Jump to content

Surly #Stonks

Wally Fairway

By Wally Fairway
in Business and Markets

 Share

Recommended Posts

  • Replies 9.5k
  • Created
  • Last Reply

Top Posters In This Topic

Popular Days

Top Posters In This Topic

Popular Days

Popular Posts

Hank_Hill
Hank_Hill

Haven't mentioned it because didn't need naysayers because it is stupid, but I'm a med student doing this almost purely on my student loans while they're at zero interest. I've made +$20k since Decemb

Hank_Hill
Hank_Hill

The real treasure is the friends we make along the way

BradInATX
BradInATX

As long as 700% APR payday loans exist, you can fuck right off with "protecting people from themselves".

Posted Images

Trey3216

Trey3216 15325

Posted
Posted
5 minutes ago, The Royal We said:

Why in the blue fuck would they be bailed out!?  Fuck them, they need(ed) better Risk Managers not a goddamn bailout. 

They'll say it's in the name of not creating a secondary market contagion that could bring the market back to levels seen last March.  And if it's several large funds that are taking it in the teeth to infinity on GME and a half dozen or so other companies, they're going to be liquidating enormous positions in other names to unwind these positions.  

 

Bailed out would be by other managers, you'd hope.  

 

I say let them burn. Just reading into what those comments are saying, however.  

Link to comment
Share on other sites
hayden_horn

hayden_horn 11360

Posted
Posted
1 hour ago, longhornmatt said:

Not touching GME right now just means you aren’t a gambler.    But I was there with you on Apple.  “Why will anyone want a giant touch screen phone that plays music?”  - me in 2007 or whenever iPhone debuted.  Sigh.

i posted a hot take opinion on netflix circa 2012. "their content is not great, and those costs are only going to go up."

currently at $533

  • Hook 'Em 1
  • Haha 1
Link to comment
Share on other sites
Wally Fairway

Wally Fairway 5517

Posted
  • Author
Posted

BBC with an article today about GME/WSB David v. Goliath

https://www.bbc.com/news/business-55817918

Quote

Video games bricks-and-mortar retailer Gamestop is arguably something of a relic in a world moving online.

But its share price soared another 120% in Wednesday trading in New York.
 

Analysts blame tech-savvy young day traders, who they say are taking on hedge funds in a conflict with generational overtones.


And the phenomenon could be spreading to Europe, with several stocks subject to unusual fluctuations in Wednesday trading.
 

It's a battle between Wall Street pros and upstart investors using social media platforms such as Reddit, analysts say. And at the moment, the upstarts have the upper hand.

 

Link to comment
Share on other sites
hayden_horn

hayden_horn 11360

Posted
Posted
4 minutes ago, Cheeseweasel said:

Nah. It either skyrockets or you lose a few bucks. Not much downside at this point.

yeah, that's a good point. 

on another note, i've got a little extra money to start with you all. i've avoided this thread in the past, because sometimes it seems like a completely different language, but i would like to start with something like $1000, if yall would be patient with me and explain things to me like i'm five, i want to join the party.

  • Hook 'Em 1
Link to comment
Share on other sites
52-80

52-80 19076

Posted
Posted
3 minutes ago, hayden_horn said:

yeah, that's a good point. 

on another note, i've got a little extra money to start with you all. i've avoided this thread in the past, because sometimes it seems like a completely different language, but i would like to start with something like $1000, if yall would be patient with me and explain things to me like i'm five, i want to join the party.

Big bad wall st dudes borrowed shares  to sell it to others. By selling pressure exceeding the buying pressure, price naturally goes down (supply vs demand). Eventually they buy shares at a very cheap price and return it to the people they borrowed from. Everyone is made whole. They pocket the difference.

 

Typically a few percentage points of a companies available traded shares are traded this way (“shorted”).  In extremely cases it is tens of percent. 
 

In this case, they got too greedy and done this with more shares than was available. 150% of shares available. Meaning they hypothetically borrowed 1 share and sold it multiple times. 
 

They got WAY TOO GREEDY. 
 

If the share price goes up, their position loses money (because eventually they have to buy it back and return to whomever they borrowed from). 
 

The faster the price goes up, the quicker and larger their losses are, the more  they are compelled to buy the shares back to stop the position. 
 

This creates an avalanche/herd phenomenon called a short squeeze. 
 

If theoretically all the people who have shares refuse to sell their shares, the natural traded price goes up. The more it goes up, the more those people above need to buy them back (otherwise the bank breaks their kneecap).

