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GameStop (GME) Stock Surges Amidst New Board, Short Squeeze [Read Threadmarks]

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test_account

test_account

Member
Oct 25, 2017
4,645
SxP said:
No, you pay the call price. And that's what makes it worthwhile. You buy for 115, the stock price is 300. You can immediately sell for 300 and pocket the difference. The thing is, you pay a premium (depends on the share price, and per share) to acquire the call. So if the share price is below 115, you don't exercise the call (because why would you) and you lost your up-front payment. That's the risk-reward of calls.

Mostly the broker from which you bought the call holds the actual share(s), to then sell to you when you exercise the call. So in that sense, they can then sell the share because they don't need to hold it for you.
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Ah ok, i see. Is the premium already payed/set in advance by the way? This way, its a gamble to pay for these rights to buy stocks at $115 (risk-reward as you mentioned)?

And now that these rights have expired today, what will the brokers do with the held stocks? Sell them on the open market to anyone?
 
SxP

SxP

Member
Oct 27, 2017
2,867
test_account said:
Ah ok, i see. Is the premium already payed/set in advance by the way? This way, its a gamble to pay for these rights to buy stocks at $115 (risk-reward as you mentioned)?

And now that these rights have expired today, what will the brokers do with the held stocks? Sell them on the open market to anyone?
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It's determined in advance. The seller of the call only gets the premium in their account when the trades closes (expired or exercised). But the price of the premium is set at the time the call is purchased.
 
Enforcer

Enforcer

The Fallen
Oct 27, 2017
2,961
BobsReset said:
Is it still worth buying on Monday or nah at this point?
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The answer is no one truly knows. All we know is the short interest is still above 100% which means either hedge funds keep doing this for weeks hoping retail gives up; so it might go up or down or sideways or they pay the shorts causing a short squeeze.

If you do jump in, be prepared for it to be very volatile. If you can't handle it going up and down in such a fast manner don't bother.
 
Xadra

Xadra

Prophet of Truth - One Winged Slayer
Member
Oct 26, 2018
1,985
X-Frame said:
Someone ELI5 why 320 was the magic number for today?
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I can't offer a ELI because I myself barely understand all of this, but I found this, hope it helps a little bit.

This is from r/wallstreetbets:

Please take a look at this link:

https://ca.finance.yahoo.com/quote/GME/options?p=GME

These are expiring options, highlighted in blue are ITM. All of these will be exercised today and shares sold to the contract holders. the 320 strike has a lot of volume, but there is even more volume at 200 and below. Hell, even closing above 115 is millions of shares that get exercised. Shorts need this to close below 60 to even have a chance, if we close above 200 we are crushing it.

TLDR: closing above 320 is perfect, 200 is excellent, 115 is great. HOLD 💎🤲💎🤲💎🤲💎🤲💎🤲💎🤲💎🤲💎🤲💎🤲💎🤲
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Today the closing price is $325


which means there are 41,870 contracts that expired ITM which means there are 4,187,000 shares that need to be covered. and it's true that probably a lot of them are already covered. but this is a significant amount, even a small percentage of these are naked call there is still lots of shares that need to be covered considering that WSB probably holds the majority of available float shares, so DONT SELL YOUR shares and squeeze these shorts into lemonades.
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Syntsui

Syntsui

Member
Oct 25, 2017
4,874
lol

I fell like this shit is over lmao. Brokers are controlling the market so it never stays above $400. The masses are scared and all that's left are the reddit guy and undercover sharks that will fuck each other the second one of them decides to sell.
 

eathdemon

Banned
Oct 27, 2017
9,690
its crashing first thing monday. you got what you want, you put the hurt on a major hedge fund, sell and take your profit.
 
Mengetsu

Mengetsu

Member
Oct 27, 2017
8,812
I signed up for Robinhood before this whole fiasco but they still haven't cleared me to buy or sell. What's another app that I can get into this right away?
 
Bear Patrol

Bear Patrol

Member
Oct 27, 2017
1,043
I'm glad I got out when I did with a great payout (went from $63 to $280) but also happy to see the shorts lose even more money.

eathdemon said:
this feels like tomorrow will be the crash.

its one stock and a prity smallish group at that. it sucks for those people that arent listening, but most people inolved understand that this will crash and soon.
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eathdemon said:
yeah it was prity obvious it was gunna crash today.
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eathdemon said:
its crashing first thing monday. you got what you want, you put the hurt on a major hedge fund, sell and take your profit.
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You've been saying that it's going to crash the next trading day every day for the last 3 days.

