Reborn as the youngest son of a chaebol, starting with getting to know his eldest sister-in-law!

Chapter 117: A Little Scattered Blood Washes Japan's Bears!
CLA's successive appeals have been successfully realized, and his "fans" are getting more and more.

Many people would leave messages and chat under his posts if they had nothing to do, and some people copied what Chen Daojun taught him into their notebooks and regarded them as classics.

Just on Sunday, in an interview with the media, the person in charge of the Yuan Chuan Agency publicly stated that those who are long on Sakata stocks are destined to be losers in life, and that the agency will definitely put Sakata into bankruptcy when it says it will go bankrupt. .

CLA seemed to be pissed off, and posted a post on the forum, causing another storm.

"If you do more, Sakata will lose. Are you teaching me how to do things?" "

The title is very attractive. Netizens clicked in and found that there is a lot of information in it.

CLA first proposed a concept that retail investors have long been played and played by a bunch of vampires in institutions.

Now is the time for retail investors to truly unite and fight against evil forces!
Of course, CLA never speaks falsely. He took out the data he did not know where to remind everyone that the actual interest rate of Bantian Company was as high as 130%, but the rate of being shorted exceeded 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 a truth, that is, the higher the short ratio, the greater the risk.

Generally, 10%-20% is a normal short selling ratio, so the 130% ratio risk has already broken through the sky.

In the post, CLA put forward for the first time the concept of small scattered wars against short sellers.

Target the big short sellers represented by Yuan Chuan Institution, and call on the majority of retail investors to raise the stock price until the short sellers liquidate their positions and leave the market.

This post by CLA specifically mentioned the professional term "short squeeze", which is also the key to his confidence that he can win.

"Short squeeze?"

Many stockholders on the Internet also understand the meaning, and if they don't understand, there will naturally be some masters who will explain them one by one below.

But there are not so many stocks in circulation in the market, and institutions are not only shorting but also "naked shorting", which is equivalent to double leveraged shorting, which will put huge downward pressure on the stock price tomorrow.

If you buy stocks in an ordinary way, it is equivalent to hitting a rock with an egg.

Shareholders looked down with doubts.

CLA really designed a set of countermeasures that can be called perfect countermeasures with violence.

It is to buy call options, and the market maker hedges the risk, and then buys the stock, driving up the stock price, forming a "short squeeze".

There are three important links in CLA's plan, call options, market maker transactions and risk hedging.

As the name implies, an option is the right to trade stocks at an agreed price on a specific date, and a good option operation will have an unexpected leverage effect.

The key elements of options here are three option contract prices, exercise price and stock price.

The option contract price is the price when 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 right is exercised.

Generally, when buying an option, the buyer's expectation is that the stock price will rise, so that he can buy high-priced stocks at an agreed lower exercise price in the future and then sell them, thus gaining income.

For example, in this Sakata stock, if retail investors buy Sakata’s call options, and the exercise price is 70 yen, if the stock price rises to 100 yen after the exercise date, then retail investors can exercise their rights at a price of 70 yen. Buy the stock at a price of 100 yen, and then sell it for 30 yen, making a net profit of yen.

In this operation, there will be a party selling options, which can be a brokerage institution or a professional institution.

These institutions act as middlemen to match option 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 handling fees, so after selling the call option on the 70 yen stock price, they will buy a certain number of stocks in the stock market as a reserve, and when the exercise date is reached, they will buy a certain number of stocks at the 70 yen price call option. The right price is sold to retail investors.

This is the risk hedging method of market makers. Of course, the actual operation process is much more complicated than this.

But in short, every time a call option is sold, the market maker will buy a certain amount of stocks to hedge the risks it bears.

In this process, the purpose of the market maker is only to earn handling fees, and the most important point is that the price of the option contract is much lower than the strike price.

CLA mentioned in the plan that I hope everyone can buy Sakata’s call options. The strike price may be 70 yen, while the option contract price may only be 5 or 6 yen. This leverage is very large.

Dozens of times the leverage!

Seeing this, many retail investors were shocked by CLA's unconstrained thinking.

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 risks, market makers will buy Sakata's stock.

Since there are not many tradable shares in Bantian stock, the purchase of market makers will inevitably lead to a unilateral increase in the stock price.

As a result, there was a "short squeeze" of short-sellers. In order not to be liquidated, some short-sellers were forced to buy stocks to repay the brokers, which led to a rise in stock prices for the second time.

Then more retail investors bought call options. At this time, the tradable shares became more and more difficult to grab, and the stock price was quickly pushed up for the third time.

When a virtuous circle is formed, more short sellers will enter the game.

