Wall Street Bets on Reddit

Looking at reddit, the discussion is this push for silver isn't real, it's being pushed as such by the hedge funds (and given the interest, getting a spot in the media), where the HF's are long, allowing them to recoup some of their losses and pay off the GME debts. Then again this could be 5d chess and it was hf's pushing that it isn't what they are going after, when in fact they are. Madness.
 
Cuthbert said:
In to the pockets of the people who are long, or brokers who are offering the spread. (It's only unlimited in the sense that the price has no actual ceiling). Ultimately in the case of Gamestop, when the Reddit investor group (and others) lose interest or lose their nerve, the share price will come crashing back down again, and the shorters won't be sitting on such painful positions.
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That depends how long the 'loan' of stock is. I.e. If it has to be repaid by end of Jan. I can't see it being open ended.
 
Same_as_before said:
That depends how long the 'loan' of stock is. I.e. If it has to be repaid by end of Jan. I can't see it being open ended.
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You are right. It's unlikely to be open ended, although open repos do exist. It would usually be possible to roll the loan agreement too, with the payment of an ongoing fee. In the case of Gamestock, any institutions that are holding, will probably want their stock returned so that they could cash in on the massive gains!

However, as you know the problem with GME is that apparently the number of shorts outnumbered the actual stocks in circulation, and now that the squeeze is on, it's driving it sky high. It is mad though, because the underlying company probably must be a bit of a basket case, hence why some hedge funds were so heavily short.

I still don't think this will end well for most of the private investors. Quite a few have said they don't care about the money though, and are happy to have taken on Wall Street a bit, and caused a stir! One good thing to come out of it might be to make hedge funds / institutions to think twice about shorting companies quite so hard in the future.

Incidentally, the guy who is being kind of credited with kicking it all off apparently had a $50,000 (long) investment in Gamestock dating back to 2019. If that's true, then given the company's realistic potential (having not adapted very well to the online world), he's super lucky to be walking away with a huge profit! - A bit like winning the lottery really - the fact that it went viral like it did.
 
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14:30 will be interesting when the NYSE opens. It really is a siege and who knows what will happen if everyone holds, and the hedge funds are forced to buy. It's had an effect on the stock market however as whole, as stocks are being dumped to cover the deficit.
 
Cuthbert said:
You are right. It's unlikely to be open ended, although open repos do exist. It would usually be possible to roll the loan agreement too, with the payment of an ongoing fee. In the case of Gamestock, if any institutions were holding, they'd probably want their stock returned so that they could cash in on the massive gains!

However, as you know the problem with GME is that apparently the number of shorts outnumbered the actual stocks in circulation, and now that the squeeze is on, it's driving it sky high. It is mad though, because the underlying company probably is a basket case, hence why some hedge funds were so heavily short.

I still don't think this will end well for most of the private investors. Quite a few have said they don't care about the money though, and are happy to have taken on Wall Street a bit, and caused a stir! One good thing to come out of it might be to make hedge funds / institutions to think twice about shorting companies quite so hard in the future.

Incidentally, the guy who is being kind of credited with kicking it all off apparently had a $50,000 (long) investment in Gamestock dating back to 2019. If that's true, then given the company's realistic potential (having not adapted very well to the online world), he's super lucky to be walking away with a huge profit! - A bit like winning the lottery really - the fact that it went viral like it did.
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It may be all worth it to stuff Hedge Funds. But I agree with you, small investors should be very very careful .
 
I started to post earlier that ironically being so overvalued, GME was now crying out to be shorted! - It was just a question of timing.
 
Same_as_before said:
It may be all worth it to stuff Hedge Funds. But I agree with you, small investors should be very very careful .
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I saw one guy on Reddit this morning who had posted a screen shot of his share dealing account. He called it his YOLO trade, and it was about $40k @ $343.

IF it was genuine, and not Photoshopped, then that is just mental.
 
Ye all the levers of power are being used to force downward pressure with little to no volume of actual trading. They're trying to bleed them out. They might well be successful but it looks like naked shorting might be occuring (very difficult to prove and very illegal).
That said I would think new shorts will be coming in behind closed loss positions to regain some profit.
I wish them luck, it's the equivalent of Luke Skywalker and friends Vs the empire. In reality we know that film ends differently 9.9 times out of 10.

All of this is just in my opinion and of course I'm not stating it as fact.
 
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The guy in the video is $5m down today but he's still holding $35m worth. Obviously if he starts to unload his stock then most of the Reddit army will follow. It all depends what game he's playing and what the terms are. Looks like a game of poker going on at the moment.
 
Redwurzel said:
Silver up nearly 6% on today's opening in Asia - there has been very large buying of silver over the weekend promoted through Reddit. Some big people must be shorting silver and they are targets.
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It isn't being promoted by WSB on Reddit at all. They are actively telling people not to fall for it. Its designed to get people's focus away from GME. They believe media and the hedge funds are pushing this as a way to have the amateurs give up GME so they can limit losses. WSB is telling people to hold GME and not fall for it.

Also, this isn't the start of some mass uprising. It was a fluke, because Melvin posted its short positions giving the Reddit users an opportunity to bet against them. You'll guarantee they won't be doing that again.
 
I think some of the Gamestop bedroom traders are being handed their 4r5e5 today. Currently 62% down on top of yesterday's 30+% drop - ugly business.
 
That's it now, the fun is over, but they shouldn't have been stopped from trading. This should at least cause some things to change, but it's going to break a load of retail traders in the process, it's going to sink like a stone.

I bet there will have been tons queuing up to short this when it hit 300, if they had deep pockets, as there was no way it could stay there.
 
Andy_W said:
That's it now, the fun is over, but they shouldn't have been stopped from trading. This should at least cause some things to change, but it's going to break a load of retail traders in the process, it's going to sink like a stone.

I bet there will have been tons queuing up to short this when it hit 300, if they had deep pockets, as there was no way it could stay there.
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I agree with you. That said, it's back up to nearly $148... so some crazy fools don't seem to have given up! LOL.
 
You're missing the real story here, it's not just a bunch of kids in their bedrooms. This isn't anywhere near played out.

I have a question who's providing all these shares the shorts are borrowing? 😉

Of course some of them will be ironically from the Reddit traders but that's where the rabbit hole begins
 
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