 

What “we” are doing is buying the shares, and refusing to sell it back to them.  It is driving the price infinity upwards. We have very little to lose (only the value of the share). They have everything to lose - there is no ceiling to their losses. 

  • Hook 'Em 4
Link to comment
Share on other sites
Burt Macklin

Burt Macklin 18989

Posted
Posted
Just now, 52-80 said:

Big bad wall st dudes borrowed shares  to sell it to others. By selling pressure exceeding the buying pressure, price naturally goes down (supply vs demand). Eventually they buy shares at a very cheap price and return it to the people they borrowed from. Everyone is made whole. They pocket the difference.

 

Typically a few percentage points of a companies available traded shares are traded this way (“shorted”).  In extremely cases it is tens of percent. 
 

In this case, they got too greedy and done this with more shares than was available. 150% of shares available. Meaning they hypothetically borrowed 1 share and sold it multiple times. 
 

They got WAY TOO GREEDY. 
 

If the share price goes up, their position loses money (because eventually they have to buy it back and return to whomever they borrowed from). 
 

The faster the price goes up, the quicker and larger their losses are, the more  they are compelled to buy the shares back to stop the position. 
 

This creates an avalanche/herd phenomenon called a short squeeze. 
 

If theoretically all the people who have shares refuse to sell their shares, the natural traded price goes up. The more it goes up, the more those people above need to buy them back (otherwise the bank breaks their kneecap).

 

What “we” are doing is buying the shares, and refusing to sell it back to them.  It is driving the price infinity upwards. We have very little to lose (only the value of the share). They have everything to lose - there is no ceiling to their losses. 

I think it’s also important to note that these fucks have had ample opportunities since it became clear what was happening to just take a loss and get out of their short positions, but instead they kept trying to short it more. 
 

I won’t be surprised, but I’ll be absolutely enraged if these fucksticks get bailed out or receive aid in any way. They made their bed, now they need to lie in it. 

  • Hook 'Em 5
  • Like 2
Link to comment
Share on other sites
hayden_horn

hayden_horn 11360

Posted
Posted (edited)
9 minutes ago, Bone3421 said:
14 minutes ago, hayden_horn said:
my body is ready. the only good trade i've ever done was buying twtr at $14ish.
but i figure if i listen to you lot, maybe i can turn $1k into $10k

Throw the 1k in gamestop(gme) ride the gamma squeeze until short squeeze kicks in...take profits throw in BB...???

i feel like it's too late for gme, but the fuck do i know. i don't want to go double down mikie on my first real move.

edit to add, in the interest of being somewhat responsible, i'm waiting for my bonus to hit next month to start. so i'd like to learn a little bit by following along and asking stupid questions. i'm not a moron, if you can believe it. much of my job is reading financial reports and listening to investor calls. it's the trading world i'm ignorant about. and there are certain companies that i simply cannot get profit from because of what i do.

Edited by hayden_horn
Link to comment
Share on other sites
52-80

52-80 19076

Posted
Posted (edited)
6 minutes ago, Burt Macklin said:

I think it’s also important to note that these fucks have had ample opportunities since it became clear what was happening to just take a loss and get out of their short positions, but instead they kept trying to short it more. 
 

I won’t be surprised, but I’ll be absolutely enraged if these fucksticks get bailed out or receive aid in any way. They made their bed, now they need to lie in it. 

100%.  Im not into conspiracies and stuff, but what I saw over the course of this week made me dig my heels in even more.

 

Example:  this morning at the *exact same time* - multiple news articles came out, cnbc appearances, youtube videos - from different parties makiing hit pieces downplaying and discouraging the "movement".  Happened at like 630AM or whatever, not exactly the typical publishing schedule for this type of shit. 

 

The guys in it basically said "oh, we covered all of our position at XXX dollars, there is no more shorting"  "This is very dangerous you will lose all your money".   Stock was at YYY dollars through the roof.  XXX dollars bypassed. 1, 2 days ago. 

 

But miraculously they did not make that announcement 1 or 2 days ago (it is 2021 in the age of instant internet media).  Different parties made it at 630am across different news outlet, at a price of YYY when it hurt them the most. 

 

The beauty of the global internet is that myth got busted instantly.

Edited by 52-80
  • Hook 'Em 4
  • Like 1
Link to comment
Share on other sites
Burt Macklin

Burt Macklin 18989

Posted
Posted

Not sure if this is stonking, but I’ve also seen a lot of WSB say they’ll take money out of popular WSB ETFs (Ark, SMH, ICLN, etc.) and pump it into GME for now. Almost all of those are down like 8% in the last two days. It’s making me consider some options or throwing a little money at those as a way to capitalize on GME without actually buying more. 