It's going to have to crash at some point but trying to call out when like this is pretty useless.
 
SxP

SxP

Member
Oct 27, 2017
2,867
If you guys are so incredibly sure the stock is going to crash on Monday, why not go short at the current value? It's just as difficult to time stock decreases as it is to time increases. Otherwise, everybody would rich shorting stocks.
 
Syntsui

Syntsui

Member
Oct 25, 2017
4,874
Raiden said:
Same way bitcoin rallied I guess, lots of people buying and nobody is selling.

I'd say cash out if you made some nice profits. Or ride it out for some time just to see how far it can go.

At this point 100 or 1000 both seem plausible next week.
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What makes you think anything different from yesterday or today will happen. The brokers will not allow people to buy this shit if means it will skyrocket.

Today was the day that it was supposed to blow up and the brokers contained it masterfully, I honestly see now way around them.
 
Bobbyleejones

Bobbyleejones

Banned
Aug 25, 2019
2,581
""The Commission is working closely with our regulatory partners … to ensure that regulated entities uphold their obligations to protect investors and to identify and pursue potential wrongdoing," the statement reads. "We will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws."

Welp
 
thonerayman

thonerayman

Member
Oct 27, 2017
1,801
Bobbyleejones said:
""The Commission is working closely with our regulatory partners … to ensure that regulated entities uphold their obligations to protect investors and to identify and pursue potential wrongdoing," the statement reads. "We will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws."

Welp
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Yeah, the stock market is far crazier than just buy and sell. The rules are absolutely bonkers.
 
BlueManifest

BlueManifest

One Winged Slayer
Member
Oct 25, 2017
15,331
Bobbyleejones said:
The rules were fine till it screwed over hedge funds.
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I'm just imagining what the new rules might could be, they could do something like self directed accounts aren't allowed to be used unless you have 50k or something

Or They could severely limit trading on self direct accounts

They could make it so if a stock increases 50% in one day then trading is limited until it cools off

All kinds of things they could do
 
iori9999

iori9999

Member
Dec 8, 2017
2,294
Well I think BB was a bad investment. I don't think that stock had very many significant increases. Good to see how GME ended today though
 

Deleted member 27751

User-requested account closure
Banned
Oct 30, 2017
3,997
Surely this blatant announcement that the market is in fact still only for the rich and they control the rules is enough for people to notice? Surely shit should be changing from it due to outcry from the public that they are unable to participate because they are being killed out of the game that the hedge funds/big investors created and manipulate? I just don't get how a market like this can still continue in this day and age where we are so much more aware of erroneous behaviours and where we actively seek to correct those behaviours.
 
thonerayman

thonerayman

Member
Oct 27, 2017
1,801
Bobbyleejones said:
The rules were fine till it screwed over hedge funds.
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1. Not all hedge funds are created equally. 2. Not all hedge funds bet on the same stocks. So while yes Citron specifically got the short squeeze out on them and they lost money. Others made a fortune. An absolute fortune. 3. They aren't changing these rules, they are going to look into enforcing them. I know a lot of people here just started looking into stocks and the market. I've been in it since the early 00's. There is a reason I didn't jump on the Gme bandwagon. When the sec cracks the whip I was about to be caught with my hand in the cookie jar.

Also no one on the public was screaming at Andrew Left when he shorted Valiant for ripping off trillions of dollars in customers and insurance companies by over charging for meds.
 
Keyser S

Keyser S

The Fallen
Oct 26, 2017
8,480
iori9999 said:
Well I think BB was a bad investment. I don't think that stock had very many significant increases. Good to see how GME ended today though
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BB is is good "normal" investment. It is a company that should rise in coming years as it restructures . It should never have been thrown in with the GMEs and AMCs of this world. If you have money, and have time, it is worthwhile, but it will never skyrocket in days, weeks, or even months.
 
iori9999

iori9999

Member
Dec 8, 2017
2,294
Keyser S said:
BB is is good "normal" investment. It is a company that should rise in coming years as it restructures . It should never have been thrown in with the GMEs and AMCs of this world. If you have money, and have time, it is worthwhile, but it will never skyrocket in days, weeks, or even months.
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I still have my 1 share. But I just sold all my GME stocks. I wonder if they are going to continue to hold the line for it
 
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