The battle over Gamestop is getting really interesting

Folks on WSB are claiming that this CNBC article is pure fake news and damage control.

www.cnbc.com

Melvin Capital, hedge fund targeted by Reddit board, closes out of GameStop short position

Melvin Capital closed out its short position in GameStop on Tuesday afternoon after taking a huge loss, the hedge fund's manager told CNBC.
www.cnbc.com www.cnbc.com

Who knows, but I wouldn't be surprised if CNBC and the likes have always been in on the whole game as protectors of institutional investors.
 
Zefah said:
That's what they say every day until all it comes crashing down!

Personally, I've got some reasonable stop-limit order set up that should guarantee I don't lose too much of my gains.
Click to expand...
A good stop loss to ensure you take some profits is what I would set up if I was going to stay in.
 
AJUMP23 said:
A good stop loss to ensure you take some profits is what I would set up if I was going to stay in.
Click to expand...
Not saying that's a bad idea, but there's been an 80 pt swing already today, but it's still up 80% for the day. What number can you put your limit at with those kinds of swings?
 
BigBooper said:
You are 100% correct I don't understand shorts or options very well, but this is the point I was talking about. "that's the lowest ask price on the board"

People aren't showing that's likely to be the case.
Click to expand...

The thing is there are more stocks being shorted than the available float - effectively, if lots of people try to exit their positions it's absolutely plausible that all the available float will be bought up. Consider our notional investor that bought at $5, got $20 calls and then shorted. Right now, he's constantly bleeding cash to hold the position - if he runs out of cash to pay the margin calls then the trader will liquidate his position at whatever the current price is - this is not too systematically dangerous since all these little broker accounts tend to blow up pretty much randomly.

The really dangerous bit is when the options expire - at that point, there is likely to be a sudden large influx of people all exiting their positions at once (since their losses are capped by calls) - this will quickly absorb all the lowest priced stocks in the market and the only ones left will be extremely high priced - but the MMs will still have to buy them because if they don't they will be unable to satisfy their end of the options contract.

This is exactly why nobody sane should ever get into a situation where you have > 100% short interest - at that point it's a certainty that someone is going to get fucked and all you can do is hope it's not you.
 
BigBooper said:
Not saying that's a bad idea, but there's been an 80 pt swing already today, but it's still up 80% for the day. What number can you put your limit at with those kinds of swings?
Click to expand...
you put it at the numbers that you are satisfied with making a certain percent. And then just don't worry about the what could have been. If I had $1000 in and that became $50000, I would be good.

I saw one WSB that has 700k in and it was up to 13mil. I would be out and take 10mil out of the market and live off it. Then I would use the other 3 mil to goof off with.
 
AJUMP23 said:
you put it at the numbers that you are satisfied with making a certain percent. And then just don't worry about the what could have been. If I had $1000 in and that became $50000, I would be good.

I saw one WSB that has 700k in and it was up to 13mil. I would be out and take 10mil out of the market and live off it. Then I would use the other 3 mil to goof off with.
Click to expand...

The true king DFV took 5M out to fuck off for the rest of his life, still had 23M in yesterday which must be obscene today.

I'd be ok with just that fuck off money...I'd be ok with half that fuck off money lol. This is actually better financial advice than most people get:

 
AJUMP23 said:
you put it at the numbers that you are satisfied with making a certain percent. And then just don't worry about the what could have been. If I had $1000 in and that became $50000, I would be good.

I saw one WSB that has 700k in and it was up to 13mil. I would be out and take 10mil out of the market and live off it. Then I would use the other 3 mil to goof off with.
Click to expand...

I think I would have folded way before if I was in DeepFuckingValue's position. But at the same time, this is a legend in the making. He can enter the 9 digits profits, balls of steel, truely the diamond hand god.
 
Last edited:
Buggy Loop said:
I think I would have folded way before if I was in DeepFuckingValue's position. But at the same time, this is a legend in the making. He can enter the 9 digits profits, balls of steel, truely the diamond hand god.
Click to expand...

There's going to be books and maybe movies about this. That was a Big Short Michael Burry aspergers level call a year early.
 