Link to comment
Share on other sites
Bone3421

Bone3421 716

Posted
Posted
i feel like it's too late for gme, but the fuck do i know. i don't want to go double down mikie on my first real move.
edit to add, in the interest of being somewhat responsible, i'm waiting for my bonus to hit next month to start. so i'd like to learn a little bit by following along and asking stupid questions. i'm not a moron, if you can believe it. much of my job is reading financial reports and listening to investor calls. it's the trading world i'm ignorant about. and there are certain companies that i simply cannot get profit from because of what i do.
It's a gamble but I havent seen anything that says it wont go up another 150% or so on friday... every call is in the $$$ right now(people betting on where stock will finish at end of the week) these have to be covered and is part of why gme keeps going up as we are possibly in a infinite gamma squeeze by somes opinion

Until shorts give up or a bunch of people sell this will not end
Link to comment
Share on other sites
DonkeyCigars

DonkeyCigars 144

Posted
Posted
13 minutes ago, Burt Macklin said:

I think it’s also important to note that these fucks have had ample opportunities since it became clear what was happening to just take a loss and get out of their short positions, but instead they kept trying to short it more. 
 

I won’t be surprised, but I’ll be absolutely enraged if these fucksticks get bailed out or receive aid in any way. They made their bed, now they need to lie in it. 

The reason is because I'm still not convinced they won't make every penny back if they can stay solvent long enough.

And Biden doesn't want that kind of heat, getting hate from the regular folks by having his appointee Yellen or anyone else talking bail out to big monied wall street. That would be a death knell 10 days into a presidency.

  • Hook 'Em 1
  • Like 1
Link to comment
Share on other sites
hayden_horn

hayden_horn 11360

Posted
Posted
1 hour ago, longhornmatt said:

The regular old folks are also manipulating the markets, and they’re making it easy for the SEC by documenting that they’re doing it for that reason on Reddit.  “But it was for the lulz” isn’t going to be a great defense for whatever poor saps the SEC chooses to go after.

can you explain this to me?

why is what reddit posters are doing illegal, but not what jim cramer or seeking alpha or hedge fund managers legal?

  • Haha 1
Link to comment
Share on other sites
Burt Macklin

Burt Macklin 18989

Posted
Posted
2 minutes ago, DonkeyCigars said:

The reason is because I'm still not convinced they won't make every penny back if they can stay solvent long enough.

And Biden doesn't want that kind of heat, getting hate from the regular folks by having his appointee Yellen or anyone else talking bail out to big monied wall street. That would be a death knell 10 days into a presidency.

I agree Biden doesn’t want it and intervention is a real possibility, but I don’t see the solvency argument.
 

There’s no way out after yesterday. Elon and Chamath are pumping it, it’s all over the news, and people are racing to create RH accounts to throw their money at it. Their ability to cover their shorts are getting eaten up at a rapid pace every day with no end in sight. 

Link to comment
Share on other sites
Bone3421

Bone3421 716

Posted
Posted
can you explain this to me?
why is what reddit posters are doing illegal, but not what jim cramer or seeking alpha or hedge fund managers legal?
There is nothing illegal about...just big $$$ trying to scare them off before squeeze from my brief time checking out wsb last few days
Link to comment
Share on other sites
Trey3216

Trey3216 15325

Posted
Posted
3 minutes ago, hayden_horn said:

can you explain this to me?

why is what reddit posters are doing illegal, but not what jim cramer or seeking alpha or hedge fund managers legal?

None of it is illegal, in my opinion.  The only thing that isn't right about the whole GME trade is that it got so unfathomably overplayed that it ended up with greater than 100% short interest.  


Citron and Melvin made the correct bet, they just so egregiously overbet it that there was no possible alternative to this happening.  In other words, they're the hogs getting slaughtered, and they deserve every second of it.  

  • Hook 'Em 7
  • Like 1
Link to comment
Share on other sites
Harrison Stafford

Harrison Stafford 3325

Posted
Posted
4 minutes ago, Trey3216 said:

None of it is illegal, in my opinion.  The only thing that isn't right about the whole GME trade is that it got so unfathomably overplayed that it ended up with greater than 100% short interest.  


Citron and Melvin made the correct bet, they just so egregiously overbet it that there was no possible alternative to this happening.  In other words, they're the hogs getting slaughtered, and they deserve every second of it.  

Preach, brother!  Preach!

