ignorethefringes
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- Sep 19, 2016
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If I ran the numbers again today they wouldn't be as impressive. Really rough day over here. Down nearly 10% across my accounts. Ouch.
Anybody Buying Yet? Where’s the Bottom?
- Thread starter NEWHunter
- Start date
westbranch
Well-known member
The GME stock the last couple weeks have been ridiculous. Its almost like a bunch of guys on the internet willed it to happen. Trading was paused briefly today when it was up 69% (ha!).
When I was reading about the short squeeze I ended up finding the posts from the the guy on reddit that bought $50k+ worth of 2021 calls starting 18 months ago and kept buying more and it turned into mid $7 figures when the price jumped last week. The #s seem absurd but he has has consistently posted screenshots of his position going back 18 months.
yeah, it's out of this world.
very classic short squeeze and today's (three? i think it was) halts are just the beginning IMO
i've been drinking the kool-aid and buying a little GME over the past few weeks in anticipation. yesterday though i sold almost a full eth and dumped the entire thing into GME this morning at market open.
i'm what's wrong with millenials and investing, but i seem to be doing something right. my RH account is looking to close at +32% for today
edit: i should add, many of my buddies sold their gme calls yesterday for like 900-1000% gain, they then dumped much of that into shares yesterday. the world is your oyster when you play the stock market like blackjack
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ignorethefringes
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I have a brother in law that's been paying attention to the forum and giving me a play by play. I can only think that someone is going to get burned really bad by being the last guy in when it all crumbles.yeah, it's out of this world.
very classic short squeeze and today's (three? i think it was) halts are just the beginning IMO
i've been drinking the kool-aid and buying a little GME over the past few weeks in anticipation. yesterday though i sold almost a full eth and dumped the entire thing into GME this morning at market open.
i'm what's wrong with millenials and investing, but i seem to be doing something right. my RH account is looking to close at +32% for today
edit: i should add, many of my buddies sold their gme calls yesterday for like 900-1000% gain, they then dumped much of that into shares yesterday. the world is your oyster when you play the stock market like blackjack
for sure
i'm convinced all the fireworks are gonna occur at the beginning of next week, so it's fast approaching too late to play i think, but you never know
i think it was 79,000 60 dollar puts just got the shaft today, which makes guys like me super happy.
+37% today
- it's a very good and simultaneously unfortunate thing i'm only playing with fun money
Irrelevant
Well-known member
Today is a prime example of why having a real job will prevent me for killing it in the market. I was totally in the dark on GME until I got a message from a coworker
indefinite work from home life is the only thing that's made any ounce of this market watching possible for me
ignorethefringes
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I think that's also what has driven some of the craziness in the market. A lot of armchair quarterbacks playing around right now during their newfound free time.
yeah I agree. I certainly imagine things will calm down as covid truly subsides. But I’m starting to wonder if lots people on average, like me, who are newfound hobby traders (gamblers, to be sure) who will have to go back to the office but have been promised new flexibility are really here to stay
I’m pretty sure I am
The craziness with GME inspired me to download the redditt app and read what was happening. I get what’s happening with the 100%+ short interest and squeeze, but the posts on there sure make it seem like an old fashioned pump and dump. A lot of people seem to be planning to jump in on Monday at current prices. I have to believe a whole lot of other people will be cashing in on the hype.
I have to hand it to that guy that’s up $11M on options he bought a year and a half ago. What a play! I can only imagine the conviction he had to have to hold them this long.
I have to hand it to that guy that’s up $11M on options he bought a year and a half ago. What a play! I can only imagine the conviction he had to have to hold them this long.
fundamentally I find it hard to view as a pump and dump. Considering Reddit is more cute commentary and there are certainly real players on Wall Street who are actually battling the shorts.
More like some actually kinda smart dudes on the internet sniffed what was brewing with Ryan cohens plans and spewed about it on Reddit a while back. Momentum builds and everyone wants a slice of the pie.
I feel like the short squeeze battle probably would’ve happened no matter what, and Reddit happened to catch wind bringing a bunch of armchair retail folks into the fray that don’t actually impact what’s happening
at least that’s what I’m thinking
I’m sure you’re right, but normally you can identify the big money on the other side of a trade in a war like this. None of the banks or big players have had buy recommendations that I’ve seen, and it’s certainly being hyped like it’s Citron vs a bunch of retail investors. That would be very unusual but GameStop is (was?) a small enough company that it could be possible. When it reached its low last year it had a market cap under $200M.
Whatever the reasons, it’ll probably be a very interesting week. I don’t expect it’s going to end the week anywhere close to where it starts it, but I couldn’t tell you which direction it’s most likely to go.
SAJ-99
Well-known member
I think the reported short interest number is being misunderstood. Market makers are allowed to naked short to hedge put option delta through naked shorts. That is how the short selling number gets so high. It isn't really a short squeeze. Maybe it was at some point, but it isn't anymore. Now it is buying feeding upon itself. Now it is just a bunch of people jumping on the bandwagon to make a quick $$$. Good luck to them. I have seen this game before. Some people walk away happy and a lot walk away broke. The SEC will be asking some people questions and the Citron guy is saying he has been threatened and is giving into to the FBI. It is ugly. None of this is Wall Street.
Someone posited what happens when the Robinhooders figure out they can push a stock down by buying puts.
but the borrowed shares have to be returned regardless, no? you can hedge your shorts, but that doesn't change the fact that you borrowed shares. if they haven't been [returned] yet, then is it not possible it's a feeding frenzy before a squeeze?
SAJ-99
Well-known member
No, they are naked, so there are no borrowed shares. Market makers can do this because they need to be able to hedge the option exposure. It is illegal for everyone else to naked short.
you're saying all the shorts are naked? no shares were ever borrowed to short GME?
SAJ-99
Well-known member
Not all, but most. Especially at this point. Reported short interest numbers are squishy in timing (usually EOM), specifically to try to prevent this kind of stuff. If you are a professional short seller, there are two ways to short 1) buy a put or 2) borrow and sell the shares. #2 has unlimited risk so any pro will buy a way out of the money call to hedge the risk. Citron might have been short shares at $30 and bought calls with a strike of $50. They are not losing money in this thing anymore. I would bet that all the professional money is out or hedged. If they are short and have $50 or $70 strike calls, sure they got their face ripped off on this trade, but they aren't losing money anymore (GME now at $155). This is buyers betting on bigger-fool. Typical bubble behavior.
SAJ-99
Well-known member
I will say this (today in GME) is one of the craziest things I have seen in 30yrs of doing this, and we have almost 4hrs left in the day.
i don't know much, but i know enough to know this stupidly absurd
i'm basically fully out of this madness, hard to stomach these swings and eventually i need to get some work done. made some okay profit on fun money and left a share in there for grins, but time to take a breather
That’s a helpful explanation. I tried to buy some way out of the money puts and calls at open this morning. Both were priced out of utility. Out of the money calls don’t even exist anymore. I’d still pick up some long term puts if the stock stabilizes at this price for a couple weeks but I think there’s little chance of that.
