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re: Someone explain this Game Stop deal.
Posted on 1/27/21 at 3:41 pm to UAinSOUTHAL
Posted on 1/27/21 at 3:41 pm to UAinSOUTHAL
That is fricking incredible
0
Posted on 1/27/21 at 3:45 pm to GumboPot
quote:
the rally cry on r/wallstreet bets:
"we can remain retarded for longer than they can stay solvent!"
Melvin lost $2B+ in like 2 weeks, and just had to get bailed out by 2 other funds just to cover it's losses from the shorts.
It's not quite George Soros "Breaking the Bank of England" - but it's close.
good threadreader
https://archive.vn/kBNVS
the rally cry on r/wallstreet bets:
"we can remain retarded for longer than they can stay solvent!"
Melvin lost $2B+ in like 2 weeks, and just had to get bailed out by 2 other funds just to cover it's losses from the shorts.
It's not quite George Soros "Breaking the Bank of England" - but it's close.
good threadreader
https://archive.vn/kBNVS
Posted on 1/27/21 at 3:46 pm to how333
quote:
It's all funny money.
Bruh what part of he locked in $13Million into cash do you not get? 100% not funny money and thousands of people have made $$$$$ since friday.
Posted on 1/27/21 at 3:51 pm to 13SaintTiger
Well I watched it till he was in the Tub then I ended it.
Posted on 1/27/21 at 3:59 pm to 3nOut
Keep in mind this is a derivative, a put option. So if you are betting the stock goes down, depending on how far down you are willing to buy your options, you could be way, way overleveraged.
If the stock is at 100 and you put in a put at 90 it may cost you 10 bucks, so you can get nine times the leverage, but if it does not drop to that level, you lose it all.
If you put it at 80 you may get it at 5 bucks or 18 times the leverage, or nothing at all.
And trying to get out of a put when the stock is rising like a rocket isnt very likely. They have specific deadlines to sell, it is nothing like a share of stock.
If the stock is at 100 and you put in a put at 90 it may cost you 10 bucks, so you can get nine times the leverage, but if it does not drop to that level, you lose it all.
If you put it at 80 you may get it at 5 bucks or 18 times the leverage, or nothing at all.
And trying to get out of a put when the stock is rising like a rocket isnt very likely. They have specific deadlines to sell, it is nothing like a share of stock.
Posted on 1/27/21 at 4:00 pm to teke184
quote:Look closer. That's the call option premium per share.
$0.20/share? Holy fricking shite.
Posted on 1/27/21 at 4:11 pm to LSURussian
I don’t understand why this wasn’t done before now. It seems so logical reading it
Posted on 1/27/21 at 4:23 pm to teke184
Stock symbol?
I’ll throw $10 at a random internet guy’s financial tip.
If I get rich I’ll sling some your way.
I’ll throw $10 at a random internet guy’s financial tip.
If I get rich I’ll sling some your way.
Posted on 1/27/21 at 4:30 pm to thenza
Nasdaq TSBK, currently $25.85/share
Posted on 1/27/21 at 4:37 pm to banone74
quote:
I don’t understand why this wasn’t done before now. It seems so logical reading it
I'm not an expert here but I heard it was unusual for a Hedge Fund to take on this much risk and to do it in such a public manner. The 130% shares shorted was a giant red flag and they shorted the stock in a way that made their activity a public disclosure under SEC guidelines (typically they can hind this through normal over the counter trading). Bottom line: they got greedy and an internet brigade went viral.
Posted on 1/27/21 at 4:38 pm to teke184
Will this cause the stock market to crash.
Posted on 1/27/21 at 4:40 pm to JOHNNY HUNGEE
Directly? No.
Indirectly? A bunch of stocks likely take a short term hit because firms dump them to shore up their positions on GameStop and the other targeted stocks.
Indirectly? A bunch of stocks likely take a short term hit because firms dump them to shore up their positions on GameStop and the other targeted stocks.
Posted on 1/27/21 at 4:49 pm to teke184
That’s a shame I wanted to blame the stock market crash on biden
Posted on 1/27/21 at 4:57 pm to teke184
quote:
I think Timberland will be one of the next targets.
