Gamestop

[Bonerfarts]

Anyone familiar with WallStreetBets on Reddit? They are causing an epic short squeeze on Gamestop. Gamestop up 62% today. There was a huge amount of shorted shares (since this company sucks). The reddit page saw the short interest and also a small float. They bought up most of the shares. An outside investor is also taking over leadership which caused a catalyst for the squeeze.

There's a few posters who turned themselves into millionaires today.

 

[Funky Bunch]

Anyone familiar with WallStreetBets on Reddit? They are causing an epic short squeeze on Gamestop. Gamestip up 62% today. There was a huge amount of shorted shares (since this company sucks). The reddit page saw the short interest and also a small float. They bought up most of the shares. An outside investor is also taking over leadership which cause a catalyst for the squeeze.

There's a few posters who turned themselves into millionaires today.

I don't think they're the ones causing the surge. It's the people who shorted the stock covering. Over 100% of the shares are shorted. Volume is 11x average in a little over half a day of trading. This is crazy. Wish I would have bought some.

 

[Bonerfarts]

Yeah, they didn't necessarily cause it, but they sure predicted it. I've been reading and seeing memes about this short for months. I jumped in a few shares at $26 just to go for the ride.

 

[Funky Bunch]

@Bonerfarts Nice ride!

 

[Bonerfarts]

Yep! It ain’t over yet.

 

[NDallasRuss]

Help me out here - I'm still pretty new to stocks and, in particular things like shorting.

So, the value isn't shooting up because of anything to do with the company's real/perceived value, but because everyone knows that a ton of people have shorted the stock, and they'll have to be buying the shares to cover the short?

Do I have that even remotely right?

 

[ThorneStockton]

Help me out here - I'm still pretty new to stocks and, in particular things like shorting.

So, the value isn't shooting up because of anything to do with the company's real/perceived value, but because everyone knows that a ton of people have shorted the stock, and they'll have to be buying the shares to cover the short?

Do I have that even remotely right?

Sort of, what you're describing a "short squeeze". However in the case of Game Stop they had a influential activist investor come in, so the perceived value changed based on his involvement.

Activist investor Ryan Cohen scores 400% gain on GameStop stock in under 6 months

The Chewy cofounder spent $76 million on 9 million shares that are now worth more than $380 million.

markets.businessinsider.com

 

[Funky Bunch]

Sort of, what you're describing a "short squeeze". However in the case of Game Stop they had a influential activist investor come in, so the perceived value changed based on his involvement.

Activist investor Ryan Cohen scores 400% gain on GameStop stock in under 6 months

The Chewy cofounder spent $76 million on 9 million shares that are now worth more than $380 million.

markets.businessinsider.com

Yeah, also I bet many people are getting margin calls and need to close out their position. And lots of limit orders being hit. I couldn't imagine being short in a stock that has this many shares short. I think the short numbers are only reported once a month but I could be wrong.

 

[Bobcat07]

Gamestop now has a market cap of $4.5 billion. This makes sense because loss making companies with negative free cash flow have done extremely well since the pandemic began.

 

[NDallasRuss]

Sort of, what you're describing a "short squeeze". However in the case of Game Stop they had a influential activist investor come in, so the perceived value changed based on his involvement.

Activist investor Ryan Cohen scores 400% gain on GameStop stock in under 6 months

The Chewy cofounder spent $76 million on 9 million shares that are now worth more than $380 million.

markets.businessinsider.com

Thank you for that!

 

[BioHawk]

Anyone familiar with WallStreetBets on Reddit? They are causing an epic short squeeze on Gamestop. Gamestip up 62% today. There was a huge amount of shorted shares (since this company sucks). The reddit page saw the short interest and also a small float. They bought up most of the shares. An outside investor is also taking over leadership which cause a catalyst for the squeeze.

There's a few posters who turned themselves into millionaires today.

Sounds like now is the time to sell then. No way that stock stays up. Brick and mortar game shops are going the way of blockbuster. You might still be able to buy them at Target or WalMart, but specialized stores just don't have as much of a long-term viability. Most people just download their games these days.

