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(CNBC)   Short sellers are down $91B in January, driven mainly by their correct assertion that GameStop does suck ass, but their failure to realize the stonk would still go up   (cnbc.com) divider line
    More: Followup, Call option, Stock market, Short sellers, Short, Stock, Option, market's relentless rally, liquidity providers  
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2727 clicks; posted to Main » on 26 Jan 2021 at 4:29 PM (11 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2021-01-26 6:32:54 PM  

Wanderlusting: I just threw a $1000 order on GameStop to make the short sellers cry. If it crashes and I lose it all, would've been worth the money spent. Game on, gentlemen!


Of course you did.

Because you have 1k you can light on fire for laughs.
 
2021-01-26 6:36:35 PM  
It's all fun and games now until the Overmasters unleash the SEC on these guys.
 
2021-01-26 6:37:52 PM  

Lord Bear: valenumr:
Yep, it's going to be like clearing out a clogged drain. Once the barrier is removed, there is nothing to stop it from going into the sewer.

Yeah, and most of the original stock holders (and possibly GME itself) will be selling at these high levels, and probably won't buy back at the original levels.  So it will fall farther than the $15-20 it started at.
         .


Exactly. I mean in not exact terms, but the big holders can do, and have far more of a bankroll to do so, puts in the opposite direction and reverse the squeeze, and are just being dared to at this point. To think they aren't doing the same thing on their end is naive.
 
2021-01-26 6:38:14 PM  

bthom37: odinsposse: allears: Ashelth: LowbrowDeluxe: Demetrius: Fark me running if I can't find my damn tiny violin anywhere.

First off, this.

But also...HOW.  Let it die.  Who the hell is propping up Gamestop of all places?

Reddit.

It's a thing. Reddit users are all buying stocks that are heavily shorted, just to fark with professional investors.

If there was ever any doubt that Wall Street had little to nothing to do with the real world the fact that a Reddit meme transferred billions of dollars should settle that forever.

I'm wondering at what point Reddit and/or Redditors are gonna get sued for market manipulation.

The pointing and laughing shall be...cathartic.


Seems very unlikely. The nature of Reddit is individual users choosing what they want to be popular. No different than a bunch of individual buyers all deciding to buy the same stock. The only way a suit would work is if you could prove the mods were somehow manipulating the subreddit to push an agenda.
 
2021-01-26 6:39:37 PM  

LineNoise: Wanderlusting: I just threw a $1000 order on GameStop to make the short sellers cry. If it crashes and I lose it all, would've been worth the money spent. Game on, gentlemen!

Of course you did.

Because you have 1k you can light on fire for laughs.


And they have billions ... if you want to beat them, beat them at their own game, haha.
 
2021-01-26 6:40:22 PM  

brizbon: It is, but it's only a matter of convenience. Even with out borrowing the stock you could still end into a futures contract to acquire the stock at the agreed date.

There's nothing wrong with short selling except the stigma that's attached to it


If you only got the contract to buy it at a specified future date, then you wouldn't get the money from selling the borrowed stock now.
 
2021-01-26 6:41:03 PM  
Shorting stock is wonderful and I'm all for it.  But it's also pretty dangerous. It's not enough to be correct about an overvalued stock. You have to be correct AND be able to hold the short position long enough for everyone else to agree you're correct.

Lotta people have posted big losses being completely correct about an overvalued investment. They lost their position waiting for the rest of the market to realize it.
 
2021-01-26 6:41:45 PM  
The ignorance of the internet will result in the limitation of their tools.  While a noble cause, and an appealing one, the implementation of their strategy has allowed anyone to get involved.  This has left Robinhood type sites open to less than favorable considerations because multiple underage folks are allegedly involved in some of the WSB shenanigans.

There remains a strong possibility that the eventual blowback ruins the very tools made available to the individuals seeking change.
 
2021-01-26 6:43:13 PM  

radbaron: tarkin1: Once again, popular news reporting is convincing me to do the exact opposite.   This looks like a great opportunity to buy puts on game stop.

So what do you call shorting 140%of the available shares?


140 percent of available float IIRC. That is basically shares held in brokerage accounts that are available to lend. Float is generally a small percentage of total shares. I haven't looked at the numbers.
 
