Before it's over ($oon) they're going to snuff some scummy Wall Street sheep shagger jobs. Investors on reddit are taking it to some bigger fish. Elon made a comment yesterday too.
Am I drunk or does anyone know what is going on here?
Institutional investors had uncovered shorts that were more than the share of stocks, so by driving the price up, those shorts have to be covered at their end date at whatever the price is.
So if the price goes way up, for any reason, the people holding those uncovered shorts have to pay at that higher price. The price is still going up because the shorts are still not covered. It’s essentially a zero risk short term gamble. The risk is just in timing.
Institutional investors had uncovered shorts that were more than the share of stocks, so by driving the price up, those shorts have to be covered at their end date at whatever the price is.
So if the price goes way up, for any reason, the people holding those uncovered shorts have to pay at that higher price. The price is still going up because the shorts are still not covered. It’s essentially a zero risk short term gamble. The risk is just in timing.
There is risk in just about every thing we do, especially in investing. Timing the stock market is not something I care to risk my life's investment and saving on. Some one with time to recover might be interested but, I think I'll stay out of this one. Might be your opportunity to move from Fieros to Ferraris.
The shorts borrowed more stock than actually exists (about 140% total) with the goal to ride Gamestop down into bankruptcy (making more money in the process). As the stock rose in price instead, they started panicking.
At some point yesterday, a group with a lot of money bought in in an effort to double down on the short, expecting people to panic and sell, thus helping the shorts out.
It didn't work, and the stock rose even higher. Many of us are holding as long as it takes in order to screw the unethical hedge funds over.
[This message has been edited by Synthesis (edited 01-28-2021).]
This was more than a shot across the bows from the little fish to the big fish, which I loved what they did to squeeze billions out of them. LOL
But the Navy is going to come back in full force. The big investment hedge funds are already crying to regulators, Biden and NASDAQ to shut down Reddit and Robinhood traders. They want to prevent the little guy from ever making money off of their positions again. Which is sad. They want to keep the playing field heavily tilted to their advantage.
Right now GME IS up a hundred bucks in after hours trading from yesterday. Saw a post on reddit that 204,000 shorts come due on Friday. One big shorter claimed defeat and supposedly bailed yesterday but the squeezes don't believe them, thinking it was a ruse so they could salvage a position that's still coming due. Big money is crying all over the networks for regulators to step in.
If it's a correct understanding, Soros got mega rich by shorting national currencies and someone big even pulled this on the USA in the 2007 time frame.
There is risk in just about every thing we do, especially in investing. Timing the stock market is not something I care to risk my life's investment and saving on. Some one with time to recover might be interested but, I think I'll stay out of this one. Might be your opportunity to move from Fieros to Ferraris.
Rams
Oh, I only invest in a mix of ETFs and bonds for my “real money.” I have some play money in this fun gamble, but I don’t see it as anything other than a casino.
Even though the fundamentals are sound, sometimes the casino decides to kick you out for winning. It’s their game.
Profit taking hit at opening but it's holding around 300+.
There's a baseball angle here too. Ryan Cohen bought the Mets and was inflated on networks, making a lot of noise when he shorted Gamestop. They're calling this a Robin Hood event. I love it.
If you have a couple thousand to goof with...
[This message has been edited by sourmash (edited 01-28-2021).]
The Squad is seemingly overjoyed with these events.
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Thread See new Tweets Tweet Alexandria Ocasio-Cortez @AOC · 19h Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino
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Rashida Tlaib @RashidaTlaib · 1h This is beyond absurd. @FSCDems need to have a hearing on Robinhood's market manipulation. They're blocking the ability to trade to protect Wall St. hedge funds, stealing millions of dollars from their users to protect people who've used the stock market as a casino for decades.
There is a huge risk factor here for both the overall market, the equities involved and the reddit short traders themselves.
