noddaz said:

In reply to eastsideTim :

The upside for the original owner is they are assuming the stock isn't going to fail, or are holding for a long term, so they get a bit of money just for having the stock.  

I am still confused.   Someone has 5000 shares of a marginal stock that may or may not be overvalued.

Then a hedge fund comes calling and wants you to loan it to them for a small fee.  If you owned that marginal, possibly overvalued stock wouldn't that set off alarm bells?  Two weeks ago I knew nothing of this.  I don't know much more than that now.  Somehow there must be more going on here.

Ok, how about this scenario:

"Someone" has a boatload of stock that may or may not be over-valued and is really not performing very well long term.   We will call this stock GS.  A guy named Mel goes to Someone and asks to borrow his stock in GS and will return it at a later date.  Mel takes the stock in GS and sells it at market price at that time.  Mel then puts a short sell on the GS stock to buy it back cheaper and pocket the difference before returning the devalued stock to Someone.  GS stock is now pretty much worthless, the GS company may actually go out of business.  

At some later date Mel splits the money that Mel made on this transaction with Someone.  

But that is not what happened, is it?

What happens when the hedge funds go bankrupt, and there is no-one to buy back the shares, because the buyers are already bankrupt, so, no market for severely overpriced shares?  

So... if $GME is really inflated right now and we know that it's going to come crashing down... This would be a good time for us to short right? I wonder if that's what some of the smart money is doing with Reddit.

californiamilleghia said:

When do the short sale guys have to replace the stock they optioned ?

is it random days or the first of the month?

Thanks for the info

My understanding is that they essentially have "forever” but any day after the "due" is charged hellatious, payday-loan-style, interest.  So they're absolutely going to play the "how big of a loss in interest if I just wait out the short-attention-span-retail-investors" calculation.

AAZCD (Forum Supporter) said:

So... if $GME is really inflated right now and we know that it's going to come crashing down... This would be a good time for us to short right? I wonder if that's what some of the smart money is doing with Reddit.

Yeah, if you're going to short, get in on like a 90 day date when everyone has lost interest in this.  But remember that short losses can be infinite if you and every other investor has that idea.

In reply to EarlSpot :

Since you're new to the forum you might want to go back and read the rules. Politics, or posts that drag discussions into politics, aren't allowed here. 

WonkoTheSane (FS) said:

AAZCD (Forum Supporter) said:

So... if $GME is really inflated right now and we know that it's going to come crashing down... This would be a good time for us to short right? I wonder if that's what some of the smart money is doing with Reddit.

Yeah, if you're going to short, get in on like a 90 day date when everyone has lost interest in this.  But remember that short losses can be infinite if you and every other investor has that idea.

Reality is that I couldn't get cash into a brokerage account outside of Robinhood fast enough to make a buy. I'm gonna have one share of GME. It is not significant. It will make no difference. It makes me happy though. I like the stock.

Well, at least there is one "feel good" story to come out of this:

10 year old cashes out Game Stop stock.

EarlSpot said:

In reply to yupididit :

That is exactly my point.  It's our tax money but free to them; something like 48 percent of people don't pay federal taxes but they all get stimulus checks....

I don't understand, who do you mean by "us" and "them"?  I got stimulus checks, am I the "us" or the "them"?

I'm sure more than 52% of households pay federal taxes. 

Anyway, it seems like you're salty about something and taking it out in your post. It says you're new here but you seem familiar. 

We're ALL in this together. 

Let's stay on topic. 

Has the the stock hit the top yet, or is there more upward price moves before it comes crashing down?

In reply to yupididit :

Actually the stats are 45-48% do not have to pay federal taxes. If you go deeper it's mostly young (18-25) or older (75+) because they do not have much income, but that doesn't fit the agenda, so they leave that out. I wouldn't expect my 20 year old college student or my 85 year old Dad to make enough to file, would you? I'll let my 20 year old know she's a "they". 
 

This is great. https://www.tmz.com/2021/01/31/plane-flies-over-robinhood-hq-with-suck-my-nuts-banner-san-francisco/

Indy "Nub" Guy said:

Let's stay on topic. 

Has the the stock hit the top yet, or is there more upward price moves before it comes crashing down?

 

As of Friday at the close of the market there is still potential (potentially massive potential) for upward movement.  Friday was a series of (from what I understand) short ladder attacks on GME that caused wild fluctuations of price, but didn't actually change any stances on the hedge fund holder's need to buy back stock.

In reply to Indy "Nub" Guy :

Although it may have hit top, it may hover for much longer than anyone realizes. Be it stubborn holders or some actual good decisions by GameStop, it's not an advisable risk.

