You overlooked his insult to your work ethic. Have a towel whip for exhibiting maturity beyond my capabilities.
OT: GameStop
- Thread starter UpTheMiddlex3Punt
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So what do they call it when those with power start changing the rules to prevent this massive loss by big players? It’s gonna happen if this stock keeps climbing. I call it ********.
I agree. When this happens I welcome r/wallstreetbets/ to look into bitcoin, the ultimate 17U money.
When Hedge Funders and others loot our markets its all good. But when retail investors destroy a hedge fund then all of a sudden CNBC analysts start calling for regulation, blame foreign powers, and talk "fundamentals"I call ********: https://t.co/DzoUsyy1T6 https://t.co/SxSksAu6oT— Saagar Enjeti (@esaagar) January 27, 2021
My point is that no one got in this thinking FMV was anything more than crap. People started dumping money in to create a short squeeze. Take the financial standing of the company out of the equation. It has nothing to do with game stop as a company and what they may or may not be worth. There will absolutely be a hard very sharp decline after the shorts are forced to buy. This is simply a bet between 2 groups and game stop is caught in the middle.
Don’t worry. Janet Yellen is monitoring the situation according to White House press secretary Psaki. Psaki said this is a reminder that markets don’t reflect the health of the economy and “it doesn’t reflect how working and middle class families are doing.”
And I’m not worried, I’m sure Yellen and pals can step in to protect the hedge funds from these mean old working and middle class people buying up the stock.
And I’m not worried, I’m sure Yellen and pals can step in to protect the hedge funds from these mean old working and middle class people buying up the stock.
Chamath Palihapitiya telling it like it is. Nobody bats an eye when a fund..
..shorts a company 136% in an effort to artificially drive the stock down.
But when a group of individuals decide to play tug of war and drive the stock up... it's not fair and they must be stopped.
..shorts a company 136% in an effort to artificially drive the stock down.
But when a group of individuals decide to play tug of war and drive the stock up... it's not fair and they must be stopped.
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It has truly been wild to see the media that covers the financial markets get pissed off about this situation. This happens all the time in reverse and they don’t care. It’s scary to these guys because it shows the little guy does indeed have a voice.
Well this is hard truth and needs to be reiterated every now and again...or actually kinda often since it is so common to hear people say 'the economy is great, the dow is over 25K' or 'the dow hit 30K so I dont know why everyone is complaining'.
But in this specific case, the regular people are doing well, but the wall st regulars are the ones getting hammered. It interesting how they spin it. They are preparing the narrative for when they step in to save the hedge fund at the expense of regular investors.
I'm not sure I agree. From a fundamentals perspective, I would not have been invested in GameStop at all, and thus would be protected from all of this. The only real damage being done is to the people trying to play around borrowing money on short positions that could theoretically lead to infinite losses. Guys who for some reason were long before this are benefitting, but based on company performance, really shouldn't be (that's unfair, I suppose but in their favor). People who are trading now are just trying to time a stock that is incredibly volatile, but that's really just gambling, not investing. I think fundamentals still holds and largely avoids negative consequences like this.
Now Worldcom being dishonest on their balance sheets, thus causing casual investors like yours truly, to think that they were undervalued just because all of the telecom industry was undervalued at the time. That was bad. Did I miss your point?
Now Worldcom being dishonest on their balance sheets, thus causing casual investors like yours truly, to think that they were undervalued just because all of the telecom industry was undervalued at the time. That was bad. Did I miss your point?
Ok for some reason this whole thing fascinated me and confuses the heck out of me because I’m such a novice on this stuff.
I get the elementary versions of a short and a squeeze but how did it get to this kind of level - wouldn’t most of the shorts had to cover their position before it got anywhere near this high?
Or was their simply not enough available shares to cover their positions and they are just having to buy as they can? This is where I’m not able to connect the dots. Seems they would have had to cover by when the price was in the 20s or did they just have the power and try to wait out the craziness?
One of you smart guys help me out
I get the elementary versions of a short and a squeeze but how did it get to this kind of level - wouldn’t most of the shorts had to cover their position before it got anywhere near this high?
Or was their simply not enough available shares to cover their positions and they are just having to buy as they can? This is where I’m not able to connect the dots. Seems they would have had to cover by when the price was in the 20s or did they just have the power and try to wait out the craziness?
One of you smart guys help me out
Yes, I have a hard time understanding what shorting a stock actually means. Someone put it in laymen’s terms please.
Is that not just a put option? I have options down.
What exactly is the action taken?
