OT: Stock and Investment Talk
- Thread starter RU-05
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exactly what they are trying to do. Using short dated options out of the money to force short sellers to cover their shorts forcing a gamma squeeze. This Friday will see how this whole thing shakes out
The traders shorting GME set themselves up for this swing. While no one could have predicted a massive upswing and I don't know at what level some of these guys started their short positions, these traders should have closed their short positions when the stock was $2-3 in September. If you are shorting a stock, your maximum profit would be if the stock reaches $0 and therefore the further upside is limited when GME was at $2-3. Moreover, as a trader, you have to realize that if the short interest is higher than the number of shares in float, then you are at high risk of a short squeeze. The traders shorting this stock got too greedy. That's their own fault.
"Bulls make money, bears make money, pigs get slaughtered"
Maybe next time, traders will be more careful with their short positions.
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Hey we’ll see . Some people will be crushed by the weight of that responsibility and some will flourish. There are talented people around the world, this is a good opportunity for them
Good point. However, technically it isn't the short sellers covering their shorts that create a gamma squeeze. It is the broker writing the call options that need to buy the stock results in the gamma squeeze. Short sellers buying stocks to cover their position results in a short squeeze.
Yes and no, the ultimate goal is to make a shitload of money! Some guys have already made millions, life changing money....but it’s a huge pissing match right now between the shorts and the longs. The TLDR version is: the shorts have shorted 140% of the float of shares they have to buy shares to cover or continue paying interest on the borrowed shares. The longs are holding onto their shares. One of them is going to get destroyed. The shorts were down $10 billion with an almost $3 billion dollar rescue package needed to keep them in business. If the price keeps rising like it has, the shorts will eventually get margin calls and have to buy huge numbers of shares at astronomical prices. The pressure is building and someone is going to blink, I hope it will last! Too the moon!
I started using Venmo when I was 25 or 26 and I think you are overstating the social aspect of it to be honest with you. It became more popular than PayPal because it is easier to avoid fees, withdrawals get from your Venmo account to your bank account faster, and it's easier to use. You don't need to know someone's email address to send or request money, you can type their name and usually they will come up because of past transactions between them and other people you have transacted with, and then you can add them to your contact list to make it very simple to transact with them in the future. Alternatively, if you are physically with the person, one of you can just scan the other person's QR code in the app. Its popularity wasn't because kids are attracted to emojis and seeing what transactions their friends are making, it's just a better app for person-to-person transactions.
Just jumping in here, but I don't know if Venmo is a game changer as much as another brick in the wall. This may be a very big brick? I don't know, but there are so many institutional moves pointing to crypto becoming more and more established.
As an avid BlackBerry user hoping that their new phone comes out before I need to replace my 5-year old Priv, I hope you're right, but with BB already up about 50% this week I feel like I may have missed the boat on this opportunity.
I saw it, checked the stock page, didn't see the growth, so I didn't jump in. But yeah, I remember the post. And I do appreciate the effort.
Sidenote AMC, which has been on fire, continues to be on fire this morning.
Forgive @ScarletNut he's a boomer. But he's trying.
Edit: Seriously though he got me in on GBTC in Sept, so while he may be off on some of the details, he has been right, or at least fairly early, on the crypto thesis.
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Funny stuff.
But seriously old folks, even with their money, taking out their wallet, counting out paper dollar, cashier taking that money, counting out change, giving change to the old folk, the old folk then sorts it, puts dollars into their wallet, and the change into the change purse, all while standing in the middle of the counter, can be an incredibly slow process.
I owned it when this post was posted, then sold it after a bad quarter in the fall. Somewhere around $2.30. Fricker.
The stock will run up unchecked because puts are expensive and no stock to short? Best way to play it is to write uncover calls.
I don't know if this difference changes the outcome, but unlike previous era's this time the barbers, cabbies and shoe shiners, can inject money, trade, take out money, right from a tiny computer that they carry in their pocket.
Got up to 350! In after hour!!!!! Wonder those people that bought at those levels will get to tell their story?
Holy S! I am still rocking a Priv. No joke. I also have a work iPhone, but I love the Priv. It's essentially an Android phone with buttons and BB features.
New target is AMC. It’s a short squeeze created by “flash mob” retail investors. Don’t worry, the smart money is already using calls and puts to manage these positions. The one thing no one is telling these “investors” is that it falls just as fast as it’s going up.
Apparently some of the major short positions on GME had previously taken major short positions on TLSA.
Elon’s just salty.
Thanks. My point was a bit different. I was responding to an assertion that use of Venmo was a game changer for cryptocurrency, and it’s not clear to me that’s the case for reasons I’ve discussed in this thread.
