Gamestop

[Sooner-Be-Dead]

Theoretical question because this only has worsened my understanding of the stock market. Let's pretend GME stock gets to the point where it trades at 1000 and I want to get out before the crash. We know that the stock is not worth that much from a value standpoint. I decide want to cash out my stock I bought at 100, for 900/share of profit. Don't I actually have at to find a buy at that price? Who is buying these stocks at the top of the infinite squeeze?

I know they have to pay interest on shorted stocks to cover a percentage of their shorts which gets more expensive as prices rise. Also if you bankrupt all the hedge funds that have the shorts, then I presume they can't buy back the shares they need to cover. Doesn't that mean the guys holding all the stocks can't get paid on the sell or are the brokerages using the short interest collected to buy at those high prices?

Put a more simple way:
1. Who is going to buy my expensive shares when the market is at the peak?
2. Who gets the money from the interest on shorts? Are brokerages on the hook monetarily, for selling shorts they don't have since 140% of this stock is shorted?
3. If a hedge fund goes bankrupt and can't cover shorts, what happens to those who hold the real shares?

The short sellers have to post collateral if they’re in the red, so no real worry there.

Your other point is the problem. In these situations you need more and more new buyers to keep up the momentum. When you run out of new buyers, it will fall until someone thinks it’s a good deal.

 

[Urohawk]

The short sellers have to post collateral if they’re in the red, so no real worry there.

Your other point is the problem. In these situations you need more and more new buyers to keep up the momentum. When you run out of new buyers, it will fall until someone thinks it’s a good deal.

Is the collateral or interest income on shorts refundable to the shorts if they hold their shorts and the price comes down? Put another way, if I shorted at 10 but stock goes to 1000 and I have the capital to cover, can I hold until the price comes back down? If I'm a shorter and a guy sells at 1000, does the brokerage force me into covering the shares and I lose my collateral (when wallstreetbets losese their diamond hands goes from hold to sell).

If this is a game of chicken, I see the hedge funds winning unless there is overwhelming public support for the retail guys or until the price gets so high the hedge funds can't cover and bankrupt.

 

[Sooner-Be-Dead]

Is the collateral or interest income on shorts refundable to the shorts if they hold their shorts and the price comes down? Put another way, if I shorted at 10 but stock goes to 1000 and I have the capital to cover, can I hold until the price comes back down? If I'm a shorter and a guy sells at 1000, does the brokerage force me into covering the shares and I lose my collateral (when wallstreetbets losese their diamond hands goes from hold to sell).

If this is a game of chicken, I see the hedge funds winning unless there is overwhelming public support for the retail guys or until the price gets so high the hedge funds can't cover and bankrupt.

The short seller’s dealer will tally it up when they close out the position. At $1000, they will keep the collateral. If the price drops back down the short will get some of it back.

 

[Bonerfarts]

Is the collateral or interest income on shorts refundable to the shorts if they hold their shorts and the price comes down? Put another way, if I shorted at 10 but stock goes to 1000 and I have the capital to cover, can I hold until the price comes back down? If I'm a shorter and a guy sells at 1000, does the brokerage force me into covering the shares and I lose my collateral (when wallstreetbets losese their diamond hands goes from hold to sell).

If this is a game of chicken, I see the hedge funds winning unless there is overwhelming public support for the retail guys or until the price gets so high the hedge funds can't cover and bankrupt.

The interest goes up the higher the price goes up. It was reported (not confirmed) that Melvin was losing a billion a day in interest after the price jumped from $85 to $300.

 

[Chuck C]

The interest goes up the higher the price goes up. It was reported (not confirmed) that Melvin was losing a billion a day in interest after the price jumped from $85 to $300.

Who are the brokers that are making out like bandits right now from the interest?

 

[dgordo]

How many short squeezes have you seen?

This is the 3rd in the last 12 months. In 2008 I was busy trying to find buyers for vw puts. I’ve seen enough.

 

[Funky Bunch]

This is the 3rd in the last 12 months. In 2008 I was busy trying to find buyers for vw puts. I’ve seen enough.

Short squeezes happens every day. I have been holding Shopify for a few years now (I sold most of my shares). But I think it was at about 20% short interest when Andrew Left (<---hahaha) of Citron was shorting it. Now it is around 2% and 11x what I paid for it. 20% is a pretty high short interest. GME is new territory for me.

 

[Phenomenally Frantastic]

Robbing from the Poor to Give to the Rich

How decentralised finance can heal the markets

dlinney.medium.com

Related info.

 

[dgordo]

Short squeezes happens every day. I have been holding Shopify for a few years now (I sold most of my shares). But I think it was at about 20% short interest when Andrew Left (<---hahaha) of Citron was shorting it. Now it is around 2% and 11x what I paid for it. 20% is a pretty high short interest. GME is new territory for me.

