Gamestop
- Thread starter Bonerfarts
- Start date
Doesn’t take a brainiac to buy puts or sell one’s calls the day after the company files to sell 75,000,000 shares into the market. Let’s wait and see what happens when Gamestop files that they have completed the offering.
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I guess we are fixed to find out. Anyway you slice it, it is rather fascinating.
Agree. To be clear, nothing Keith Gill has done can be considered market manipulation or a pump and dump. He has not done anything illegal.
It isn’t illegal to talk about investments, to post his positions, or make memes about companies. Not yet anyways.
In his live stream he stated A) Nothing he says or does should be taken as financial advice, B) his investment strategy is very risky and not for everyone, and C) before anyone decides to invest they should speak to a financial advisor.
The media wants to pin criminal market manipulation by bad actors on him as the scapegoat. Don’t believe them!
Oh I don't believe them. And trust me, nothing would make me happier than seeing the hedge fund scum bags get ****ed. They are the true manipulators.
RK now owns 2.14% of Gamestop.
9M / 420M outstanding.
Started with $50K. I have a sneaking suspicion he isn’t done yet either.
9M / 420M outstanding.
Started with $50K. I have a sneaking suspicion he isn’t done yet either.
I thought I read that GameStop was going to be introducing some kind of blockchain protected stock certificates to swap with the ‘real stock’ out there and completely hang the naked shorts to dry by eventually running them out of stock to hypothecate.
Was that just someone’s wishful thinking, or is it part of this new stock issuance?
Was that just someone’s wishful thinking, or is it part of this new stock issuance?
Wishful thinking plus inability to affect it due to DTCC. Plus if i recall correctly trading around gamestop and all the major participants are under ongoing investigation.
The current system is not set up where only one share is to be owned by only one party. Theoretically, shares can be sold up to 11 times over to different parties due to continuous net settlement and T+35 loan repayment plus strategic failure to deliver.
The entire system would crash overnight if 1 to 1 share to ownership were enacted.
@cheeselog8
@The-Dude-Abides
@hawkeyez
is he right? I think the 45M + 75M share offering jacks with this scenario in a bad way but who knows?
+
@The-Dude-Abides
@hawkeyez
is he right? I think the 45M + 75M share offering jacks with this scenario in a bad way but who knows?
+
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@artradley how do you explain this?
“2020, Ryan Cohen Is a Firestarter
In December 2020, Ryan Cohen made large purchases in Gamestop to acquire a stake in the company.The following dates are the most crucial:
Trade Date Pre-Split Share Amount Post-Split Share Amount
|| || |2020-12-17|470,311| 1,881,244|
|| || |2020-12-18|500,000| 2,000,000|
|| || |2020-12-18|256,089|1,024,356|
|| || |Total Shares:|1,226,400|4,905,600|
Data Source: https://fintel.io/n/us/gme/cohen-ryan
In the course of two days, Ryan Cohen purchased 1.2 Million shares in an extremely illiquid market. The total share count for Gamestop was much lower than today as this purchase was performed after several stock buy-backs.
So you would expect that this massive purchase would have an effect on the price.
very little price movement for millions of shares purchased
However, we see no abnormal movement in historical charts on these purchase dates.
The date of RC's purchases, the stock opened and closed at:
(Split Adjusted)
12/17/2020 - Open $3.49 Closed $3.71 (High of $3.75)
12/18/2020 - Open $3.95 Closed $3.91 (High of $4.08)
I personally attribute the small increase to the stock price to the general uptrend GME was experiencing in the back half of 2020. The company had performed several stock buy-backs and some investors (i.e. Keith Gill) realized early that Gamestop could turn itself around. Investors were starting to enter the game and a bullish uptrend began.
But where did Ryan Cohen's purchase go? A purchase that large would absolutely have an affect on the price due to just how few shares were available at the time. Well, thanks to 3 years of DD we can see exactly where they went.
