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u/DeepFuckingValue and the GameStop Reddit mania

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Re: u/DeepFuckingValue and the GameStop Reddit mania

#41

Post by sumedh »

misiti3780 wrote: post #31

I'm honestly confused by the press around this event. I get it, /DFV started a short squeeze and got rich, that is great for him. I don't support naked shorting, it should probably be illegal (if it is not already) and it looks that was part of the reason this happened. Everyone has been suspecting for a while (especially here) that a lot of volatility in stocks like TSLA etc was due to Robinhood. As of 5:33 EST, I'm…

> it's crushing a few hedge funds

To be fair Robinhood also had to get extra funding to cover its liquidity issues.

IB CEO also said they had to stop GME buying or else it might take down the system.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#43

Post by JacobSuperslav »

f430 wrote: post #26

What makes WSB legal vs emails about imminent pump on an unspectacular stock? What stops somebody from purchasing aged reddit accounts and then pumping up, upvoting their own threads?

nothing. I'm in the social media business and I can tell you it's very easy to make 5 figures/month gaming reddit(as an individual operation) using farmed accounts and it's been going on for years. Not necessarily with stock schemes. they got next to none security when it comes to stuff like this. agency that I worked at a few years ago literally had thousands of aged reddit/twitter accounts in their portfolio. there are whole apps available for sale that manage your reddit farms including fingerprint faking, proxy management, captcha solving(outsourced to developing countries), etc. the market for it is pretty huge.

Edit: hints = look at porn subreddits, /r/entrepreneur, stock subreddits. By the way, some of the moderators are making a killing too (by promoting their "own" people)

Re: u/DeepFuckingValue and the GameStop Reddit mania

#44

Post by sn_master »

f430 wrote: post #26

What makes WSB legal vs emails about imminent pump on an unspectacular stock? What stops somebody from purchasing aged reddit accounts and then pumping up, upvoting their own threads?

Look at DFV's account. He's been talking about GME since mid-2019.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#45

Post by acover »

raziel2701 wrote: post #22

On 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…

Couldn't those with shorts buy otm calls to hedge the possibility of a squeeze?

Re: u/DeepFuckingValue and the GameStop Reddit mania

#46

Post by misiti3780 »

MuffinFlavored wrote: post #32
misiti3780 wrote: post #31

I'm honestly confused by the press around this event. I get it, /DFV started a short squeeze and got rich, that is great for him. I don't support naked shorting, it should probably be illegal (if it is not already) and it looks that was part of the reason this happened. Everyone has been suspecting for a while (especially here) that a lot of volatility in stocks like TSLA etc was due to Robinhood. As of 5:33 EST, I'm…

> I'm honestly confused by the press around this event. A lot of people wish they struck it rich, just like him. Money (to some degree) buys happiness. Gets you out of a job you don't like. Gets you more time with your family, less time doing stuff you don't like (like working). If the poor can "eat the rich" and "catch them with their shorts down" in a stock trade that literally millions of others are pouring into (…

ya sure, i get it .... but he took a bet and won, He could have easily lost everything. For every winner in the options game there are probably 99 losers. It's call survivorship bias.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#47

Post by afterburner »

yreg wrote: post #35
raziel2701 wrote: post #22

On 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…

Well if a stock market crash triggered by this is realistic (which I agree is), doesn't it make sense to hold a bit of GME for insurance? I understand that there's no guarantee one will be able to exit it successfully even if it flies so high that it crashes the market. However I don't see a better insurance for people who don't have access to options/inverse etfs and don't want to sell their stocks.

> Well if a stock market crash triggered by this is realistic (which I agree is), doesn't it make sense to hold a bit of GME for insurance

What is the reasoning here? Are you under the impression GME wouldn't crash right alongside the market? This isn't BTC or gold we're talking about. It's just another stock.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#48

Post by kzrdude »

misiti3780 wrote: post #31

I'm honestly confused by the press around this event. I get it, /DFV started a short squeeze and got rich, that is great for him. I don't support naked shorting, it should probably be illegal (if it is not already) and it looks that was part of the reason this happened. Everyone has been suspecting for a while (especially here) that a lot of volatility in stocks like TSLA etc was due to Robinhood. As of 5:33 EST, I'm…

But he didn't start a short squeeze, he invested in it before thinking it would be a short squeeze.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#49

Post by hangonhn »

hehehaha wrote: post #18
u678u wrote: post #17

I like Matt Levine's comment " The guy behind one of the greatest trades of our time was giving out financial advice for MassMutual, and somehow they let him go." edit I missed the best part of the quote "I hope he showed up at client meetings in a headband and sunglasses with a glass of champagne in one hand and a chicken tender in the other. I hope he was like “never mind life insurance, man, you gotta buy GameStop…

Really helps discredit this notion of retail vs hedge fund. Most people who frequently make “DD” posts to r/wsb have ties to the financial industry and Wall Street. They either work there or have worked there. And yet they are critical of the Man? This is like ex-Facebook employees having a found-Jesus moment.

I worked at a hedge fund as my first job on the IT and Dev side. I will never put my money in a hedge fund. Just the way they spend money to boost the sense of self importance, etc. is nauseating. I once Fedex-ed a ream of printer paper from NYC to a partner on vacation in Miami because he was too entitled to drive to the nearest office supply store. I literally found a store like 10 minutes away but was told to just Fedex the paper. Then there were the allegations of PIPE and various other SEC investigations that always end up settling without any admission of guilt.

There are quite a few genuinely good people in finance so don't be surprised to find good people doing good things who also work in finance but finance also attracts a lot of people who are amoral at best. I shake my head at the memory of one of the partners screaming at someone over the phone, "This isn't even illegal! How is it immoral!?"

Re: u/DeepFuckingValue and the GameStop Reddit mania

#50

Post by yreg »

MuffinFlavored wrote: post #30
raziel2701 wrote: post #22

On 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…

A ton of people aren't doing any thinking for themselves. I'm pretty convinced there's some kind of organized manipulation attack going on within r/wsb. The same reason Parler got taken down for inciting violence without proper moderation, I'm seeing a lot of baseless claims from literally millions of people who do not understand how large/complex the financial systems at play are. I'm kind of worried Reddit could sh…

Reddit admins have been rather supportive of WallStreetBets[0], even helping the mods with special technical support and tooling to handle the load of users. They seem to have a good relationship.

Also kn0thing endorsed WSB yesterday. He's no longer officially affiliated with reddit, but it still says something.

[0] https://www.reddit.com/r/wallstreetbets/comments/l7yc12/wsb_...

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