Investment & Investing

does that mean those people who have got caught up in the hype etc deserve to lose their savings etc?

What's the alternative? I think you have to wilfully ignore all the warnings about how you could lose all your money to get to this point.

Restricting access to punters is surely more unfair. The shitmunchers of the world should have a right to gamble in the market and make a boatload of cash, just as a hedge fund does.

(I count myself amongst the shitmunchers if that's not clear, really I mean "common man")

Investing in the 'markets' is a part of the American psyche. No way they ever stop retail investors form operating.

Anyway for the WallStreetBets crew losing money and wrecking your life is something to brag about

Read WSB

How??? Have you tried?! It's harder than following a luffguss thread when puns are happening!

They've stopped new sign ups because of the whole GME situation

I would say that a fair number of people on wsb are encouraging people to pile in so that they themselves can exit their position. That is definitely selfish. Welcome to the markets.

If I was sitting on, say $1000 worth of shares bought at $30 each that are now worth $300 each I'd be looking to get the fuck out of dodge with a sizeable chunk of my $9k profit. (I wouldn't be posting and encouraging people to pile in though.)

Hold/sell needn't be binary though. I'd be looking to make a nice chunk of money and then leave, say, 25% in there in case it has another rally. If that happens then take out 50% to 75% of that and leave a smaller chunk there in case there's yet another surge.

This doesn't really apply to DFV though, he's in it for a longer game (hence April 16th expiry calls). The more it goes up though the more he will make on the way back down so, yes, he'll be pretty vocal for people to stick with it, but that's hardly selling people down the river.

Thanks for this.

I'm staying well away from any of the hype/meme stocks. More looking at investing in a particular area that I'm personally interested in.

I think I might wait until this whole GME thing has blown over anyways.

I would say that a fair number of people on wsb are encouraging people to pile in so that they themselves can exit their position

Same as Bitcoin to a degree in that the asset is only valuable if there’s demand.

I suspect that the intention of giving Wall Street a bloody nose is now secondary for most of these guys.

He's not hedged - he's long delta on the calls, and long delta on the stock. That's the opposte of hedged.

OK, sorry, wrong terminology. I'm in way over my head anyway.

My point is that his [DFV's] position gets stronger even if people hold and the price stays the same, as the short squeeze is costing the shorts daily in terms of 25% pa borrow costs.

Have you guys watched any of his vids? Makes this victory over the 'suits' all the sweeter:

https://www.youtube.com/watch?v=alntJzg0Um4&ab_channel=RoaringKittyRoaringKitty

I'm in way over my head anyway.

You seem eminently qualified to run a hedge fund that shorts a failing games store in that case

It’s not really a victory over the ‘suits’ when black rock have got a decent chunk even if they aren’t involved in this but they will for sure make out it and they are suits.

Yes, but BlackRock are long on the stock, not shorting it way over float.

Teach the egregiously rapacious cunts like C*tr*n a lesson first.

Just saw it hit £506 pre market.. I'm glad im just someone witnessing this and not involved as it would way to stressful.

In an open market - the difference is that he can effectively control the market as he has what Melvin wants (as does Blackrock, by all accounts).

This means they can just not sell when Melvin has to buy, because of margin calls on the borrowed stock (as well as the financing costs on the stock, and on the loans from Blackrock / Citadel etc...)

I suspect there will be some sort of deal between the big stock holders / lenders to divvy up any value in Melvin et al.

Like you, however, I'm pretty much over my head.

You seem eminently qualified to run a hedge fund that shorts a failing games store in that case

Always risk other people's money, and charge fees for doing so.

I'm not sure that a short squeeze would be structurally possible without the big buy side institutions like BlackRock having a piece of the pie, as they're the ones lending securities to the hedge funds.

And take a slice of the gainz.

Do you even 2 and 20?

(Or 3 and 30, in the case of Citadel. Funfax - I worked there for a year. Fuck me, was that a tough and miserable year.)

Exactly. It's still greed, but at least they're profiting from a company that gets to stay above ground, rather than trying to drive down a business with 15k employees during a fucking pandemic.

(as does Blackrock, by all accounts)

That's why I'm surprised it's going on for so long. DFV is small fry compared to BlackRock's holding and so if he doesn't move fast he may be left looking back at his paper net worth and wondering what could have been.

I suspect he'll exercise another chunk of those calls (if not all of them) and be done with it. He'd probably also sell his long holdings and then buy back in once it's all back to normal (if he even cares about the stock market any more after a windfall like that).

No idea what it means for the average schmo who got caught up in this. I need to go read the history of the VW short squeeze to see what happened there, or watch that video above.

He's not hedged - he's long delta on the calls, and long delta on the stock. That's the opposte of hedged.

https://31.media.tumblr.com/0a581e6a8d85f9b65d9b302f4979b292/tumblr_mv72fhs0s41rhe069o2_500.gif

Fuck sakes.

You're so sexeh when you talk French @TW
Tiswas

It is quite stressful, but also hugely enjoyable. :)

This is carnage! Halted already.