AJUMP23 said:
you put it at the numbers that you are satisfied with making a certain percent. And then just don't worry about the what could have been. If I had $1000 in and that became $50000, I would be good.

I saw one WSB that has 700k in and it was up to 13mil. I would be out and take 10mil out of the market and live off it. Then I would use the other 3 mil to goof off with.
Click to expand...

Capital gains will take a good chunk of that sadly.
 
www.smarteranalyst.com

A Director at GameStop (GME) is Selling Shares

Today, a Director at GameStop (GME), Kathy Vrabeck, sold shares of GME for $1.4M. Following Kathy Vrabeck's last GME Sell transaction on September 24,
www.smarteranalyst.com www.smarteranalyst.com

Today, a Director at GameStop (GME), Kathy Vrabeck, sold shares of GME for $1.4M.
Click to expand...

Haha. She sold those shares on Jan 15th when one share went for $35.50. If she'd waited two weeks, she could have made $14M. Ouch!
 
LordOfChaos said:
The true king DFV took 5M out to fuck off for the rest of his life, still had 23M in yesterday which must be obscene today.

I'd be ok with just that fuck off money...I'd be ok with half that fuck off money lol. This is actually better financial advice than most people get:

Click to expand...


I would take out 15 to 20 mil. That would be all she wrote. I would probably never look at the stack market again except for ETF and mutual funds.
 
This shit is just printing money.

Grats to those that have this. Imagine having 1000 shares or over who got in early, whew lord!
 
Last edited:
Ya I just tripled my investment. I had $800 lying around uninvested. Bought $100 and sold at $375.

Probably will continue. Shorts expiring on Friday will have to be covered if the price is above a certain threshold. Will continue to grow.
 
I made a risky gamble with some money I couldn't afford to lose the other day, but paper hands'd out at $320. Made a few grand, so I'm happy. Hope it keeps shooting to the moon for the rest of you all.
 
At noon there'll be a lot of action like yesterday I think. Tomorrow will just be insanity, if nearly all calls are ITM Friday, shorters will panic.
 
yugoluke said:
Ya I just tripled my investment. I had $800 lying around uninvested. Bought $100 and sold at $375.

Probably will continue. Shorts expiring on Friday will have to be covered if the price is above a certain threshold. Will continue to grow.
Click to expand...
There is literally not a better mechanism in existence where you can express your disdain for wall street (the market manipulating hedge funds) and make money off of their greed. It is literally a win win.

Also not going to lie. The chicken has come home to roost. Retail investors are getting revenge. The average people who have been told to leave investing to the institutions because it is "too complicated for the average Joe" are now sticking it to them. We don't need people to invest on our behalf.

It was not good enough for these hedge funds to short GameStop from $25 to $4 and pull out making massive profit, but they doubled down to the point where over 140% of the available shares for GameStop were shorted. Essentially shorting allows a company to borrow shares from the bank, sell them at current value to another party, and when the stop goes down they just need to return the stock, regardless of its value. This is all fine and dandy when the stock is decreasing in value, BUT if it increases there is actually no limit to your losses. To cover your losses you must actually purchase the shares you have shorted. This results in a MASSIVE influx of buys and drives the stock even further up. This upward spiral is known as a SHORT SQUEEZE, and that is what is taking place with many companies that have massive short interest.

r/Wallstreetbets has identified these companies (with high short interest) and are targeting them knowing that they can trigger massive short squeezes and profit off of these funds greed.
 
AJUMP23 said:
I would take out 15 to 20 mil. That would be all she wrote. I would probably never look at the stack market again except for ETF and mutual funds.
Click to expand...

I get that, but this guy predicted this a year ago and held firm to everyone telling him he was wrong and losing money, and he's still in. Plus even once he alone executes his calls, that's another gamma squeeze, and Chamath has another 150K of calls, another gamma squeeze.

I'm with the movie above. You put 5M he made in a 3% safe withdrawal fund and live on a comfy 150,000 a year without touching your principal. You're already golden for life, if you're in an expensive area, move. Travel forever, whatever. With the rest he seems aimed at joining the 9 figures club or bust. His life is set already.
 
