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AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

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Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#251

Post by FiberBundle »

ditonal wrote: post #212
dougmwne wrote: post #85

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

Conspiracies happen so frequently on Wall St that “conspiracy theories” should be closer to a priori assumption than irrational fringe ideas. Were people skeptical of Moodys A+ ratings of subprime mortgages conspiracy theorists? And that’s far from the only example of financial fraud . There’s a lot of money at stake. Citadel is most of Robinhoods revenue, they put money on the opposite side of the trade via Melvin,…

I was sceptical at first too because of the fact that they only restricted buy orders, but it makes perfect sense from the perspective of a broker in this situation. Thomas Peterffy explains it pretty well in [1], basically if you have a short squeeze and the supply is limited because of people holding their shares, the stock would basically go to infinity. Those that sold call options are out of business and the brokers have to take the counterparty risk and are themselves insolvent as a result. [1] https://youtu.be/kV_P8wnY854

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#252

Post by betterunix2 »

eulers_secret wrote: post #185
jcranmer wrote: post #121

Earlier quoted context omitted.

The Washington Post had an article yesterday about someone who was apparently $400k down on GME ( https://www.washingtonpost.com/technology/2021/02/02/gamesto... ): > The Reddit poster Volkswagens1, who declined to give his name but said he lives in the Pacific Northwest, showed The Washington Post an image indicating roughly $400,000 in potential GameStop losses from the day but insisted he would not sell. > He said…

$400K is 1/2 the average cost of a house in Seattle. I'd suggest there's an argument that if you can't own (no mortgage) a house in your area, you're still 'poor'. Still not a great move to dump your entire worth into meme stocks.

You cannot cite the average cost of a house while dismissing the idea of buying a house using a mortgage. Mortgages are a part of the housing market and are part of the reason prices are what they are. If there were no mortgages prices would be lower, and the market would be structured completely differently.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#253

Post by majormajor »

NicoJuicy wrote: post #210
majormajor wrote: post #194

Earlier quoted context omitted.

Not even the lack of people holding? Tons of people were selling throughout the 1/29 settlement date for that short interest, there wasn't an unavailability of shares. If you weren't one of the people selling then, I'm not seeing what would make it better in the future. edit: we may be talking about different things here. You're suggesting that if there are still funds very exposed on shorts in the info disclosed 2/9…

Why do you try to get personal? As said before, I don't care about when to sell or buy, my financial interest in it is way too low too care about it. I just think it's interesting and try to learn from it ( that's the only reason why I even bought a little, to keep me interested). What's your formula to state a lack of people holding vs. the amount of shorts that were outstanding? I don't see how you can easily come…

Sorry, didn't mean to make things personal.

I think we agree on where the uncertainty is, I just initially read you as saying you believed there was a definite ongoing squeeze, vs a possibility of continuing the play. And I just want to caution people against believing there's any sure things going on here; we don't have enough data in real enough time to know exactly. What we do have data on is that a LOT of shares are being sold every day, more than 100% of outstanding shares, so those could've been used to close out short positions, or they might not have been. And it could've been a few sellers selling a lot, or tons of sellers selling small amounts, etc. We can't know for now.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#254

Post by dougmwne »

kortilla wrote: post #147
dougmwne wrote: post #85

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

> Here is a truism for you all: In any casino Wall Street is not a casino in this regard. There is no “house edge”.

Wall street is the house and the markets are the casino. Wall street firms collectively make the rules through regulatory influence and have huge advantages in technology, expertise, information, and capital. The people reliably getting rich are the owners and employees of Wall Street firms.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#255

Post by notyourday »

PartiallyTyped wrote: post #226
jpsalm wrote: post #182

Earlier quoted context omitted.

> Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. Like convincing the world that 'short ladder attacks' were a thing. https://money.stackexchange.com/questions/135807/closing-sho...

The observation was that during the duration of restricted trading and therefore reduced momentum, there had been sequences of trades with batches of 100 shares sold at continuously smaller values with very little difference between one batch and the next and the difference was in 3rd and 4th decimals. The fact that retail was restricted to selling and hedge funds were not, further corroborates foul play.

> The fact that retail was restricted to selling and hedge funds were not, further corroborates foul play.

It was not. Only retail that played in a couple of YOLO gamified market brokerages that was restricted.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#256

Post by PartiallyTyped »

JumpCrisscross wrote: post #246
PartiallyTyped wrote: post #226

Earlier quoted context omitted.

The observation was that during the duration of restricted trading and therefore reduced momentum, there had been sequences of trades with batches of 100 shares sold at continuously smaller values with very little difference between one batch and the next and the difference was in 3rd and 4th decimals. The fact that retail was restricted to selling and hedge funds were not, further corroborates foul play.

> there had been sequences of trades with batches of 100 shares sold at continuously smaller values with very little difference between one batch and the next and the difference was in 3rd and 4th decimals This sounds like the interaction between run-of-the-mill execution algorithms. Bidding algo is likely a market maker putting out small quotes (100 shares is a standard lot) and adjusting down (up) the price each ti…

Thank you for elaborating. Do you have any links that further elaborate or perhaps suggestions for papers/books in algo trading?

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#257

Post by FabHK »

dougmwne wrote: post #85

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

I found the discussion on HN generally ok; there were a few fervent zealots, but when they became a liability to the discussion, they were voted away. Unfounded conspiracy theories were occasionally floated, but generally quickly addressed, skeptically and adequately.

There were massive gaps of knowledge, sure, but I think the discussion contributed to reducing that.

> If you think any bet is a guaranteed win, you have lost your rationality.

True, but there are of course better and worse opportunities, and occasionally excellent ones. For example, IPO pops are on average a risk-adjusted win, and for good (and well understood) institutional reasons.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#258

Post by [deleted] »

jimbokun wrote: post #191
nytesky wrote: post #175

Earlier quoted context omitted.

I remember for me during 2008 I finally understood how NOTHING has intrinsic value, it’s always about what others perceive in the market. Real estate, dollars, gold, stock all arbitrary in a way I never considered. All built on sand.

With real estate, you may have a place to sleep even if it's market value goes to 0.

[deleted]

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#259

Post by PartiallyTyped »

notyourday wrote: post #255
PartiallyTyped wrote: post #226

Earlier quoted context omitted.

The observation was that during the duration of restricted trading and therefore reduced momentum, there had been sequences of trades with batches of 100 shares sold at continuously smaller values with very little difference between one batch and the next and the difference was in 3rd and 4th decimals. The fact that retail was restricted to selling and hedge funds were not, further corroborates foul play.

> The fact that retail was restricted to selling and hedge funds were not, further corroborates foul play. It was not. Only retail that played in a couple of YOLO gamified market brokerages that was restricted.

There is a list of well over 5 brokers that were restricted and yesterday Revolut was restricted as well.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#260

Post by jb775 »

dougmwne wrote: post #247
jb775 wrote: post #177

Earlier quoted context omitted.

Hindsight is 20/20. Being the guy on the sidelines saying "I knew this was gonna happen" after the fact never adds any value. It's you trying to make yourself feel special. If you were so confident in your predictions, show me where you shorted the stock and made a bunch of money off it going down. If not, please stfu with your grandmom truisms.

I'm not talking about hindsight or who was right or wrong. Honestly I have no idea how this will continue play out. Anyone who claims they do is misinformed or selling you something. The price went up and down by a huge amount so the lucky will already have big wins. Maybe there will still be more big winners to come or maybe not. Many people seem to have not been aware of what game they were playing and were caught…

This is what's actually happening: https://www.youtube.com/watch?v=gMShFx5rThI&feature=youtu.be
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