The $GME gamestonk thread

[mbardu]

Did I miss another $GME thread?
I thought we'd have a fierce discussion considering how many boomers we have here

Anyway, are you still (how??) short the stock?
Are you long in shares on the rocketship?
Are you pissed off to see the blatant media manipulation to blame "market disfunction" on a shit-posting subreddit while nobody bats an eye that hedge funds were (probably illegally) shorting 140% of the stock's float?

Anyway...



Discuss

 

[Demiurge]

I think I've read enough articles to have a fuzzy idea what shorting is. My confusion is that if shorting is making a bet on a stock eventually dropping in value- a practice these reddit investors despise- is a situation where a stock gets so blatantly pumped not an invitation for even more shorting attempts?

 

[SpaceDock]

Come on guys! Can’t we collectively drive up some crappy stock to make us all rich bastards overnight?

 

[BenjaminW]

TO THE MOON BABY!

I have very limited understanding of stocks, but WSB is a favorite of mine on Reddit.

 

[Steinmetzify]

'Guys that get rich doing this all the fucking time suddenly mad that someone else is doing this to get rich'

Fuck these guys, they made the rules and now they're pissed that someone else beat them at their own rules.

Interested to see if there are 'regulations' put in place to block this from happening again.

Also would like to see short selling made illegal.

 

[Mathemagician]

It’s a short squeeze on aggressive Hedge funds. It’s going to make a great case study.

 

[jaxadam]

 

[StevenC]

Come on guys! Can’t we collectively drive up some crappy stock to make us all rich bastards overnight?

We've been doing it with used Prestiges for years!

 

[Steinmetzify]

I wonder what the consequences of this will be. Think about it, online investors could do this on a daily with everything shorted out there and get rich as fuck.

Now you've got these guys out there having to sell their profitable stock so they can cover their shorts.

This could change the stock market forever.

 

[mbardu]

TO THE MOON BABY!

I have very limited understanding of stocks, but WSB is a favorite of mine on Reddit.

It's actually not that complex.

Simple short selling is borrowing someone's stock to sell it now for a good price; because you think it's going to drop in value later. In your mind, you can buy it back cheap later once you have to give it back.

Shorting through selling call options is allowing someone to buy 100 of the stock from you later at a pre-agreed price, for a small fee. Also because you think the price will go down later, so you don't think the other party would actually go through with it since they can just buy lower on the market if the price has dropped. So you'd just keep the fee.

In the first case, the shorts sold the share for let's say 12 bucks, and now are panicking because they have to buy it back at 200/300$, times millions of shares.

In the second case, the options are coming due - so similarly the shorts will have no other option but to aquire stocks at the current asking price of 200/300 to deliver on their commitment to sell them for 12$.

What makes this unprecedented is that there was 140% of all stocks that was shorted, and many investors, retail investors included, are refusing to budge and to sell at all, so by law of offer and demand, the price keeps climbing.

Hedge funds are shitting bricks.

 

[InfinityCollision]

I think I've read enough articles to have a fuzzy idea what shorting is. My confusion is that if shorting is making a bet on a stock eventually dropping in value- a practice these reddit investors despise- is a situation where a stock gets so blatantly pumped not an invitation for even more shorting attempts?

Very possible. Still notable that shorting funds lost billions on this, but the aftermath of this pump & dump likely won't be pretty either.

 

[mbardu]

I think I've read enough articles to have a fuzzy idea what shorting is. My confusion is that if shorting is making a bet on a stock eventually dropping in value- a practice these reddit investors despise- is a situation where a stock gets so blatantly pumped not an invitation for even more shorting attempts?

Up to a point.
But you cannot short forever. Options expire and you have to deliver. Short positions with increasing underlying will create margin calls.
The only solution should be to sell, and that's what many have tried. But there comes a point where it will explosively backfire into even more stock appreciation. This is because more and more shorts in existence creates more and more shorts needing to exit their positions. The only way to exit a short is to buy. Buying makes the price go up.
That's a short squeeze, and this one will be for the history books.

 

[Womb raider]

I usually only trade blue chips and stay away from speculative stocks, but the playbook for this week was to buy anything and everything that is highly shorted and it worked magically well. NASDAQ CEO came out saying they will halt any stock with unusual social media chatter so I'm sure they'll figure out a way to keep the game rigged in favor of the elites.

 

[BenjaminW]

It's actually not that complex.

Simple short selling is borrowing someone's stock to sell it now for a good price; because you think it's going to drop in value later. In your mind, you can buy it back cheap later once you have to give it back.

Shorting through selling call options is allowing someone to buy 100 of the stock from you later at a pre-agreed price, for a small fee. Also because you think the price will go down later, so you don't think the other party would actually go through with it since they can just buy lower on the market if the price has dropped. So you'd just keep the fee.

In the first case, the shorts sold the share for let's say 12 bucks, and now are panicking because they have to buy it back at 200/300$, times millions of shares.

In the second case, the options are coming due - so similarly the shorts will have no other option but to aquire stocks at the current asking price of 200/300 to deliver on their commitment to sell them for 12$.

What makes this unprecedented is that there was 140% of all stocks that was shorted, and many investors, retail investors included, are refusing to budge and to sell at all, so by law of offer and demand, the price keeps climbing.

Hedge funds are shitting bricks.

Oh I wasn’t expecting this but thanks for the explanation.

Fuck spending money on guitar gear it’s all about risky investments on Reddit!

 

[Womb raider]

Up to a point.
But you cannot short forever. Options expire and you have to deliver. Short positions with increasing underlying will create margin calls.
The only solution should be to sell, and that's what many have tried. But there comes a point where it will explosively backfire into even more stock appreciation. This is because more and more shorts in existence creates more and more shorts needing to exit their positions. The only way to exit a short is to buy. Buying makes the price go up.
That's a short squeeze, and this one will be for the history books.

There was a lot of naked shorting going on here. That's how you get 140% short interest. Its the perfect storm of wsb pumping the price and shorts having a hard time allocating shares to cover that short which blew price through the roof.

 

[mmr007]

I don't have any Gamestop stock so too late for me to get in on that action but I have 6 gallons of drinking water (value $7.25 USD) in my fridge and since water is now a commodity that can be speculated and traded on on the stock market maybe I can use the internets to manipulate that into $6000 worth of water...get that ESP I've been wanting.

 

[Xaios]

I don't have any Gamestop stock so too late for me to get in on that action but I have 6 gallons of drinking water (value $7.25 USD) in my fridge and since water is now a commodity that can be speculated and traded on on the stock market maybe I can use the internets to manipulate that into $6000 worth of water...get that ESP I've been wanting.

Before you commit, the real question you have to ask yourself is... are there any massive, bloated and wholly parasitic hedge funds out there currently shorting water?

 

[spudmunkey]

 

[X1X]

It's interesting to see how this develops. Discord banned wallstreetbets for "hatespeech". Now that's not transparent at all

 

[Yul Brynner]

So... when rich people game the system to rob everyone blind it's perfectly fine, but if poor people try it suddenly it's a problem?