GME and AMC stock action (out of main)

[TheTalkingMule]

Tomorrow we find out which GME investors became Men.

I have a mind to buy some fun shares if it takes a big dive.

I does remind me of certain TSLA earnings days from waaaaaay back. When clearly hedge funds had a plan and were gonna execute regardless of what was released. If that plan was to take another stab at a deathblow pushdown, I could easily see it backfiring into a squeeze.

This is either absolute hail-mary desperation.......or people are selling since there was no squeeze the 19th through the 23rd. Th easy answer is selling, but why today rather than the literally 90 million other better opportunities the last 2 weeks? 50/50 in my book. Should make for a wild day!

I took a look at buying some Friday options today just for the hell of it.....$660c had an IV of 666.69!

 

[TheTalkingMule]

Did I hear mention of a potential cash raise? Couple that with a 4:1 split and there's your short squeeze. Literally guaranteed. Why should purposely causing a short squeeze be considered unethical if caused by perfectly normal everyday activities?

As an investor I would advocate a 4:1 split followed immediately by a $3-5B raise. That should just about clear the short position and sets them up nicely for pivot/growth.

 

[Doggydogworld]

Did I hear mention of a potential cash raise? Couple that with a 4:1 split and there's your short squeeze. Literally guaranteed. Why should purposely causing a short squeeze be considered unethical if caused by perfectly normal everyday activities?

As an investor I would advocate a 4:1 split followed immediately by a $3-5B raise. That should just about clear the short position and sets them up nicely for pivot/growth.

Cash raises reduce/eliminate the squeeze. Potential cash raise is usually high on short seller catalyst lists.

Splits and reverse splits have no direct impact. Promoters and con artists often use them to suck in the unsophisticated, though.

 

[TheTalkingMule]

Cash raises reduce/eliminate the squeeze. Potential cash raise is usually high on short seller catalyst lists.

Splits and reverse splits have no direct impact. Promoters and con artists often use them to suck in the unsophisticated, though.

Perhaps you missed the TSLA split discussion re: it's impact on short positions?

40-70% of a float being forced to cover would be quite interesting. Essentially with the whole world knowing it's coming.

 

[Doggydogworld]

40-70% of a float being forced to cover would be quite interesting.

That's not how it works. I've been short through both splits and reverse splits (and dividends, rights offerings, mergers, spinoffs, etc.). The internet contains more misinformation on short selling than any other investing topic. It's literally 98% nonsense at an "aliens built the pyramids" level.

 

[winfield100]

That's not how it works. I've been short through both splits and reverse splits (and dividends, rights offerings, mergers, spinoffs, etc.). The internet contains more misinformation on short selling than any other investing topic. It's literally 98% nonsense at an "aliens built the pyramids" level.

@Doggydogworld
So, how does it work then?

 

[TheTalkingMule]

That's not how it works. I've been short through both splits and reverse splits (and dividends, rights offerings, mergers, spinoffs, etc.). The internet contains more misinformation on short selling than any other investing topic. It's literally 98% nonsense at an "aliens built the pyramids" level.

Seemed to work that way for TSLA. I do not read this internet you speak of.

 

[TheTalkingMule]

Bought a few at $138 yesterday which have fought back to green. We're spiking like covid in South Beach.

 

[TheTalkingMule]

Would like to take this opportunity to reiterate my disappointment in TMCers for their lack of interest in this literal flogging of shorts and to restate that in 2016 this would have been toasted on this forum with [very inexpensive] champagne. For shame.

Anyone care to share theories on today's +53% (+5%) action? My best guess is stimulus check buying was being constantly sucked up with additional shorting over the last week and the jug finally runneth over. What else could it possibly be?

So where do we go from here? I have to assume this was at least partially orchestrated by hedge funds piggybacking on the stimulus buying and diamond handing. Are they looking for a squeeze or just a 50% pop and sell? Logically it would be the latter, but who the hell knows at this point.

If this regains major retail traction.......dear lord are we in for a mess. I wonder how the IV on calls is looking now?

 

[Bet TSLA]

Just a reversal of the last couple of days. Tomorrow we'll close just under $200, right? How can you tell who is getting flogged?

 

[15Peter20]

No lack of interest here but since I have no idea what’s going on I can only sit back and enjoy the spectacle.

