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Thoughts on the gamestop short squeeze
 
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Backalleybuttlove
Super Regular
Crack-Powered Capper

P: 01/28/2021 14:20 EST
   
Poll: What are your thoughts on the Game Stop short squeeze? Are any of you in?
Too crazy, not touching with a 10ft pole (62%)
Don't have money to invest (8%)
I put a little in (15%)
I put a lot in (15%)
Poll has ended (it ran for 7 days). 13 total votes.
Some people are calling this the short squeeze of the lifetime. Basically people shorting the stock got screwed by amateur retail investors. A hedge fund making money off companies going under lost billions of dollars. I can't believe what I'm seeing.
  
gg#4
Super Regular
Killer Scout

P: 01/28/2021 14:30 EST
    Hedge funds dont go under. They just get bailouts.

I love it though...Seeing them getting fucked the same way they fuck the common joe in the stock market every day.

I like that Mark Cuban, Elon Musk, Winklevosses and other billionaires are gettin in on the fucking.

Robinhood apparently is not allowing people to buy the stock and taking money out of peoples accounts right away so they dont get stuck footing the bill
  
Prelude to Agony
Super Regular
Sniper Harassment
Duty

P: 01/28/2021 17:43 EST
   
Backalleybuttlove wrote:
Some people are calling this the short squeeze of the lifetime. Basically people shorting the stock got screwed by amateur retail investors. A hedge fund making money off companies going under lost billions of dollars. I can't believe what I'm seeing.
If I could have got in early, I would have, definitely. Insurance will ensure it's paid when all is said and done.

I lol'd when I did see it though...that's how you eat the rich.
  
Ignorant_Florist
Daycare Manager
Pipebomb Monkey

P: 01/28/2021 17:58 EST
    I'm with GG and PTA. If I had known about this, I'd have jumped in a heartbeat.

The difference between this, and the usual "fucking of the people" is that this was just a shitload of individuals doing the fucking. It doesn't count as "insider trading", because it was completely organized in a public setting(as I understand it). Pretty much anyone could have gotten in on it, but it screwed the rich something fierce.

I hear that one guy invested $50k, and cashed out for millions. While I'm sure he had the money to blow, he is still one of those who put the screws to the uber-wealthy, and I'm actually okay with it.

I'd be willing to bet money that Wall Street figures out some way to prevent this from happening in the future. Can't be having "poor people" making the rules, here.
  
Prelude to Agony
Super Regular
Sniper Harassment
Duty

P: 01/28/2021 18:16 EST
    Apparently they're telling each other to hold the line. That the peak won't come until Monday or Tuesday. From what I understand, investors are forced to buy at some point Friday or Monday. I don't understand it enough, sadly.

That said, apparently AOC, Ted Cruz and Trump Jr all agreed that it was unacceptable that Robinhood put a stop to GME trading. Hell hath frozen over.
  
moose poop
Super Regular
Body Splatter

P: 01/28/2021 18:47 EST
    not necessarily "buy" but they may have to cover, or pay something; but on the company books of the hedge fund this is a huge paper debt

hope this explains a little bit:

Let's use an example to demonstrate it. Say you've been reading up on Company X, and you're certain the value is going to go down, and soon. A lot of investors who believe that simply won't touch the stock. A short-seller, though, will act.

Company X shares are currently worth $100 each. The short-seller may borrow 20 shares from their lender or broker, and then sell them. 100 x 20 = $2,000.

Perhaps X's shares fall down to $80. The short-seller buys back the shares and has made a profit. How much? Well, there were 20 shares, and each share declined $20. $20 x 20 shares = a net profit of $400.

That, of course, is the profit made if the short-sale goes how you assumed it would go. It doesn't always. This short-seller might have been wrong, and instead a big week for Company X leads the shares to increase to $110. Now afraid that the shares will continue to rise, the short-seller decides to purchase the shares back before he incurs any more losses. Now, instead of multiplying a profit of $20 by 20 shares, they're multiplying a loss of $10 increase in price by 20 shares they must repay. Their loss is $200.
  
Matt_tfc
Super Regular
Shotgun Quick
Draw

P: 01/28/2021 19:04 EST
    Incoming class action law suit against Robinhood and other trading platforms who halted buying of stocks. We need to tar and feather the billionaires that made Robinhood shut it down. I love that their company name means absolutely nothing now, pretty ironic, hehe.  
angry_salad
Super Regular
Medic Capping
Service

P: 01/28/2021 20:45 EST
    I bought in today, 6 shares @ $362/sh. This is in my "play" account where I do all of my long shot stuff. I'm going to buy one more share at open tomorrow and then place a sell order for all with a limit of $1,500 or more, haven't decided yet.

Hold that shit boys and girls and stick it to the man.

https://isthesqueezesquoze.com/
https://www.bbc.com/news/business-55837519
  
angry_salad
Super Regular
Medic Capping
Service

P: 01/28/2021 20:47 EST
   
Prelude to Agony wrote:
Apparently they're telling each other to hold the line.
https://www.reddit.com/r/wallstreetbets/
  
Ignorant_Florist
Daycare Manager
Pipebomb Monkey

P: 01/28/2021 21:10 EST
   
moose poop wrote:
not necessarily "buy" but they may have to cover, or pay something; but on the company books of the hedge fund this is a huge paper debt

hope this explains a little bit:

Let's use an example to demonstrate it. Say you've been reading up on Company X, and you're certain the value is going to go down, and soon. A lot of investors who believe that simply won't touch the stock. A short-seller, though, will act.

Company X shares are currently worth $100 each. The short-seller may borrow 20 shares from their lender or broker, and then sell them. 100 x 20 = $2,000.

