Some smart person explain the GME (gamestop) thing

[LeeLau]

I'm fully out now. Not sure I have FOMO on you guys doubling down yet, but I'll be watching closely tomorrow.

Am deep into the house money that I'm good to get some lottery tix

Shares in the RSP to let it YOLO. I want to sell covered calls on this till the cows come home

A few via the 185s "naked long"

The rest are all nicely collared (long calls, long puts) at 450.

[BurnHard]

I'm fully out now. Not sure I have FOMO on you guys doubling down yet, but I'll be watching closely tomorrow.

Hate to admit I cashed out Friday with some solid gains for the year. Paperhand or smart? So hard to get off this damn dragon out of constant FOMO!

[RShea]

Heard a segment tonight on the news about a 10 year old and his Mom wanting to teach him a bit about the market and investing. She let him pick a stock and he bought some shares of GME sometime back when it was trading at $6. He just cashed out last week and his profit was $3000. He was interviewed and stated he is saving $2200 of it.

[TahoeJ]

It's only a good idea to cash out if a bunch of you keep fucking doing it! ugh... HOLD. Or if you're really nervous and can't afford the risk, just cash out your original investment and at least let the rest of it ride as play money and help the overall cause.

Set to buy more with this aftermarket dip.

[4matic]

CME raised margin on silver. another collar from the establishment against the individual.

[TahoeJ]

I really, really hope they aren't dumb enough to introduce new regulations that only apply to retail investors. You could see an outright revolt with people cashing out all of their investment accounts in protest...

[4matic]

It's only a good idea to cash out if a bunch of you keep fucking doing it! ugh... HOLD. Or if you're really nervous and can't afford the risk, just cash out your original investment and at least let the rest of it ride as play money and help the overall cause.

Set to buy more with this aftermarket dip.

What cause? Somebody wins. Somebody loses. That’s it.. place your bet.

[Cono Este]

It's only a good idea to cash out if a bunch of you keep fucking doing it! ugh... HOLD. Or if you're really nervous and can't afford the risk, just cash out your original investment and at least let the rest of it ride as play money and help the overall cause.

Set to buy more with this aftermarket dip.

Why would it go higher again?

From my opinion, this was a liquidity issue, triggered by margin calls and short stock buy ins. That much has already happened. Maybe it will continue to happen, that’s anyone’s guess, but there is nothing else, no fundamentals, to send this any higher.


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[kathleenturneroverdrive]

What cause? Somebody wins. Somebody loses. That’s it.. place your bet.

I think we missed the “cause” by maybe seconds last week, but now the deck (and maybe the fundamentals) are stacked against it happening again. I hope that changes.

[TahoeJ]

"That much has already happened." Not really. There's still a shit ton of shorts remaining, that's the whole point of all this. There's also some activity that suggests there may be big money hedging on the upside.

[4matic]

"That much has already happened." Not really. There's still a shit ton of shorts remaining, that's the whole point of all this. There's also some activity that suggests there may be big money hedging on the upside.

Not really. This was before today’s trade:

“Short interest in the video-game retailer plummeted to 39% of free-floating shares, from 114% in mid-January, according to IHS Markit Ltd. data”

[MontuckyFried]

[paulster2626]

Not really. This was before today’s trade:

“Short interest in the video-game retailer plummeted to 39% of free-floating shares, from 114% in mid-January, according to IHS Markit Ltd. data”

Lies! We shall hold strong until the very end!! Well, except those paper hand bitches above. But still! LIES!!


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[bobz]

"That much has already happened." Not really. There's still a shit ton of shorts remaining, that's the whole point of all this. There's also some activity that suggests there may be big money hedging on the upside.

I imagine once this ticker tripped the activity scans, it was game on, so to speak, for the hedge guys; even if Reddit folks set off the squeeze, I'm guessing it was the big money that mostly rode it upward from there.

Nice that some little guys made a bit of money, but it's shark infested waters at this point, and I expect playing this will be a net loss for little guys in aggregate from here on.