 

[JRP3]

Would like to take this opportunity to reiterate my disappointment in TMCers for their lack of interest in this literal flogging of shorts and to restate that in 2016 this would have been toasted on this forum with [very inexpensive] champagne. For shame.

Let's get real, GME is not some new innovative company turning multiple industries upside down. Sure I'd like to see the shorts get spanked but GME is not a company to be excited about. If it weren't for all the hype started by WSB none of us would ever look at GME and most of us would expect it to be a dying business model trying to reinvent itself.

 

[ZsoZso]

Let's get real, GME is not some new innovative company turning multiple industries upside down. Sure I'd like to see the shorts get spanked but GME is not a company to be excited about. If it weren't for all the hype started by WSB none of us would ever look at GME and most of us would expect it to be a dying business model trying to reinvent itself.

Exactly! When this saga first blew up at the end of January I jumped in to be part of the fun and stick it to the shorts.
I joined kinda late but still sold some of the shares I bought with profits on first peak above 400 and kept some shares to ride it out.
Then I doubled down with more money thrown in in the 100-150 range, but then it went down to the $40 range and I was under water for a long time.
That's when I thought it through properly and realized it was a silly gamble and the "house always wins", i.e. the hedge funds and MMs will always win,
the little guys can get lucky here and there but will never beat the casino in the long run. I sold out everything with a small profit on the second wave runup and I am staying out of this now. Sure if you are lucky you can make good money on this volatility, but you can just as easily lose.
I'd rather play the volatility of TSLA if I want to get a "gambling" with a small portion of my portfolio on the side of long term HODLing, because with TSLA if I get stuck with some shares miss-judging a move, it is no problem to wait it out, ride out a dip. On the other hand if you swing trade GME buying in the $100-$150 range hoping to sell above $200 but it suddenly drops, it may never again get above $100, it can easily get down to the fundamental real valuation around $30-$40 and stay there or even lower forever. Simply put, GME is pure gambling with no fundamental support at these price levels, while TSLA has long term prospects, so it is much less risky to swing-trade it.

 

[Doggydogworld]

@Doggydogworld
So, how does it work then?

If a company does a 2:1 split anyone who was short 100 shares at $200 wakes up and is short 200 shares at $100. It couldn't be much simpler. There is some back-office stuff that goes on, but it's all handled by the exchanges and outfits like DTCC and Cede & Co.

Before dumping all his shares and fleeing the country, OSTK CEO Wacky Paddy Bryne tried to squeeze shorts with a scammy "digital dividend" that bypassed the regulated exchanges. If you want to destroy your brain's ability to ever understand investing read any OSTK message board. The ignorance and conspiracy theorizing is literally mind-numbing.

Of course OSTK is up 2000% since COVID turned the US into Freebucks Central. But we're not in a bubble, lol.

 

[TheTalkingMule]

Is there anyone saying we're not in a bubble? Is there anyone saying there's a fundamental thesis for this valuation of GME? This is purely a structural exercise.

Hedgies were allowed to short to about 400% of the float and got caught. MM tried to halt trading to ease the pressure and it didn't work. Hedgies and the press lied and said their short was covered, they got caught.

This debacle exposes the worst inequities of our markets AND you can make money off it. What's more fun than that?

 

[JRP3]

What's more fun than that?

Making money with companies you actually believe in.

 

[TheTalkingMule]

Making money with companies you actually believe in.

It makes me feel better to know you simply can't wrap your head around it.

Bizarre to see people have such emotional reactions to a simple investment strategy. I actually got banned for a week because I posted in the chat room that it certainly looked like some retail investors were selling TSLA shares to buy GME. Made an observation, got banned....lol!

 

[JRP3]

Bizarre to see people have such emotional reactions to a simple investment strategy.

Bizarre that you think my reaction is emotional. I don't think it's a good investment strategy. I don't like the stock.

 

[UnknownSoldier]

GME is a dying American specialty retailer in a wasteland which has been nuked back to bedrock by Amazon and Walmart. But maybe we can still save American retail if we actually buy things in stores instead of continuing to pave Jeff Bezos's path to world domination by willingly giving him all of our money until he has all the world's money and everyone else has none.

 

[JRP3]

One problem with Game Stop is games are now mostly delivered digitally so no reason to go to any store since there is no physical product once you have the hardware to run them.