GameStop to the moon!! [rocket emoji]!! - Page 2

Yes, Melvin could just hold and hope that the market crashes. In fact, as of before market open today that's exactly what Melvin are doing. Media and cronies are sending out disinformation. The short squeeze has not happened yet. For me if I can buy a dip at less than $200 then maybe I try to get a bet down and diamond hand sky rocket's in flight afternoon delight. I would be betting on Fidelity where I have never traded before. I would be displeased to click a button on say $190 and end up with a $400 bet. That actually might not even be the end of the world as long as everyone holds for the actual short squeeze but then I am not confident that I would click sell at the right time. Optimally getting bets down where I want to is a leak of mine and has actually cost me quite a bit if I think about it especially in regards to BTC. I need to figure out a way to efficiently automate so I don't even have to worry about it.

I don't think I can get it at sub $200 now. Fuck it, if someone can assure me that I can set up a buy limit at $300 with a sell limit of say $1,000 on Fidelity I'll get some skin in the game to support my Internet brethren.

Fuck it, maybe I don't need assurance and I should just fucking get it done. What would u/DeepFuckingValue do? Let's fucking go!!

I should really get some sleep first though.

u/DeepFuckingValue - Real American Hero - WSJ

Let's fucking go!!

Oh, is today Friday? LOL

Well... Let's all figure this shit out by Monday then.

Oh, btw, I am a bipolar buffoon alcoholic maniac with learning disabilities. All of my posts are based on the fantasy of eating tendies on Mars and are not intended as investing advice or suggestion, etc. I dream of conquering Melvin the Martian so we can safely terraform that son bitch, crack open some Natty Lights and eat oysters. Or we could just make it better here on Earth too. I mean whatever. Go Internet!

On January 29 2021 18:51 RiKD wrote: Oh, btw, I am a bipolar buffoon alcoholic maniac with learning disabilities. All of my posts are based on the fantasy of eating tendies on Mars and are not intended as investing advice or suggestion, etc. I dream of conquering Melvin the Martian so we can safely terraform that son bitch, crack open some Natty Lights and eat oysters. Or we could just make it better here on Earth too. I mean whatever. Go Internet!

can i join ur bipolar club? my physicist thinks i have bi polar too( i don't thnk i do though). i am not an alcohloic maniac with learning disabiitlies though

the earth is bi polar

On January 29 2021 16:22 NewbSaibot wrote: From what I understand short stocks dont have any particular due date. If Melvin wanted to they could have just held on and hoped the market eventually crashes couldnt they? Are they just paying up now because they're genuinely worried GME is gonna hit $1000+?

I think you are referring to short-selling.

Whats going on here is that ppl are shorting GME by using put options, which have an expiration date.

Or maybe the HFs went Short Call Options which also have an expiry.

Not entirely sure but I think that is what is going on.

User was banned for this post.

Hi hiems

They are simply shorting. If you borrow stock at $10 then sell it, you buy back the borrowed share later, which you are hoping is less than what you sold it for. That is your profit as a shot seller. However, if the stock goes to $20, $50, $360... you can see how an investment of say $1 million can easily cost you 36 times your original amount invested. At some point, your limit on max losses are maxed and the $36 million i.e. your position is sold/liquidated. If you have money, great, you can hold on and ride it out. If not, you are forced to buy back shares at a higher price to cover what you can. That's why the stock is rising because as the shorts position was so heavily imbalanced and they cannot afford to hold the position forever as it rises higher, since it continuously pushes to higher and higher limits. The rise on the chart is from shorts being liquidated and effectively buying back stock at a much higher price, in other words, dumping their money into the marketplace. That's why it's a battle of reddit vs the shorts and a lot of the money sitting in the stock right now belongs to the short sellers who lost it by buying back higher, at some point it'll have to drop because it bears no relation to the value of the company long term but as it flies around between $260 and $580, good luck to the short sellers willing to try find the point it crashes with a group determined to push the price to liquidate you

On January 30 2021 16:39 ggplz wrote: They are simply shorting. If you borrow stock at $10 then sell it, you buy back the borrowed share later, which you are hoping is less than what you sold it for. That is your profit as a shot seller. However, if the stock goes to $20, $50, $360... you can see how an investment of say $1 million can easily cost you 36 times your original amount invested. At some point, you can't pay the $36 million and your position (shares) are liquidated. If you have that money, great. If not, you are forced to buy back shares at a higher price to cover what you can. That's why the stock is rising because as the shorts position was so heavily imbalanced and they cannot afford to hold the position forever, it continuously pushes to higher and higher limits. The rise on the chart is from shorts being liquidated and effectively buying back stock at a much higher price, in other words, dumping their money into the marketplace. That's why it's a battle of reddit vs the shorts, because the money literally sitting in the stock right now belongs to the short sellers who lost it, at some point it'll have to drop because it bears no relation to the value of the company long term but as it flies around between $260 and $580, good luck to the short sellers willing to try find the point it crashes with a group determined to push the price to liquidate you

hm yeah I understand how shorting a stock works, I just thought they were short calls or something because ppl keep talking about options, gamma, stuff expiring, etc.

As far as I understand that, options calls are contracts between you and the market maker (i don't trade them) and to make that work the market maker have to take the other side of the transaction by buying stock to control their risk and profit. So if reddit users are buying option calls, the market maker has to buy stock for their side of the transaction, which drives the price higher due to supply/demand.. and in turn squeezes shorts even harder to close their positions as their account limits get hit and positions automatically liquidated/sold to the market. That's why this setup is so ridiculous because they borrowed so heavily at 140% of the stock and what do they have to do when they liquidate? Buy back shares. Many of the shares were owned by long term investors and likely not to be traded readily, so the price rises also due to that and boom, you have this ridiculous rise that would probably be way higher if it wasn't for the actions of brokers worrying about market liquidity

On January 30 2021 17:16 ggplz wrote: As far as I understand that, options calls are contracts between you and the market maker (i don't trade them) and to make that work the market maker have to take the other side of the transaction by buying stock to control their risk and profit. So if reddit users are buying option calls, the market maker has to buy stock for their side of the transaction, which drives the price higher due to supply/demand.. and in turn squeezes shorts even harder to close their positions as their account limits get hit and positions automatically liquidated/sold to the market. That's why this setup is so ridiculous because they borrowed so heavily at 140% of the stock and what do they have to do when they liquidate? Buy back shares. Many of the shares were owned by long term investors and likely not to be traded readily, so the price rises also due to that and boom, you have this ridiculous rise that would probably be way higher if it wasn't for the actions of brokers worrying about market liquidity

yeah I don't trade options either.

yea, from what I learned being short calls is basically taking the other side of the call option and making money on the issuance of the contract betting either the contracts expire outofthemoney/can't beat the rake.

idk afaik this seems like what the HFs are doing rather than a traditional short of a stock but yeah the part I am confused about is exactly how this drives the stock price higher when their position worsens. Understanding this mechanism on the simple "short the stock" model is alot easier/simpler but I am a bit confused on the options part of it maybe your right tho they are just shorting the stock.