Gme

[Gulo Blue]

Y'all following this? Wild stuff.

 

[tomdalton22]

It's crazy. If you bought $5000 worth of the stock last week it would be worth $86K today.

I think I'd sell

 

[Michchamp]

I'm seeing a lot of commentary about it, but not anything explaining exactly what is happening.

As I understand it, a bunch of hedge funds took sizable short positions in the stock, which a bunch of posters on reddit noticed, and started talking GME up to move the stock higher, and catch the hedge funds in a big short squeeze. Which has happened, and is ongoing.

And the Wall Street press seems outraged by the fact that "regular people" are involving themselves in the sort of market manipulation that only finance business insiders normally partake in... and regular Joes are cheering for this all to blow up in a huge shit storm.

Is that, more or less what's happening?

 

[Michchamp]

From Reuters:

Retail traders scored against professionals on Wednesday as hedge funds Citron and Melvin retreated with heavy losses on short positions in GameStop in the week-long battle between Wall Street and Main Street, with more calling for scrutiny of anonymous stock trading posts on social media.
​

So the meme in this tweet appears accurate.

 

[Michchamp]

I'd have to imagine smarter Wall Street money is, might be behind, or has been paying attention to, what people were posting on reddit. and collecting their rake on every trade.

The House always wins, right?

 

[Gulo Blue]

Is that, more or less what's happening?

Yeah. These posters recognized that there were more shorts out there than floating stock. It sounds like one of the hedge funds that was really into this needed $3B to cover its position.

 

[Michchamp]

Yeah. These posters recognized that there were more shorts out there than floating stock. It sounds like one of the hedge funds that was really into this needed $3B to cover its position.

They did a bad job... hedging...

 

[Gulo Blue]

I'd have to imagine smarter Wall Street money is, might be behind, or has been paying attention to, what people were posting on reddit.

The House always wins, right?

They are getting swamped with new users saying "let's do it again with this other stock" Those are assumed to be efforts to get posters to shift away from the GME they are holding.

 

[Gulo Blue]

Some are worried they'll get hit by some market manipulation law. They keep saying "I like this stock, this is not advice."

If smart Wall Street money was behind this, you'd think that would qualify, but different people require different degrees of specificity to consider a statement incitement.

 

[tomdalton22]

I need a link so I can get in on the next time they drive up a stock.

 

[Michchamp]

I need a link so I can get in on the next time they drive up a stock.

join reddit. Start learning how to make dank memes.

 

[Michchamp]

SO the bigger players made money here still, although, maybe they'll get screwed a bit too, when they have to bail out the Citrons and Melvin Capitals:

What does Robinhood have to do with this? Well, it makes options trading much more accessible to retail investors ? but there?s something else. Trades on Robinhood are free! But Robinhood isn?t offering free trades to be nice; the company gets paid by some big-time investors such as Citadel Securities to see what retail investors are doing. This phenomenon, which other brokerages are engaged in as well, is called payment for order flow. Citadel Securities makes its money on these orders by ?automatically taking the other side of the order, then returning to the market to flip the trade. It pockets the difference between the price to buy and sell, known as the spread,? according to the Financial Times.
​

The Wall Street vs. Main Street story isn't totally accurate

 

[sggatecl]

I'm up on GME, AMC, and NOK. It's been a wild day for your 'average Joe' investor.

 

[Gulo Blue]

I need a link so I can get in on the next time they drive up a stock.

https://www.reddit.com/r/wallstreetbets

 

[Michchamp]

I'm up on GME, AMC, and NOK. It's been a wild day for your 'average Joe' investor.

Is NOK involved in this too?

Fuck, I've had 300 shares of that sitting in an IRA for years. I bought it for not much. I'll sell it after a nice pop.

 

[tigermud]

This is an item many on the right and left cheer..$&%*$$ hedge monkey shorts have been ##$$ Joe retail for decades driving companies into the ground like they do. Hurray for the little guy!

https://youtu.be/gAubQLy2S_c

 

[sggatecl]

Is NOK involved in this too?

Fuck, I've had 300 shares of that sitting in an IRA for years. I bought it for not much. I'll sell it after a nice pop.

On a lesser scale, yes. GME was the gold mine because hedge funs had shorted so much. I wouldn't be surprised if trading apps such as Robin Hood and Webull get banned or penalized in the future. The rich folks aren't very happy right now.

 

[Gulo Blue]

Lots of talk about needing to hold on into the next week. Looks like there's been a little selling, but not a ton the price is still going up in off hours trading.

 

[Gulo Blue]

 

[Michchamp]

On a lesser scale, yes. GME was the gold mine because hedge funs had shorted so much. I wouldn't be surprised if trading apps such as Robin Hood and Webull get banned or penalized in the future. The rich folks aren't very happy right now.

well. some are:

The three largest shareholders in GameStop, the video game retailer at the center of a frenzied duel between Wall Street and small investors, have made more than $2bn from the company?s astronomic recent share rise.

​

those three are a guy who founded Chewy.com, a guy who owns a large subprime auto lending business, and Blackrock. The Gamestop CEO also owned a chunk of the stock, and if he cashes out will have an extra $350MM

and the guys who own the dart board ALL these monkeys are throwing darts at (and charging per throw) are happy. they make money regardless.