The $GME gamestonk thread

Discussion in 'Politics & Current Events' started by mbardu, Jan 27, 2021.

  1. mbardu

    mbardu SS.org Regular

    Messages:
    3,342
    Likes Received:
    2,886
    Joined:
    May 21, 2013
    Location:
    California
    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...

    rocket.png

    Discuss
     
  2. Demiurge

    Demiurge Intrepid Jackass

    Messages:
    5,196
    Likes Received:
    2,544
    Joined:
    Dec 25, 2005
    Location:
    Worcester, MA
    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?
     
  3. SpaceDock

    SpaceDock Shred till your dead

    Messages:
    3,640
    Likes Received:
    1,827
    Joined:
    Apr 12, 2009
    Location:
    Windsor, CO
    Come on guys! Can’t we collectively drive up some crappy stock to make us all rich bastards overnight?
     
    Crungy, Edika, DiezelMonster and 3 others like this.
  4. BenjaminW

    BenjaminW SS.org Regular

    Messages:
    1,374
    Likes Received:
    1,817
    Joined:
    May 9, 2017
    Location:
    San Francisco, California
    TO THE MOON BABY!

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

    steinmetzify CHUG & SLUDGE

    Messages:
    5,949
    Likes Received:
    2,667
    Joined:
    Jun 2, 2012
    Location:
    In the shadow of a mountain near SLC UT
    '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.
     
  6. Mathemagician

    Mathemagician SS.org Regular

    Messages:
    4,628
    Likes Received:
    4,146
    Joined:
    Jul 6, 2014
    It’s a short squeeze on aggressive Hedge funds. It’s going to make a great case study.
     
  7. jaxadam

    jaxadam SS.org Regular

    Messages:
    3,367
    Likes Received:
    3,038
    Joined:
    Aug 14, 2006
    Location:
    Jacksonville, FL
  8. StevenC

    StevenC Javier Strat 8 2022

    Messages:
    6,304
    Likes Received:
    6,715
    Joined:
    Mar 19, 2012
    Location:
    Northern Ireland
    We've been doing it with used Prestiges for years!
     
    Splenetic, Edika, Thaeon and 18 others like this.
  9. steinmetzify

    steinmetzify CHUG & SLUDGE

    Messages:
    5,949
    Likes Received:
    2,667
    Joined:
    Jun 2, 2012
    Location:
    In the shadow of a mountain near SLC UT
    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.
     
  10. mbardu

    mbardu SS.org Regular

    Messages:
    3,342
    Likes Received:
    2,886
    Joined:
    May 21, 2013
    Location:
    California
    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.
     
    Thaeon, fantom and USMarine75 like this.
  11. InfinityCollision

    InfinityCollision SS.org Regular

    Messages:
    2,266
    Likes Received:
    407
    Joined:
    Jun 19, 2012
    Location:
    Atlanta, GA
    Very possible. Still notable that shorting funds lost billions on this, but the aftermath of this pump & dump likely won't be pretty either.
     
  12. mbardu

    mbardu SS.org Regular

    Messages:
    3,342
    Likes Received:
    2,886
    Joined:
    May 21, 2013
    Location:
    California
    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.
     
    Thaeon, Demiurge and SpaceDock like this.
  13. Womb raider

    Womb raider Drink from the goblet, the goblet of gore

    Messages:
    409
    Likes Received:
    511
    Joined:
    Jan 12, 2016
    Location:
    Chicago
    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.
     
  14. BenjaminW

    BenjaminW SS.org Regular

    Messages:
    1,374
    Likes Received:
    1,817
    Joined:
    May 9, 2017
    Location:
    San Francisco, California
    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!
     
  15. Womb raider

    Womb raider Drink from the goblet, the goblet of gore

    Messages:
    409
    Likes Received:
    511
    Joined:
    Jan 12, 2016
    Location:
    Chicago
    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.
     
  16. mmr007

    mmr007 (anti)Social Influencer

    Messages:
    1,102
    Likes Received:
    2,062
    Joined:
    Aug 13, 2010
    Location:
    SoCal
    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.
     
    DiezelMonster likes this.
  17. Xaios

    Xaios Foolish Mortal

    Messages:
    10,808
    Likes Received:
    3,782
    Joined:
    Dec 3, 2007
    Location:
    Nimbus III
    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?
     
  18. spudmunkey

    spudmunkey SS.org Regular

    Messages:
    6,044
    Likes Received:
    9,088
    Joined:
    Mar 7, 2010
    Location:
    Near San Francisco
    20210127_235850.jpg
     

    Attached Files:

  19. X1X

    X1X SS.org Regular

    Messages:
    103
    Likes Received:
    121
    Joined:
    Dec 22, 2020
    It's interesting to see how this develops. Discord banned wallstreetbets for "hatespeech". Now that's not transparent at all :)
     
  20. possumkiller

    possumkiller Square Dance Caller

    Messages:
    5,628
    Likes Received:
    5,145
    Joined:
    Sep 12, 2008
    Location:
    Danzig
    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?
     

Share This Page