The most requested community in the past week: WallstreetBets
We've been following the situation, not wanting to release a WSB community without having their mods onboard. Well, we still don't have their mods on board. We talked to them in mid-2020, but never came to an agreement.
We hope that they don't get banned from Reddit (we'd pick up a good portion of that traffic, so don't do it, Steve.)
Having said that... the WSB Discord server just got banned (for hate, by the way), and it's very possible that the subreddit suffers the same fate...
Our unofficial WSB Win site:
https://wsbets.win/ or c/wsbets
We've had some well known WSB users reach out asking for us to set this up, and even some people who have been involved in the running of WSB, but to be very clear, this is NOT officially affiliated with the WSB subreddit (but we'll hand it over to them when they want it)
Update: WSB is NOT banned on Reddit. It's private, which is normally a decision by the moderators.
Just so everyone knows this is what happens in a short squeeze. It's confusing but let me try to explain.
Let's say AMC is trading for $5 and I tell you next week I'll sell you 100 shares of AMC for $20 a piec, for a fee. I don't own them, but to me it doesn't matter because I'm basically positive i won't need to follow through. I do collect the fee for giving you this opportunity though.
So when next week rolls around AMC has gone way way up, say it's at $50 now per share. But I collected that money from you so I have to let you buy 100 for $20. In order to do so I need to buy the shares for $50.
That is the exact description of a naked short getting covered. It was naked because I sold you the opportunity without having the shares. If I have the shares it is called a covered call.
Now in our example let's say I sold so many of these naked calls that they represent 50million shares. But let's say AMC only has issued 40million shares. Now let's say that on the open market there are generally 1-2 million sold every day, but a bunch of autistic retards get together and buy up those 1-2 million shares because they see I sold more than I could possibly repay.
That is the situation. This is called a short squeeze because there are not anough shares and the price will get squeezed up and up and up because I have to repay the shares but no one wants to sell them to me. So the price keeps going up. And up. And up.
I hope this helps.
What is to stop more shares being issued?