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I know there are a lot of Wall st guys here. Can someone explain what's really going to happen here in regards to the short squeeze? Is it really so simple? How will the shorts be able to cover? Also, is this page correct in saying that GameStop is the only stock on all listed US markets that's shorted over 100%?
But the question is, how do you mobilize enough people to act on something that causes market movement? As I understand it, the new thing wasn't lots of short positions, it was that a bunch of people coordinated to make something dramatic happen. Isn't that the problem?
Shorts have finite payoff for infinite risk. If you buy into shorts when the interest is above 100%, you _immediately_ open the door for this type of counter position to become rational.
Is it really a problem that a bunch of people on a message board collectively decided to act on a rational position?
I know there are a lot of Wall st guys here. Can someone explain what's really going to happen here in regards to the short squeeze? Is it really so simple? How will the shorts be able to cover? Also, is this page correct in saying that GameStop is the only stock on all listed US markets that's shorted over 100%?
The one thing not really being explained enough is that short interest as reported through the exchanges is reported bi-monthly. You can imagine that with current events that is an eternity to wait for the next update.
But the question is, how do you mobilize enough people to act on something that causes market movement? As I understand it, the new thing wasn't lots of short positions, it was that a bunch of people coordinated to make something dramatic happen. Isn't that the problem?
It doesn't necessarily take a bunch of people to make the price move up, but it does take a lot of money, enough to capture most of the floating shares of stock. And in particular these folks banded together to use call options to amplify their money (and risk) as they purchased stock to drive the price up.
The only thing new is that rather than a few dozen wealthy people coordinating behind closed doors to use a ton of money to cause the short squeeze, it was a ton of small time investors coordinating in public, plus a bunch of others hopping on board when they saw what was going on.
But the question is, how do you mobilize enough people to act on something that causes market movement? As I understand it, the new thing wasn't lots of short positions, it was that a bunch of people coordinated to make something dramatic happen. Isn't that the problem?
> Isn't that the problem? Shorts have finite payoff for infinite risk. If you buy into shorts when the interest is above 100%, you _immediately_ open the door for this type of counter position to become rational. Is it really a problem that a bunch of people on a message board collectively decided to act on a rational position?
Finviz also has this information in addition to many other metrics: https://finviz.com/screener.ashx?v=131&o=-shortinterestshare
I won’t pretend to fully understand this but the analyst answered a lot of FAQs on this data on his Twitter: https://mobile.twitter.com/ihors3
What differs in this data: “S3 data is shares shorted, our competition's data is broker stock borrows. Problem is, stock borrows do not equal shares shorted. Stock borrow includes financing trades, broker to broker transactions but does not include all internal rehypothication used to cover short sales”
But the question is, how do you mobilize enough people to act on something that causes market movement? As I understand it, the new thing wasn't lots of short positions, it was that a bunch of people coordinated to make something dramatic happen. Isn't that the problem?
> Isn't that the problem? Shorts have finite payoff for infinite risk. If you buy into shorts when the interest is above 100%, you _immediately_ open the door for this type of counter position to become rational. Is it really a problem that a bunch of people on a message board collectively decided to act on a rational position?
How current is this data? Is this updated every day?
short interest is typically only disseminated by the exchanges once a month
I know there are a lot of Wall st guys here. Can someone explain what's really going to happen here in regards to the short squeeze? Is it really so simple? How will the shorts be able to cover? Also, is this page correct in saying that GameStop is the only stock on all listed US markets that's shorted over 100%?
Earlier quoted context omitted.
> Isn't that the problem? Shorts have finite payoff for infinite risk. If you buy into shorts when the interest is above 100%, you _immediately_ open the door for this type of counter position to become rational. Is it really a problem that a bunch of people on a message board collectively decided to act on a rational position?
And further, these were large sophisticated investors that should have known when to get out and take their losses (as Melvin eventually did). For us small time folks we can do a limit short so that our risk exposure is limited.
EDIT: This is the story: https://www.cnbc.com/video/2021/01/27/melvin-capital-sells-o...
It's full of plausible deniability phrases like "from what I understand" and it's very much a game of telephone. They could easily say "when I meant we were out of the stock, I meant that we had covered some of our positions" or similar.
I can't find a non-hearsay source anywhere, neither written nor in the form of a recorded interview.