Wall Street Bets on Reddit

Alvez_48 said:
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
Click to expand...
GME has issued 30 million shares, but there are something in the order of 102m 'held' shares by traders. Thats an awful lot of shorting and borrowing shares. I don't know if some of them are fractional.
 
Alvez_48 said:
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
Click to expand...
I'm aware of the story. I agree with you that it got much bigger than the Reddit group. It's been an impressive pump, and I know that they are collectively trying to stick one up the Wall Street machine. It's just that after such huge pumps, there are normal equally huge dumps. We'll see. (It's interesting to watch from the sidelines).

Several funds are reasonably large holders of GME (by current value), if you look at the stock breakdown. It would be pretty astonishing if they weren't offloading some of their holdings, given the currently over inflated prices.
 
Last edited:
Alvez_48 said:
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
Click to expand...

Oh it's not played out, but it is going back to near where it was, maybe not $4 but maybe the $20 it was at before it took off, and it's going to go there soon, after a few corrections.

It's too hot to handle for the retail traders, it will be burning a hole in their pocket and they all should know it shouldn't be that high.
They will see it going off a cliff and want to cash in, and the drop will gain momentum, they will end up fighting each other to get out, like a case of who blinks first, where as there won't be many thinking "that looks a good investment", nobody will want to touch it with a barge pole, unless they have a death wish (or they think it's a get rich quick thing).

There's going to be some retail traders buying in now, but the ship has sailed, 90% of them will end up losing money, like how it always happens.
 
Of course and this is all just speculation after all just some gents having a friendly conversation. I don't know about you guys but I'm in no way financially involved in the GME situation.
 
Alvez_48 said:
Of course and this is all just speculation after all just some gents having a friendly conversation. I don't know about you guys but I'm in no way financially involved in the GME situation.
Click to expand...
Me neither, just followed the drama unfolding on Reddit.
 
Osboro said:
Shorting should be illegal, as it is effectively in some countries.
Having large institutions " betting" on failure is immoral.
Click to expand...
It's not really betting, there is a counterparty who benefits from from the trade. It's part of what makes the wheels go round

The Reddit mob, on the other hand, have no regard for ordinary investors or pension fund members when they destabilise the market. They should impose a minimum size order on trades so that all investors have a significant amount at risk.
 
Anton_Berg said:
It's not really betting, there is a counterparty who benefits from from the trade. It's part of what makes the wheels go round

The Reddit mob, on the other hand, have no regard for ordinary investors or pension fund members when they destabilise the market. They should impose a minimum size order on trades so that all investors have a significant amount at risk.
Click to expand...
I guess you aren't aware of what happened in 2008 😆

Any movement that stings these hedge funds is a good thing. They have been manipulating markets unfairly and illegally for decades. They are crooks.
 
I am open to hearing the alternative financial systems proposed by the members of wall street bets.

Although im not sure there are any as this was simply people out to make a quick buck. Any meaning beyond that has been co-opted
 
I feel for people who got sucked into buying at ridiculous levels. Especially those putting in life savings.

The original play was genius but I do think the odds of the big squeeze are falling away rapidly.

I actually think the fact it went so 'viral' actually worked against it.
 
Alvez_48 said:
I actually think the fact it went so 'viral' actually worked against it.
Click to expand...
Depends when you bought. The guy who I believe started it all (user ID "deepf***ingvalue [DFV]") has been holding for a while. He saw there was value in the company even though the stock was being shorted. DFV started buying in at least early 2019 and had $100,000 in the stock at the time. His holding is now worth $8 million. And that's after cashing out almost $14 million.

The price has fallen because the ordinary retail investor is restricted to buying 5 shares at a time. Naturally you can sell as much as you want. I think that's called fixing the market, but the US is so corrupt I don't suppose anything will be done about it.

I may be reading this wrong but since shorts today were somehow 121% of total shares all the WSB guys have to do is hold their shares until the options lapse and at some point one hedge fund or another is going to go under. The group has 8.3 members so I imagine a fair few will be persuaded to hold on.
 
