Hi friends,
This is probably my first and last post in this forum. I’ve been a reader previously to all the memestocks saga, and I’ve been involved in finance for a while.
Yesterday, I was having a walk with a colleague, and I got told some Bulge Bracket banks are all over the TSM NYSE/Taiwan arbitrage. It seems that they have around ~$200m (at least 1 bank) in notional, and they are suffering losses, with some MDs putting pressure on the desks to close the positions.
With this… it comes the idea. These banks are losing their shirt with the L/S, and there might be a squeeze coming if people start buying the NYSE TSM.
So yeah, that’s it. If the stock increases by 5%, more than 1 desk in some big banks will need to hedge their trade by buying more NYSE TSM (ADR), and this will make the stock go tits up.
This is a very similar case to GME.
Posted by AshWatter
11 Comments
Wen?
Thanks for sharing bro.
So whats your position?
U got me.
I’m all in.
You kidding me, didn’t Cathie just purchased a shit load of TSM?
https://markets.businessinsider.com/news/etf/cathie-wood-led-ark-picks-up-5-3m-worth-of-tsmc-shares%E2%80%94-also-picks-up-palantir-amazon-stock-amid-ongoing-ai-frenzy-1033485479
I mean 5mil is nothing but still helps
i read from Business insider https://markets.businessinsider.com/news/etf/taiwan-semiconductor-arbitrage-trade-faces-challenges-as-us-stock-premium-hits-15-year-high-ai-boom-is-not-over-1033482183
TSM you want to hold for the long term., and I rate it a top 5 AI play. Please do your DD and put at least 25 percent of your portfolio into it.
Just a thought, as the economy implodes, there will be more and more SHORT selling. Will we have the money to squeeze every company? 
Ok ok ok…wtf is a bulge bracket bank? Notional? MDs putting pressure? L/S? You got told by whom?Why don’t you just explain this like we’re 5
Financial Times reported Xi said he’s not invading Taiwan yesterday
https://www.businessinsider.com/xi-says-us-trying-trick-china-invade-taiwan-wont-succeed-2024-6
Yeah baby