options income has soared from 5 million to 200 million.
This kind of income provokes more shareholders to make a move.
It's only been a few days?
Of course, Musashi is not the only one who has made a lot of money, will these people choose to quit now?
Of course not!
Investors who have tasted the sweetness have taken CLA's words as the truth, and have reached blind trust, no matter what CLA says, they are convinced.
CLA did not post a post today, but only posted an enviable profit, and the stock price closed in the afternoon.
He made a succinct post:
"Accelerate the rush and let the bears go bankrupt!"
The development of these things is all going according to the original plan, and Xin Zhisuke's admiration for Chen Daojun is simply a five-body throw.
In his residence, Shin Nosuke poured a glass of sake for Chen Daojun, who visited and encouraged him, and sighed with emotion.
Who would have thought that the famous CLA was just a high school student a few months ago.
According to this trend, Yuan Chuan, who has already lost his red eye, will break his muscles and bones even if he leaves the field now.
"Boss, I didn't expect things to ferment so quickly."
"I don't think those short sellers would ever dream that they have become a sniper target!"
Chen Daojun took a sip lightly, his face full of smiles.
"This is the meaning of me making you 'famous' in the first place, with the celebrity effect, the people's reason will be washed away, and coupled with the influence of public opinion, their madness will be put even bigger."
"Of course, that bait is also extremely important, with it, the fish will obediently take the bait, and finally I will catch it all!"
Xin Zhisuke nodded, looking at Chen Daojun's eyes even more adoring!
"I want the institution to completely blow up, is there any hope?"
"Soon, soon!"
Chen Daojun is very sure!
Such an act is simply a provocation to those financial institutions, and they will naturally not show weakness.
It's just scattered people, how dare they compete with a big capital like them?
Friday.
After the operation of Chen Daojun and Xin Zhisuke, the plan to squeeze the majority of the capital has reached a fever pitch.
Countless people who are scattered and don't even play stocks have joined the team against the big bosses of capital.
However, in a week's time, the company's original 70 yen per share has soared to 170 yen.
That's nearly 2.5 times!
Stockholders' assets have doubled, and the stocks in the hands of those financial institutions have been sold short and have not depressed the stock price, which means that the bears have failed in the first round of confrontation.
But how could the bears be willing to fail, this situation naturally angered those financial institutions and capital leaders.
In order to reverse this situation, they frantically created public opinion, and the headlines of major newspapers, media and television were all spreading that the shoe company was not doing well, and that it had been losing money in recent years, and the financing was not going well.
There is even Tomohide, the director of the Tokyo Stock Exchange, who has left his post, to come out and persuade shareholders to calm down, and may start the delisting process in the near future.
This kind of vague speech was taken out of context by the media, and the voices of disapproval were heard endlessly.
Many investors hesitated to take advantage of the current situation.
(End of chapter)