2021-01-26 6:44:39 PM  

valenumr: radbaron: tarkin1: Once again, popular news reporting is convincing me to do the exact opposite.   This looks like a great opportunity to buy puts on game stop.

So what do you call shorting 140%of the available shares?

140 percent of available float IIRC. That is basically shares held in brokerage accounts that are available to lend. Float is generally a small percentage of total shares. I haven't looked at the numbers.


Whatever, it's still farking ridiculous.  If the Reddit kiddies didn't do this, somebody else would have.
 
2021-01-26 6:45:18 PM  
Just for future reference here is the end game:

2 or 3 guys from reddit will make a couple million bucks off this. Everyone will talk about how rich they could have been\were on paper if they sold at a time they probably couldn't have.

Several thousand people from reddit will lose some meaningful dough.

Institutional holders will end up more or less where they started from.

We will all question Robinhood, and their practices, and once again, do nothing about it. I don't have a coin handy to tell you what that does to their price.

Gamestop will be the worst for it, whatever that means. I get the feeling everyone hates gamestop. I play like the same 2 video games once a month and think funko pops are dumb, so what do i know about a business based around it.
 
2021-01-26 6:46:39 PM  

GregInIndy: Shorting stock is wonderful and I'm all for it.  But it's also pretty dangerous. It's not enough to be correct about an overvalued stock. You have to be correct AND be able to hold the short position long enough for everyone else to agree you're correct.

Lotta people have posted big losses being completely correct about an overvalued investment. They lost their position waiting for the rest of the market to realize it.


Yeah, the timing is the scary part.  It's easy to say "this stock is a dog turd and the company will eventually fail".  It's much harder to say "this stock is a dog turd and the company will fail on xx/yy/2021".  And when you short a stock, your losses can theoretically be infinite...which is why a short squeeze like this is possible in the first place.
 
2021-01-26 6:47:22 PM  

odinsposse: bthom37: odinsposse: allears: Ashelth: LowbrowDeluxe: Demetrius: Fark me running if I can't find my damn tiny violin anywhere.

First off, this.

But also...HOW.  Let it die.  Who the hell is propping up Gamestop of all places?

Reddit.

It's a thing. Reddit users are all buying stocks that are heavily shorted, just to fark with professional investors.

If there was ever any doubt that Wall Street had little to nothing to do with the real world the fact that a Reddit meme transferred billions of dollars should settle that forever.

I'm wondering at what point Reddit and/or Redditors are gonna get sued for market manipulation.

The pointing and laughing shall be...cathartic.

Seems very unlikely. The nature of Reddit is individual users choosing what they want to be popular. No different than a bunch of individual buyers all deciding to buy the same stock. The only way a suit would work is if you could prove the mods were somehow manipulating the subreddit to push an agenda.


Subpoena them for their Discord records, and I suspect you'll find all the evidence you could want.

They've started adding "no market manipulation!" to their stickied GME threads, which definitely strikes me as "doth protesting too much".
 
2021-01-26 6:47:50 PM  

valenumr: AmbassadorBooze: Wanderlusting: Louis Rossman's take is b-e-a-u-tiful.

[YouTube video: Gamestop shorts lose BILLIONS, get $2 billion bailout; AND KEEP SHORTING ANYWAY!]

I especially liked the part where there are more shorts than there are stinks to cover the shorts.  The expert over masters didn't think contracting out more than 100% of the total number of shares was a bad idea?  The Overmaster class is going to have a restructuring, and some of the over masters will be demoted to underchuds.

I haven't looked at it, but I'm guessing you're talking about short interest over burden. I don't think it is possible to short a stock more than the outstanding shares.


Well, he said, in the vid, that there were more shorts than shares.
 
2021-01-26 6:50:57 PM  

bthom37: odinsposse: bthom37: odinsposse: allears: Ashelth: LowbrowDeluxe: Demetrius: Fark me running if I can't find my damn tiny violin anywhere.

First off, this.

But also...HOW.  Let it die.  Who the hell is propping up Gamestop of all places?

Reddit.

It's a thing. Reddit users are all buying stocks that are heavily shorted, just to fark with professional investors.

If there was ever any doubt that Wall Street had little to nothing to do with the real world the fact that a Reddit meme transferred billions of dollars should settle that forever.

