Christ. How much will they be sat on roughly at the moment? I imagine people like that aren't going to hold and will have to sell whilst they're up?
Also, is this something worth investing $100 in right now?
WSB vs Wall Street / Gamestop Stock and others blown up by Subreddit
- Thread starter Kasper
- Start date
Christ. How much will they be sat on roughly at the moment? I imagine people like that aren't going to hold and will have to sell whilst they're up?
Also, is this something worth investing $100 in right now?
That is why he is selling every day, bit by bit. If he sells everything in one day, price drops. If he sells bit by bit (like yesterday when he cashed out around $5M) the price holds.
He reached 1M last week, and then cashed out and put money in Apple and other big (relatively safe) companies. Could have been 5M+ by now, but I think he did the right thing by cashing out instead of further gambling with his parents retirement.
The second point, after the bubble bursts (probably within a week), the price is likely gonna be lower than $100, but in any case, no one knows. This has long passed investing, now is gambling territory.
People in 1. will be fine if they time it correctly and sell before it eventually trends back down. The people in 2 will end up being the suckers who will end up having to buy back the shares owned by people in 1. This is beautiful.
Maybe.
No one is denying the fact that they want to make money. I don't think it's hypocritical.
The question is why shouldn't they be allowed to take huge risks if some trust fund MIT grad cnut can?
What do you base this on exactly? There are loads of people who wanted something else out of life besides being part of a profession that just serves to circulate money upwards, into their own pockets and into the pockets of already obscenely rich folk to make them richer.
How would you suggest people stick it to the hedge funds other than by taking money off them? I assume you followed the fortunes of the Occupy Wall Street protestors a few years ago?
Regular people are allowed to make money from buying and selling stocks. It's not a bad thing.
Yeah, I agree. Hitting $1m is a life changing amount. You know you could probably make more but no need to be greedy and/or risk your parents retirement fund. I bet his parents think he's an absolute genius.
Put some money on BB and AMC only because I can afford to gamble with that money.
At the end of the day this is just a nice bit of wealth redistribution and perhaps a whole bunch of people will start investing in other stocks, which can only benefit the market in general.
1. Wall Street thinks GameStop is going to tank and borrows shares to sell(short), hoping to buy them back for a lower price in future and return them to their owner, keeping the difference for themselves.
2. They do this to the point where there are more shorts than actual stock available to buy.
3. WSB figures this out and starts buying the stock, restricting supply.
4. More people find out about it and buy the stock. The higher the stock price, the more it costs Wall Street to buy those shares back and return them to their owner.
5. Wall Street also has to pay interest every day on the shares they borrow from the lender. They have no choice but to return the shares and have to buy them back at a higher price (at a massive loss to them), driving the price up further still.
6. At some point yet to come Wall Street will manage to get out of their short positions one way or another, at which point the artificially inflated price case goes away and the crash will be extremely sudden.
1. If you bought early and can sell at the right time, you'll make a killing. A lot of people won't and will lose money, despite being in huge profit for a short time.
2. The people on Wall Street who shorted the stock and have to buy back higher lose out, billions in some cases.
I was about to akschually before I read the whitetext.
Definitely agree about the other thing.
I've no issue with any of that, it's just some of the comments are hilarious, you're essentially doing what they do on a smaller scale, to make personal gains. It's not some altruistic act.
Nobody is suggesting it's altruistic. You can profit and still stick it to the man - especially when it is your profiting that is sticking it to the man.
Some of your posts have been a bit preachy, you're basically engaging in market manipulation, just as they do. If you are part of something that causes some hedge funds or the likes to shut down, do you care if that impacts people? I'm sure there are some relatively innocent parties involved with those firms. All of this baying for blood, people are essentially justifying their actions with criticism of the very same actions by the financial institutions. Surely you can see there is an element of 'an eye for an eye makes the whole world blind' to these actions?
Ironically, this reminds me of the proletariat vs bourgeoisie.
Main question is who breaks first: The "community" of WSB or Melvin/Citron?
Main question is who breaks first: The "community" of WSB or Melvin/Citron?
Thing is, the likes of Citron have been targeting and fecking over retail investors for years. Targeting stocks that they are shorting.
You'll look at some fundamentals, see potential long term growth and then... They release a hit piece to manipulate the price. They've been caught now and honestly, they can get fecked.
You'll look at some fundamentals, see potential long term growth and then... They release a hit piece to manipulate the price. They've been caught now and honestly, they can get fecked.
Melvin and Citron are already out (and mortally wounded in the case of Melvin). The question is who is now holding the short side? No one really knows.
Also a reminder for all: I would right now guess that investment banks, the main culprits of the 2008 debacle, are making money from this. It's additional trading commissions (yesterday was highest share trading volume in market history, surpassing Oct 10th 2008), interest on leverage extended to clients that include the platforms retail investors use to trade, spreads on options, and other potential gains. Their own main point of loss is if they have written calls on GME and their gamma hedging lagged or got messed up significantly.
If I'm being preachy, it's in response to the antics of the hedge funds and their media shills over the last few days in trying to use their weight and muscle to step on the throats of retail investors. I have not and am not preaching against their right to make money.
There may be innocent parties involved with those firms, just as there are innocent parties involved in the firms they seek to run into the ground by taking out more short interest than shares exist and then bad mouthing the companies in the hope that the share price collapses.
