[suggala]

Suppose there are 1Billion shares free float in a company. Out of that 500million stocks are locked by Founders and true believers. So only 500million stocks that is liquid.

Suppose, I have $10Billion with me. Current price of stock is $1000. Ideally, I could buy 10million shares. Instead, I buy long dated call options to buy 50million shares at a price $1200 probably with $1Billion. And use rest $9Billion in open market to get 9million stock during a decent positive surprise of earnings release. The option writers will scramble to buy stocks in open market for even higher price to cover the options they have written.

Example company doing this https://m.holdingschannel.com/all/stocks-held-by-susquehanna...