Agreed, I was talking about how many Ive dealt with for work. Blue apron ****ing sucked.

 

[Funky Bunch]

Agreed, I was talking about how many Ive dealt with for work. Blue apron ****ing sucked.

Are you a broker?

 

[dgordo]

Are you a broker?

CIO of a multi family office

 

[Gonolz]

Who are the brokers that are making out like bandits right now from the interest?

Robinhood!!!

 

[Funky Bunch]

Robinhood slims restricted list to 8 stocks, but users can still only buy 1 share of GameStop

Robinhood is narrowing its list of restricted stocks, but will still impose limits in buying shares of heavily shorted GameStop Corp. and AMC Entertainment Holdings Inc. stocks when trading opens Monday.

finance.yahoo.com

 

[hawkedoff]

Theoretical question because this only has worsened my understanding of the stock market. Let's pretend GME stock gets to the point where it trades at 1000 and I want to get out before the crash. We know that the stock is not worth that much from a value standpoint. I decide want to cash out my stock I bought at 100, for 900/share of profit. Don't I actually have at to find a buy at that price? Who is buying these stocks at the top of the infinite squeeze?

I know they have to pay interest on shorted stocks to cover a percentage of their shorts which gets more expensive as prices rise. Also if you bankrupt all the hedge funds that have the shorts, then I presume they can't buy back the shares they need to cover. Doesn't that mean the guys holding all the stocks can't get paid on the sell or are the brokerages using the short interest collected to buy at those high prices?

Put a more simple way:
1. Who is going to buy my expensive shares when the market is at the peak?
2. Who gets the money from the interest on shorts? Are brokerages on the hook monetarily, for selling shorts they don't have since 140% of this stock is shorted?
3. If a hedge fund goes bankrupt and can't cover shorts, what happens to those who hold the real shares?

The hedge funds are the one buying to cover their short positions. The entire premise of hedge funds was initially hedge risk by balancing short and long positions. Much of it started in agriculture where people want to sell their crop at a high bit don't want to risk the bottom falling out. Or big companies regulating their fuel expense for example. The entire purpose was to hedge risk....until it wasn't. These people figured out they could move the markets and they games the system to their benefit. Taking that much of a short position on anything without the corresponding long position was arrogance to the extreme. They lecture these small investors about gambling? Shit they were gambling beyond belief and the fact that they had the hubris to do it most certainly goes well beyond a hint that there was collusion of some sort going on.

The selling of data by the way on trades before they are public is one of the more disgusting and crooked games that has come to light. If you know when the dealer is going to hit 21 ahead of time does that give you an advantage?

 

[dgordo]

The hedge funds are the one buying to cover their short positions. The entire premise of hedge funds was initially hedge risk by balancing short and long positions. Much of it started in agriculture where people want to sell their crop at a high bit don't want to risk the bottom falling out. Or big companies regulating their fuel expense for example. The entire purpose was to hedge risk....until it wasn't. These people figured out they could move the markets and they games the system to their benefit. Taking that much of a short position on anything without the corresponding long position was arrogance to the extreme. They lecture these small investors about gambling? Shit they were gambling beyond belief and the fact that they had the hubris to do it most certainly goes well beyond a hint that there was collusion of some sort going on.

The selling of data by the way on trades before they are public is one of the more disgusting and crooked games that has come to light. If you know when the dealer is going to hit 21 ahead of time does that give you an advantage?

I’m honestly surprised this hasn’t been brought up before, maybe no body knew? Every place that gives free trades is selling your data. Robin Hood, ameritrade, schwarber, etc.

 

[seminole97]

The selling of data by the way on trades before they are public is one of the more disgusting and crooked games that has come to light. If you know when the dealer is going to hit 21 ahead of time does that give you an advantage?

Are you suggesting regulators don’t care about the little guy?

I keep waiting for the day someone hacks a HFT and throws some changes in their algos.

 

[hawkedoff]

Are you suggesting regulators don’t care about the little guy?

I keep waiting for the day someone hacks a HFT and throws some changes in their algos.

Of course they care about the little guy. There are all kinds of safeguards in place to protect the little guy and there should be. Mutual funds etc are the vehicle most regulators would prefer the little guy use and for good reason.

That being said what robinhood was doing is truly unreal. Selling trade information prior to executing the trades. It is unreal this is legal. If you had access to that information how could you lose?

 

[Phenomenally Frantastic]

Whoa whoa whoa

WSB post suggests massive fraud by hedgies. uh oh

“SEC, DOJ, 60 Minutes – Public data suggests massive securities fraud in which hedge funds and institutions have created more Gamestop shares than actually exist for delivery

Obligatory emoji 🚀

**Short Version:**
The short version is that a review of the **'strategic fails–to–deliver'** data indicates that institutional insiders may have counterfeited a massive number of Gamestop shares which is why they tried to stop retail investors from buying more shares on Thursday.

