On January 28 2021 10:27 Vivax wrote: I'd post what I think is mooning next, but isn't posting this in an online forum why WSB got dunked on in the first place? It's a stonk in this dude's list (pretty easy to spot when finding the similarity to gme and having a glance at the chart).
On January 28 2021 10:22 hiro protagonist wrote: What happens on Friday? Are the short sellers fucked? Is that when there loan is due? That’s what WSB keeps saying but I’d like a more level head here to confirm.
Because if that’s the case, I’ll buy some GME. I’d never sell. What I bought was satisfaction. I’d print that paper and frame it.
I think the vast majority of short sellers in GME are TBTF, not gonna happen lol. At this point I'll just watch it moon for a day or two and then blowoff top would be my guess.
Too big to fail or not, if the bill is due, someone is gonna have to pay. Surely they have some kind of collateral? Other stocks that will be sold to pay the bill? Or is the central bank supposed to step in? Seems unlikely that it would be such a high amount that it would shake up the rest of the market, so they won’t bother jumping in. So who will pay?
Hedge funds aren't too big to fail. They'll either go into bankruptcy or cover their short positions. A possible reason the overall market went down yesterday is because some hedge funds had to sell other positions to cover their short position on GME.
On January 28 2021 11:09 riotjune wrote: What's this "gamma squeeze" I keep hearing about? Is that a Hulk move or something?
So this is Occupy Wall Street without the threat of being pepper sprayed or tear gassed? Nice, guess I'll buy some and just hold for the hell of it. Payback for 2008.
A gamma squeeze is what happens when investors buy a lot of options and the sellers of the options buy or sell the underlying stock to cover their position. For example a call option is the right to buy a stock for a certain price at a certain date. You pay a premium for this right. So let's say you buy a call option to buy a share of GME at the price of 10$ two weeks from now. If the shareprice two weeks from now is 70$ the buyer pockets the difference and that's their profit. Of course the seller of the option loses 60$. In theory the maximum loss of the seller of the option is unlimited. What a lot of the sellers actually do is sell the call option to get the premium and then buy shares to limit their risk. They'll lose on the option but they'll make the same gains on the stocks they bought. What happened in the gamma squeeze with GME is that a lot op people bought call options to bet on a price rise of GME. The sellers of the options in turn wanted to buy shares to cover their positions. As a result the price went up.
On January 28 2021 08:07 Emnjay808 wrote: So... if we were to marry this up to how the GME and WSB is going: Basically the short sellers knew GameStop is failing as a business over time. So they buy up before it dips and sell them instantly. Then when it’s owed back it’ll drop in prices by then and they pocket the difference?
But in this case all the GME is being bought up so now it causes the prices for short sellers and regular long term holders to go up?
No no, if you buy something then sell it, then you win if it goes up, not down. If you rent it, sell it, and later rebuy it when price has gone down, then you've made money.
Selling something you rented is indeed somewhat of a weird concept.
On January 28 2021 13:07 riotjune wrote: In fact, this makes me want to help Elon Musk even more tbh, especially after that Gamestonk tweet. All those years of pent-up rage when his own company was shorted by the same hedge funds who kept their foot on his neck the entire time as they did GME, released in one tweet. Revenge is a dish best served cold!
That one tweet probably cost shorters mid 10 digits today alone (saw ~16B thrown around as total loss for the last day). Tesla drivers as a whole generally won't be hurting for money, and even if 1% of them(400k) threw in 1k each, that's some serious money.
Over the next few days it's probably going to cost shorters more than it would've cost for to buy Gamestop outright a week ago.
While I think he could've accomplished the same thing by simply buying the same amount with couch cushion money, I don't think the SEC would be very happy with him. Definitely feels like karma for all the suffering they put him through.
The entire notion of Trump's candidacy and presidency was to stick it to the elites. And then, well, uh, there wasn't really a plan beyond that. The screwjob was the point. (Montreal screwjob reference!)