I'm wondering at what point Reddit and/or Redditors are gonna get sued for market manipulation.

The pointing and laughing shall be...cathartic.

Seems very unlikely. The nature of Reddit is individual users choosing what they want to be popular. No different than a bunch of individual buyers all deciding to buy the same stock. The only way a suit would work is if you could prove the mods were somehow manipulating the subreddit to push an agenda.

Subpoena them for their Discord records, and I suspect you'll find all the evidence you could want.

They've started adding "no market manipulation!" to their stickied GME threads, which definitely strikes me as "doth protesting too much".


The simpler answer is if as many people are caught in the squeeze as the people trying squeeze claim to be, you get an angel investor, take it private at a price that farks the guys trying to game it, and call it a day.

Its a farking blockbuster but with video games and star wars figures, not Boeing.
 
2021-01-26 7:05:52 PM  

AmbassadorBooze: Well, he said, in the vid, that there were more shorts than shares.


OK, this is super oversimplified, because this where we have landed on this conversation.

There isn't anything really, (I mean unless you are an institutional investor buying at a quantity to do it yourself) to stop you from shorting a stock via options beyond its share count.

Because you don't hold that share. You are promising to give someone else that share at that price at X date. There are Y numbers of dates. Maybe you have to buy other options to cover your X at Y (see where this is going?).

If you sold your call, and the stock is lower than your call at X, congrats, you made money. If your call is substantially lower than the stock price currently, someone may want to take it off your hands prior to it. Congrats, again, you made money.

If the stock is higher and you didn't unload, guess what.

These guys are starting to dabble with people now who can burn a couple billion just to prove a point. Nobody here was brilliant, they took an established pattern, that institutions were well aware of, and ran away from it. They are going to get burned one way or another.

Yes, timed right, you can make some coin off it. You can do the same thing on literally any other stock if you have that luck with timing. hence the BETS part of it.

What is funny is it is essentially a video game stock which apparently makes some folks experts, because they have a few thousand hours in HALO or whatever.
 
2021-01-26 7:13:50 PM  

LL316: AppleOptionEsc: tuxq: This started as a meme on 4chan's /biz but ended up as a circle-jerk on r/wallstreetbets ... and I'm loving it. The hedge fund brokers (who are holding the short position on gamestock) are getting wrecked by a bunch of jokers using robinhood... lol

Just another hole in the system to patch in the future. Can't have the little people screwing with a rich man's gold.

You don't have to be rich to own stocks...


I don't understand what you mean.

You don't need to be rich to own a car, but driving your 2001 Ford Taurus doesn't mean you will win a NASCAR event.
 
2021-01-26 7:16:46 PM  
I got in because of the reddit hype... I've doubled my money. So I suck I guess?
 
2021-01-26 7:18:15 PM  
I realize there's always risk when investing in the markets, but at least it's based on logic and strategy when done correctly. Short selling is pure gambling though.
 
2021-01-26 7:27:28 PM  

Nike121: I got in because of the reddit hype... I've doubled my money. So I suck I guess?


Are you out? If you're out, you've doubled your money.

If you're still in, you've potentially doubled your money, and if Gamestop goes out of business, you've lost it all.
 
2021-01-26 7:31:22 PM  

meanmutton: brizbon: Smidge204: Why is short selling even allowed to be a thing? How is it not so obvious that it creates criminally perverse incentives to make businesses fail, that it's still permitted?

Farking hell.
=Smidge=
/OTOH it does bring a smile to my face when they get hosed like this...

Short selling isnt anything more complicated than agreeing to purchasing stock at a future date.

There's no way on earth you could even try to make it illegal

Today I learned that France, Italy, Spain and Belgium aren't on the Earth. Neat!


Hahaha, funny

https://www.reuters.com/article/uk-he​a​lth-coronavirus-hedgefunds-shortse-idU​SKBN2321K7

A short position can also be achieved through swaps

It's never going away

Sorry
 
2021-01-26 7:37:57 PM  

MythDragon: LowbrowDeluxe: Demetrius: Fark me running if I can't find my damn tiny violin anywhere.

First off, this.

But also...HOW.  Let it die.  Who the hell is propping up Gamestop of all places?