Perhaps X's shares fall down to $80. The short-seller buys back the shares and has made a profit. How much? Well, there were 20 shares, and each share declined $20. $20 x 20 shares = a net profit of $400.

That, of course, is the profit made if the short-sale goes how you assumed it would go. It doesn't always. This short-seller might have been wrong, and instead a big week for Company X leads the shares to increase to $110. Now afraid that the shares will continue to rise, the short-seller decides to purchase the shares back before he incurs any more losses. Now, instead of multiplying a profit of $20 by 20 shares, they're multiplying a loss of $10 increase in price by 20 shares they must repay. Their loss is $200.
That might be a bit TOO simplified. It's pretty accurate, but doesn't cover everything. For instance; there's apparently a time limit on when that "borrowed" share has to be paid back. I found a meme that explains it all pretty well, and in "laymens" terms... but I no longer have somwhere to upload it for easy access. Imgur is being a real shit lately.

Also, this kind of thing is illegal for companies to do("insider trading"), but is perfectly legal for groups of individuals to do, which is where the problem comes in.

You can bet that Wall Street is about to drop a metric fuck-ton of new regulations to prevent "individuals" from pulling this shit off again. It was more or less(as I understand it) organized on Reddit. Again, not illegal, but because "poor people" figured out how to manipulate the market, you can bet your ass that they(Wall Street) will figure out a way to put a stop to it.

This should tell you just how rigged the system really is. If/when Rich People do this, no one goes to jail. When poor people do it... it's not cool and something has to be done about it.
  
angry_salad
Super Regular
Medic Capping
Service

P: 01/28/2021 21:35 EST
    The simpler answer here is that large funds with more cash and credit at their disposal than your or I means that a single transaction from them can result in a significant price change.

Now, shift that power to the smaller investor with one huge BUT => millions of smaller investors are buying GME en masse, one share at a time. All of these smaller investors - you and I - have formed our own distributed fund, rowdy and incoherent as it is.

Read my link above regarding the short squeeze, it's informative on a quite simple level.
  
Matt_tfc
Super Regular
Shotgun Quick
Draw

P: 01/29/2021 05:11 EST
   
angry_salad wrote:
Prelude to Agony wrote:
Apparently they're telling each other to hold the line.
https://www.reddit.com/r/wallstreetbets/
Hard to *hold the line* when Robinhood sells peoples stocks without permission. That use to be called theft in the good old days.

Robinhood allowed retail investor to only sell the stock, but hedge funds had *no restrictions*. So the only people buying the designated stock on Robinhood were the hedge funds, they covered their short position for which they would have to have paid a far higher price if the retail buyer was not blocked. Totally blatant criminal behavior by Robinhood for which they certainly should go to jail. Their explanation that they were trying to *protect* the retail investor is lying through their teeth, that is what companies say when they screw the customer.

So, one set of rules for the elite and one set of rules for the poor and middle class. When the elite talk about equality I think they mean they want the peons equality poor. They don't want us to succeed and they never wanted to share the wealth.

This really is eye opening.. Free Market Capitalism is an illusion, try Capitalist Oligarchy, or the term *inverted totalitarianism* which pretty much portrays a system where corporations have corrupted and subverted democracy and where economics bests politics.
  
EnginGhent
Super Regular
Crack-Powered Capper

P: 01/29/2021 06:55 EST
E: 01/29/2021 06:58 EST
   
angry_salad wrote:
The simpler answer here is that large funds with more cash and credit at their disposal than your or I means that a single transaction from them can result in a significant price change.

Now, shift that power to the smaller investor with one huge BUT => millions of smaller investors are buying GME en masse, one share at a time. All of these smaller investors - you and I - have formed our own distributed fund, rowdy and incoherent as it is.

Read my link above regarding the short squeeze, it's informative on a quite simple level.
It's not as one-sided as it's being portrayed.

Obligatory - I believe Robin Hood, nor any institution, should prevent access to any equity.

That said - the really subtle point, is that Robin Hood let people trade on margin. In that scenario, RH loans you the money, but you're on the hook to pay it back.

Even in a short squeeze, eventually the knife falls. That's fact. So if you're the guy that went on margin for 2k, to purchase 5-6 shares of GME, and it doesn't catch a sale on the way back down to realistic prices, YOU are responsible for that money lost.

Considering most Americans are 1-2 paychecks away from poverty - there is a legitimate reason for RH to prevent some people from making these trades.

The problem is that
1. They shouldn't have let common people go on margin
2. Despite user volume in all of 2020 leading up to this, they didn't appropriately take out the necessary credit lines of risk to mitigate the in-the-middle-position that they're in.

They're at fault, for sure - though the measures they've taken to protect their users are the same, and equally important measures they're taking to protect themselves.

My personal viewpoint - we've been through a traumatizing political cycle for many. We're in the middle of a traumatizing pandemic ravaging the nation. An economic crisis is not something the country needs.

Edit - AND this is massively effecting the market. People are taking out money from all the other equities to purchase GME. ETFs that are designed to handle extreme volatility are getting swung around.

What's more problematic is that once GME is gone, the pressure / Eye-of-Sauron is going to fragment into a race of pump-and-dumps. It's already happening between AMC/BB/Dogecoin/BBBY/NAKD.

The market has never been rational, though this has addeed a whole cauldron of irrationality to it.
  
straightcashhomie
P: 01/29/2021 10:34 EST
    I bought in relatively early.
Sold off. Made $$.

Rebought.

...

..
.
HOLD THE LINE.
DIAMOND HANDS.

WE AINT FUCKIN LEAVIN'
  
angry_salad
Super Regular
Medic Capping
Service

P: 01/29/2021 11:16 EST
    I LIKE THIS STOCK.  
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Forums > General Discussion (Archives) > Thoughts on the gamestop short squeeze