Just out of curiosity, is GameStop legally allowed to issue a special dividend, which would further squeeze the remaining shorts?
u/DeepFuckingValue and the GameStop Reddit mania
141–150 of 554 posts
Re: u/DeepFuckingValue and the GameStop Reddit mania
#142Earlier quoted context omitted.
Couldn't those with shorts buy otm calls to hedge the possibility of a squeeze?
OTM calls are super expensive because the IV is through the roof (it has been over 700% most of the week).
However, if Melvin had picked up deep OTM calls before the (literal in both senses) volume started ramping up about two weeks ago, they might have done a little better.
To be clear, I don’t actually think they did.
Re: u/DeepFuckingValue and the GameStop Reddit mania
#143Earlier quoted context omitted.
> I would not be surprised if this is the beginning of another stock market crash. Good. Let it crash and burn. The stock market has never done anything for me. Shareholders making money out of my work is not exactly in my interests, nor is it in the interest of the majority of the world’s workers. My only wish is that this time around the stock markets will stay down after they burn, and be remembered in history as…
It’s a pretty decent idea, at least in theory. Prior to stocks, it was difficult for the little guy to own a piece of a company. I certainly don’t have the money or time to get a stake of a private company, and I’m glad to be able to participate in the compounding machines that are well-managed companies.
[deleted]
Re: u/DeepFuckingValue and the GameStop Reddit mania
#144Earlier quoted context omitted.
Trying to figure out the "fundamental" value of anything is a fools errand. Im not saying GME wont drop eventually but there is no value on fundamentals of everything. Look at all the short-sellers of TSLA who made the same mistake. These companies are valued on what the market decides and we all know "The market is irrational".
Wsb can remain irrational longer than the market can remain solvent. That was a comment by a poster which I find funny.
I believe the term is “retarded”
Re: u/DeepFuckingValue and the GameStop Reddit mania
#145On wsb u/deepfuckingvalue showed he still holds 50,000 shares and 500 deep ITM call options. He has secured a profit of $13.8 million dollars, and his remaining open position is valued at $45 million. I would caution people to not quickly fall into the "if he's still in, I'm still in" meme. He has secured a $14 million bag, regardless if the stock goes to zero he's already secured a life changing amount of money, he…
I wouldn’t be terribly surprised if some big players have carefully arranged to have large short interest but to be hedged against large upswings. This could be an expensive position to carry, but it could be quite profitable if people thought they were squeezing an unsqueezable short.
This generally requires far out of the money call options for medium term and long term dates. For most of the week, there have been no options available for sale far out of the money. Last week there were no calls that even could exist that were out of the money. See last Friday's gamma squeeze and resulting short covering on the 25th and 26th. Anyway, at this point, the position is costing many 10's of % per week to carry, not exactly great when the bag has also been doubling in size every day.
Re: u/DeepFuckingValue and the GameStop Reddit mania
#146Looking back at (u/deepfuckingvalue) Keith Gill's comments on r/wsb, it looks like they had a solid theory to cash out by Jan 2021 for $8+ a share (most of their calls starting June 2019 were 80 cents a share or less [0]). This was by no means a strategy to make money by squeezing the short, though one user, conspicuously named u/burrym, speculated that it ought to be [1]. [0] https://archive.is/Y953e , https://archi…
This is gold.
Re: u/DeepFuckingValue and the GameStop Reddit mania
#147Earlier quoted context omitted.
Wsb can remain irrational longer than the market can remain solvent. That was a comment by a poster which I find funny.
This is a common aphorism, attributed sometimes to Keynes: https://quoteinvestigator.com/2011/08/09/remain-solvent/
It is a funny spin on that aphorism.
Re: u/DeepFuckingValue and the GameStop Reddit mania
#148This is one of the very, very few positive stories about how powerful the Internet can be to the masses. Keith is no different from Jim Kramer yelling on CNBC to buy some stock and watching it spike because their boomer audience raced to their landline phones and told their financial advisors to invest. It's just at a much faster pace, and old media is scared shitless of it, so they endlessly denigrate the people inv…
Unlike Cramer, he provided DD and was transparent on his positions.
Re: u/DeepFuckingValue and the GameStop Reddit mania
#149Earlier quoted context omitted.
The problem for GME is that it will crash regardless if there's stock market crash or not. When a market crash happens you're much better off holding value stocks of solid companies. As of mr. DFV, I'm sure he'd like to close his position at the current price. But my guess is that he prefers to hold for his reputation. Since he already guaranteed more money than he would ever need, it's not a bad decision. The other…
Why do you think a crash of GME would cause a full blown crash of the stock market?
I don't think that.
Re: u/DeepFuckingValue and the GameStop Reddit mania
#150I really hate it when medias censor words like “fuck”.