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u/DeepFuckingValue and the GameStop Reddit mania

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Re: u/DeepFuckingValue and the GameStop Reddit mania

#81

Post by semi-extrinsic »

rcoveson wrote: post #59
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…

> Know that we don't know what kind of deals are happening behind closed doors in these two last days of manipulated activity. As the saying goes: If you're at a poker table and you can't tell who's the fish, get up. You're the fish.

If you know that there is only one fish and a lot of sharks, sure.

But with payment for order flow you know there are tons of other fish at the table. That changes things, as you only have to beat the other fish to get a small payout. And the sharks aren't focusing on you in particular, so you might get lucky and beat the sharks.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#82

Post by kzrdude »

eternalny1 wrote: post #34

He posted his daily update today, he has not sold his shares through all of this chaos. Talk about "diamond hands". https://www.reddit.com/r/wallstreetbets/comments/l846a1/gme_...

Check all his recents posts, then you can fact-check that statement and see that he has liquidated and earned some cash, and is simultaneously holding on to some significant stocks. Both things are true.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#83

Post by hehehaha »

hangonhn wrote: post #49
hehehaha wrote: post #18

Earlier quoted context omitted.

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…

Yes, I was on Wall Street for awhile on trading desks, research etc. I’ve seen how the sausage was made. I only respected very few people with academic credentials who had genuine intellectual curiosity for the markets. Outside of that it’s a jungle and you will get eaten if you don’t watch your back. People steal all the time without any remorse.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#84

Post by Grimm1 »

sumedh wrote: post #37
tootie wrote: post #25

Earlier quoted context omitted.

It says as much in the article. He literally just thought GME was undervalued on its merits. He had no intention of creating a squeeze or punishing Melvin.

> He had no intention of creating a squeeze If I am not mistaken he did say in one of his videos that there is a chance for a squeeze to happen.

Saying there's a chance of something happening doesn't mean you intend it to or are advocating for it though.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#85

Post by ALittleLight »

JacobSuperslav wrote: post #43
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…

How do you make 30-50k a month gaming reddit? I'm aware of buying upvotes and similar, but I have a hard time believing it's that profitable.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#86

Post by tootie »

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.

GME is absolutely going to crash and everyone knows it. There was a mod post just today reminding everyone to be ready. The stock is worth $10-20 on it's merits and that's where it will land. We just don't know when. The chance of this as a contagion that brings down indexes seems very unlikely.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#87

Post by tinyhouse »

leadingthenet wrote: post #67
afterburner wrote: post #47

Earlier quoted context omitted.

> 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.

> Are you under the impression GME wouldn't crash right alongside the market? Well ... yeah. Today it hasn't.

We all know why it hasn't. Do you really believe it will last forever? or even 6 months from now? People are trying to make money. Once the momentum slows down the big sell off will start and nobody would be able to stop it. Not DFV or even the biggest troll of all, mr. Elon Musk.

Re: u/DeepFuckingValue and the GameStop Reddit mania

#88

Post by cma »

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…

Wasn't LTCM blowing up a pretty big deal?

Re: u/DeepFuckingValue and the GameStop Reddit mania

#89

Post by jzoch »

ggggtez wrote: post #63
tootie wrote: post #25

Earlier quoted context omitted.

It says as much in the article. He literally just thought GME was undervalued on its merits. He had no intention of creating a squeeze or punishing Melvin.

Just because he's still in doesn't mean that it's actually worth $300 on the fundamentals. I could definitely see the argument that $20 was undervalued, but it's plain to see that the short-squeeze is now part of the calculation of value. There is no way that GameStop has an actual fundamental value of $300 per share. That price is clearly inflated, and in a few weeks will decrease, probably to somewhere above $20, b…

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".

Re: u/DeepFuckingValue and the GameStop Reddit mania

#90

Post by SpicyLemonZest »

yreg wrote: post #78
SpicyLemonZest wrote: post #71

Earlier quoted context omitted.

It could end by simply crashing without shorts going broke. There's not much reason to believe a larger short squeeze is forthcoming.

Why would that crash the entire stock market?

The theory I've seen is that there could be hidden systemic risks here. If GME tanks suddenly, there's some possibility that traders bailing out of their trades will take down Robinhood (who doesn't seem to be very healthy right now), and a major broker collapsing is never gonna be great for the market.

I share your skepticism that it would actually happen this way, but it seems at least somewhat plausible.

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