Shorting is an agreement where you pay a fee to the owner of a stock to sell a certain number of shares. You promise to buy back those same number shares for him by a future date. If the stock decreases by more than the premium fee you paid, then you make money. If the stock goes up, you lose. It’s quite risky because theoretically there is no limit to how much money you can lose. A stock can only drop to $0. But there is no limit to how much it can rise.
No. When you buy a put you pay the premium upfront and can exercise the option prior to a specific date at the strike price (by selling the underlying asset at the strike price to the option writer) or sell the option on to someone else. It's a great way to bet against a stock in the short term or a way to hedge a position for the long term. Like purchasing any option, you have already capped your losses since the person who wrote the put cannot force you to sell them the underlying asset at the strike price.
Short selling has an advantage over buying puts in that you do not have to find someone to sell you the put and that you do not pay your premium up front rather you pay interest to borrow the stock. Another advantage is that when you short a stock you are also selling it, increasing the downward pressure on the stock. If a company is about to go bankrupt shorting it is a much better deal than buying puts. The puts will have a premium that will eat half or more of the difference between the strike price and the floor whereas with shorting you only pay borrowing costs and you can force the stock price down faster, conceivably paying very little in borrowing costs.
There is very little room for well reasoned discussion on this or any other thread on SPS. Posts need to be 80.17% emotional and 19.83% smarmy.
What annoys me is that this isnt just monopoly money- it affects an actual business with over 5000 locations and something like 50,000 employees(FT and PT). When the price crashes, and it will crash, odds are it will sink past what it had been trading at as a 'correction'. Stock price is directly connected to takeovers, compensation, and perceived corporate health.
I agree that both groups should be treated equally- both sides should be free to make stupid decisions. Also, both sides should be kept from making volatile decisions that can lead to detrimental outcomes for others who arent sword fighting(but that wont happen because- 'free market')
Gotcha. Yeah, it seems like it might be one of the last times GameStop makes any big news beyond shuttering the place. I've not understood their model for a quite a while now.
I can tell you from having worked at publicly traded companies in the past that it is frustrating from the inside as well. Value that often tracks your industry instead of your company, sometimes seeing suits do things to hit quarterly numbers that they would never do if the company was private, etc. All under the mantra "shareholder value".
I can tell you from having worked at publicly traded companies in the past that it is frustrating from the inside as well. Value that often tracks your industry instead of your company, sometimes seeing suits do things to hit quarterly numbers that they would never do if the company was private, etc. All under the mantra "shareholder value".
You borrow stock from someone at a high price, on the hopes that it will go lower and you can then sell for profit and return the shares borrowed. The problem is that you must have a margin account (i.e. credit facility) with your trader to do this, so you are basically leveraging your account and betting on a price drop while also betting that while you hold that short position the stock never goes high enough have your broker revoke your credit (margin call). Margin calls led to a lot of folks jumping off buildings in the stock market crash in 1929.
Let's take a short position on 100 shares of a stock at $100, for example. If that stock goes up to $110, you are OK, so long as you still have enough margin and the stock owner doesn't sell and force you to sell and lose $1000. If the stock continues to go up, you will hit a couple of barriers on the way to losing an potential infinite amount of money 1) margin call that forces you to take a loss because your brokerage won't take any more risk on your position or 2) the owner of the stock sells to take profit and you must sell and take the loss. Barring any one of those things, you could hypothetically never stop losing money as a stock may keep appreciating forever.
If you take a long position, you just buy the 100 shares. If if goes to $110 you can sell and make $1000 or keep on riding. Worst case, is it goes to $0 and you lose $10,000. At no point will you lose more than your original investment.
Let's take a short position on 100 shares of a stock at $100, for example. If that stock goes up to $110, you are OK, so long as you still have enough margin and the stock owner doesn't sell and force you to sell and lose $1000. If the stock continues to go up, you will hit a couple of barriers on the way to losing an potential infinite amount of money 1) margin call that forces you to take a loss because your brokerage won't take any more risk on your position or 2) the owner of the stock sells to take profit and you must sell and take the loss. Barring any one of those things, you could hypothetically never stop losing money as a stock may keep appreciating forever.
If you take a long position, you just buy the 100 shares. If if goes to $110 you can sell and make $1000 or keep on riding. Worst case, is it goes to $0 and you lose $10,000. At no point will you lose more than your original investment.
Shorting explained simple. Xyz is trading at $100 today. You think it will go down to $80 in a few weeks.