Unless the market on Nerd-Gear like Funko-pop is far larger than I thought it was.

 

[Bonerfarts]

Yes, someone will be left holding the bag, it’s just when and how much? This is far from a long term play. But you can make a fortune by riding right. Volkswagen was the highest valued company in The world for a second in 2008 from the same thing. My guess is after the squeeze it’ll run quickly back to 10-20.

 

[B1GDeal]

Is this like betting on the don’t pass, don’t come in craps? I get the theory I guess, but how does one bet against a stock? I know you buy stock you like and own that share... but how do you short a stock?

 

[Funky Bunch]

Is this like betting on the don’t pass, don’t come in craps? I get the theory I guess, but how does one bet against a stock? I know you buy stock you like and own that share... but how do you short a stock?

You are actually borrowing the shares and selling them on the market hoping that they go down. When you close out your position you are actually buying the shares. If it is at a lower price, you make money. If it goes higher, you lose money. It is more risky because in a normal long position, your stock can go to zero. In a short sale position, the losses are unlimited because it can just go up and up.

 

[B1GDeal]

You are actually borrowing the shares and selling them on the market hoping that they go down. When you close out your position you are actually buying the shares. If it is at a lower price, you make money. If it goes higher, you lose money. It is more risky because in a normal long position, your stock can go to zero. In a short sale position, the losses are unlimited because it can just go up and up.

For instance I “borrow” shares of something like Tesla who’s stock is way overpriced and it’s at like $850 per share (no idea if that’s the real value) then I sell this and hope in a few months it plummets to like $500 and make some cash when I close position?

 

[BABiscuit]

For instance I “borrow” shares of something like Tesla who’s stock is way overpriced and it’s at like $850 per share (no idea if that’s the real value) then I sell this and hope in a few months it plummets to like $500 and make some cash when I close position?

Good example of the risk. There was probably somebody saying this exact thing a year ago when Tesla was priced at $100.

 

[Funky Bunch]

For instance I “borrow” shares of something like Tesla who’s stock is way overpriced and it’s at like $850 per share (no idea if that’s the real value) then I sell this and hope in a few months it plummets to like $500 and make some cash when I close position?

Yeah, it's a lot easier doing the transaction with your brokerage account than trying to understand what is actually going on. Instead of Buy, you would select Sell Short. And when closing, instead of Sell you would select Buy to Cover.

 

[Gonolz]

Buy before the short squeeze or short sell near the top of it. After reading the news, I am tempted to buy some puts, but the volatility is making them a little expensive.

Maybe I'll sell some calls.

 

[B1GDeal]

I’m new to the trading stuff so this is interesting. There’s many stocks who rode the COVID/pandemic wave and are far higher than they have historically, so would seem eventually they will come back to earth. That said, I see the gamble as some of these keep rising when there seems no logical reason for them to do so.

 

[Bank of Hawk]

You want to buy some calls.. TPR is earnings is on 2/13 and their quick transition to bolster online sales in mid summer will finally bear fruit on 2/13 blowing away estimates. I see mid 40s probably 44-45 .. check out their 2/19 calls.

 

[Gonolz]

You want to buy some calls.. TPR is earnings is on 2/13 and their quick transition to bolster online sales in mid summer will finally bear fruit on 2/13 blowing away estimates. I see mid 40s probably 44-45 .. check out their 2/19 calls.

Wait, are you quoting an old post? It traded at $65 today. Short selling after the squeeze, selling calls, or buying puts seems to be the right move now.

 

[Formerly Rockymtnole]

Yeah, it's a lot easier doing the transaction with your brokerage account than trying to understand what is actually going on. Instead of Buy, you would select Sell Short. And when closing, instead of Sell you would select Buy to Cover.

I know what you meant but this cracked me up.

 

[Funky Bunch]

I know what you meant but this cracked me up.

LOL, the concept of borrowing shares really doesn't make a lot of sense to me

 

[Bonerfarts]

Anyone still in this? Gamestop just hit $135 now. I sold at $75.