It's a place where you can get physical copies of games. Instantly, no waiting on a shipment. In addition they provide many valuable services. Expert advice on any game or system. Professional recommendations on games to try.  The most value you can expect on trade ins. The best and most informative game magazine in the business. And an iron clad disc warranty.

What else do you want?


dlc
 
2021-01-26 7:38:04 PM  

radbaron: SocratesNutz: Smidge204: Why is short selling even allowed to be a thing? How is it not so obvious that it creates criminally perverse incentives to make businesses fail, that it's still permitted?

Farking hell.
=Smidge=
/OTOH it does bring a smile to my face when they get hosed like this...

I've been buying and shorting stocks for decades and I have heard this gem thousands of times. Please tell me how I can make a company fail so that I can make money shorting that stock. Please tell me. I am criminally perverse and I want to do this. Does shorting a stock make the company fail? How does that work exactly? If anything, a large number of shorts on a stock can make the stock price soar (TSLA); but you are claiming otherwise.

So shorting a stock makes that company fail. Does buying a stock make that company succeed?

Then, to top it all off you proclaim that you take joy in watching other people lose money because they had the audacity to think a stock price might actually fall.

Classy.

Are you large enough to move markets?   Can you go on cnbc and say a company is failing or overvalued?  Can you pay shills to put out articles to that effect?  Can you collude with your hedge fund buddies to bid down and create. A short ladder to trick the algorithms into a downward trend?   If no YOU can't do it but it does not mean others don't do it all the time.  They get away with it to and they can sink a viable company by doing it.

So maybe just because you can't cause a company to fail due to short selling does not mean it is not possible and not done often.


Sure it is. And doing so is illegal; and it is done all the time. Sure OK. But it is also done with the long position and that is far more common. So why is that OK and shorting bad?

Also, you are conflating stock price with the health of the company. While those used to correlate somewhat; they no longer have any relation.
 
2021-01-26 7:38:51 PM  
IM GONNA CUM!🚀🚀 : wallstreetbets (reddit.com)

2021 shaping up to be a good year. We got coronavirus vaccine, Trump is gone, and shiatposting is costing hedge fund managers $91 billion.
 
2021-01-26 7:42:14 PM  

LewDux: Is it because nobody wears shorts during distancing?


For some reason I never wear shorts. Get me to buy pants. Does that seem right to you?
 
2021-01-26 7:49:12 PM  
Anyone watching Industry on HBO?
I heard it was good. It is not. I was expecting some interesting viewpoint about the financial industry.
It's just drugs and sex, like a non satirical version of American Psycho.
 
2021-01-26 7:49:40 PM  

LineNoise: Just for future reference here is the end game:

2 or 3 guys from reddit will make a couple million bucks off this. Everyone will talk about how rich they could have been\were on paper if they sold at a time they probably couldn't have.

Several thousand people from reddit will lose some meaningful dough.

Institutional holders will end up more or less where they started from.

We will all question Robinhood, and their practices, and once again, do nothing about it. I don't have a coin handy to tell you what that does to their price.

Gamestop will be the worst for it, whatever that means. I get the feeling everyone hates gamestop. I play like the same 2 video games once a month and think funko pops are dumb, so what do i know about a business based around it.



If there really is more short position than there is stock in circulation then the shorters might be in for a very bad week.

But also, at some point GameStop will cease operating and all this stock value disappears, as does the short contracts, and all those Reddit millions.

Not sure if the hedge fund group can entice GameStop to shutter, to void the shorts and cancel the stock.
 
2021-01-26 7:50:59 PM  

I hereby demand that I be given a Fark account: Nike121: I got in because of the reddit hype... I've doubled my money. So I suck I guess?

Are you out? If you're out, you've doubled your money.

If you're still in, you've potentially doubled your money, and if Gamestop goes out of business, you've lost it all.


That's why you only play with what you're willing to lose. If I lose it all, who cares? Other people will lose far more.
 
2021-01-26 7:55:50 PM  

NEDM: Lord Bear: The crash on this will be epic, and a lot of redditors will learn a lot about pump and dump schemes.  I'm sure a bunch made money, but anyone holding much longer is going to lose their shirt.

I wouldn't be surprised if there were some investigations and lawsuits too.