Link to comment
Share on other sites
52-80

52-80 19076

Posted
Posted
9 minutes ago, hayden_horn said:

can you explain this to me?

why is what reddit posters are doing illegal, but not what jim cramer or seeking alpha or hedge fund managers legal?

horse shit scare tactics that they tried to trot out on cnbc.  jim cramer literally spoke out AGAINST the scare tactic.

SEC rules against manipulation is well codified.  cant provide KNOWINGLY FALSE information and not disclose your position. 

a bunch of (supposed) teenagers saying "we love this stock and we buy it and we're not fucking selling" is NOT prosecutable

  • Hook 'Em 1
Link to comment
Share on other sites
Trey3216

Trey3216 15325

Posted
Posted
4 minutes ago, Anastasis said:

So what is going to break this gamma situation?  Expiration on Friday?

Maybe, just maybe, the only thing that will unwind everything is if they run options out to $2500 or $5000.  The premiums would be so absurd that people will have to raise capital to purchase them (they'll sell shares or other options).   This will loosen the noose to a point where it will eventually get back to a more sensical zone.  

  • Like 1
Link to comment
Share on other sites
Wally Fairway

Wally Fairway 5517

Posted
  • Author
Posted
3 minutes ago, Anastasis said:

So what is going to break this gamma situation?  Expiration on Friday?

 

2 minutes ago, Bone3421 said:
3 minutes ago, Anastasis said:
So what is going to break this gamma situation?  Expiration on Friday?

From my basic knowledge nothing until the shorts give up or wsb/retail sells shares

Shorts can be squeezed out by margin calls, collateral requirements, or having the shares called - all of which are very expensive losses.
But that doesn't stop the gamma squeeze, and the autists continue to buy options seemingly to infinity; knowing that it just perpetuates itself week to week as long as there are more in the money options expiring than there are shares to cover.
Market makers have tried to curb the gamma squeeze by releasing increasingly higher strikes on options.....only to see the stock price blow through those options and suddenly everything is in the money again. 

 

  • Hook 'Em 1
  • Like 2
Link to comment
Share on other sites
52-80

52-80 19076

Posted
Posted
1 minute ago, Bone3421 said:
3 minutes ago, Anastasis said:
So what is going to break this gamma situation?  Expiration on Friday?

From my basic knowledge nothing until the shorts give up or wsb/retail sells shares

theres all sorts of corroborating data estimating daily short interest (e.g. from ortex) revealing that the shorts have not yet covered.  this is the kind of info that was probably very exotic and inaccessible to the robinhood crowd 20 years ago, if RH existed 20 years ago.

 

even if the shorts started to skim off their position here or there, the short interest can still be characterized as massive.

given the pricing action in the last few days, and the show of strength when every "dip" has been destroyed, when the shorts truly starts to cover, the price will go ultraviolent.  i suspect there will be days more to go.

  • Like 1
Link to comment
Share on other sites
Wally Fairway

Wally Fairway 5517

Posted
  • Author
Posted
2 minutes ago, Trey3216 said:

Maybe, just maybe, the only thing that will unwind everything is if they run options out to $2500 or $5000.  The premiums would be so absurd that people will have to raise capital to purchase them (they'll sell shares or other options).   This will loosen the noose to a point where it will eventually get back to a more sensical zone.  

Just reading this makes me weep, for the calls that I did not buy

  • Hook 'Em 1
  • Like 1
Link to comment
Share on other sites
52-80

52-80 19076

Posted
Posted
1 minute ago, Wally Fairway said:

Just reading this makes me weep, for the calls that I did not buy

in the "early days" of this rally (defined as January 25th), I bought a 100C for $2475 that I flipped in 20 minutes for $3095.  It's worth 26,000$ right now.

 

no lookbacks!!!

  • Hook 'Em 1
  • Like 1
  • Haha 1
Link to comment
Share on other sites
Wally Fairway

Wally Fairway 5517

Posted
  • Author
Posted
4 minutes ago, 52-80 said:

in the "early days" of this rally (defined as January 25th), I bought a 100C for $2475 that I flipped in 20 minutes for $3095.  It's worth 26,000$ right now.

 

no lookbacks!!!

thanks for posting this, it serves as a reminder that I would not have held all of the calls that I was looking at, and failed to launch

  • Hook 'Em 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
 Share
Go to topic listing


Football ... Basketball ... Baseball ... Other Sports ... Futbol ... 🤫995🤫 ... Gambling ... Movies & TV ... Music ... Hobbies ... Lulz ... Food & Travel ... Daily Texan ... Business and Markets ... Cloak Room ... Help ... For Sale ... Board Discussion ... Subscribe!... Donate!... Advertise... COOKIE MONSTER!

×
×
  • Create New...