Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

GameStop Is Rage Against the Financial Machine

bloomberg.com

Post reply on HN
Print view View original

471–480 of 1001 posts

Re: GameStop Is Rage Against the Financial Machine

#471

Post by nl »

restingrobot wrote: post #440
Traster wrote: post #347

Earlier quoted context omitted.

The second that the shorts have covered the price isn't going to drop to $90, it's going to drop back to $20 and most of the WSBers who were holding out for $2000 will lose their shirts. The shorts are going to lose, no doubt. But once they've lost, the stock price is probably $20. A lot of WSBers are going to be holding stock at that point, and possibly on margin. And that stock is going to be a crappy retail stock.…

You're forgetting the stock is 125% over shorted. There literally isn't enough stock for shorts to cover their current positions. That's why there is potential for infinite, (huge) gains as long as everyone holds.

An unrealized gain (ie, "everyone holding") isn't actually money though.

The sensible people will take their (massive) profits, and those who believe the "as long as everyone holds" rhetoric will be left with losses, probably on margin.

Re: GameStop Is Rage Against the Financial Machine

#473

Post by fumar »

hbosch wrote: post #356
fredophile wrote: post #330

Earlier quoted context omitted.

It's a short squeeze. The guys left holding the bag are people that are covering their short positions in the company. The average retail investor is not shorting stocks.. There will probably also be some people that try to jump on the trend too late but that isn't who is being hurt right now.

Many of those shorts are exiting their positions, or already have, and taken their losses. They're the ones who can afford their losses. Perhaps there are some funds still holding out their end of the short war, but by the time this is all over... like over over... it will be retail traders selling inflated positions to other retail traders.

Is this data available anywhere?

Re: GameStop Is Rage Against the Financial Machine

#474

Post by teekert »

silexia wrote: post #366
Traster wrote: post #347

Earlier quoted context omitted.

The second that the shorts have covered the price isn't going to drop to $90, it's going to drop back to $20 and most of the WSBers who were holding out for $2000 will lose their shirts. The shorts are going to lose, no doubt. But once they've lost, the stock price is probably $20. A lot of WSBers are going to be holding stock at that point, and possibly on margin. And that stock is going to be a crappy retail stock.…

I sold a GME call option with a strike price of $320 and expiration in July today for $200. A pump and dump by novices is easy money if you know how to play it. Everyone knows this is going to crash, the question is when?

Why do you call it a pump and dump by novices when it seems to be the opposite that was being done by shorters, they just got caught and now they have to pay, seems like the novices just beat them at their own game. [0]

[0, as posted by colllectorof] https://lbry.tv/@rossmanngroup:a/why-mainstream-media-s-slan...

Re: GameStop Is Rage Against the Financial Machine

#475

Post by edlebert »

melq wrote: post #434
jowsie wrote: post #426

Earlier quoted context omitted.

You sure about that? https://www.reddit.com/r/stocks/comments/l64xvw/gme_dedicate...

Couldn't they close their position and still have the short interest go up because of other investors opening new positions? If these institutions are going on record as closing their positions, when they actually havent, aren't they committing some sort of fraud?

Also the borrow fee for shorts is insane now, like 23%.

Re: GameStop Is Rage Against the Financial Machine

#476

Post by whimsicalism »

hehehaha wrote: post #466

I am tired of this misguided narrative that pits retail and r/wsb vs big bad wolf Wall Street hedge funds. This is not David and Goliath. There are hedge funds with deep pockets on both sides. Retail traders do not run sophisticated algos to jam the price 15 minutes from the open because they want to neuter circuit breakers. C’mon guys...

Agreed. It seems like everyone is learning the wrong lesson from this.

Re: GameStop Is Rage Against the Financial Machine

#477

Post by TeMPOraL »

hntrader wrote: post #454
TeMPOraL wrote: post #418

Earlier quoted context omitted.

Observing from the sidelines, I think by this point it's option #3: doing it for teh lulz.

Which would be entertainment value, fitting into number 1 above (ie reasons unrelated to profit expectations)

You're right. When I read the point #1, my eyes somehow glazed over the second half of the paragraph. My #3 is fully contained in your #1.

Re: GameStop Is Rage Against the Financial Machine

#478

Post by jrochkind1 »

hehehaha wrote: post #466

I am tired of this misguided narrative that pits retail and r/wsb vs big bad wolf Wall Street hedge funds. This is not David and Goliath. There are hedge funds with deep pockets on both sides. Retail traders do not run sophisticated algos to jam the price 15 minutes from the open because they want to neuter circuit breakers. C’mon guys...

I would like to hear more about this. Has anyone found details in this particular case?

Re: GameStop Is Rage Against the Financial Machine

#480

Post by minor3 »

hbosch wrote: post #356
fredophile wrote: post #330

Earlier quoted context omitted.

It's a short squeeze. The guys left holding the bag are people that are covering their short positions in the company. The average retail investor is not shorting stocks.. There will probably also be some people that try to jump on the trend too late but that isn't who is being hurt right now.

Many of those shorts are exiting their positions, or already have, and taken their losses. They're the ones who can afford their losses. Perhaps there are some funds still holding out their end of the short war, but by the time this is all over... like over over... it will be retail traders selling inflated positions to other retail traders.

The short interest is still extremely high and likely a number of firms are already liquidating their positions to pay off GME. The squeeze should be on Friday when every option expires in the money.
Post reply on HN