GameStop (GME) short squeeze fireworks

[Gediminas]

Hey guys,

Your thoughts about GameStop nowadays? hehe

https://finance.yahoo.com/quote/GME/
https://www.reddit.com/r/wallstreetbets/
Fun times!

 

[Silvio]

Another sign of the top of the bubble, the reckoning will come

Mass retail trading of options can only mean disaster, some people will YOLO and make 20x on their money but eventually this shtick will fail and many will lose everything

 

[freeroamdev]

I own 5k worth of GME, bought in b4 wsb shitshow. It's getting political now and it's highly likely reddit will hold the line all the way up to expiry on Friday. Nothing much hedge funds can do to stop em really

 

[freeroamdev]

Another sign of the top of the bubble, the reckoning will come

Mass retail trading of options can only mean disaster, some people will YOLO and make 20x on their money but eventually this shtick will fail and many will lose everything

it's not really about retail using options, retail is trading spot to push the price up, hedge funds are the ones shorting via options

 

[nomad999]

4chan is also pushing this and every little corner of the internet is applauding this.
I almost put a few grand yesterday just to help bringing down those crooky edge fund, this is awesome ahah what a time to be alive!
Might risk a big amount on this, could even make money ahah

This decade will be the reckoning of the little people who are slowy realizing they have tremendous power together with only their meager savings and the power of decentralization!

A brave new world !

 

[Silvio]

it's not really about retail using options, retail is trading spot to push the price up, hedge funds are the ones shorting via options

No, what really happened is exactly the OPPOSITE of what you're describing here. The redditors were using options to pump up the price and the hedge funds were actually shorting, not by using put options but by actually borrowing the stocks.

The only way redditors could push the price so high was by buying call options (which then force the broker to actually buy the stocks). That's how you can push the price higher without having a ton of $$$.
You buy 1 call option - gives you the option to buy 100 stocks at a certain OTM price - then the broker has to buy these stocks to reserve it (in case price goes up and you actually want to exercise the option). So with a small relative investment these redditors caused a high bump in the price as buying 1 call option is much cheaper than actually buying 100 stocks.

 

[nomad999]

https://twitter.com/x/status/1354174279894642703

reinforcements are coming mwahaha this guy is a genius! $GME pre market is at above 220

2021 is going to be epic

 

[nomad999]

spectacular Chamath as usual on the whole Gamestop drama !

$GME is holding above 300$

 

[nomad999]

part 2 of the video.

Scott, be on the right side of history.

Chamath the legend !

 

[erni]

No, what really happened is exactly the OPPOSITE of what you're describing here. The redditors were using options to pump up the price and the hedge funds were actually shorting, not by using put options but by actually borrowing the stocks.

The only way redditors could push the price so high was by buying call options (which then force the broker to actually buy the stocks). That's how you can push the price higher without having a ton of $$$.
You buy 1 call option - gives you the option to buy 100 stocks at a certain OTM price - then the broker has to buy these stocks to reserve it (in case price goes up and you actually want to exercise the option). So with a small relative investment these redditors caused a high bump in the price as buying 1 call option is much cheaper than actually buying 100 stocks.

I read about it today, don't follow the financial news that much as some of you guys do.

You explained it very well, I get a picture of what was going on.

 

[Edge]

Silver short squeeze is gaining momentum too ..

https://www.reddit.com/r/wallstreetbets/comments/l68ill

 

[Silvio]

LOL these redditors should read what happened to Bunker Hunt Silver Thursday - Wikipedia

But still it's amazing to see... and I hope they pull it off

 

[nomad999]

the result of the GME shitshow after all major brokers prevented buying GME shares while still allowing selling.

bitcoin 50k before feb

 

[nomad999]

https://twitter.com/x/status/1355188993755901952

I could be wrong but I think this is getting very very serious ...

the last few day of market dip are possibly due to those crooky hedge funds selling to cover their short positions. march 2020 all over again or ?

 

[Edge]

https://twitter.com/x/status/1355188993755901952

I could be wrong but I think this is getting very very serious ...

the last few day of market dip are possibly due to those crooky hedge funds selling to cover their short positions. march 2020 all over again or ?

Of course it's serious .. The sec statement earlier was "protecting retail investors" .. This is going to be interesting ..

I went in on the silver squeeze big time cause yolo ..

 

[nomad999]

I went in on the silver squeeze big time cause yolo ..

which I could follow on silver but already holding way too much GME bags
occupy wall street reborn !

seriously though, there is a real systemic risk right now across the board and the little option game could absolutely make everything explode in pieces.

a good read for those who aren't up to date
https://isthesqueezesquoze.com/


at the risk of triggering the boomers, now is a good time to get some bitcoin exposure just in case ...

 

[nomad999]

https://www.reddit.com/r/wallstreetbets/comments/ip6jnv

jesus christ the WSB autists had figured it out perfectly 4 months ago, madness !

 

[nomad999]

https://twitter.com/x/status/1355789583494082561

and the story is far from over, could the bubble pop with this or ?

 

[Silvio]

RIP Gamestop

 

[Gediminas]

View attachment 2166

RIP Gamestop

Maybe it's a little too early? )