That sorta reads as though the system as it has existed isnt flawed and hasn't been defrauded by major players. I'm sure you don't mean that but it can be read to imply that.
Yes, quite risky for longs and there is great reward there too. Guys are killing it.
What is an "un-ethical" hedge fund? It's not a facetious question nor directed at earlier posters.
Is it short selling in general? Is it short selling GameStop? Is it something else?
I can’t answer the question directly because I don’t think it’s unethical to aim for the most profit for your clients and investors, but I will suggest that this is not the first “meme-fueled” hike, and investors looking to play in the market and take short positions need to factor that in with their risk assessment.
Shorts are meant to hedge risk, but they aren’t really used that way today. They just lost to the river card after betting on a great hand.
The risk or downside for the company(s) being targeted are that it hamstrings the company in attracting serious long term investors because the P/E ratio gets so out of kilter, and even causes problems with the company in making business and financial decisions very far in the future. GME's P/E right now is a -4.25 and a realistic P/E target is somewhere just above +12. Their forward looking P/E is a whopping -34.41. This, is detrimental to the company's ability operate with much financial stability. Because of what has happened in the last few days, this is what this company is looking at:
This, is an American company, basically small potatoes in the bigger scheme of things, but what happens if (for instance) if a foreign entity or consortium decides to play havoc with any of this countries more necessary businesses? A Putin or Chinese led consortium could easily crap a big pile of volatility on GM, Walmart, Lockheed Martin, Boeing, etc. This kind of volatility is good for no one in the long run.
I understand the whole question regarding why hedge funds are allowed to do it and now there are limits in place on short traders, but there is such a thing as burning a house down while trying to smoke out a few roaches.
I also realize this is a type of sjw game for many on reddit, but it can also have real world consequences as well for the broader investment market and even everyday people's retirement portfolios.
[This message has been edited by maryjane (edited 01-28-2021).]
In this case everybody knows the situation so I don't expect it to confuse anyone. If it becomes normal to do this, it just reveals amore of the game. It will just create another situation to consider and prepare for, which an actuary can do.
It's all just a game until the Rich elite have to start paying the price. Look for more censoring and blocking in social media coming to a phone near you.
All they have to do is call them out for being racist or any other tool that can be used against them. When the hault customers ability to trade because it hurts those elites.
Gamestop is a **** business and I won't cry over them going out of business. The talk is what if they do the same thing with a good company. Odd how they are now worried about the media influencing the public. Be it the news or the guys over on Redit. We entering some strange times my friends, it's only going to get worse.
The dragon has bitten its tail and has entered a death spiral.
Way easier methods to make money for most people, yes. There will be odd occasions when a few people groups looking to target someone or something...blah blah.
Gamestop sounds like it's going away with malls, and it's posited that this group is largely gamers who had a childhood connection with the store as another cohesive factor.
Most in our demographic aren't occupy sympathisers but an alternative to our current lending system would be beneficial to people, but not the lenders clearly.
Gamestop sounds like it's going away with malls, and it's posited that this group is largely gamers who had a childhood connection with the store as another cohesive factor.
This has nothing to do with Gamestop. They are just the commodity that was used. Gamestops ticket was punched 6 months ago, this is just a dead cat bounce. It's the fact that a hedge fund can manipulate the stock and make money but they want to restrict access to others doing the same thing. Sure there are those that are only in this for a quick buck but I am glad for those that brought this to the light of day for us commoners that don't deal in the stock exchange. Disgusting.
Yes and no. It's about Gamestop for many of them since it's 4chan and reddit users who are promoting and doing it. And yes very much about teaching hedge funds a painful lesson on the larger end of it. It's also about the purchaser of the Mets being one of the majors shorting Gamestop.
Hedge funds have a responsibility. Someone is teaching them they better get to doing that.
[This message has been edited by sourmash (edited 01-28-2021).]
With fast internet and digital downloads and Amazon deliveries, GS is about to go bye bye. People will still need a place to put hands on equipment before buying. Walmart fills that role now.