Alvez_48 said:
Of course and this is all just speculation after all just some gents having a friendly conversation. I don't know about you guys but I'm in no way financially involved in the GME situation.
Click to expand...
Definitely not, would not go near this with £10, never mind £1,00, 1,000 or £10,000 etc. I don't have a great deal of experience, but experienced enough to know that retail traders suck up disinformation and don't know what they don't know (I'm well aware I'm one of these haha). This looked like a situation to easily get burned in, when the price started climbing people just jumped into the fire in the hope of coming out with some cash, most will get burned alive.

As is often the case with anything in the markets, retail traders are often the last to know and first to lose.

br14 said:
The price has fallen because the ordinary retail investor is restricted to buying 5 shares at a time. Naturally you can sell as much as you want. I think that's called fixing the market, but the US is so corrupt I don't suppose anything will be done about it.

I may be reading this wrong but since shorts today were somehow 121% of total shares all the WSB guys have to do is hold their shares until the options lapse and at some point one hedge fund or another is going to go under. The group has 8.3 members so I imagine a fair few will be persuaded to hold on.
Click to expand...
Is that right? 5 shares? How does that work? I'm assuming it's just this stock?

Where do you find out it's shorts were 121%?

I think the group has like doubled in members in the last month, how many of those have gone in at a crazy high price?
 
Andy_W said:
Definitely not, would not go near this with £10, never mind £1,00, 1,000 or £10,000 etc. I don't have a great deal of experience, but experienced enough to know that retail traders suck up disinformation and don't know what they don't know (I'm well aware I'm one of these haha). This looked like a situation to easily get burned in, when the price started climbing people just jumped into the fire in the hope of coming out with some cash, most will get burned alive.

As is often the case with anything in the markets, retail traders are often the last to know and first to lose.


Is that right? 5 shares? How does that work? I'm assuming it's just this stock?

Where do you find out it's shorts were 121%?

I think the group has like doubled in members in the last month, how many of those have gone in at a crazy high price?
Click to expand...
I think it's just the Robinhood platform which has set that small limit. (And actually, I think it might be 2 not 5) - so you could buy in sensible size elsewhere.

Short (and long) information is publicly available for most exchanges.
 
T
br14 said:
Depends when you bought. The guy who I believe started it all (user ID "deepf***ingvalue [DFV]") has been holding for a while. He saw there was value in the company even though the stock was being shorted. DFV started buying in at least early 2019 and had $100,000 in the stock at the time. His holding is now worth $8 million. And that's after cashing out almost $14 million.

The price has fallen because the ordinary retail investor is restricted to buying 5 shares at a time. Naturally you can sell as much as you want. I think that's called fixing the market, but the US is so corrupt I don't suppose anything will be done about it.

I may be reading this wrong but since shorts today were somehow 121% of total shares all the WSB guys have to do is hold their shares until the options lapse and at some point one hedge fund or another is going to go under. The group has 8.3 members so I imagine a fair few will be persuaded to hold on.
Click to expand...

My friend I'm on the side of retail but and this is a big but there are several errors that your overlooking.

1) Short positions are a lagging indicator - i.e. we have no idea what the short position is, it's estimated by certain firm's but is only released periodically once a week.

2) Robinhood had liquidity issues due to clearing houses raising deposit to 100% for certain shares due to the volatility.

Think of Robinhood like Spotify free and a broker you pay per trade as Spotify premium. Ultimately Robinhood you're the product. I know it looks shady and there's certainly an investigation required but there was a genuine liquidity problem because every man and his dog jumped onto the platform.

3) trading volume was really high yesterday people were genuinely bailing.

4) To really squeeze it to infinity would require for owners of the shares to recall their shares, this actually takes them off the market so they can't be 'borrowed' to a short position to be sold. This happened with VW in 2008 as Porsche recalled their shares, so people comparing the two are incorrect.

Let's not forget there was a genuine monster squeeze last week and alot of smart money who originally posted about the squeeze (not dfv who actually liked the fundamentals way back when) will have closed positions.
Dfv has cashed over 14,000,000 already so has made more than he ever dreamed of, I can imagine he feels a lot of pressure to let his last options ride due to his love for the community.

I could be massively wrong but that's just my uninformed opinion on what's now occuring.
 
Another issue is the US Government giving every US citizen $2000 - quite a few didn't really need it and used to effectively gamble for fun - sort of free money.
 
You must log in or register to reply here.
Back
Top