A big investor bet that a stock would go down, and they orchestrated giant sales in order to make it so.
It was so profitable that they sold more stock than was even available, which is super-greedy, but not unusual. But we found out.
When you sell a stock expecting it to go down, you are required to buy it back at some point. But because we found out, we bought all the stock there was to buy.
And now, they’re super pissed because we’re playing keep-away with the stock they HAVE to buy- and we’re using Reddit to warn each other about the shady bulk sales and scare tactics they’d normally use to get us to sell.
So as long as we stick together, they’re going to keep losing money, and the price they have to pay keeps going up.
There is no limit to how much money they can lose if we all agree not to sell. So now they’re going on TV and using words like “collusion”, and “fraud” to justify some legal intervention because we’re doing to them what they normally do to us.
Shorts don't expire. You can short a stock as long as you can pay the borrow cost.
If you buy puts or sell calls creating a "short position", then those contracts have an expiration date. Melvin can maintain that position as long as they want up to expiration as long as they put up additional money for margin calls.
Incorrect 140% of the total stock for Gamestock is being shorted by hedge funds (which should be impossible to borrow more stock than exists) so WSB decided to buy a ton of stock so they can't sell it back for a profit and would have to buy it back at their price because they have literally no other option if enough people buy in and hold long enough in theory the gains are infinite
The short squeeze will end eventually. I'd rather fight back bidding up the price of something that has more value. If Gamestop goes bankrupt, creditors are first in line for scraps. Common stock shareholders are last.
Also look at the trading volumes of gamestop each day this week. Multiply that by the average of the high and low prices. That's billions of dollars changing hands. WSB guys are not pushing this, they are just riding a wave. It's a battle of institutional investors. The media want to pretend the little guys are even having any kind of effect at all. It's just hype.
what the hell is happening?
A big investor bet that a stock would go down, and they orchestrated giant sales in order to make it so.
It was so profitable that they sold more stock than was even available, which is super-greedy, but not unusual. But we found out.
When you sell a stock expecting it to go down, you are required to buy it back at some point. But because we found out, we bought all the stock there was to buy.
And now, they’re super pissed because we’re playing keep-away with the stock they HAVE to buy- and we’re using Reddit to warn each other about the shady bulk sales and scare tactics they’d normally use to get us to sell.
So as long as we stick together, they’re going to keep losing money, and the price they have to pay keeps going up.
There is no limit to how much money they can lose if we all agree not to sell. So now they’re going on TV and using words like “collusion”, and “fraud” to justify some legal intervention because we’re doing to them what they normally do to us.
*copypasta from u/deliciousmonster/ on reddit
CNBC even had a hit piece this morning saying the hedge fund had bought its shares back.
The stock plunged for a bit (it's back to all-time high now)
It was fake news, and WSB users used statistics to prove it was impossible
The power of weaponized autism!
It's pretty glorious over there right now.
Do we know who this "big investor" is/was? And when does their short expire?
Melvin Capital.
I forget the name but Friday is the expiration.
Shorts don't expire. You can short a stock as long as you can pay the borrow cost.
If you buy puts or sell calls creating a "short position", then those contracts have an expiration date. Melvin can maintain that position as long as they want up to expiration as long as they put up additional money for margin calls.
Does the interest they pay change depending on stock price?
short sales have an expiration date.
This is the way.
I finally understand. Thanks.
How do you sell more stocks than what's available? May you pleased explain the concept?
Incorrect 140% of the total stock for Gamestock is being shorted by hedge funds (which should be impossible to borrow more stock than exists) so WSB decided to buy a ton of stock so they can't sell it back for a profit and would have to buy it back at their price because they have literally no other option if enough people buy in and hold long enough in theory the gains are infinite
This isn't stock advice btw
So few are mentioning the naked short aspect.
Retail dopes will be left holding the bag of worthless GME shares.
Better way to fight the system is to buy gold or silver because it shows how weak the dollar really is with money printing.
Not if they bought in low. If you bought in the 40 - 60 range youll be fine.
The short squeeze will end eventually. I'd rather fight back bidding up the price of something that has more value. If Gamestop goes bankrupt, creditors are first in line for scraps. Common stock shareholders are last.
Also look at the trading volumes of gamestop each day this week. Multiply that by the average of the high and low prices. That's billions of dollars changing hands. WSB guys are not pushing this, they are just riding a wave. It's a battle of institutional investors. The media want to pretend the little guys are even having any kind of effect at all. It's just hype.