That strategy -- if that is even a word that can be associated with what this is -- has massive limits. Sticking it to the man will only get you so far. It's not a solution to any problem. It's just a way to express frustration, anger and a feeling of helplessness.
Think of it this way: Giving someone the finger might make you feel good in the moment. But it doesn't solve anything.
Personally I'd say the current attack on Wall St has been far more successful than the original OWS in 2011 and it hasn't finished quite yet.The media attacks are starting but they don't have the same punch as back then, there is no 'spokesperson' they can put up on Colbert and relentlessly mock to the audience (She called herself Ketchup, from Chicago if you recall) and the funds have already lost billions.
I can't even see this being derailed by identity politics (although they may start to try label them as Trumpers as CNN is leaning toward) this time either, all they can really do is attempt to silence by banning and deplatforming (Banning their discord yesterday for 'hate speech' interesting timing), with more regulations likely as well.
On January 28 2021 15:06 RvB wrote: A gamma squeeze is what happens when investors buy a lot of options and the sellers of the options buy or sell the underlying stock to cover their position. For example a call option is the right to buy a stock for a certain price at a certain date. You pay a premium for this right. So let's say you buy a call option to buy a share of GME at the price of 10$ two weeks from now. If the shareprice two weeks from now is 70$ the buyer pockets the difference and that's their profit. Of course the seller of the option loses 60$. In theory the maximum loss of the seller of the option is unlimited. What a lot of the sellers actually do is sell the call option to get the premium and then buy shares to limit their risk. They'll lose on the option but they'll make the same gains on the stocks they bought. What happened in the gamma squeeze with GME is that a lot op people bought call options to bet on a price rise of GME. The sellers of the options in turn wanted to buy shares to cover their positions. As a result the price went up.
I've read Sermokala's and your explanation on the gamma squeeze and it clarified some things for me, thank you guys.
Wanted to get in at market open this morning, but it seems several brokers have banned buying of the meme stocks including GME. If you already have positions you can still close them out though. Guess they want everyone to sell?
I don't know, it looks like Big Money institutions are doing everything they can behind the scenes to ratfuck this situation. We already saw media manipulation and slander attacks on the Redditors while they try to make the hedge funds look like the victims here. It's funny to see the elites come out in full force and lay bare all the tricks they have in the book, I wonder what else they've got, am taking notes and just enjoying the show.
If the hedge funds truly go under, I'll be playing the world's smallest violin.
I would love to hear the legal team of Robinhood, TD Ameritrade ARGUE on how they can block trades of GME, and BB, as well as AMC. I mean that is upfront market manipulation.
Bought a bunch of macerich, wish me luck lol. (not options though). High borrow fee and little attention to it, chart looks like it's at the beginning of a squeeze and if I'm wrong I don't sit on a worthless option. Definitely not something I'd reccommend, it's just a gamble.
On January 28 2021 23:39 {CC}StealthBlue wrote: I would love to hear the legal team of Robinhood, TD Ameritrade ARGUE on how they can block trades of GME, and BB, as well as AMC. I mean that is upfront market manipulation.
I imagine the argument would focus on the stock being the target of market manipulation, which is illegal and therefor to stop the illegal activities they had to block trading?
On another note, the past year has really shown that Robinhood is a terrible platform, and this solidifies the fact that it's time to leave it. The UI is far too gamey for my liking, they fail during times of high volatility, and then they straight up do market manipulation like this. I originally started using it because it was easy, but you get what you pay for it seems. Not adding any new money into it, still thinking about what the best way is to move my existing position to somewhere better (and to where - leaning towards Fidelity right now but there's a lot of options).
On January 29 2021 02:48 Slaughter wrote: Even Ted Cruz is agreeing with AOC. Wtf
Tweeting populist messages is meaningless though. Let us wait for what bill congress passes after this to make sure the correct people are making money before judgement.
EPT