Last edited:
"The big fishes" are starting to fight back I see:
www.marketwatch.com

GameStop and AMC trading restricted by TD Ameritrade, Schwab, Robinhood others

At least one major brokerage house is starting to respond to a frenetic surge in the price of shares of companies that has been attributed to rabid buying by...
www.marketwatch.com www.marketwatch.com

On Wednesday, TD Ameritrade said it was restricting trading for GameStop and AMC Entertainment Holdings as well as other names, amid a triple-digit percentage surge in the value of those companies in recent days
 
Last edited:
Tommi84 said:
"The big fishes" are starting to fight back I see:
www.marketwatch.com

GameStop and AMC trading restricted by TD Ameritrade, Schwab, Robinhood others

At least one major brokerage house is starting to respond to a frenetic surge in the price of shares of companies that has been attributed to rabid buying by...
www.marketwatch.com www.marketwatch.com

On Wednesday, TD Ameritrade said it was restricting trading for GameStop and AMC Entertainment Holdings as well as other names, amid a triple-digit percentage surge in the value of those companies in recent days
Click to expand...
Go to Robinhood. I was able to place an order a few minutes ago. AMC and Blackberry.
 
I honestly have zero idea of what is going on but I'm seeing blue checks on twitter freaking out and calling for regulation so it must be good. Fuck those assholes. The gaming community is not to be toyed with.
 
Tommi84 said:
"The big fishes" are starting to fight back I see:
www.marketwatch.com

GameStop and AMC trading restricted by TD Ameritrade, Schwab, Robinhood others

At least one major brokerage house is starting to respond to a frenetic surge in the price of shares of companies that has been attributed to rabid buying by...
www.marketwatch.com www.marketwatch.com

On Wednesday, TD Ameritrade said it was restricting trading for GameStop and AMC Entertainment Holdings as well as other names, amid a triple-digit percentage surge in the value of those companies in recent days
Click to expand...
Hmm, me thinks this is market manipulation...
 
TransTrender said:
Hmm, me thinks this is market manipulation...
Click to expand...
Me thinks you are right. Possibly the hedge funds pulling strings to scare the hodlers into selling their shares. As far as I know the worst they could do is changes the options trading rules and make it more difficult to buy calls/puts.

I'm also hearing FUD about a 30-day hold on GME. Seems like hedge funds are going full nuclear with the disinformation.
 
Last edited:
SlimySnake said:
Go to Robinhood. I was able to place an order a few minutes ago. AMC and Blackberry.
Click to expand...
Nah, I'm not getting into this train. Too much for me :messenger_winking_tongue:. That being said, I wish I had hopped on this one like a week ago, when GME was ~66Dol. Then, I'd sell enough to get my investment back and then leave the rest till like 500-600Dol ;)
 
Tommi84 said:
"The big fishes" are starting to fight back I see:
www.marketwatch.com

GameStop and AMC trading restricted by TD Ameritrade, Schwab, Robinhood others

At least one major brokerage house is starting to respond to a frenetic surge in the price of shares of companies that has been attributed to rabid buying by...
www.marketwatch.com www.marketwatch.com

On Wednesday, TD Ameritrade said it was restricting trading for GameStop and AMC Entertainment Holdings as well as other names, amid a triple-digit percentage surge in the value of those companies in recent days
Click to expand...
What extra restrictions though? Looks like it's just the margin requirements, which is better for the squeeze anyways. Is there more to it?
 
saintjules said:
Click to expand...

Haha the federal government is about to collect that capital gains tax. The higher it goes, the more they collect. The more trades that are executed, the more they collect. Factor in the huge deficits they are running and I lean on the side of them letting this story play out until it's end.
 
Last edited:
You must log in or register to reply here.

Similar threads

  • Poll
Kotaku: The Console Wars Are Over And Nobody Really Won
3 4 5 6 7
303
15K
FubukiJ replied
Opinion: Over Infantilization in AAA games is getting out of hand
2
77
6K
RSLAEV replied
Is this new wave of banning video games really the new road?
3 4 5 6 7
320
9K
Thanati replied
Now that the honeymoon is over, how does Super Mario Wonder really rank?
2 3
135
7K
Branded replied
Wild Gate: The Next Generation (of Battle Royale)
35
1K
ultrazilla replied
Top Bottom