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Started By
Message
re: Can someone explain this Gamestop stuff to me like I’m a teenaged Maxine Waters?
Posted on 1/27/21 at 4:26 pm to 3nOut
Posted on 1/27/21 at 4:26 pm to 3nOut
quote:
you can short a stock where you "borrow" shares at a cost and if the stock loses money, you only have to pay back what was lost. if it gains, you have to make up the difference
i.e. i short 10 stocks at $100 and get $1k. if the stock is $90 at the end of when i say i'll pay you back, i only owe $900 back and i keep $100
if i short 10 stocks at $100 and then they're $200 at the end, i owe $2000 back.
hedgefunds shorted 1.7mm stock with at $30-$40 and now it's over $300. so they have to buy back at that inflated cost and it's going to cost billions to the hedge funds that shorted the stock.
And to add to this explaining what the Redditors did:
Big Hedge funds were heavily short selling GameStop stock by shorting enough shares to guarantee a drop in the stock when they sold off that large amount of borrowed shares.
People online caught it at the perfect time, decided to frick Wall St at their own game, and thousands of regular people bought shares of GameStop all at once, thus artificially inflating the stock price very fast. Now if they can hold that high value stock until the brokers call the shorts I.e the hedge funds have to pay back the stocks they borrowed, the hedge funds will lose billions.
Hedge funds are trying to cover their position by sinking even more money into it hoping they can outlast the Reddit guys and the Reddit guys end up taking the L. At least the ones who haven’t cashed out at a nice profit already. But most of those people only stand to lose a few hundred bucks and are willing to risk it as the hedge fund companies stand to lose billions and they want to send a big frick you to Wall St
0
Posted on 1/27/21 at 4:28 pm to 3nOut
quote:
hedgefunds shorted 1.7mm stock with at $30-$40 and now it's over $300. so they have to buy back at that inflated cost and it's going to cost billions to the hedge funds that shorted the stock.
RIP to WSB as that hedge fund and its $$ is coming lol.
Posted on 1/27/21 at 4:30 pm to 3nOut
quote:
lots of jews run hedge funds.
hurting hedge funds hurts jews.
this was obviously solely done to hurt jews
Posted on 1/27/21 at 4:31 pm to BamaScoop
quote:
guarantee you the SEC steps in and rules that they don't have to pay in back. It is ok for them to frick you but its not ok for you to frick back.
Which pisses me off because this a great example of free market capitalism and how regular people can regulate big companies when the companies do things people don’t like. You don’t need Govt intervention. Now some big companies will hurt or go under while some middle class people rake in tens of thousands of dollars on less than a 1,000 investment. It’s a natural wealth redistribution and natural market regulation that doesn’t need Govt at all to pick winners and losers. It’s a beautiful thing
Posted on 1/27/21 at 4:33 pm to Eli Goldfinger
quote:
So what’s the total damage?
Enough to make people jump out of buildings if it was their own money and not their firms.
Posted on 1/27/21 at 4:34 pm to Old Money
Probably enough that the CEO of the firm will toss them out for destroying his cash cow.
Posted on 1/27/21 at 4:41 pm to teke184
Will this cause the stock market to crash and the Great Depression 2 will take place
Posted on 1/27/21 at 4:48 pm to Eli Goldfinger
quote:
Can someone explain this Gamestop stuff to me like I’m a teenaged Maxine Waters?
Ok.. if you have 2 of something.. and you get two more of something.. you have 4 somethings
A solar eclipse is not the moon eating the sun
No you can’t combat “man made” climate change by leaving the refrigerator door open.
Gin was not first bottled by Eli Whitney
The USAF did not get the idea of naming the plane the President is on “Air Force One” because of the Nelly song.
Pass that test and we will move on..
Posted on 1/27/21 at 4:51 pm to Kafka
Posted on 1/27/21 at 4:55 pm to Eli Goldfinger
It would be easier to explain it to a brick wall than a teenaged Maxine Waters.
No offense. You just can't dumb it down that far.
No offense. You just can't dumb it down that far.
