Investment & Investing

This is the guy who started this madness. Went into GME a year ago with approx $50k, sold some to buy more, and is now sitting on >$20 million.

Key word is sitting. He hasn’t cashed out. It’s crazy.

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Trading with this instrument is temporarily suspended - GME

I'm only playing with monopoly money, but can't sell - does that happen often?

All these sites do the same, it happens on the crypto exchanges all the time and they blame it on traffic while they are making bank.

Some would have. Lost track of where I saw it but there was a piece showing that most of the GME positions from the Reddit clan have been built up through call options, which retail investors can only place during trading hours. The moves seen outside of trading hours are apparently largely driven by institutional investors as they are capable of buying call options outside of trading hours through their prime brokers.

It's funny to look back at his posts from late 2019 and see people shitting on him (I guess time will tell whether they're right or not).

I still don't see the endgame here, you (collectively) bankrupt the hedge funds who shorted more than available stock to teach them a lesson then you start selling so you can see the actual profit in your actual bank account (because it's not worth shit until it's sold) and then because everyone does the same the price crashes and those who were late to sell end up getting screwed.

I just can't see it being the happy ending they all seem to think it is.

Really interesting to see it all play out though.

Oh wow one of the other OG guys who went in on it was Michael Burry, same guy that 'The Big Short' is based on.

I can't decide if it's funnier because i'm not in or would be funnier if I was.

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I popped £200 into AMC yesterday

Laughing all the way to the bank.

Michael Burry

yup

LuFGuSS - why are we watching this play out instead of piling into a London-listed stock that’s being shorted?

Based on the golf club thread, kitchen thread and current projects, there’s no shortage of cash sloshing around the forum.

If it's going to crash then it's a good time to short it...

Oh.

cineworld and pearson up today because of this. some of the most heavily shorted shares on the ftse

Yeah, true. I guess that was an overly confident statement I made.

I don't think many people would be surprised if there was a crash some time soon. But I think this GME situation would be merely one domino in one of several chains of dominoes. Obviously the old COVID being the big one.

He has a huge short position in Tesla and is on the other side of it there where he probably got in too early shorting and the stock keeps going up

A butterfly flaps its wings...

I still don't see the endgame here

Isn't everything done for the LOLz?

If it's going to crash then it's a good time to short it...

Oh.

hahahahha

A butterfly flaps its wings and some rich bastard somewhere makes a killing. Seems to be the way of it

In eventually selling to the hedge funds then it's the hedge funds that would be left with the stock (which is how they exit their short positions). So the price is sky high and the hedge funds have the stock.

Which, once the soap opera has played out, is worth a few $ a share again

I'm sure there will be a point where the price is beginning to plummet and many people that bought too late are left with a loss, but the majority of the losses would be with the short sellers and the majority of the wins with the early buyers

Wonderfully put.

Seriously though, I'm not sure how these situations tend to play out.

If the price starts to plummet it's because people are selling in order to realise their gains, but you need people to buy at the high prices in order for that to happen. Someone with a few shares might be able to sell to someone late to the party who is mugged paying $300, but the majority of the sales are going to be made way back down under $100.

I'm guessing that the majority of people who are saying "hold, it's going to go higher" are secretly selling out to the new bunch of people piling in late. It may end up getting to $1000 but only 0.01% of people are going to be able to sell at that price. The rest are going to find they can't get more than $100 for their shares, if that.

Once it starts going down enough the people buying will be some of the short sellers who want to end the uncertainty and cover their short position. They'll make a loss but at least their position will be done and they can move on to the next stock.

The short sellers with the real money (and no pressure from the broker to cover the margin) will just hold out longer as they will eventually be able to cover their positions for a much smaller amount, and possibly even back as a profit. (For example, if they shorted it at $20 originally, drove it down to $3 and got greedy looking for more, they only need to get it back down to under $20 and they can cover their options and still make some money.)

Ultimately the share price will end up back around where it was before all of the shorting began, but how it does that will be interesting.

However, the fun starts up again once it gets under 100% of the float shorted as you might see a new wave of people trying to short it, for the reason that it's currently over-valued and will eventually settle back down to where it was originally.

nice ponzi scheme

nice ponzi scheme, (tech)bro

LuFGuSS - why are we watching this play out instead of piling into a London-listed stock that’s being shorted?

Based on the golf club thread, kitchen thread and current projects, there’s no shortage of cash sloshing around the forum.

If you have a stock in mind I’m interested in hearing more. GME is the perfect storm of a known company that did well a few years ago, but is declining as are most brick and mortar businesses, and had their stock soft-manipulated by a publicly dickish hedge fund manager who was actually out on such a long limb that it was easy pickings for an angry, bored subreddit.

That said, it’s a legit way of making a living if you buy for pennies and sell for pounds. 🤔