There are are **71 million shares** of GME that have ever been issued by the company. Institutions have reported to the SEC via 13F filings that they own more than **102,000,000** shares (including the 13% of GME stock is owned by Ryan Cohen). That is already 30,000,000 shares more than even exist.

On top of the shares reportedly owned by institutions, retail investors may currently hold 50+ million shares (counting both long holdings and call options – both ITM and OTM).

Once you include call options, **retail investors may already hold more than 100% of GME (not just 100% of the float, more than 100% of the actual company)**. This would be definitive proof of illegal activity at the highest levels of the financial system.”

No wonder they turned to criminal activity on Thursday. Desperation.

 

[Phenomenally Frantastic]

Of course they care about the little guy. There are all kinds of safeguards in place to protect the little guy and there should be. Mutual funds etc are the vehicle most regulators would prefer the little guy use and for good reason.

That being said what robinhood was doing is truly unreal. Selling trade information prior to executing the trades. It is unreal this is legal. If you had access to that information how could you lose?

It was always curious to me that every RH buy was always at the highest possible amount higher than the stock had been trading at any point that day and that my sells were are prices way below the market had reached that day. Seems shady as hell every trade. Maybe I’m the only one who ever noticed??

 

[hawkedoff]

Whoa whoa whoa

WSB post suggests massive fraud by hedgies. uh oh

“SEC, DOJ, 60 Minutes – Public data suggests massive securities fraud in which hedge funds and institutions have created more Gamestop shares than actually exist for delivery

Obligatory emoji 🚀

**Short Version:**
The short version is that a review of the **'strategic fails–to–deliver'** data indicates that institutional insiders may have counterfeited a massive number of Gamestop shares which is why they tried to stop retail investors from buying more shares on Thursday.

There are are **71 million shares** of GME that have ever been issued by the company. Institutions have reported to the SEC via 13F filings that they own more than **102,000,000** shares (including the 13% of GME stock is owned by Ryan Cohen). That is already 30,000,000 shares more than even exist.

On top of the shares reportedly owned by institutions, retail investors may currently hold 50+ million shares (counting both long holdings and call options – both ITM and OTM).

Once you include call options, **retail investors may already hold more than 100% of GME (not just 100% of the float, more than 100% of the actual company)**. This would be definitive proof of illegal activity at the highest levels of the financial system.”

No wonder they turned to criminal activity on Thursday. Desperation.

If this is true the damage to our economy and country will be astronomical.

 

[praguehawk]

Whoa whoa whoa

WSB post suggests massive fraud by hedgies. uh oh

“SEC, DOJ, 60 Minutes – Public data suggests massive securities fraud in which hedge funds and institutions have created more Gamestop shares than actually exist for delivery

Obligatory emoji 🚀

**Short Version:**
The short version is that a review of the **'strategic fails–to–deliver'** data indicates that institutional insiders may have counterfeited a massive number of Gamestop shares which is why they tried to stop retail investors from buying more shares on Thursday.

There are are **71 million shares** of GME that have ever been issued by the company. Institutions have reported to the SEC via 13F filings that they own more than **102,000,000** shares (including the 13% of GME stock is owned by Ryan Cohen). That is already 30,000,000 shares more than even exist.

On top of the shares reportedly owned by institutions, retail investors may currently hold 50+ million shares (counting both long holdings and call options – both ITM and OTM).

Once you include call options, **retail investors may already hold more than 100% of GME (not just 100% of the float, more than 100% of the actual company)**. This would be definitive proof of illegal activity at the highest levels of the financial system.”

No wonder they turned to criminal activity on Thursday. Desperation.

IF true this would be a really big deal. However, my bet would be it is a misunderstanding on how something is filed or aggregated. Definitely worth watching.

Naked shorting is a dangerous business. Shorting is a legit strategy and something that the markets can benefit from in informing prices accurately. Very mixed feelings about the squeeze that is being put on by redditors at this point.

I do wonder if eventually someone from the HF could find a way to take control of Gamestop and put an end to this by issuing shares. Wouldn't be very straight forward unless they were to find a price... say $400 and be able to get 51% of shares tendered. It would be an effort in setting their losses to escape the trap and then potentially overtime find a way to sell for a smaller loss after the turnaround.

 

[seminole97]

That being said what robinhood was doing is truly unreal. Selling trade information prior to executing the trades. It is unreal this is legal. If you had access to that information how could you lose?

