my risk is defined and it's a lottery ticket.. if it drops in a week or a couple, I expect IV not to disappear. I might be wrong, but I have limited loss and exposition. I wouldn't sleep with gme unlimited exposure.
Looking ahead in a few weeks, unless some crazy playboy like Musk appears to buy the company, those retail guys have to keep buying and holding to keep the level. They are here for fun and the headlines will have to dissipate over time. They then get bored and will move on. Even if they don't sell out en mass, the lack of buying gotta drop the quotes back down, some shorts covering and fun-again-mindset would create some cat jumps. Consensus is short delta but IV too rich to make it worthwhile, and shorting stocks will deprive sleep for at least a week. Should be spreading to short delta and not paying out much IV. Put spreads, 50delta long butterfly, diagonal spreading...
physically? you mean short interest > 100%? simple, I own it and lend it to you to short (sell), then I buy it from you again and lend it to you again and I buy it again, a few rounds later, you are short 500 shares and I am long 600 shares, so short interest is 500% on the 100 shares out.