You think they're in it to make money?  THAT'S what you think this is about?  Maybe a few of them are making brilliant financial plays, but the majority driving force of this whole push is them desiring to fark with a hedge fund for the sheer shiats and giggles.  It's a punishing lesson that the little guy can shift the market if enough of them work together as one.  Sure, a lot of them will lose money on the deal, but it's incredibly unlikely they were wanting to make money in the first place.  Whatever price they're paying, they're happily doing it just to fark with Wall Street players far bigger than them.

They're literally pulling a Joker.

[images.squarespace-cdn.com image 539x297]

A farking GangWeed shiatpost managed to escape into real life and is having a noticeable affect on the market.  All you can do is watch and laugh.


Is it really hard to believe that a few of them were definitely in it for the money, and just needed a bunch of rubes to go along with it? People are garbage
 
2021-01-26 7:56:19 PM  
If you're hoping to trade stock and get rich quick, you're a sucker. The market will always correct itself over time.
 
2021-01-26 7:56:48 PM  
Margin Call (4/9) Movie CLIP - Be First, Be Smarter or Cheat (2011) HD
Youtube ag14Ao_xO4c


Sam Rogers: The real question is: who are we selling this to?
John Tuld: The same people we've been selling it to for the last two years, and whoelse ever would buy it.
Sam Rogers: But John, if you do this, you will kill the market for years. It's over.
[John nods grimly]
Sam Rogers: And you're selling something that you *know* has no value.
John Tuld: We are selling to willing buyers at the current fair market price.
[Sam lowers his gaze]
John Tuld: So that we may survive.
Sam Rogers: You would never sell anything to any of those people ever again.
John Tuld: I understand.
Sam Rogers: Do you?
John Tuld: Do *you*?
John Tuld: [pounding on the desk]  This is it! I'm telling you this is it!
 
2021-01-26 7:57:51 PM  
As a first hand witness from the front lines of this fight I can tell you it is AWESOME. Hope you all made some tendies too.

/$GME
 
2021-01-26 7:58:51 PM  

Jedekai: Kinda funny that the autistic tendieboys have a better grasp of advanced economics than The Liberal Elite.

You want to know why Socialism fails at its endpoint? Because it splits into the corrupt elite and the downtrodden masses. No middle class, but, no poverty... and no vertical advancement.

It stagnates. Full stop. Or: "Dead - the end of the process of cellular division, expansion and respiration".

This is why the USSR failed - no economic expansion. In 1986, during Perestroika, money was worthless, so, companies strapped by red tape surrounding loans for business just said they were 'on hiatus due to financial insolvency' (Chapter 11 bankruptcy) and collected Rubles for being shut down.

/If this sounds familiar, it's because Alexey Pahjitnov spilled out how Socialism is the death of ambition during his induction to the AIAS. "Russia never invented anything, unless they could steal the idea from someone else, they just didn't 'need' it." Since he couldn't get anything but fame for working on his own, he didn't.
//He wasted that downtime making, by his statement, 'a simple little game' while laid off from 'Elorg'.
///That'd be MOTHERFARKING TETRIS... which Elorg stole... sold to Sega... and created the copyright quagmire we have now.


Roads
 
2021-01-26 8:02:22 PM  

Jedekai: Kinda funny that the autistic tendieboys have a better grasp of advanced economics than The Liberal Elite.

You want to know why Socialism fails at its endpoint? Because it splits into the corrupt elite and the downtrodden masses. No middle class, but, no poverty... and no vertical advancement.

It stagnates. Full stop. Or: "Dead - the end of the process of cellular division, expansion and respiration".

This is why the USSR failed - no economic expansion. In 1986, during Perestroika, money was worthless, so, companies strapped by red tape surrounding loans for business just said they were 'on hiatus due to financial insolvency' (Chapter 11 bankruptcy) and collected Rubles for being shut down.



Ah yes, the self-immolation of capitalist utopia Wall Street proves the fundamental failure of....socialism?
 
2021-01-26 8:03:25 PM  

Wanderlusting: I hereby demand that I be given a Fark account: Nike121: I got in because of the reddit hype... I've doubled my money. So I suck I guess?

Are you out? If you're out, you've doubled your money.

If you're still in, you've potentially doubled your money, and if Gamestop goes out of business, you've lost it all.

That's why you only play with what you're willing to lose. If I lose it all, who cares? Other people will lose far more.


