Market thing like I'm five?
That’s my BIL’a friendReddit investors caught a hedge fund with their pants down. The Reddit investors capitalized on that and are making them pay dearly. Quite a bit of folks on Reddit made serious bank.
I saw the dude who figured this out put in 50k in and is around 48 million in profits (see pic above my post). Also never forget Stonks go up!
That shit is wild. I’ve been following his daily profit reports and it is insane.That’s my BIL’a friend
The completely fucked the hedge fund with a short squeezeReddit investors caught a hedge fund with their pants down. The Reddit investors capitalized on that and are making them pay dearly. Quite a bit of folks on Reddit made serious bank.
I saw the dude who figured this out put in 50k in and is around 40+ million in profits (see pic above my post). Also never forget Stonks go up!
Yeah, the hedge fund thought the same and those guys figures out and drove the price up and fucked fundIt's currently at $327?
And in the past 3 years has never been above $17?
I'm not gonna lie, I'd like to short this.
He is getting his e-dick sucked something furious on Reddit right now. Instant legend.The completely fucked the hedge fund with a short squeeze
Catching a Hedge Fund overleveraged and out over its skis will do that for you.He is getting his e-dick sucked something furious on Reddit right now. Instant legend.
They are getting bailed out by another hedge fund. Think they gave them $2.7BYeah, the hedge fund thought the same and those guys figures out and drove the price up and fucked fund
He's DeepFuckingValue? Damn.That’s my BIL’a friend
They already lost that too.They are getting bailed out by another hedge fund. Think they gave them $2.7B
There was a hedge fund that was shorting a stock. For a 5 year old, that means they wanted the stock to go down. The hedge fund was shorting the stock because they thought Gamestop was an old, antiquated business model that operated out of strip malls and sold video games on disc drives like cd-rom.What part of "like I'm 5" did you guys not understand.
To add to this, those calls are allegedly expiring on Friday. Meaning the hedge fund has to pay the difference between what they thought the share price would drop to, and what it is on Friday. I think I've read that 136% of the shares were shorted, meaning they fucked up bigly.There was a hedge fund that was shorting a stock. For a 5 year old, that means they wanted the stock to go down. The hedge fund was shorting the stock because they thought Gamestop was an old, antiquated business model that operated out of strip malls and sold video games on disc drives like cd-rom.
However, the hedge funds kind of got ahead of themselves. They were short more shares than actually existed. Basically they were way over leveraged.
As it turns out, Gamestop ended up making a deal with microsoft to distribute games electronically (not 100% sure about this part). Additionally, video games have really taken off during Corona as people dont havet much else to do while at home. At the same time Microsoft and Sony have come out with new consoles which draws customers to the Gamestop stores. Turns out Gametsop wasn't dead afterall.
So, Reddit users got to conversing and determined that Gamestop was undervalued and people should buy the stock. They were in a thread with over 2 million people in it, and they all decided to throw money at the GME stock. The other side of the bet was a hedge fund. As the stock started to rise because of redditors, the hedge funds were forced to close their bets that the stock would go down. In order to do that they actually had to buy the stock which extenuated the circumstnaces. So a stock that was trading $10 a share is now trading $300 plus.
TLDR: reddit nerds beat hedge fund at their own game and hedge funds are crying.
Do it. DO IT. Haha. This is an infinite short squeeze. They are bidding it up and using call options to force higher prices. Basically they are DDOS attacking the stock up. It’s actually pretty ingenious. These short sellers are having to cover as they liquidate their funds.It's currently at $327?
And in the past 3 years has never been above $17?
I'm not gonna lie, I'd like to short this.
I call bullshit. That's the guy from WSB who started this whole thing.There are a bunch of out there.
My brother in law’s friend has a position now worth almost $48M. I told my BIL to tell his idiot friend to sell immediately
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There was a hedge fund that was shorting a stock. For a 5 year old, that means they wanted the stock to go down. The hedge fund was shorting the stock because they thought Gamestop was an old, antiquated business model that operated out of strip malls and sold video games on disc drives like cd-rom.
However, the hedge funds kind of got ahead of themselves. They were short more shares than actually existed. Basically they were way over leveraged.
As it turns out, Gamestop ended up making a deal with microsoft to distribute games electronically (not 100% sure about this part). Additionally, video games have really taken off during Corona as people dont havet much else to do while at home. At the same time Microsoft and Sony have come out with new consoles which draws customers to the Gamestop stores. Turns out Gametsop wasn't dead afterall.