They've been able to do it from their desk for a quarter of a century unless you consider an $8.95 commission ($4.95 for the last 15 years) to be an insurmountable barrier. At this point I wonder what impact Schwab "Slices" and similar programs have. I see both good and bad in those.
And hell, I can go back 30-35 years and remember 25 year olds in my office sign up with what I call a boiler room for a $5-6k account and add 2K of margin to "make big money in penny stocks" with a "broker to talk to", at least until the margin call 6 months to a year later. So much for the down payment.
Hedge fund Melvin Capital has closed GameStop position -spokesman
Hedge fund Melvin Capital Management, which had suffered heavy losses by betting against video game retailer GameStop, has closed out the position and repositioned the portfolio, a spokesman for the firm said on Wednesday. "The social media posts about Melvin Capital going bankrupt are...
I saw that and wish you provided more context at the time. Seemed like a troll post
Love this commentary.
So you're admitting its a store of value?
I still stand by my original game changer comment. Just as covid has help expedite the digital economy, Venmo has done the same for digital transactions. Then add in crypto payments on their platform and ya, I still stand by my gamechanger comments.
Just like Paul Tudor Jones' commentary this year or Bill Miller or Stanley Druckenmiller.
Microstrategy's purchases
Square's purchases & adoption on their Cash App platform
MassMutual buying in
ARKK
Blackrock
Even Cramer is a believer now
The list goes on and on. The gamechangers for BTC that happened simply cannot be ignored. I ignored BTC and thought it was dead until this year. The amount of institutional support getting behind it is simply impossible to ignore at this point.
+1
Looks like an artificial down for cryptos. Good time to buy more if that is your plan.
@bob-loblaw
Yes, it stores value. Not sure how anyone can dispute that. Now, the question is valuation based on that utility. This is the same as TSLA just a car company and valuation based on that.
Yes, it stores value. Not sure how anyone can dispute that. Now, the question is valuation based on that utility. This is the same as TSLA just a car company and valuation based on that.
@bob-loblaw
Rather than responding to your latest response, which included multiple posters, I’ll address your comments towards my posts here.
First, I stated that the issuers would not have their ultimate outcome changed. Issuers are the businesses, not the investors. GameStop is an issuer. Melvin is an investor.
Second, I appreciate your point of view on Venmo, but I don’t agree with it. Venmo has been around for a decade, and it’s impact on cryptocurrency has been minimal. The willingness of individuals and institutions to transact digitally is not synonymous with their willingness to transact with a new form of payment.
Rather than responding to your latest response, which included multiple posters, I’ll address your comments towards my posts here.
First, I stated that the issuers would not have their ultimate outcome changed. Issuers are the businesses, not the investors. GameStop is an issuer. Melvin is an investor.
Second, I appreciate your point of view on Venmo, but I don’t agree with it. Venmo has been around for a decade, and it’s impact on cryptocurrency has been minimal. The willingness of individuals and institutions to transact digitally is not synonymous with their willingness to transact with a new form of payment.
Forgive my naivety on your first point as I misunderstood you.
But it's impact hasnt been minimal. When the announced they would enable there 300 and something mill users to easily purchase btc in late October, the price hovered in the 11k-12k range. In the weeks following saw the price hover between 16k-19k.
In the month of Nov. Paypal & Square purchased 70% of newly minted BTC. That's without the Venmo rollout.
In the interim, I'm off to buy more of the dip.
**Harvard, Yale, Brown, Michigan have all invested part of their endowment in bitcoin**
What does "Gamestonk" mean anyways? "Gamestomp" would mamek more sense I'd think.
Yeah I like the Priv but the battery is toast now, and of course you can't just pop it out and put a new one in like you used to. I'm torn between getting a repair place to install a new battery, going with the KeyOne or Key2, or continuing to charge my phone multiple times a day until the new BlackBerry comes out.
There aren't a whole lot of 25-year olds that have $5-6k just laying around these days, hence the popularity of investing in cryptocurrencies, or more traditional investments through Robinhood since they don't have a minimum initial deposit to open an account. I wanted to start investing when I was in college but quickly learned that I needed at least ten times more money than I had just to open an account.
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No way it was as easy to trade 25 years ago. Certainly wasn't as prominent.
And yeah $9 a trade vs commission free is a huge difference. Opens the doors to high frequency trading.
I certainly made a couple hundred trades last year.
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I've got a couple stories like that.
I've got a couple good stories too, so I'm doing OK.
But yeah that one stings a little.
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