Until the stock price is pushed up to a peak.

CLA boldly proposes a number, 400 yen!

As long as Sakata's stock rises to around 400 yen, retail investors can leave the market.

Some are short-selling institutions kneeling on the ground to grab the chips left by retail investors.

The CLA deliberately states that explicitly.

All of us are not pumping and selling, but short-selling institutions with explosive hammers!

He predicts that even after retail investors take profits and leave the market, stock prices will remain high.

In this way, Sakata Company does not have to worry about the risk of delisting.

After all, such a high stock price can make companies that have already repurchased a lot of stocks feel free to sell some of their stocks for a long time.

At the end of the post, CLA appealed to all retail investors. The stock price of Sakata is at a low point in the past five years. The short-selling institutions should have made a lot of profits, and they may be preparing to buy back the stock and prepare to deliver and leave.

So now is an excellent time to snipe those institutions, close their doors and beat dogs, tomorrow!

This article by CLA was copied by many people, and then it was publicized in various ways.

CLA’s post was like a rallying call, and there was almost an overwhelming response. More and more people participated in the discussion. Retail investors’ long-standing grievances against institutions, especially short-selling institutions, finally broke out.

Numerous netizens left messages under the post, expressing that they were called by the stock gods, and since they can definitely make money, they are bound to blow up short sellers.

Many retail investors organized themselves and bought either stocks or call options.

More and more professionals saw the post, took it silently and followed it.

The war of the century finally kicked off.

Binzhong Tainan heard the news from his subordinates, and he looked disdainful: "Do you know why retail investors have never been successful? It's because they are like a mess of loose sand. Give them a lesson!"

"I just need to increase my efforts to smash the market, and they will cry for their father and mother to short with me."

"Hey! This subordinate must give them an unforgettable lesson!"

……

on Monday.

Although he knew the outline of the plan, Xin Zhizhu was still a little nervous after experiencing such a thrilling multi-air confrontation for the first time.

He carefully observed the stock situation on the computer, and there were millions of transactions in Sakata's stock, and the turnover rate gradually increased.

A group of retail investors who don't talk about martial arts, after buying stocks in the morning, went to buy options non-stop, causing market makers to buy stocks to hedge risks.

Binzhong Tainan and the others were not to be outdone, and they borrowed a lot of stocks by relying on "naked short selling".

When there are more bullets, people will wish that the pistol becomes a Gatling.

Facing the hail of bullets from institutions, retail investors bravely charged.

Sakata's stock is like riding a roller coaster, fluctuating up and down at the price of 80 yen throughout the day.

The short side has a lot of bargaining chips, and the power of retail investors is strong, and it shows a zigzag trend in a day, but in the market outlook, the stock price generally maintains an upward trend.

Even at the end of the day, a lot of funds entered the market and turned around strongly, successfully standing firm at the price of 80 yen.

When will retail investors be able to confront institutions head-on without losing the wind?

The stockholders who bought options on the day saw that there were no big orders at all, and they were all supported by small orders from retail investors.

Fighting against the bears is too much in line with the taste of the Japanese people.

At this time, another Fengyun netizen named Musashi Kojiro also spoke up in the forum. He said in the forum: "I am optimistic about Sakata, and I will go first to respect."

Musashi Kojiro also posted his position, a call option of 500 million yen.

Many retail investors asked why Kojiro was so aggressive.

Kojiro replied directly: "Let's wait and see!"

Investors continue to follow suit.

On Tuesday, the long and short sides competed again.

Especially for short-selling institutions, another "bully" appeared, and a big short-selling company called "Miyagawa" claimed that they were also in the short-selling camp.

This is "Miyagawa" who has the strength to short 17 listed companies within a year!
There is no other nonsense, and other institutions are refreshed, continue to increase their efforts to short, and let go of short.

CLA calls on retail investors to hold on to the bargaining chips in their hands and not sell them, that is, to "squeeze" institutions.

After a day of see-sawing, it was not suppressed. Instead, it rose by 10 yen, reaching 90 yen per share.

That night, many retail investors ushered in a carnival and posted posts on the forum to celebrate.

The organization is scared, is this the end of the story?
of course not!

Such behavior is simply a provocation to those short-selling institutions, and they will naturally not show weakness.

They are just scattered people, how dare they compete with big capital like them?

Therefore, those institutions have made rumors, claiming that this company will definitely die, the market needs fresh blood, and it cannot be occupied by old companies, they must kill it!
Once these remarks were released, the stockholders represented by CLA were even more angered. They increased their stocks one after another. No matter how those financial institutions invested capital to close their positions, they would not sell them.