1/21 - 1/26 Settlement Period
Ryan Cohen's shares were not purchased on 12/17 and 12/18 as the Market Maker invoked its privilege's to purchase at a later date. This created a time bomb that would eventually detonate exactly 35 days + 3 Bank Holidays later.
https://www.sec.gov/investor/pubs/regsho.htm
12/17/2020 - 470,311 Shares (1,881,244 shares post split) FTD Settlement Limit 35 Days + 3 Bank Holidays = 1/25/2021 (Possibly Pre-Market 1/26)
12/18/2020 - 500, 000 Shares (2,000,000 shares post split) FTD Settlement Limit 35 Days + 3 Bank Holidays = 1/26/2021 (Possibly Pre-Market 1/27)
12/18/2020 - 256,089 Shares (1,024,356 shares post split) FTD Settlement Limit 35 Days + 3 Bank Holidays = 1/26/2021 (Possibly Pre-Market 1/27)
It is my belief that the algorithms that run on Gamestop deal with FTDs in a "slow purchase" method in which they purchase shares over these 35 day periods in a manner that will not cause the stock to deviate wildly. In a successful scenario, the algorithm is able to clear outstanding FTDs far before they reach the 35 day (+ Bank Holidays) limit. Using this "slow purchase" method, they are able to spread out purchase lots to route them in small batches off exchange as well as short into any purchases they need to make on the LIT market.
However, in black swan cases, an extremely large share purchase occurs. This causes the algorithm to "slow purchase" leading up to the 35 day (+ Bank Holidays) legal limit. The systems are designed to deliver the shares no matter what by that hard limit. It is in these specific cases that we see increased volume and buy pressure in the days leading up to the settlement period, and a massive jump on the settlement period limit dates as the algorithm rushes to clear the remaining fails in order to remain regulation compliant.
The following days' parabolic run up is most likely caused by the gamma ramp that suddenly came into being as thousands of options contracts were suddenly and violently In-The-Money. The SEC already confirmed via the Gamestop report that "short positions closing" was not the cause of this run up. As the options contracts were hedged by Market Makers, the demand for shares increased, spiking the price. In the following days, a large option sell off conjoined with a short attack would drop this price back to $10 (post split).
The stock was already increasing due to buy-backs and improving sentiment; however, Ryan Cohen's purchase is the primary cause for creating the initial gamma ramp sneeze.
The subsequent stock price rises are partially due to the continued FTDs the Market Maker creates on each run up. There are many additional factors for each rise; however, FTDs are a major part of this 3 year cycle.
But now that Ryan Cohen is officially on the board for Gamestop, he is no longer able to affect the share price via sudden purchases and assist in shaking off short positions. Whether he cares about these short positions or not, he is no longer the main characteras his major stock play has completed.
In order to have an effect on the price, the purchaser needs enough capital to make a massive share purchase. A big enough purchase that would prevent the "slow purchase" FTD settlement algorithm from clearing these FTDs before the settlement period limit. So Gamestop needs a new investor to jump in with a large purchase.“
@artradley
Ryan Cohen bought 1,200,000 shares on the open market on 12/17/20 & 12/18/20 and the price didn’t budge. There is proof.
Can you explain that for us?
T+35 was 1/26/21 & 1/27/21. Strange, no?
Anyone remember what happened on those days?
Ryan Cohen bought 1,200,000 shares on the open market on 12/17/20 & 12/18/20 and the price didn’t budge. There is proof.
Can you explain that for us?
T+35 was 1/26/21 & 1/27/21. Strange, no?
Anyone remember what happened on those days?
Is this still the case? Are my 4 shares going to net me thousands of dollars tomorrow?
Hold until NCAA 2025 drops.
That post predated Gamestop deciding to sell 75 million shares on the open market two Fridays ago. So yeah… also RK exercised a portion of his calls last week and then sold a portion of his calls and i believe bought further dates calls with the proceeds, 7/21 I think.
Sorry, back to Micky D’s you go.
THE STORY OF CREDIT SUISSE, ARCHEGOS, AND A SWAP THAT "SCREAMS" GME - JustDario
If you are a Prime Broker dealing with a US client involved in “questionable” trading activities in the US, how are you going to deal with that to keep doing business while staying at a safe distance from the US watchdog? Easy, you carry on the business from a different...
justdario.com
Not what you originally thought is it?