[paulster2626]

Nice that some little guys made a bit of money, but it's shark infested waters at this point, and I expect playing this will be a net loss for little guys in aggregate from here on.

So like pretty much every single stock-picking endeavour out there. Again, this is normal and happened the other 51 weeks in the past year that nobody cared about. Only time anyone started caring about the little guy was when the billionaires started bleeding. Doesn't anyone else think this is strange?

Maybe new traders should have to read the entire investopedia site before their $600 account kicks in.

[TahoeJ]

What cause? Somebody wins. Somebody loses. That’s it.. place your bet.

The "cause" being to properly trigger the short squeeze and make money, of course. And hopefully the longer term effect is this will scare hedges from overplaying their short positions, which can have real life consequences for companies.

“Short interest in the video-game retailer plummeted to 39% of free-floating shares, from 114% in mid-January, according to IHS Markit Ltd. data”

Careful on what data you actually trust right now (most of those providing it say as much). There are currently more positions being held than actual shares exist, so there's a few ways of calculating this that can show a different picture. This is also why the squeeze is still in play. Will it happen? Maybe... maybe not. I got in early enough it's house money at this point. Like Lee said above, comfortable buying some dip lottery tickets on top of it.

The short ladder attacks are definitely real (and pretty blatant), and that suggests there are still some very scared big money shorts out there.

[Bunion 2020]

Conspiracy theories and investing. What could possibly go wrong.

[LeeLau]

The "cause" being to properly trigger the short squeeze and make money, of course. And hopefully the longer term effect is this will scare hedges from overplaying their short positions, which can have real life consequences for companies.



Careful on what data you actually trust right now (most of those providing it say as much). There are currently more positions being held than actual shares exist, so there's a few ways of calculating this that can show a different picture. This is also why the squeeze is still in play. Will it happen? Maybe... maybe not. I got in early enough it's house money at this point. Like Lee said above, comfortable buying some dip lottery tickets on top of it.

The short ladder attacks are definitely real (and pretty blatant), and that suggests there are still some very scared big money shorts out there.

Markit data is really solid.

[JimmyCarter]

Interesting morning so far!

[Cono Este]

Conspiracy theories and investing. What could possibly go wrong.

Yep. I don’t believe in any of it. Sure, you’re all getting ripped off for a few pennies here and there, but to think in today’s market it’s that easy to manipulate anything is wrong. That’s one reason I quit trading, they stopped us from just pricing options for almost whatever we wanted. Those days are long gone.


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[TahoeJ]

Conspiracy theories and investing. What could possibly go wrong.

Wall Street engaging in shady behavior is a conspiracy theory now?

Even if you don't buy the short ladder theory, there's zero doubt that restrictions even on cash accounts happened. That's shady AF.

[4matic]

Wall Street engaging in shady behavior is a conspiracy theory now?

There’s nothing shady about it. Short interest is public information. What you saw is the power of short selling gone wrong. It’s been like that forever.

A bigger problem is so much of the float is tied up in index funds there is no supply.

[Timberridge]

Here's an interesting quirk regarding option volatility. If you bought a GME put option with a $10 strike when the stock was around $50, and sold the same put at the recent high you would have been up around 400%.

So everyone wins!

[4matic]

Even if you don't buy the short ladder theory, there's zero doubt that restrictions even on cash accounts happened. That's shady AF.

No it isn’t. It’s all spelled out in your brokerage and clearing agreement.

RH is responsible to clearing for any debit balances.

[4matic]

Just one snip from SEC.GOV

B. On all transactions, the Introducing Firm shall be solely and exclusively responsible to the Clearing Firm for any loss, liability, damage, cost or expense (including but not otherwise limited to fees and expenses of legal counsel), as incurred, incurred or sustained by the Introducing Firm or the Clearing Firm as a result of the failure of any Introduced Account to make timely payment for the securities purchased by it or timely and good delivery of securities sold for it. The Introducing Firm furthermore agrees to be solely and exclusively responsible for the payment and delivery of all "when issued" or "when distributed" transactions which the Clearing Firm may accept, forward or execute for Introduced Accounts.