Checkout what's going on with Gamestop. (Page 4/4)
maryjane JAN 31, 07:46 PM

quote
Originally posted by Jake_Dragon:


Now you know how a person can work in the government on government wages and become rich.



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.



https://www.fool.com/invest...stors-can-make-righ/

This will not end well but as always, choices have consequences...
sourmash JAN 31, 08:30 PM
Wallstreetbets has millions of members. Many of them don't care if they lose the few hundred they put in.
gtjoe JAN 31, 09:15 PM
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.

al
maryjane JAN 31, 09:19 PM
It likely, won't be a few hundred to get out.
sourmash JAN 31, 10:17 PM
Prob not, for some. Suckers are always out there.
The stock shorters screwed all their investors.
sourmash FEB 01, 08:31 AM
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.
maryjane FEB 01, 10:04 AM
Bunker Hunt tried it and paid the big price for it.
Silentassassin185 FEB 01, 03:50 PM

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Originally posted by sourmash:

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

https://whalewisdom.com/stock/slv

[This message has been edited by Silentassassin185 (edited 02-01-2021).]

sourmash FEB 03, 08:33 AM
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.