 

[B1GDeal]

I've been keeping an eye out since my tutorial on shorting in this thread, but seems like the firms with deep pockets are winning this war against amateur traders. I think I may join in at some point... but not until it starts falling pretty good.

 

[Funky Bunch]

Can't say I blame you, but WOW!

 

[Funky Bunch]

What will be the next one?

High Short Interest Stocks

 

[Bonerfarts]

What will be the next one?

High Short Interest Stocks

I bought 100 shares of AMC last week on a whim, and its doubled. Shorts are fleeing their positions. GME is halted right now.

 

[gusto79]

What will be the next one?

High Short Interest Stocks

I already own SPCE. So is that a good thing or bad thing that it's on this list?

 

[Funky Bunch]

I already own SPCE. So is that a good thing or bad thing that it's on this list?

Well people are shorting it expecting them to go bankrupt, but if they bring in the guy from Chewy, it'll take off apparently.

 

[Bonerfarts]

Crazy, those guys made the front page of Bloomberg.

How-wallstreetbets-pushed-gamestop-shares-to-the-moon

 

[Herkster5]

I bought 100 shares of AMC last week on a whim, and its doubled. Shorts are fleeing their positions. GME is halted right now.

Got in on AMC today, just before the quick flush. Hopefully it'll run sometime in the future, I didn't lay out too much cash. Just playin' a bit.

 

[Pepperman]

I've been keeping an eye out since my tutorial on shorting in this thread, but seems like the firms with deep pockets are winning this war against amateur traders. I think I may join in at some point... but not until it starts falling pretty good.

youre still not fully understanding this. You have it backwards.

 

[B1GDeal]

youre still not fully understanding this. You have it backwards.

I thought you'd get in at say $100 (borrowing shares) and then hoping it goes lower to say $20 making $80 per share?

 

[B1GDeal]

As I understand it many were doing this but large investment firms jumped in pushing stock higher and higher which is scaring shorts to dump and get out before they lose too much. So, while this game is being played I'll watch and try it when it cools off some to make a few bucks vs taking a huge gamble now.

 

[Pepperman]

I thought you'd get in at say $100 (borrowing shares) and then hoping it goes lower to say $20 making $80 per share?

the pros are short. The chat room posters are the ones BUYING the shares. It’s a situation where internet pump and dump schemes are relying on “greater fool” theory but that’s been the same trade for EV companies, Bitcoin, etc.

if I can advise anybody here it would be to steer clear of these entirely, but I already know there are too many people waist deep in their Robinhood accounts thinking this is EASY MONEY.

good luck.

 

[B1GDeal]

the pros are short. The chat room posters are the ones BUYING the shares. It’s a situation where internet pump and dump schemes are relying on “greater fool” theory but that’s been the same trade for EV companies, Bitcoin, etc.

if I can advise anybody here it would be to steer clear of these entirely, but I already know there are too many people waist deep in their Robinhood accounts thinking this is EASY MONEY.

good luck.

Is my understanding right? We all know eventually this is coming back down. So, If I got some at say $100 (short) and then sold at $20 in a mo nth this would be how it would work out. Not saying I'll do it, but watching it for sure. Don't want to play with a fire too hot.

 

[Bonerfarts]

Is my understanding right? We all know eventually this is coming back down. So, If I got some at say $100 (short) and then sold at $20 in a mo nth this would be how it would work out. Not saying I'll do it, but watching it for sure. Don't want to play with a fire too hot.

This is the play (shorting GME) the large hedge funds were making and they are getting destroyed. I'd stay away from this altogether at this point, but feel free knowing there's huge risk on both ends.

 

[Herkster5]

AMC has a TON of shorts in it as well. Will hold and hope something similar happens, then will wish I put 100x the money in..

 

[Funky Bunch]

Is my understanding right? We all know eventually this is coming back down. So, If I got some at say $100 (short) and then sold at $20 in a mo nth this would be how it would work out. Not saying I'll do it, but watching it for sure. Don't want to play with a fire too hot.

Yes, that is correct. If you would have shorted at the high today, $159, you would have over 50% gain right now. It is down to $69. I would hate to be the ones that bought long this morning.