Stock Market/Investing/Day Trading/Speculative Trading Thread

[That SOB Van Owen]

Lol what? So once they crush the evil short suits and they hold shares of Gamestop at a cost basis of 200 bucks all is well?

Huh? The play is to sell back to the short sellers at some point. Yes price will go back to single digits at some point, but the hope is to essentially sell your shares back to the shorts at a high price. At that point you are no longer holding GME.

 

[BingoDingo]

Huh? The play is to sell back to the short sellers at some point. Yes price will go back to single digits at some point, but the hope is to essentially sell your shares back to the shorts at a high price. At that point you are no longer holding GME.

Yeah, I mean I get that is the consensus understanding from folks doing this, but it's clearly not a simple play like that. The buyers aren't all short sellers (and likely won't be when folks have to exit their trades) - most now are primarily folks who seem to think they will offload to shorts exactly the way you claim above. Most all HFs aren't going to have their fund crushed or get squeezed out and their risk strategies allow them to outrun almost all this insanity. They also have a lot of friends on this trade.

Eventually you're going to get to a point where momentum stalls and sellers are going to have to make a decision to exit the trade or lose their asses. I get that the "hope" is that everyone seemingly gets lucky and is able to sell their shares to these presumably desperate short buyers above their c/b, but I think that's absolute insanity...look at the volume from today - so many folks still yolo trading above $300.

What happens if you get a 30-40% drawback and now a large amount of folks doing this trade are underwater? Do they keep buying to improve their positions? Or do they exit the trade and take the loss? What happens when it's clear that the price action and momentum are gone? Do people "hold the line" or do they take profits where they can? At that point who are the sellers offloading these shares to? Shorts? Or other sellers? Theres a whole lot of ways this ends very bad for a lot of people, and a very small amount of ways this goes the way WSBs guys think it will. It would be rather ironic and hilarious to see WSB traders having to buy puts to hedge their way out of this strategy though...

 

[cwessel76]

I'm sure others can explain this better, but.....

1. Game stop is in a short squeeze. It is common to short a company you think is going down. When a company gets run up and has a large amount of people shorting it the shorts will try to cover. By doing this they have to buy shares at the current price. Driving the price through the roof.

2. My post is about somebody who bought 50 call option contracts on game stop. Call options allows you to buy a stock at a given price ($115) by a given date. Each contract is worth 100 shares. Gme is trading $209 after market. So you made stupid money on this

Bro made around half a million dollars if he got out at that price.

 

[cwessel76]

Huh? The play is to sell back to the short sellers at some point. Yes price will go back to single digits at some point, but the hope is to essentially sell your shares back to the shorts at a high price. At that point you are no longer holding GME.

So essentially this is a legal Ponzi scheme.

 

[BIG TONE SOPRANO]

Thought I’d start a thread for investing/trading. We can discuss ideas and where we think things are going.

for the last year and a half or so, I’ve dedicated a portion of my Roth space to a variant of the leveraged ETF strategy using UPRO, TQQ, and TMF. It’s worked out very well.

Ive also done well buying Futures on the S&P, Russel and Nasdaq lately. I don’t really day trade them, but I’m not leveraged incredibly highly either. May take a small short position soon, but will probably wait until after stimulus is passed.

trust me, there aren’t that many high rollers. The majority of the population is in debt up to their eyeballs and is a paycheck away from being kicked out of their homes

 

[Dell Husker]

Robinhood shut down the purchase of NOK. I bought some shares yesterday because fuck it

 

[cwessel76]

Robinhood shut down the purchase of NOK. I bought some shares yesterday because fuck it

Beating Wall St at their own game has to be extremely satisfying. I just have no idea what I would be doing, hence why I’m sitting this one out.

 

[BingoDingo]

Robinhood shut down the purchase of NOK. I bought some shares yesterday because fuck it

Looks like they restricted purchase of stock/options of all the WSB plays. Ooooooof.

 

[Dell Husker]

Looks like they restricted purchase of stock/options of all the WSB plays. Ooooooof.

They went from “for the people” to “against the people” reallllllly quick

 

[BingoDingo]

They went from “for the people” to “against the people” reallllllly quick

Haha, you know they are getting it from all sides now. Sucks to be them for sure...trying to make sure they aren't losing customers and not trying to lose current/future investors, as well as not maintaining eye contact with the SEC lol.

 

[BingoDingo]

Y'all should have bought some doge

 

[Red Finger]

Y'all should have bought some doge

I got some.

 

[BingoDingo]

I got some.

I have about 21k coins...cost me 20 bucks back when I bought. Gonna ride them to the moon, dude.

 

[BingoDingo]

Welp, some folks are fucked beyond belief. Imagine buying $450 GME calls yesterday, lol.

 

[BingoDingo]

Yeah, I mean I get that is the consensus understanding from folks doing this, but it's clearly not a simple play like that. The buyers aren't all short sellers (and likely won't be when folks have to exit their trades) - most now are primarily folks who seem to think they will offload to shorts exactly the way you claim above. Most all HFs aren't going to have their fund crushed or get squeezed out and their risk strategies allow them to outrun almost all this insanity. They also have a lot of friends on this trade.

Eventually you're going to get to a point where momentum stalls and sellers are going to have to make a decision to exit the trade or lose their asses. I get that the "hope" is that everyone seemingly gets lucky and is able to sell their shares to these presumably desperate short buyers above their c/b, but I think that's absolute insanity...look at the volume from today - so many folks still yolo trading above $300.

What happens if you get a 30-40% drawback and now a large amount of folks doing this trade are underwater? Do they keep buying to improve their positions? Or do they exit the trade and take the loss? What happens when it's clear that the price action and momentum are gone? Do people "hold the line" or do they take profits where they can? At that point who are the sellers offloading these shares to? Shorts? Or other sellers? Theres a whole lot of ways this ends very bad for a lot of people, and a very small amount of ways this goes the way WSBs guys think it will. It would be rather ironic and hilarious to see WSB traders having to buy puts to hedge their way out of this strategy though...

Uh...

 

[Baron Winnebago]

Welp, some folks are fucked beyond belief. Imagine buying $450 GME calls yesterday, lol.

Can you dumb this all down for me? Or tell me if my dumbed down understanding is correct.

-Reddit sub decides to buy a fuckton of gamestop and drive the price up
- Hedge funds had short sold gamestop so they had to buy it back (now at a much higher price than they'd expect for gamestop)
-Gamestop stonk is now a runaway train and people keep buying imagining there is an infinite pool of people who have to buy back gamestop at some point.
-fun times are unlikely to be had by all

 

[BingoDingo]

Can you dumb this all down for me? Or tell me if my dumbed down understanding is correct.

-Reddit sub decides to buy a fuckton of gamestop and drive the price up
- Hedge funds had short sold gamestop so they had to buy it back (now at a much higher price than they'd expect for gamestop)
-Gamestop stonk is now a runaway train and people keep buying imagining there is an infinite pool of people who have to buy back gamestop at some point.
-fun times are unlikely to be had by all

Yeah, that's basically it haha.

 

[Baron Winnebago]

Yeah, that's basically it haha.

We really fucked over those hedge fund doods. Unrelatedly, anyone know if I can pay for gas with gamestop stock I paid $350 a share for?

 

[Woodrow F Call]

Anybody here on reddit much? If so, see if you can get them over to CME since NYSE is shutting them down. Convince them to get long April and June Live cattle. Short some March corn for about a 3 weeks too please. TIA

 

[TrentMilfer]

AMC is startin to climb boys, hop on now!