re: So I bought some Gamestop(GME)

The price on OTM calls right now are ridiculous. It's $14 for a Feb 19 200 strike

I don't believe there is anybody short GME anymore and there hasn’t been for some time now, so there’s no viable ‘short squeeze’ thesis.

There’s a couple of things to consider. The total number of shares shorted as of the last report was 75M shs. A metric that equity long/short hedge funds use is called ‘short turnover’. It’s just (shares short)/(avg daily trading volume). So if a stock has 10M shares short and averages 1M shares traded per day, the stock is ‘10 days short’. In general, the ‘longer’ a stock is short, the more likely you are to see a short squeeze. Conversely, if a stock is just a few days short, you arent likely to see a squeeze.

I looked at this in November, and at the time GME was like 80-100 days short. I don’t remember the exact numbers, but there were something like 50M shares short and like 750k in average volume. So that’s a decent setup for a squeeze.

On Friday, GME turned over its entire short interest in three hours which is insane. If you look at traded volumes, GME has turned over the short interest like 15 times in the last three weeks. I don’t know the date of the last short report (the shares shorted is reported one a month and on a delay) so the actual number is a mystery, but the only people short now are options dealers hedging their books while they clip the insane premiums people are willing to pay here.

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BeYou

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That's a long post to just say you don't think it's a good idea to buy.

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The price on OTM calls right now are ridiculous. It's $14 for a Feb 19 200 strike :lol

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358% implied vol and 83% IV rank as of today.

Other than penny stock biopharms, I can’t recall seeing IV and premiums this insane before. In other situations, I’d sell some WAY OTM call spreads. But this thing has lost touch with reality (short sellers have lost over $90 billion so far this month). So sold a basket of 1/29/21 42 strikes at the 15 delta.

I just cashed out most of my shares. Leaving a few in my portfolio for posterity. I'm happy with 150% return on my investment in less than a week.

Good luck to all of you still enjoying the ride.

Pack it up melvin

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CHAMATH just announced he will win the war on GameStop

YUGE

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How does this effect my $16 in profit? If I wanted to put back in?

That's true, although at the end of all of this there are gonna be A LOT of retail investors holding the bag with big irreparable losses.

So while it is indeed fun to watch retail stick it to the suits, it won't be without repercussions.

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That's true, although at the end of all of this there are gonna be A LOT of retail investors holding the bag with big irreparable losses.

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I think you're misunderstanding what the play is here. There aren't enough shares for them to buy back to close their original short positions. They are paying ridiculous amounts of money everyday to hold these shorts open as the stock keeps rising. People on wsb, including my dumbass, have set limit orders at insane prices. IF they get margin called, they will have to buy the shares at whatever the limit order sells are set at in order to close.

I bought in for the first time when the stock was at 14$. I could give a frick less if it tanks 20% in a day. I will simply sit and wait them out.