I wonder if Nokia will be as well?
quote:
Nokia’s stock soars toward a record gain on record volume, for no apparent reason Last Updated: Jan. 27, 2021 at 3:09 p.m. ET First Published: Jan. 27, 2021 at 2:11 p.m. ET
quote:
Shares of Nokia Corp. powered up in very volatile and active trading Wednesday, enough for the Finland-based networking company to comment on the activity. “Nokia is not aware of any material, undisclosed corporate developments or material change in its business or affairs that has not been publicly disclosed that would account for the recent increase in the market price or trading volume of its shares,” the company said in a statement. The stock NOK, +38.48% soared 42.5% in afternoon trading toward a five-year high. That would be the biggest one-day percentage gain since it started trading in February 1991.
quote:
Trading volume spiked up to 960.4 million shares, also a record, and well above the full-day average of about 47.3 million shares. Nokia’s stock had been halted five times for volatility through afternoon trading, and was also halted once for news before the company commented on the stock movement. Nokia’s stock was the second-most active on the New York Stock Exchange, behind only the 1.1 billion shares traded in AMC Entertainment Holding Inc.’s stock AMC, +301.21%. AMC has been part of a group of stocks, including GameStop Corp.’s GME, +134.84%, that have been skyrocketing as investors flocked to potential short-squeeze candidates.
Market Watch
Posted on 1/27/21 at 4:57 pm to 3nOut
quote:
Hedge funds are just pissed that somebody figured out their game and hosed them. they'll call for protections and to make sure it doesn't happen to them again.
Yeah the only people who should be allowed to manipulate stocks should be hedge funds. You know, for capitalism!
Posted on 1/27/21 at 4:59 pm to chili pup
Nokia, Blackberry, AMC, and others are already mentioned as targets.
Posted on 1/27/21 at 5:00 pm to Rex Feral
Watch trading places.
Mortimer is about to stroke out
Mortimer is about to stroke out
Posted on 1/27/21 at 5:01 pm to Bulldogblitz
Turn those machines back on! TURN THOSE MACHINES BACK ON!
Posted on 1/27/21 at 5:09 pm to teke184
quote:
Nokia, Blackberry, AMC, and others are already mentioned as targets.
It's apparently heading to Europe as well:
GameStop fever sweeps Europe's most shorted stocks
quote:
MILAN (Reuters) - Drugmaker Evotec led sweeping price swings in some of Europe’s most shorted stocks on Wednesday in an echo of the retail trading fever that has gripped the United States.
The U.S. market moves have put piled pressure on professional short sellers, who sell shares on the expectation that they will fall and can be bought back more cheaply later.
quote:
Positions held by New York-based hedge fund Melvin Capital Management, which has a 6.2% short on Evotec, have come under particular scrutiny and shares in the drugmaker rose by 30% at one point during the trading day in Frankfurt.
. . .
Battery maker Varta and Polish video game firm CD Projekt, two Melvin shorts in Europe, also rose strongly on Wednesday, further extending this week’s gains.
It seems like the internet investors don't like Gabe Plotkin and Melvin Capital and he's had a bad year so far.
Somewhat unrelated source link:
quote:
Plotkin founded New York-based Melvin Capital in 2014 with $925 million in seed money, according to a source. The fund now manages $13 billion. Its holdings include more than 405,000 shares of Amazon (worth nearly $1.3 billion on Monday), and about 20 million shares in Bath & Body Works owner L Brands (worth $600 million), according to Yahoo Finance. L Brands also owns a stake in Victoria’s Secret.
A spokesperson for Plotkin declined to comment. Melvin is known for taking significant short positions against several stocks, including GameStop, which has seen its shares rally nearly 700 percent this year- resulting in huge losses for Melvin. On Monday, the Wall Street Journal reported that Steve Cohen’s Point72 Asset Management and Ken Griffin’s Citadel are investing $2.75 billion into Melvin, which has lost nearly 30 percent this year.
Posted on 1/27/21 at 5:14 pm to imjustafatkid
That's the free market.
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