On a naked short there is no limit to what you can lose. It's pretty much maxed out when the broker starts selling your other assets to cover the loss.
 
2021-01-26 8:06:07 PM  

Natalie Portmanteau: beezeltown: NOW short it...

The run up was likely short institutionals buying to cover.

It's an irrational and stupid play, either way. 117% of the outstanding shares are owned by institutional investors.

Nope. Its reddit. They're short squeezing a hedge fund, for lulz.

What's funny, is that a bunch of them will be left holding the bag when they all go to sell, and the stock goes into free fall.

They're over there on reddit high fiving each other in a big ol dick sucking circle, because they crushed a hedge fund, but they also killed gamestop. That company was on wobbly legs to begin with, and they will never survive the bottom falling out.


Theraphysical company, with real people and employees and actual stores. Why anything about their company should matter with regard to their stock value, I will never understand. So it goes up or down, how did that affect they're on the ground business?

The Future will look back on our economic system with awe at how.insane we were.
 
2021-01-26 8:06:08 PM  

valenumr: Wanderlusting: I hereby demand that I be given a Fark account: Nike121: I got in because of the reddit hype... I've doubled my money. So I suck I guess?

Are you out? If you're out, you've doubled your money.

If you're still in, you've potentially doubled your money, and if Gamestop goes out of business, you've lost it all.

That's why you only play with what you're willing to lose. If I lose it all, who cares? Other people will lose far more.

On a naked short there is no limit to what you can lose. It's pretty much maxed out when the broker starts selling your other assets to cover the loss.


I'm not on the side of the short sellers. I'm buying stock to help drive up the price the short sellers have to pay when their contracts come due.
 
2021-01-26 8:14:12 PM  

Wanderlusting: valenumr: Wanderlusting: I hereby demand that I be given a Fark account: Nike121: I got in because of the reddit hype... I've doubled my money. So I suck I guess?

Are you out? If you're out, you've doubled your money.

If you're still in, you've potentially doubled your money, and if Gamestop goes out of business, you've lost it all.

That's why you only play with what you're willing to lose. If I lose it all, who cares? Other people will lose far more.

On a naked short there is no limit to what you can lose. It's pretty much maxed out when the broker starts selling your other assets to cover the loss.

I'm not on the side of the short sellers. I'm buying stock to help drive up the price the short sellers have to pay when their contracts come due.


There is a difference between a naked short and a naked put option. A huge one.
 
2021-01-26 8:15:37 PM  

dbaggins: LineNoise: Just for future reference here is the end game:

2 or 3 guys from reddit will make a couple million bucks off this. Everyone will talk about how rich they could have been\were on paper if they sold at a time they probably couldn't have.

Several thousand people from reddit will lose some meaningful dough.

Institutional holders will end up more or less where they started from.

We will all question Robinhood, and their practices, and once again, do nothing about it. I don't have a coin handy to tell you what that does to their price.

Gamestop will be the worst for it, whatever that means. I get the feeling everyone hates gamestop. I play like the same 2 video games once a month and think funko pops are dumb, so what do i know about a business based around it.


If there really is more short position than there is stock in circulation then the shorters might be in for a very bad week.

But also, at some point GameStop will cease operating and all this stock value disappears, as does the short contracts, and all those Reddit millions.

Not sure if the hedge fund group can entice GameStop to shutter, to void the shorts and cancel the stock.


Depends what you are willing to lose and if the institutions decide to "bet".

Lets say i'm someone caught in the squeeze and stand to loose a billion. But i have a ledger 50x that, and know i can work my way out to a position where i only lose half that billion, and burn a bunch of guys on the internet caught in hype over it.

Think i don't do that? if for no other reason than to send a shot across their bow and hopefully prevent a repeat on some pokemon stock or whatever, let alone come up losing less?

That is the territory i think this stock is in. I'd be surprised if there aren't some inside guys pumping this whole thing, because you have a lot of people playing with fire that shouldn't.

Sure i wish i was in on it early. But when i gamble, i prefer to throw dice.
 
2021-01-26 8:16:59 PM  

chawco: Natalie Portmanteau: beezeltown: NOW short it...

The run up was likely short institutionals buying to cover.