When I first heard about how these outfits buy the info and front run the retail trade info it sounded rotten to me too.
But the more I think about, I'm not so sure.
Say I go to a car dealership and tell him I'm looking for a 2015 ZO6. Can he 'sell' that info to someone who will find the car for less than the price I've said I'll pay and sell it to him to sell to me? Is that wrong?
When I think of it that way, I'm kind of 'meh' about the whole thing. People are electing to use the 'free' service, which gets front run and thus pays an inflated price. If you banned that business model, the broker would just charge a fee, and do we know if that would really cost the person more or less in the end? Seems like with the current setup the trader can decide which 'fee' model he prefers, but I imagine few really think about it.

I suspect the 'free' model also has a psychological impact that leads to more trades by retail, and more income for the 'system' setup from RH and Citadel (and others) than the older fee for service model.

Totally a guess though. I don't play with it.

 

[luvmyhawks]

Whoa whoa whoa

WSB post suggests massive fraud by hedgies. uh oh

“SEC, DOJ, 60 Minutes – Public data suggests massive securities fraud in which hedge funds and institutions have created more Gamestop shares than actually exist for delivery

Obligatory emoji 🚀

**Short Version:**
The short version is that a review of the **'strategic fails–to–deliver'** data indicates that institutional insiders may have counterfeited a massive number of Gamestop shares which is why they tried to stop retail investors from buying more shares on Thursday.

There are are **71 million shares** of GME that have ever been issued by the company. Institutions have reported to the SEC via 13F filings that they own more than **102,000,000** shares (including the 13% of GME stock is owned by Ryan Cohen). That is already 30,000,000 shares more than even exist.

On top of the shares reportedly owned by institutions, retail investors may currently hold 50+ million shares (counting both long holdings and call options – both ITM and OTM).

Once you include call options, **retail investors may already hold more than 100% of GME (not just 100% of the float, more than 100% of the actual company)**. This would be definitive proof of illegal activity at the highest levels of the financial system.”

No wonder they turned to criminal activity on Thursday. Desperation.

But it’s the retail “ponz scheme” investors creating the problem. Lmfao!!! Again, you can’t make this shit up.

Fwiw, I hope to hell that this isn’t true.

 

[luvmyhawks]

How is tweeting this stuff out not illegal? It's massive market manipulation. What are the rules with regard to social media these days?

If he actually executes the trades, how is this market manipulation?

 

[luvmyhawks]

It is the very definition of a coordinated effort to manipulate stock prices via a ramp scheme. Illegal.

You have got to be kidding me. These hedge funds are the very definition of a ramp scheme, and you are pissing and moaning about this guys tweet. Lmmfao!! Let me guess, you are perfectly fine with the hedge funds illegally naked shorting? You seriously cannot make this shit up.

 

[seminole97]

A great listen. I’ve been subscribed to this podcast for awhile, I recommend if you have some free time. These guys are best friends and Jason Calacanis is an Angel Investor for Robinhood. He and Chamath get down to the brass tax over this week. Plenty of good opinions and ideas.

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I meant to say, that was a great podcast, thanks for sharing.

 

[Pepperman]

You have got to be kidding me. These hedge funds are the very definition of a ramp scheme, and you are pissing and moaning about this guys tweet. Lmmfao!! Let me guess, you are perfectly fine with the hedge funds illegally naked shorting? You seriously cannot make this shit up.

you have a lot of wrong guesses, but I’m not surprised.

 

[Funky Bunch]

High Volume in AMC at the open

 

[Nat Algren]

Bernanke on the board of Citadel?

 

[Funky Bunch]

WOW!

 

[ThorneStockton]

WOW!

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💎💎🤞🤞

 

[dgordo]

WOW!

View embedded media

Shocking

 

[NDallasRuss]

WOW!

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Man, that's some terrible decision-making!

Regardless of whether you believe it will go up or down, you don't gamble with money you need for stuff like college! I figure there are a lot of these stories out there, and I guess you have to bet big to win big, but I've got two buckets of money: money I need to pay for bills and stuff, and money I can screw around with - never should those two bucks get comingled!

 

[Tom Paris]

GameStop is dropping big time.

 

[dgordo]

Yuge sell volume. Looks like the major holders are cashing in.

 

[Finance85]

Yuge sell volume. Looks like the major holders are cashing in.

It was predictable. I missed by a day. I thought it would have been Friday, at the end of the morning session.

 

[Finance85]

The E-trade platform is overwhelmed right now.

 

[hwk23]

Yuge sell volume. Looks like the major holders are cashing in.

GME has been halted. I really wonder if Ryan Cohen took any off the table. None of this would be happening without him. He's the new Gordon Gecko.

 

[Funky Bunch]

It went down like this last week too and then went up again. Would be a good time for shorts to do some covering also.

 

[tumorboy]

WOW!

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He or she is about to get a 25000 experience lesson.