Posted on 1/27/21 at 4:58 pm to JOHNNY HUNGEE
quote:
Will this cause the stock market to crash and the Great Depression 2 will take place
37 EOs in 7 days will take care of that.
Posted on 1/27/21 at 5:00 pm to Eli Goldfinger
Watch trading places
Posted on 1/27/21 at 5:28 pm to how333
quote:
quote:
like I’m a teenaged Maxine Waters
Scary thought.
I’m pretty certain that Maxine Waters was born with no sense and has been growing more stupid every day.
Posted on 1/27/21 at 5:58 pm to how333
This is as young as I could find
I don't think they made cameras before this
I don't think they made cameras before this
Posted on 1/27/21 at 6:34 pm to JABRO
Still watching the first video, but this is fricking hilarious. 
Posted on 1/27/21 at 6:43 pm to Eli Goldfinger
Am I the only one that’s didn’t know that GameStop is publicly traded until this?
Posted on 1/27/21 at 6:56 pm to bobdylan
nor did iPosted on 1/27/21 at 7:19 pm to 3nOut
There has been some good explanations but incomplete.
70% of GME is institutional ownership. That means funds hold the common stock. Blackrock alone owned 17%, although I assume they've trimmed their positions through this rally.
In any stock there are essentially investors betting on it to rise and others that it will fall. These are both funds and individual retail investors.
Gamestop reported surprisingly good earnings last week, with increased in online gaming revenue during the pandemic. This caused a short covering rally. Some of those who had shorted the stock expecting bankruptcy had to buy back the shares that they had previously borrowed, losing money.
One poster on reddit had about $1M in common stock. They had bought a $7k out of the money call option which would have been worth nothing in a few days. That call option became valued at over $1M when the initial short squeeze happened. Plus the increase in value of the common position.
Reddit users piled in, buying the stock up.
Now, there are other type of funds that rely on algorithmic trading. It's just a complicated mathematical equation that buys and sells stocks without human intervention, according to some set parameters. Some of these equations chase momentum, or the rate of change of price.
All of this continues to push the short squeeze. Elon tweets about it, driving even more interest.
Some hedge funds lost a fortune. Some hedge funds gained. Some retail investors became extremely wealthy in a week.
It's much more complicated than the David vs. Goliath narrative being sold by financial media.
70% of GME is institutional ownership. That means funds hold the common stock. Blackrock alone owned 17%, although I assume they've trimmed their positions through this rally.
In any stock there are essentially investors betting on it to rise and others that it will fall. These are both funds and individual retail investors.
Gamestop reported surprisingly good earnings last week, with increased in online gaming revenue during the pandemic. This caused a short covering rally. Some of those who had shorted the stock expecting bankruptcy had to buy back the shares that they had previously borrowed, losing money.
One poster on reddit had about $1M in common stock. They had bought a $7k out of the money call option which would have been worth nothing in a few days. That call option became valued at over $1M when the initial short squeeze happened. Plus the increase in value of the common position.
Reddit users piled in, buying the stock up.
Now, there are other type of funds that rely on algorithmic trading. It's just a complicated mathematical equation that buys and sells stocks without human intervention, according to some set parameters. Some of these equations chase momentum, or the rate of change of price.
All of this continues to push the short squeeze. Elon tweets about it, driving even more interest.
Some hedge funds lost a fortune. Some hedge funds gained. Some retail investors became extremely wealthy in a week.
It's much more complicated than the David vs. Goliath narrative being sold by financial media.
Posted on 1/27/21 at 7:26 pm to Eli Goldfinger
quote:
explain this Gamestop stuff to me like I’m a teenaged Maxine Waters?
Shes the dumbest person alive. Good choice.
Posted on 1/27/21 at 7:57 pm to Bjorn Cyborg
quote:
Amateur investors on Reddit noticed how much the stock was being shorted
How do amateur investors know or notice how much a stock is being shorted? I assume you have to be really dialed into the situation to know who it is and how much they’re shorting it?
This wasn’t some amateur ppl with no experience that pulled this off right?
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