Making money from buying shares and hoping the price rises doesn't hurt anybody, except the parasites who have gambled on failure. Surely you can see the difference there?
I also disagree that it's market manipulation to point out that the shorts have exposed themselves and there is an opportunity to exploit that.
Up to 450, the open is going to be nuts.
Argh so close, foiled again.
Doesn't that depend on how those 'parasites' fund these positions? I'm sure there will be people who have nothing to do with this that will end up hurt from it, it's more often than not the little guy that fronts the bill for these kinds of things. I just think that this whole V for Vendetta, anarchist rhetoric of "these are the people that ruined the world, they control everything and do what they like, let's destroy them because they should never have done those things" doesn't quite gel with "well I bought 20 shares, I've sold some to make my money back, hopefully I can sell more at 9xx and make a lovely profit!". Those 2 ideologies can't co-exist in someone's head, without you being a hypocrite, in my opinion.
It breaks $500.
This shit is bitcoin in steroids. Not only it went loco again, but it is taking the rest of the meme stocks with it (all had a terrible opening of -30% or so, now AMC is flying, BB is almost when it opened yesterday and Nokia is also improving).
This shit is bitcoin in steroids. Not only it went loco again, but it is taking the rest of the meme stocks with it (all had a terrible opening of -30% or so, now AMC is flying, BB is almost when it opened yesterday and Nokia is also improving).
I fecked up and bought Gamestock and AMC but realized my employers trading policy is to hold a stock for a minimum of 28 days (unless sold at a loss).
Duuude... I think you might find its worth breaking that policy and dealing with the fallout if its not expected to be fatal (metaphorically).
Dude, everyone is hypocrite and everyone is on stock market to get money.
The main difference is that Wall Street set the rules. They set the rules, they buy the politicians, they avoid paying taxes, they get bailed out when they feck up. And now, some average Joes are beating them at their own games and Wall Street is crying like the bitches they are. It is hilarious and enjoy it while it lasts.
The thing is, Melvin and others were caught out. If they have gotten out of their positions in the last couple of days it means somebody else has taken them on. Whoever has done that knows full well what's going on now and is prepared to ride it out i.e they don't need to buy the stock to cover themselves or stand to make money on it some other way.
I'll just sell at a slight loss when it dips, don't want to take any stupid risk with my employer.
There is a mandatory buying of 7M stocks tomorrow if the stock stays above $115. I am not sure who is going to buy it (I assume JPMorgan, but could be wrong) which is gonna set the price up again.
I don't think that Wall Street's pain has already ended. And it is unclear if Melvin has really gone out. They said so yesterday probably to set the price down, after all, that came only a couple of days after they said that 'they do not comment on their holdings'.
That's why my guess is that its with one or more banks now. They have the balance sheet, and more importantly they have more information about position and flows than hedge funds can ever dream of having, and can also probably get share borrow at favorable rates. Possibly making money on shorting this now has nothing at all to do with understanding Gamestop the company, its all about understanding trading flows.
Despite all the talk of hedge funds rigging the game, from my seat I never have a fecking clue about the actual state of flows and positions. The banks share a bit of information with the hedge fund clients but never in any actual detail. People are talking like the hedge funds and banks are symbiotic. Yeah yeah, on a regular day we're buddy buddy, I pay them some commissions they give me some analysis and data, and every now and then host lunch at a nice restaurant. But Goldman Sachs or Morgan Stanley would not hesitate for a second to tear a hedge fund a new asshole if they thought they could get away with it without compromising the rest of their business.
Are they out? Thought that CNBC piece yesterday was just a scare tactic to attempt to manipulate the price? Especially given the number of bots on the WSB subreddit declaring victory to attempt to lure people into selling.
Sidenote: Seems like this is fast turning from a profit hunt to a movement against some hedge funds.
It seems like a few backers will get very rich and many will lose out when it plummets, and there will be a small but brutal Nat Turner style bloodbath for the shorters. It'll serve as a brief catharsis but in terms of financial/social justice I doubt it has much of an impact. Maybe it'll give some pause for thought and you might get some regulatory attention. Still, I'm tuning in for this one.
The assumption has to be that the system being rallied against will make insane profit on the way down surely? It's too good of an opportunity.
Where I could be wrong in my assumption about whether banks can hold this position is that maybe it exceeds something about their regulatory limits due to size or recent volatility, but banks can for a fact go long or short a position as part of facilitation/market making and they do as regular part of business. Or even if it isn't a regulatory limit, I could be wrong about their inclination to even play in this. Maybe they want no part.
But if the short interest reported by exchanges tomorrow or in a few days isn't down significantly, then it likely means that someone else (if not banks then other funds) has taken new short positions in place of those that exited (just remember that Melvin was the biggest fish playing the short but far from the only one, this doesn't all revolve around Melvin). And if that continues, then there will be money made someday from shorting this thing by whoever actually has the capital (and balls) to stomach the near-term pain.
Me making 10 grand from the misfortune of a fund that capitalises on misfortune is not the same as institutional finance making billions off the misfortune of every day people.
You can think I'm a hypocrite if you like, I don't really give a shit. I didn't buy GME last week to stick it to the hedge funds, I bought it because I saw a good opportunity. The preaching only started when they started telling me what I should and shouldn't be doing.
I think you bought it because you like the stock. But...sticking it to the Wall Street wankers must feel extra pleasant.
100%