It's an irrational and stupid play, either way. 117% of the outstanding shares are owned by institutional investors.

Nope. Its reddit. They're short squeezing a hedge fund, for lulz.

What's funny, is that a bunch of them will be left holding the bag when they all go to sell, and the stock goes into free fall.

They're over there on reddit high fiving each other in a big ol dick sucking circle, because they crushed a hedge fund, but they also killed gamestop. That company was on wobbly legs to begin with, and they will never survive the bottom falling out.

Theraphysical company, with real people and employees and actual stores. Why anything about their company should matter with regard to their stock value, I will never understand. So it goes up or down, how did that affect they're on the ground business?

The Future will look back on our economic system with awe at how.insane we were.


No argument. But its not a direct A to B stock crashes company closes. This is a unique situation that gamestop is in. They were probably going to fold by the end of the year, maybe next without something major happening anyway and a huge loss of investor confidence after a massive surge like this will make the company toxic to lenders, which will keep them from expanding. And companies that size usually have to expand or they wither and die.

But then, I don't actually know this to be true. It's just my two cents.
 
2021-01-26 8:17:14 PM  

Wanderlusting: valenumr: Wanderlusting: I hereby demand that I be given a Fark account: Nike121: I got in because of the reddit hype... I've doubled my money. So I suck I guess?

Are you out? If you're out, you've doubled your money.

If you're still in, you've potentially doubled your money, and if Gamestop goes out of business, you've lost it all.

That's why you only play with what you're willing to lose. If I lose it all, who cares? Other people will lose far more.

On a naked short there is no limit to what you can lose. It's pretty much maxed out when the broker starts selling your other assets to cover the loss.

I'm not on the side of the short sellers. I'm buying stock to help drive up the price the short sellers have to pay when their contracts come due.



uh

There is no mandated limit to how long a short position may be held. Short selling involves having a broker who is willing to loan stock with the understanding that they are going to be sold on the open market and replaced at a later date.

I don't think most shorts have hard time limits.   They can just wait you out if they have a broker that still thinks their money is good.  Or the company goes bankrupt for whatever reason and all the contracts are void and non-preferred stock goes to zero.
 
2021-01-26 8:17:22 PM  
valenumr:

There is a difference between a naked short and a naked put option. A huge one.

You are talking to wanderlusting man.....lets start with what the letter P is before we get into the word put, and the differences.
 
2021-01-26 8:17:25 PM  

Wanderlusting: [Youtube-video https://www.youtube.com/embed/ag14Ao_x​O4c]

Sam Rogers: The real question is: who are we selling this to?
John Tuld: The same people we've been selling it to for the last two years, and whoelse ever would buy it.
Sam Rogers: But John, if you do this, you will kill the market for years. It's over.
[John nods grimly]
Sam Rogers: And you're selling something that you *know* has no value.
John Tuld: We are selling to willing buyers at the current fair market price.
[Sam lowers his gaze]
John Tuld: So that we may survive.
Sam Rogers: You would never sell anything to any of those people ever again.
John Tuld: I understand.
Sam Rogers: Do you?
John Tuld: Do *you*?
John Tuld: [pounding on the desk]  This is it! I'm telling you this is it!


Excellent f*cking movie.
 
2021-01-26 8:18:25 PM  

Rapmaster2000: Short selling is just the price discovery of an efficient market.  It only impacts those trying to make a quick buck.  It has no impact on a long term investment based on fundamental value.

This is like complaining about gamblers who bet the under for not being sufficiently in favor of a high scoring game.


I'll just complain about gamblers in general. Bunch of degenerates.
 
2021-01-26 8:21:08 PM  

dbaggins: There is no mandated limit to how long a short position may be held. Short selling involves having a broker who is willing to loan stock with the understanding that they are going to be sold on the open market and replaced at a later date.


Who do you think is going to get a margin call first? CoolDude420 on reddit, or a billion dollar hedge fund?
 
2021-01-26 8:26:18 PM  

LineNoise: valenumr:

There is a difference between a naked short and a naked put option. A huge one.

You are talking to wanderlusting man.....lets start with what the letter P is before we get into the word put, and the differences.


Well, in fairness, I should have said short naked call. In re contract expirations.
 
2021-01-26 8:26:27 PM  

Natalie Portmanteau: chawco: Natalie Portmanteau: beezeltown: NOW short it...