So, Reddit users got to conversing and determined that Gamestop was undervalued and people should buy the stock. They were in a thread with over 2 million people in it, and they all decided to throw money at the GME stock. The other side of the bet was a hedge fund. As the stock started to rise because of redditors, the hedge funds were forced to close their bets that the stock would go down. In order to do that they actually had to buy the stock which extenuated the circumstnaces. So a stock that was trading $10 a share is now trading $300 plus.
TLDR: reddit nerds beat hedge fund at their own game and hedge funds are crying.
There was a hedge fund that was shorting a stock. For a 5 year old, that means they wanted the stock to go down. The hedge fund was shorting the stock because they thought Gamestop was an old, antiquated business model that operated out of strip malls and sold video games on disc drives like cd-rom.
However, the hedge funds kind of got ahead of themselves. They were short more shares than actually existed. Basically they were way over leveraged.
As it turns out, Gamestop ended up making a deal with microsoft to distribute games electronically (not 100% sure about this part). Additionally, video games have really taken off during Corona as people dont havet much else to do while at home. At the same time Microsoft and Sony have come out with new consoles which draws customers to the Gamestop stores. Turns out Gametsop wasn't dead afterall.
So, Reddit users got to conversing and determined that Gamestop was undervalued and people should buy the stock. They were in a thread with over 2 million people in it, and they all decided to throw money at the GME stock. The other side of the bet was a hedge fund. As the stock started to rise because of redditors, the hedge funds were forced to close their bets that the stock would go down. In order to do that they actually had to buy the stock which extenuated the circumstnaces. So a stock that was trading $10 a share is now trading $300 plus.
TLDR: reddit nerds beat hedge fund at their own game and hedge funds are crying.
How do call options drive prices higher? I understand shorts needing to cover due to being overextended.Do it. DO IT. Haha. This is an infinite short squeeze. They are bidding it up and using call options to force higher prices. Basically they are DDOS attacking the stock up. It’s actually pretty ingenious. These short sellers are having to cover as they liquidate their funds.
Don't really understand the whole short sell dynamic but think I am following mostly now. Basically these two fucked up again
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How do call options drive prices higher? I understand shorts needing to cover due to being overextended.
Why would someone short a call option in a situation like this?When you buy calls ... someone (like myself) sells them to you. 1 options gives you control over 100 shares. So when i sell you an option I almost immediately buy some fraction of that 100 shares, say 30 shares, in order to hedge the trade aka limit my exposure. As the stock goes higher, i may have to buy 10 more shares for a total of 40 shares. IF it goes higher than that i may have to buy 10 more shares for a total of 50. So forth and so on until I have to buy the full 100 shares.
SO in essense, it became a self fullfilling prophecy. As the market got higher, the people that sold the calls must buy more stock, causing the stock price to go higher.
Don't really understand the whole short sell dynamic but think I am following mostly now. Basically these two fucked up again
View attachment 4376
Short sell means you sell something you don't have.
The technicalities of it ..... If you don't own a stock but think it is going down, you can borrow the stock from your broker. For instance, TD Ameritrade. If you have an account there and think that Gamestop is going to go bankrupt but is still trading $10 a share ... you borrow the stock at $10 a share from TD ameritrade. When you go to return the stock that you borrowed you hope it is trading less than $10/ share and you reap the difference in profit.
In this case, people borrowed the shares and when they went to return it, it was trading much higher. Say $65/ a share. So you would have to pay the difference between $65 a share and the $10 a share at which price you borrowed it. Thus losing money.
You can short call options to collect the premium, or the hedge funds short them and become short volatility. It is obviously a bad trade in this situation, but bad trades do happen. The more a stock moves, or the more volatile it is, the more the options cost.Why would someone short a call option in a situation like this?
Edit: I'm guessing it's a simple speculative play to keep the premium. But the short then gets booty blasted into covering.
I've made money by watching countless hours of Tastytrade and spending time behind the screen. Nothing large but certainly consistent.You can short call options to collect the premium, or the hedge funds short them and become short volatility. It is obviously a bad trade in this situation, but bad trades do happen. The more a stock moves, or the more volatile it is, the more the options cost.
How many hedge funds are involved? I prob need to dig into the details more.
I can’t fuckin wait to hear that Congress is gonna bail out these hedge funds because of The Big GameStop Short
Reddit, unless your wealthy and have a money manager who’s been manipulating the market for decades.As a 40 something white professional male who am I rooting for here ?