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If you look at his position he's hedged his bets and has two positions.
a) a holding of the stock of 50,000 shares bought at an average of $14.8947. So if he was able to sell off that at the current price he'd get $17mm.
b) a call option on GME for $12 expiring April 16th 2021. So he has bought the option to buy a number of GME shares for $12 up until that date. Whoever sold that call is cursing their luck as they are going to lose the shares they own for just $12/share despite the price being >$300.
If I'm reading the eTrade screen properly then the "500" calls he has are actually 500 blocks of 100 shares.
So he has the right to buy 50,000 GME shares at $12, at any time before April 16th, which he could then sell for >$300 each. Someone who holds 50,000 GME shares has sold this position, so someone is going to lose out on a lot of possible profit from this, but then they may not have expected it, so they may not be worried.
He has to find buyers at >$12 and/or >$14.8947 for him to make more money. Luckily the more the price rises the more the hedge funds will be squeezed into closing their positions and that means buying right now. Even if the price starts to fall he's going to be able to sell as the funds will be using the falling prices to close their positions, he may not make $50mm but he's already made near $14mm and will probably make at least another $10mm more.
So the people who are most likely going to pay for DFV's fleet of lambos and sweet baby-blue fixehs are the funds. That will mildly affect some everyday people as well (as their own pensions/401k's/etc will be affected slightly), but not before it's wiped out a big chunk of the stupid profits and bonuses that these funds often make/pay, which is no bad thing. It also teaches them a lesson that they don't have free reign of the markets as they think they do.
I think the funds are just fucked off that they didn't think of this themselves, it could have been a fund operating the short squeeze on a bunch of other funds, and there would be much less of a story.
So there are three things at play here:-
a) Shorts - This is what most of the big firms are mostly doing - these are untimed but have a borrowing fee (which is now hitting ~25% per annum)
b) Long/holding - What the majority of the WSB lot are doing, buying the actual stock in order to squeeze the shorts
c) Options - This is now how DFV is making another chunk of money.
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Greenbank
NotThamesWater
^good point on the compounding. I don't like to lose money so my risk tolerance is probably lower than a lot of others.
So this deepfuckingvalue chap is making millions as he sells off older positions, can afford to keep buying in at the higher price to show he's got skin in the game but actually is reducing risk and realising reward all the time whilst there are people putting their last dollar into GME all being egged on by WSB and media hype?
Why are WSB calling him their god when he's making millions at their risk?