All things STOCKS

#7,736
#7,736
Down 6k the past two days with the market shenanigans. I guess thats what happened when you have unrealized gains and are loaded up on calls.
 
#7,740
#7,740
Hoping RH opens up my ability to buy some more GME tomorrow. The legions online are dead set on squeezing this stuff.
 
#7,741
#7,741
Maybe I’m misunderstanding things, but when do the GME shorts come due? At some point the hedge funds aren’t going to have any short positions left right? What happens to all the individual investors stuck holding a $5 stock at $350? Are people hedging these positions for when it goes back down, or am I missing something.
 
#7,742
#7,742
I haven’t bothered to keep up. Shorts have to cover for damage control. That’s what sets the timing, rules about risk. When a short buys the stock for $300, it effectively ceases to exist. That is the ideal case, nobody holding the bag as more shares are imaginary than real due to hedge fund stupidity. there has been discussion about the fact that there are enough victims to go around, but not so much discussion that I have seen about the exit strategy. For those that got in early it’s no problem. They can sell 10% and get a big profit on that, hold the remaining 90% for further punishment. However, that is just me saying that. I’ve read nothing of the sort on WSB but I don’t fully keep up.
 
#7,745
#7,745
ndubvols said:
Maybe I’m misunderstanding things, but when do the GME shorts come due? At some point the hedge funds aren’t going to have any short positions left right? What happens to all the individual investors stuck holding a $5 stock at $350? Are people hedging these positions for when it goes back down, or am I missing something.
Click to expand...

The GME shorts come due tomorrow. It was a giant hedge fund that doing a naked short of 130% of shares available on the market that has to pay up. That information went viral so the individual investors are buying up all the GME they can because the hedge fund has to buy shares to repay their short tomorrow.

Robinhood, for example, stopped allowing buying for individuals so the hedge funds could try to buy shares before they take back off while simultaneously trying to create panic sells for individuals (which did not happen much) to collapse the price back down. There's a theory that there aren't even enough shares out there for this hedge fund to buy on the market to repay what they owe because there were some individuals having success selling their Gamestop shares at $2600+! If there aren't enough shares out and individuals keep holding it basically puts infinite price pressure on GME.

Essentially it looks like that hedge fund did something illegal (but common), individuals caught up on it, and bands of individuals are doing the same thing to the hedge funds that they do to companies and people all the time. It's a rebellion of sorts.
 
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#7,747
#7,747
ButchPlz said:
The GME shorts come due tomorrow. It was a giant hedge fund that doing a naked short of 130% of shares available on the market that has to pay up. That information went viral so the individual investors are buying up all the GME they can because the hedge fund has to buy shares to repay their short tomorrow.

Robinhood, for example, stopped allowing buying for individuals so the hedge funds could try to buy shares before they take back off while simultaneously trying to create panic sells for individuals (which did not happen much) to collapse the price back down. There's a theory that there aren't even enough shares out there for this hedge fund to buy on the market to repay what they owe because there were some individuals having success selling their Gamestop shares at $2600+! If there aren't enough shares out and individuals keep holding it basically puts infinite price pressure on GME.

Essentially it looks like that hedge fund did something illegal (but common), individuals caught up on it, and bands of individuals are doing the same thing to the hedge funds that they do to companies and people all the time. It's a rebellion of sorts.
Click to expand...
That all makes sense based on what I’ve read about it, just wasn't sure when the hedge fund had to buy shares back. Sounds like you wouldn’t want to be holding any GME by the end of next week/maybe two weeks? Theoretically the hedge fund will have closed all their short positions by then and nobody’s going to be wanting to buy a $300 stock right?
 
#7,748
#7,748
ndubvols said:
That all makes sense based on what I’ve read about it, just wasn't sure when the hedge fund had to buy shares back. Sounds like you wouldn’t want to be holding any GME by the end of next week/maybe two weeks? Theoretically the hedge fund will have closed all their short positions by then and nobody’s going to be wanting to buy a $300 stock right?
Click to expand...
The hedge fund can delay the squeeze and pay interest on their short but it's not going to help. They could try to play a waiting game. The stock should eventually normalize but if you bought it at $300 you'll probably have sold it before you lose everything. The scary part about this for Wall Street people, though, is that many in this aren't doing it for the profits but purely for the economic 'violence'.
 
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#7,749
#7,749
ndubvols said:
That all makes sense based on what I’ve read about it, just wasn't sure when the hedge fund had to buy shares back. Sounds like you wouldn’t want to be holding any GME by the end of next week/maybe two weeks? Theoretically the hedge fund will have closed all their short positions by then and nobody’s going to be wanting to buy a $300 stock right?
Click to expand...
The other thing is this is proving to a lot of people that the stock market is just a game manipulated by the big guys. There's really no arguing it at this stage. I mean look at all the ties- RH is largely owned and financed by one of the companies bound to get screwed by this whole thing, and nobody believes Gamestop is worth $300+, and now we know exactly the way these hedge funds will manipulate everything from press to brokerages and on and on in their favor at the expense of the companies they invest in (and other investors).
 
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