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posted ago by FlyinHeadlock ago by FlyinHeadlock +34 / -0

"Let me explain one more time for everyone. This stock is in a infinite short/gamma squeeze with no way out until you get enough sellers at a certain price. It's a loop that only occurs once in a lifetime, and after this new guidelines will be written. So follow along. there is a float of 47 million shares. Cohen bought 13% and had the option of 20% which the float hasn't been adjusted. so lets say he owns 14 million shares because shares outstanding 70 million. Ok so the float is 34 million and this is the number to base everything off. The total shares short when last listed were 70 million. Then you have 2 million CALLS deep IN THE MONEY this is important. The 2 million CALLS represent 200 million shares and if the float is only 34 million then the CALL sellers are net short 166 million followed by the other 70 million shares which gets you at 236 million shares net short. So it's like a spring coil every time the stock goes up the CALL sellers need to delta hedge or buy shares to off set their CALLS, but they can't because really only 34 million available shares. So the stock goes up, CALL buyers buy even more shares, shorts cover some because price rockets. Then the price goes really high the longs decide to sell to lock in some gains causing the stock to go back down, but then when it drops the shorts start covering more causing it to go back up and the CALL Sellers are still way off on the delta hedge. This spring is in a infinite loop causing it to go higher and higher. The only way out because there is not enough shares to buy, is for the price to rise to such a level that people sell in mass. This won't stop until 3 things happen, and all three will cause the price so much higher than right now. 1st they can't short this and they need to cover in mass. 2nd they need to buy back these CALLS in mass and I mean maybe 200K total CALLS outstanding. 3rd they need to drop the short float to like 10-12 million or 30% or below. Lastly they need so many sellers and I mean like millions of people selling. The only way this stops is if everything comes to fruition, but the price is going to be SO much higher than now for these to happen. Gamestop could spit in everyone face when they walk in the door and it's won't matter because this stock is stuck in this insane loop."

Comments (17)
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Miracle_on_Ice 5 points ago +5 / -0

Can I get a Gamestop for Dummies for Dummies? Lol

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Stevie875 4 points ago +4 / -0

ROFL my thoughts exactly. I thought I had a bit of an understanding, now I’m even more confused

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BS2020 2 points ago +2 / -0

saw news the hedge fund closed their shorts was that BS?

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lefty295 2 points ago +2 / -0

From what I heard that was fake news, as well as the "threatening to close the stock market" stuff. I'm not the best source though.

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BS2020 1 point ago +1 / -0

thanks -- looks like its weakly fighting 250. I'm not in this but I am rooting for the longs no doubt! and interested in what this is going to mean for the market overall

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lefty295 1 point ago +1 / -0

Unfortunately, I see very quick action being taken, money talks bs walks and all that. Probably have a new federal agency by Friday.

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FlyinHeadlock [S] 2 points ago +2 / -0

Someone will step into save the criminal 1% it does appear. I hope not. Who doesn't want to see billinaire hedge funds lose billions overnight for being a criminal enterprise.

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Emper 1 point ago +1 / -0

No way they closed their shorts at these prices they'd lose billions. They're playing a game of chicken. Its just depends if WSB can hold the price high enough until the shorts come due. I'd expect the hedge funds to lose big if the price doesn't dip below $60 and it's at $250 right now.

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MyAuntFanny 2 points ago +2 / -0

I wish I understood half of this.

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FlyinHeadlock [S] 3 points ago +3 / -0

If you understand mortgage balloon payments you kinda got it. Somebody is going to loose their ass off when it balloons and someone is going to make an ass load of loot.

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MyAuntFanny 1 point ago +1 / -0

thank you. that helps a bit.

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Bidencrimefamily2020 1 point ago +1 / -0

Still worth getting in gme? Stock noob

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FlyinHeadlock [S] 4 points ago +4 / -0

No. This is a loop between the criminal 1% and a sub Reddit of a couple million people fucking with them. Sit back and enjoy the show.

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Bidencrimefamily2020 2 points ago +2 / -0

Fuk. Could use some extra cash. Fucking covid rekt my biz

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FlyinHeadlock [S] 1 point ago +1 / -0

Thanks Andrea from Yahoo finance conversations. Great explanation.

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usku1976 1 point ago +1 / -0

SO....they committed to buy 100 shares by Date X for market vaule per share. They then sold that commitment to shares at 10$(market value), expecting the market to drop to 4-5$ so they could buy them then, and pocket the difference on Date X.

What happened is the share price got driven up. So now they have to buy the 100 shares at the current market value. Hence, they get screwed.

Pretty sure that sums it up, but it is a bit more complicated.

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Japan4Salt 1 point ago +1 / -0

Yesss