Of course, Chen Daojun's team contributed to this.

He not only let the media continue to promote conscientious enterprises, but also accused these organizations of their disgusting operations, which directly stimulated greater public opinion.

On Wednesday, the bears appeared to be teaming up, and the intensity of the shorting was unprecedented.

It is equivalent to playing football with the whole army attacking, even the goalkeeper rushed out to play football!
There is no such thing as defense at all, and retail investors are not taken seriously at all.

The idea of ​​the institution is very simple, to accomplish all its merits in one battle, directly to kill, smashing the market crazily, when the time comes, the fans will wail all over the place, stampede to cut meat for sale, and the short sellers of the institution will be full of chatting and laughing.

When the short-selling is over, the money of the "gentry" will be returned in full, and the money from leeks will be divided into -.

It's a pity that this time the "bully" Yuan Chuan and Miya Chuan met the "Ma Bandit".

The CLA forum raised his arms and shouted.

Follow me, continue to buy, and never sell!
As long as the stock price continues to rise, the more retail investors will earn, the more miserable the death of short sellers will be!
After Kim Ri-tae reported on the short-seller's operation, Chen Daojun chuckled lightly.

"Give me all the remaining funds, regardless of the cost!"

"Yes!"

Chen Daojun had already drawn part of the money to buy call options. He only invested 10 billion yen.

That's enough for short-selling institutions to drink a few big pots!

On the same day, the offensive of the short side was repelled again, and the stock price went up to a higher level, reaching 100 yen per share.

Thursday.

It has become increasingly difficult for the short side to resist the attack.

Sure enough, at the price of 105 yen, the short side failed to resist the concerted attack of retail investors. At 1 pm, when the stock price stood firmly at 115, some institutions were discouraged, and even the short side quietly canceled the sell order.

The hearts of the people are scattered, the team is not easy to lead, and the two short-selling institutions are in vain.

Finally, at the close, the stock price reached 145 yen.

That night, on the forum, Kojiro Musashi shared his income chart.

In just four days, his option income has soared from 500 million to 2 million.

This kind of income provoked more stockholders to move around.

How many days is it?

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!

Shareholders who have tasted the sweetness have regarded the words of CLA as the truth and have reached blind trust. No matter what CLA says, they will believe it.

CLA didn't post a post today, but just shared its enviable profitability when the stock price closed in the afternoon.

He posted a succinct post:
"Accelerate and let the short institutions go bankrupt!"

The development of these things is all going according to the original plan. Xin Zhizhu's admiration for Chen Daojun is simply overwhelming.

In the residence, Xin Zhizhu poured a glass of sake for Chen Daojun who visited and encouraged him, feeling deeply moved.

Who would have thought that the famous CLA was just a high school student a few months ago.

According to this trend, even if Yuan Chuan, who has already lost his red eye, leaves the field now, he will be hurt.

"Boss, I didn't expect things to ferment so quickly."

"I don't think those short-selling institutions would even dream that they have become targets of sniping!"

Chen Daojun took a sip lightly, with a smile on his face.

"This is what I meant when I made you 'famous'. With the celebrity effect, the public's rationality will be washed away. Coupled with the influence of public opinion, their madness will be exaggerated."

"Of course, the bait is also extremely important. With it, the fish will take the bait obediently, and I will catch them all in one go!"

Xin Zhizhu nodded, looking at Chen Daojun with even more admiration!
"I want the institution to completely blow up its positions. Is there any hope?"

"Soon, very soon!"

Chen Daojun is very sure!
Such behavior is simply a provocation to those financial institutions, and they will naturally not show weakness.

They are just scattered people, how dare they compete with big capital like them?
Friday.

After Chen Daojun and Xin Zhizhu's operations, the plan to squeeze the capital has reached a fever pitch.

Countless casual people who don't even play stocks have also joined the team against the big capital.

However, in a week, the company originally had more than 70 yen per share, but now it has soared to 170 yen.

It has doubled nearly 2.5 times!
The assets of stockholders soared and doubled, and the stocks in the hands of those financial institutions were sold short and did not depress the stock price, which meant that the short sellers 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 crazily created public opinion. The headlines of major newspapers, media and TV were all spreading rumors that this shoe company was not doing well.

There is even Yuying, the resigned director of the Tokyo Stock Exchange, who came out to let the air out in He, urging shareholders to calm down, and may start the delisting process in the near future.

This kind of ambiguous speech was taken out of context by the media, and the voices of pessimism are endless.

Many stockholders are hesitating, should they take advantage of the present to settle their pockets?
(End of this chapter)