So, in today's market manipulation: Citadel has been getting whipped by GME. They also own like 40% of Robinhood and are reportedly the ones that told RH to suspend trading last week. This weekend we saw a E36 M3load of stories on Silver being the next thing Reddit was going to invest in. Meanwhile r/wsb has been screaming "don't invest in Silver, we aren't saying to do that!"

Turns out, Citadel has a E36 M3load of holdings in silver, they are literally the 4th largest holder of silver equity in the market. They are trying to get the same people beating them up on GME to pay them for silver. CNBC and other media companies all seem to be involved in pushing silver as well

Do your due diligence

History will repeat ?

Silver Thursday

https://en.wikipedia.org/wiki/Silver_Thursday

I would stay away from trying to pick the next one for a while.

WSB on Reddit has been flooded with new people hoping to get in on whatever they do next.

Trying to do the same will probably just get you burned.

The current drop appears to be another attack to drive the price down and scare people off.  Volume being traded is miniscule

If you're really brave, buy?  I'm not a financial advisor

In reply to Mr_Asa :

If Robinhood's restrictions on purchases are still on, there's a limit to what retail buyers can do.  There is also now some question as to how much of this is being driven by retail investors, and how much by institutional investors who have joined in.  Was also reading on Axios that short sellers are still piling in (which makes some sense, as the price is way too high for the long run).  I keep thinking about jumping in, but then remember I got as far as I have in my retirement fund by not taking wild chances.

As for silver, a quick upwards run would be kind of nice.  I have a bunch of shares in CEF that are finally positive, and it'd be nice if I could dump them at an even higher value.  But thats my personal opinion, not any thoughts on the value of silver.  Oh, and if the WSBers think the stock market is rigged, just wait until they go up against COMEX.

Weathsimple has no restrictions.

Robinhood is still restricted, but updating. It was one share of GME at open and now you can have four. There's a lot of spin about what 'really' happened and why Robinhood restricted things as they did. For now, I'm keeping in with RH because I'm already there and the interface is so intuitive and simple. As the dust settles I'll decide what spin is more truthy and move on from there.

Holding 1 GME with a limit sale order too high to be real. I'd get more, but everything else (play money) is in TSLA and NOK and I'm fond of them too.

Silver? There's been a big marketing campaign trying to push silver for a while. Yes, it's up right now, but if it's such a great buy, why do the pay so much to promote it's sale?

AAZCD (Forum Supporter) said:

Silver? There's been a big marketing campaign trying to push silver for a while. Yes, it's up right now, but if it's such a great buy, why do the pay so much to promote it's sale?

That's always been my reaction with the 'buy precious metals' investments. If I get silver, it will be something tangible, not paper. 

That said, I am dabbling in the dogecoin run up. It's money I can afford, and has the potential for upside, or to all disappear to near valuelessness. 

Mr_Asa said:

The current drop appears to be another attack to drive the price down and scare people off.  Volume being traded is miniscule

If you're really brave, buy?  I'm not a financial advisor

Agreed it looks just like last week with more short burst attacks with low volume, trading shorts around again. Squeeze does not appear to be squoze, currently at 111% squeezenss (that's if you believe the short reportings, there is a conspiracy theory floating around that S3 is falsely reporting). 

https://isthesqueezesquoze.com/

Good statement here, too many are jumping in on the fun with their life savings, this is different if you have disposable income that you don't care about losing.  There is a reason why reddits WSB stands for "Wallstreet Bets", it is a huge risk.

"This is not a game. The people who originated this meme like to have fun with stupid stock bets, we like to pretend we're monkeys throwing darts, but though we enjoy talking like idiots, we actually do know the difference between delta and theta. We understand what role a clearinghouse performs. We were playing GME weeks ago, at $10-$50, as it became clear that DFV was actually right. We put in money we could afford to lose, because we knew we were speculating on a potential short squeeze.

If these statements don't describe you - if you don't know options greeks, if you don't understand how the market works, and especially if you are gambling with money that would cause you problems if you didn't have it anymore - then pull your head out of your ass, return to the real world with your real obligations and expenses, and don't increase your exposure any more. There's an emotional high in gambling, especially when you're doing it with lots of other euphoric people. Don't let it screw up your life.

This is not an epic crusade to get retribution on the financial sector for its reckless greed and the damage it's done to people's lives. It's just a stock play, undertaken to make money off of some hedge funds who got caught in an overexposed position. The financial industry as a whole does not care. This is just a blip on its radar"

In reply to CrustyRedXpress (Forum Supporter) :

Yeah, I'm off to a bad start, I guess. My apologies to all.

EarlSpot said:

In reply to CrustyRedXpress (Forum Supporter) :

Yeah, I'm off to a bad start, I guess. My apologies to all.

I can tell simply from this post that I'd like you to stick around. Seriously! Hats off for a stand up remark. No apology needed. Tell us about your cars.