The clearing houses have very little risk because even if a member defaults, the loss will be covered by other members, this is the basic mechanics of how a clearing house works.
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right... it was at 450 this morning... that's a lot of strikes
My point is that the strikes above 150 are unlikely to expire ITM so there is nothing to deliver and MMS don’t hold stocks against them. For strikes below 150 they are more likely to expire ITM, and the dealers hold stock against them. The idea that there is going to be ...
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... a ton of stock buying as soon as the options expire is completely wrong, because the option writers (mostly) already hold the stock they need to deliver!
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More likely is that many of the long option positions will be closed out before expiry which means the dealers will hold redundant hedges and it will result in a lot of stock *selling*.
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"strikes above 150 are unlikely to expire ITM so there is nothing to deliver and MMS don’t hold stocks against them. For strikes below 150"????? OTM? i think other funds on the street are likely to keep GME bid to profit on the funds getting liquidated
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