The run up was likely short institutionals buying to cover.

It's an irrational and stupid play, either way. 117% of the outstanding shares are owned by institutional investors.

Nope. Its reddit. They're short squeezing a hedge fund, for lulz.

What's funny, is that a bunch of them will be left holding the bag when they all go to sell, and the stock goes into free fall.

They're over there on reddit high fiving each other in a big ol dick sucking circle, because they crushed a hedge fund, but they also killed gamestop. That company was on wobbly legs to begin with, and they will never survive the bottom falling out.

Theraphysical company, with real people and employees and actual stores. Why anything about their company should matter with regard to their stock value, I will never understand. So it goes up or down, how did that affect they're on the ground business?

The Future will look back on our economic system with awe at how.insane we were.

No argument. But its not a direct A to B stock crashes company closes. This is a unique situation that gamestop is in. They were probably going to fold by the end of the year, maybe next without something major happening anyway and a huge loss of investor confidence after a massive surge like this will make the company toxic to lenders, which will keep them from expanding. And companies that size usually have to expand or they wither and die.

But then, I don't actually know this to be true. It's just my two cents.


Thank you for the succinct explanation.
 
2021-01-26 8:31:59 PM  

meanmutton: natazha: LL316: AppleOptionEsc: tuxq: This started as a meme on 4chan's /biz but ended up as a circle-jerk on r/wallstreetbets ... and I'm loving it. The hedge fund brokers (who are holding the short position on gamestock) are getting wrecked by a bunch of jokers using robinhood... lol

Just another hole in the system to patch in the future. Can't have the little people screwing with a rich man's gold.

You don't have to be rich to own stocks...

True, 55% of Americans own stocks directly or through their retirement plans.

This sure beats the $38 billion short sellers lost on Tesla last year.

Let's not pretend that there is a logical reason for Tesla to be worth roughly as much as the entire rest of the auto industry combined.


Fundamental investment is for long term. Unfortunately for the shorts on Tesla and GME the market can remain much more illogical for a lot longer than a lot of them.
 
2021-01-26 8:35:06 PM  

Natalie Portmanteau: chawco: Natalie Portmanteau: beezeltown: NOW short it...

The run up was likely short institutionals buying to cover.

It's an irrational and stupid play, either way. 117% of the outstanding shares are owned by institutional investors.

Nope. Its reddit. They're short squeezing a hedge fund, for lulz.

What's funny, is that a bunch of them will be left holding the bag when they all go to sell, and the stock goes into free fall.

They're over there on reddit high fiving each other in a big ol dick sucking circle, because they crushed a hedge fund, but they also killed gamestop. That company was on wobbly legs to begin with, and they will never survive the bottom falling out.

Theraphysical company, with real people and employees and actual stores. Why anything about their company should matter with regard to their stock value, I will never understand. So it goes up or down, how did that affect they're on the ground business?

The Future will look back on our economic system with awe at how.insane we were.

No argument. But its not a direct A to B stock crashes company closes. This is a unique situation that gamestop is in. They were probably going to fold by the end of the year, maybe next without something major happening anyway and a huge loss of investor confidence after a massive surge like this will make the company toxic to lenders, which will keep them from expanding. And companies that size usually have to expand or they wither and die.

But then, I don't actually know this to be true. It's just my two cents.


Part of the reason gamestop became a meme stock is because there were some people who thought the stock was legitimately undervalued when it was at like $4/share. They had recently brought in a new investor and were looking to become more digitally focused. So, I don't think they were going to fold in a year.
 
2021-01-26 8:35:08 PM  

buravirgil: Lord Bear: The crash on this will be epic, and a lot of redditors will learn a lot about pump and dump schemes.  I'm sure a bunch made money, but anyone holding much longer is going to lose their shirt.

I wouldn't be surprised if there were some investigations and lawsuits too.

Pump and dump requires deception. Are redditors deceiving anyone?


Yep. Pump and dump isn't automatically illegal. Most if WSB isn't saying GME is worth this. They are saying the stock is in demand because of a bunch of cocky hedge funds. The openly say it will end when the shorts are due are called but it will explode during this as the same shares are bought and sold over and over. You just have to be ready to sell during that window if they are right.
 
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