You have your brokerage buy the 1 share of the stock today at $100. And they loan it to you at that price + interest and you immediately sell it to pocket the $100 dollars. If the stock goes down to $80 in 2 weeks, you buy a share at $80 and return it to the brokerage... The loan is now settled. You made $20 - commission and interest.
The problem is if the stock goes up.... If the stock went up to $130 it would you would be in the hole $30. At a certain point you have have enough excess value in the account to cover 100% of the value of the borrowed stock. If not, you get a margin call and are forced to "cover" your loss by buying new stock.
In a squeeze a shitload of people buy the stocks that are being traded, drive up the price on the shorts. The shorts are forced into a cover position, but the squeezers aren't eager to sell. The short guys go into a frenzy outbidding each other for what sellers are out there. The more owners of the stock that don't sell, the crazier it gets.
I think when this all shakes out, there will be one or two hedge funds that are on massive positions and are holding with the WSB retail investors.
You have your brokerage buy the 1 share of the stock today at $100. And they loan it to you at that price + interest and you immediately sell it to pocket the $100 dollars. If the stock goes down to $80 in 2 weeks, you buy a share at $80 and return it to the brokerage... The loan is now settled. You made $20 - commission and interest.
The problem is if the stock goes up.... If the stock went up to $130 it would you would be in the hole $30. At a certain point you have have enough excess value in the account to cover 100% of the value of the borrowed stock. If not, you get a margin call and are forced to "cover" your loss by buying new stock.
In a squeeze a shitload of people buy the stocks that are being traded, drive up the price on the shorts. The shorts are forced into a cover position, but the squeezers aren't eager to sell. The short guys go into a frenzy outbidding each other for what sellers are out there. The more owners of the stock that don't sell, the crazier it gets.
I think when this all shakes out, there will be one or two hedge funds that are on massive positions and are holding with the WSB retail investors.
Here is an article I found that explains the timing of events as well as what some of the investors used their windfalls on. In this article one of investors talked about being able to pay $4,000 for his dog's knee surgery. That must be one helluva dog.
https://www.theblaze.com/news/reddi...utm_source=facebook&utm_campaign=fb-glennbeck
https://www.theblaze.com/news/reddi...utm_source=facebook&utm_campaign=fb-glennbeck
Reckon the proverbial load has been shot and it’s all downhill from here? I was holding blackberry, amc, and GameStop in the Invstr Fantasy Finance group and have lost about $1,000,000 in the last hour or so in after market trading. That stings and it’s only Monopoly money to me. Gonna be a lot of people standing when the music stops and no empty seats in sight.
Blackberry is at $18.50 off the high of $26.02 or a 29% fall.
AMC is at $12.50 off the high of $21.76 or a 43% fall.
GME. is at $258.00 off the high of $370 or a 30% fall.
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Blackberry is at $18.50 off the high of $26.02 or a 29% fall.
AMC is at $12.50 off the high of $21.76 or a 43% fall.
GME. is at $258.00 off the high of $370 or a 30% fall.
View attachment 19289
Well the wall streets crooks found a loop hole to kill WSB. Good ole wokey hate speech. Turns out the WS effeminates can’t handle locker room language. This fight ain’t over!
Damn you guys are still going? It locked me out back after Thanksgiving and wanted me to pay... Or are you guys paying?
^^^^^this. It’s maddening. I’ve seen it first hand. Literally blow money on nothing just to show “growth” and then when it comes back full circle, sell it all at a discount to show all the new savings cuts.
Reminds me of a kid I used to play Nintendo with that was good at every game, until we played Tecmo Bowl. Played as the Raiders/with Bo Jackson and start running all over his ***. Until he throws the controller and unplugs the Nintendo.
Sorry you didn’t know about Bo Jackson. But in the real world, just because you’re losing doesn’t mean you get to just shut it down or change the rules.
This will 100% change the rules in the future. I can’t wait to watch the movie.
Sorry you didn’t know about Bo Jackson. But in the real world, just because you’re losing doesn’t mean you get to just shut it down or change the rules.
This will 100% change the rules in the future. I can’t wait to watch the movie.
Fox News said the SEC may halt trading of GameStop tomorrow. Those who held onto may lose their *** tomorrow. Has that ever happened? Also Congress may step in.
But that is exactly what wall st gets to do. It’s not new. As soon as the powers that be lose big, they change the rules to screw the little guy. Research Clarence Saunders. He did something very similar to this back in the 1920’s. Should’ve made 30-40 million back then. The stock exchange changed to rules to allow the shorts more time, and Clarence lost everything.
My guess is that commission free trading is about to get banned. That would be an easy way to slow down people making small investments.
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