Hedge Fund managers are not stupid. There will be changes.
With fast internet and digital downloads and Amazon deliveries, GS is about to go bye bye. People will still need a place to put hands on equipment before buying. Walmart fills that role now.
Hedge Fund managers are not stupid. There will be changes.
That's the racket. They fully expected GS stock to crash. They sold borrowed shares and even shares they didn't have speculating that the price would go down and they could buy them back at a lower cost and pocket the money. But people kept buying, so the price started climbing. Now they have to returned the borrowed stocks, they have to buy them at the inflated price because they have a contract. Poor hedge fund guy, perhaps you should try a different budget. Skip a couple trips to the spa.
British trading app Freetrade told clients Friday that it had disabled purchases of U.S. stocks. The firm blamed the curbs on a decision by its foreign exchange provider and their bank to restrict trading volume. It comes amid a volatile trading week that saw heavily shorted stocks like GameStop skyrocket.
The problem with that little 'short' video, is that he doesn't touch much on what happens when all those reddit purchased options are due. A contract, is 100 shares. There were still huge numbers of contracts open (IN the money) when the market closed Friday. 7,835 contracts at $320 per share. 855 contracts at $310 per share. 1,170 contracts at $300 per share
Over this weekend, most of those will expire and will be closed out, meaning the players are no longer players...they are shareholders and will have to pony up $312,300,000.
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At some point between market close on Friday Jan. 29 and market open on Monday Feb. 1, affected former GameStop options investors will wake up to find they are now GameStop shareholders. Not only are they now shareholders, but they are out tens of thousands or hundreds of thousands of dollars or more.
If those investors don't have the cash or margin buying power to complete the purchase, their brokers will issue a margin call and forcibly close out those positions by selling GameStop stock. Just as buying the stock and options forced the short squeeze and gamma squeeze on the way up, mandatory, broker-initiated selling resulting from margin calls could force the process to reverse.
When a broker forces a sale because of a margin call, that broker does not care what the price of the underlying asset is. All that broker cares about is getting the account within regulatory or contractual limits. This is a strong and structural mechanic of why short and gamma squeezes are such dangerous, double-edged swords that can reverse just as easily and quickly as they form.
Even if these newly minted GameStop investors aren't forced out of their positions because of a margin call, many of them may decide to sell anyway. After all, it is one thing to gamble a few hundred dollars on an option, but it's something else entirely to find yourself committed to tens of thousands of dollars (or more) in a very speculative stock position.
All of the talk in from the financial gurus about how stupid these reditors are, when the should be talking about how stupid these Professional traders are. It doesn't take a brain surgeon to figure out it probably puts you in a vulnerable position when you short sale ~70 million shares of a company that has around 46 million float shares. yes that is around 140 percent of the shares that are likely purchasable on the open market. They were borrowing shorted shares and shorting them again. These hedge funds put themselves in this position, and I they fully deserve to lose their pants over it. They got greedy.
Some have signaled the next move against short sellers is in silver. They're going to learn a painful lesson this time, imo. Silver has been manipulated for decades now.
Some have signaled the next move against short sellers is in silver. They're going to learn a painful lesson this time, imo. Silver has been manipulated for decades now.
/r/wallstreetbets is begging people to stay away from SLV. Citadel has a huge amount of it. Pure speculation but my guess would be MSM and hedgefunds pushing SLV
May have been some big timers trying to trap some Gamestop investors in a bear trap for revenge.
Even in real silver (not silver ETFs) aren't central banks or governments smashing done prices by flooding markets with more metal, metal that might not be theirs?
GATA got into a bullion vault a number of years ago and the stated quantities of bullion weren't there. This was shortly after Germany requested their stored gold and the USA said "no", adding that it would take a couple years to transfer it back. When some showed up it had different ID markings.
They want to keep the playing field heavily tilted to their advantage.
