$GME squeeze

Translation?

 

Not a day trader, but...

Market value of $10B+ now? Gamestop!? Hmmm…




"This is the modern stock market. Gambling, not investing. The market has become detached from the underlying economy to such an extent share prices bear no relationship to real earnings."

Hope this is just a hobby. Tread carefully…

 

It used to be just hedge funds involved in these Wall Street battles, Crowdsourcing has officially joined as a player. Stick'n it to the Man.

IN SHORT
Companies that look to be dying like GameStop, Blackberry, Sears, RadioShack etc are often seen as dead meat companies by huge money hedge funds that try to capitalize on their demise, making huge money by heavily "shorting" these stocks in the stock market and profiting as the companies stocks DROP. They are so confident, that they've "bet" BILLIONS of dollars. When the Reddit chatrooms like "WallStreetBets" urge the minions to suddenly BUY, the hedge funds are at risk and are forced to also BUY the stock back to keep from losing their billions (unless they want to wait and hope the stock drops back to zero). This is known as a Short Squeeze. Bottom line is individual traders are profiting bigly from panicked Hedge Funds. Kids are literally making millions.

Background, lots of info and history and "why" here:
How Reddit's WallStreetBets Pushed GameStop (GME) Shares to the Moon - Bloomberg

 

Just make sure you get out before the ceiling crumbles...

 

Does anyone know - How is it possible for GME to have total # of short shares to be greater than the total amount of shares available?

Whatever is going on with the institutional big players has been exposed. I don’t understand how options work, but seems like the community of Reddit is on to something.

 

"Let us say there are 100 outstanding shares of company X held by investor A. Investor B comes in, borrows these 100 shares and short sells them to investor C.

Which means, outstanding shares=100, short interest =100.

Investor B borrows these 100 shares again from C and short sells them to investor D.

So now, short interest is 200 and outstanding shares is 100.

In this case, how can B fulfill his obligation to return the 100 shares to A and 100 shares to C? He can only buy 100 shares but he is short 200 shares"

https://money.stackexchange.com/que...hen-short-interest-exceeds-outstanding-shares

 

In short, someone is gonna get caught holding the bag...
They're starting to slide in the after hours, now that news has surfaced.

https://en.wikipedia.org/wiki/GameStop_short_squeeze

 

So what do we buy next?

I had my best day ever today on AMC, bought a couple weeks ago for $2.20 sold today for $19...

 

-2.6% That's puts the Nasdaq "back" about a week, above last Tuesday's level where it set an All Time High. Just to put it in perspective hookem

 

Radio Shack (RS), Sears(SHLDQ) , and Tootsie Roll (TR) are in play.

 

perspective ?

merely pointing out not all was rosy today

 

yet...see where that "strategy" takes you...good luck

 

Some BK hedge funds were liquidating other positions today, and that helped spook the market. Its related. Not to mention this crazy momentum action reminds all of us of the last few days of the bull market in early 2000. This giddyness is an ominous sign. I'm with you hookem some of these kids will be learning the most expensive lesson of their lives soon, for the same reason the hedgies r getting smoked - poor Risk Management. Experience is the best teacher.

 

blackcloud9 Thank you for the link.

Not really sure who’s A, B, C so I’m gonna assume the big hedge fund guys are the ones with the borrowed shares. What are they selling and who would buy?

What are WSB guys buying, regular stocks or options?

The concept of buying/selling something that’s loaned with minimum upfront cost and to be able to make lots of money sounds too good. Must have a catch somewhere.

 

Don’t go on any trips out of cell phone range in the next week. Might get bloody when people decide to pull out.

hookemdano you are 100% right, today could be the start of a big dip. Tomorrow is going to be a huge sign of the things to come.

 

GME is 292 in the after hours...