re: If the SEC or Fed steps in to help the Wall Street institutions that shorted GME....

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I don’t understand. These are the guys against the stock rising. They still see it at as a single digit stock...why would they buy in the $200s? This is above my intelligence. Why would they want the volatility?

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It's honestly not very much about the underlying company.

The day traders are buying the stock knowing that some larger investment firms went in hard on a short position. The short position isn't illogical, as Gamestop is a struggling company that's faced the brunt of Covid-19 and the dominance of E-commerce. No one is buying Gamestop thinking that it's a great long term investment. It's a risky buy at any price IMO.

A short position is when you borrow a shares from someone thinking that the price will go down. When the price goes down, you return those shares after purchasing them at a lower price. Their upside is that they can gain up to the entire share price per share they shorted if the share prices collapse. The short position has an theoretical infinite limit on their losses since there's technically no limit to how high a share price can get (practically speaking, there is a limit - GME's market cap is far higher than anyone thinks the company is legitimately worth based on its own merits). In a nutshell, the short position is a bet that the stock price will go down.

A few people on Reddit bought shares in Gamestop very low after some key investment banker and Wall Street tweeted that they are shorting the stock (which was done to help push the stock price down). When the price didn't go down, people started buying shares, driving the price up, putting the short at risk.

Then Elon Musk tweeted a link to the discussion on reddit (one of the investment firms shorting Gamestop also very shorted Tesla a while back and talked about it very publically). A few news stories picked it up. I'm honestly not 100% sure exactly when or how this went viral, but it definitely did. The result is that pretty much the whole world saw a trend of smaller investors buying shares of Gamestop, driving up the price.

The small guys are enjoying the fact that the Gamestop share price has skyrocketed due to all the buzz on reddit and social media. Some of them did this out of principle. Many have piled on because the share price climbed so high and continued to climb. They are all "squeezing" the short position held by a a few key Wall Street investment firms. IMO they deserve it. Those firms short companies all the time and advertise their position in public in hopes that the share price will be driven down farther. There's a some fundamental risks to a short position because there's no theoretical limit to the potential gains a stock could make. You can lose big, but can only gain a maximum of the total share price of the stock you borrowed.

As of yesterday, the total Wall Street short position is about 140% of the entire amount of Gamestop shares available, and a lot of the margin calls for these "borrowed" shares are happening tomorrow and over the next few days.....so the big investors are going to have to buy shares at massive costs to cover their contractual obligation to return the the shares they borrowed to support their short position. Some of them have doubled down and shorted at an even higher price. A few have borrowed cash ($billions) to cover their now disasterous short position.

So it's an interesting event taking place. Some idiots on CNBC and CNN have already claimed that discussing mass investment into a stock (as what happened on reddit) should be illegal. That's how pissed the ruling class is right now. Some are calling for more regulation, which of course will be directed towards smaller investors instead of the Wall Street banks. Some are calling for less regulation and to let the idiots that made a risky bet deal with the consequences. THere is an ongoing effort to keep small investors from buying Gamestop shares (multiple trading platforms not allowing them to "buy", but allowing them to sell). Discord banned the subreddit discussing this yesterday. IMO, it's a matter of time before Wall Street tries to put law enforcement on this to go after the small investors although I'm not sure how that would work yet.

Sorry if I wasn't clear. If I'm not 100% right or if I'm being fuzzy on the descriptors, I'm sure someone will correct me. What I'm not clear on is how exactly this went viral.

Dude, we’re talking about a casino stonk and Robinhood. That’s just pure political hate talk. Go to PT with that. People over the entire political spectrum do not like this. Just bc she happens to be voicing her opinion as well doesn’t mean she needs to be trashed in stonk thread. Smoke a bowl if you dislike someone politically that much.

Ja Rule is pissed

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Reddit says they’re willing to buy and hold GME all the way up and all the way down just to force hedge funds trying to cover their losses to be buying from a very limited pool of sellers.

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At least half of them are posting pictures of the new cars they are going to buy, confirmation of their student loan payments, etc.

I respect that. I can't ridicule someone for taking a profit.

This interview will make you guys sick.

Thomas Peterffy on CNBC

He is not even at all concerned about the markets. He was trying to take care of the hedge funds and clearing houses. They did this to protect themselves.

How are they going to exercise them without the capitol?