I bought into this at around $80. Was shocked to wake up and see it at $350.
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GameStop Is Rage Against the Financial Machine
151–160 of 1001 posts
Re: GameStop Is Rage Against the Financial Machine
#152It's impossible to time the top, but one thing you can say with certainty is that eventually the price of these stocks will come back down (because the underlying firm is clearly not worth its market cap). Hence, the smartest bet here seems to be buying put options that expire far out. Currently, the price of the $320 GME PUT expiring in Jan 2022 is $240. That seems like free money?
Note that $240 is the price of a put for a single share, which are typically bought in increments of 100 with options. So buying a single one of those options requires $24,000. There are definitely people spending that kind of money over in WSB, for given the volatility nature of the meme stock, its a lot of money to put on the line for anyone not in the WSB mindset, or who isn't so flush with cash that that's a drop in the bucket.
Re: GameStop Is Rage Against the Financial Machine
#153Earlier quoted context omitted.
This kind of market folly also has an effect on long-term investments, e.g. retirement funds. What is there to love? I hate that unshowered basement-dwellers are coordinating to screw around with the market and potentially my retirement money. Get an honest job, guys.
Retirement funds are a scam: when prices go up, funds manager take their bonus, when it goes down, the funds shareholders (that is, everyone) swallow up the loss. It even a double-edge scam, because now people are supposed to stand up for the finance behemoth because they holds their retirement hostage.
Within the United States, you will have a hard time finding a company with a traditional pension system. Almost all use 401(k) or similar retirement systems. If it is a scam, it is a well-supported scam.
Re: GameStop Is Rage Against the Financial Machine
#154Am I missing something in the Gamestop news that isn't "hedge fund gambles billions on naked shorts and loses"? That seems like a real blunder on their part. In other contexts we would just call this gambling, I think. Shorts have infinite liability, not hedging them is not something I can get behind.
You are missing something - these aren't naked shorts. The fact that more than the whole float is out on loan does not imply that naked shorting is going on.
Please explain. I thought this was the whole purpose behind hedging, was to avoid the short squeeze. Are people reneging on the purchase agreements or overpromising? How can we know these aren't naked shorts and if so, why are they still facing the short squeeze?
Re: GameStop Is Rage Against the Financial Machine
#155Am I missing something in the Gamestop news that isn't "hedge fund gambles billions on naked shorts and loses"? That seems like a real blunder on their part. In other contexts we would just call this gambling, I think. Shorts have infinite liability, not hedging them is not something I can get behind.
They have a large chunk of cash, they got new investors with Ryan Cohen coming onboard and are moving into an ecommerce direction + they are a familiar and established brand. The "resurrection" story here serves fuel on the brand fire. Real news is that gamestop really has turnaround potential.
Re: GameStop Is Rage Against the Financial Machine
#156Why doesn’t GME issue some shares at these prices and pay off all its debt and add cash to the balance sheet?
Some say that would be illegal, since GME knows these prices are wrong, and thus they would be guilty of fleecing whomever buys them.
But supposedly they could make the investors sign a waiver that they acknowledge this?
Re: GameStop Is Rage Against the Financial Machine
#157Earlier quoted context omitted.
This kind of market folly also has an effect on long-term investments, e.g. retirement funds. What is there to love? I hate that unshowered basement-dwellers are coordinating to screw around with the market and potentially my retirement money. Get an honest job, guys.
I have an honest job AND a position on GME. Thanks for your concern though.
Get a load of this guy with an honest job. I’m riding my GME shares to the moon :P
Re: GameStop Is Rage Against the Financial Machine
#158Re: GameStop Is Rage Against the Financial Machine
#159I am loving every minute of this. The "professionals" gamble on the market all the time, front run, high frequency trade, and relentless tactics to get rich at the expense of the "retail" investors. Now they are upset that apps like Robinhood has provided unprecedented access to the markets. Their exclusive access to insane gambling nonsense is being torn down in real time. If Wall St can gamble and cause a global fi…
I’m worried what will happen down the road. Robinhood is likely getting super valuable data on this. Combine that with correlating post activity on Reddit and you have a recipe for obliterating the arbitrage of retail investors. These hedge funds will also buy the data that Robinhood freely sells [1]. Sure, squeezes like this will still happen every so often, but on average the hedge funds will win more in the long run.
So, I think Robinhood needs to get some competitors, who charge $1-2 per month, while enforcing data privacy.
This all feels like a classic Black Swan at work, and I guess the main question is if you believe that the long term expected return justifies such risky short sells.
[1]: https://www.jacobinmag.com/2021/01/trading-app-robinhood-inv...
Re: GameStop Is Rage Against the Financial Machine
#160I am loving every minute of this. The "professionals" gamble on the market all the time, front run, high frequency trade, and relentless tactics to get rich at the expense of the "retail" investors. Now they are upset that apps like Robinhood has provided unprecedented access to the markets. Their exclusive access to insane gambling nonsense is being torn down in real time. If Wall St can gamble and cause a global fi…
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