Game Stop Stock, GME

[GG Allin]

Under $20 on Jan 11. Pushing $350 as of a few minutes ago.

Someone please explain this to me.

https://www.marketwatch.com/investing/stock/gme?mod=watchlist_ticker

[Sooner or later]

The Duke Brothers were betting that the stock would go down. Louis, Ray, and Ophelia got all of their friends to buy buy BUY. As the price went up the Dukes went further into the hole and eventually lost their seat on the exchange.

[GG Allin]

I'd like to sell, sell, SELL, but that seems like a risky proposition.

[nota]

some thing like when porsche almost bought VW but got eaten and owned

short selling is selling a stock you do NOT have in hopes of getting it cheaper later

[beepbeep]

Hedge fund bet it will go down. 130% (!) of stock is shorted. Reddit got wind of this. Someone called Reddit crowd "autists", "living in moms basements" etc.

Redditors started buying this in pure spite. Short squeeze happened, which meant price went up even further. So Redditors actually started making money.

[Sooner or later]

Originally Posted by GG Allin

I'd like to sell, sell, SELL, but that seems like a risky proposition.

If I owned any and the price went to 350 I would sell sell SELL.

[Neilk]

Don't want to be the last one holding that bag! It's retail market manipulation instead of the big boys doing it.

[Chocaholic]

This is why I stopped buying/selling individual stocks years ago. None of this has anything to do with company performance. Way over my aging head

[crb07]

Express is on a run.

[GH85Carrera]

Originally Posted by nota

some thing like when porsche almost bought VW but got eaten and owned

short selling is selling a stock you do NOT have in hopes of getting it cheaper later

In the end the Porsche family ended up with 51% of VW so they have controlling interest in VW, and all the subsidiary companies. Bottom line they won.

[biosurfer1]

Originally Posted by Sooner or later

The Duke Brothers were betting that the stock would go down. Louis, Ray, and Ophelia got all of their friends to buy buy BUY. As the price went up the Dukes went further into the hole and eventually lost their seat on the exchange.

Great reference....love that movie!!

[biosurfer1]

and BTW...the same thing is happening with AMC Theaters stock, though their run up has a tiny bit to do with their CEO announcing they would not file for bankruptcy, but still going crazy.

[dlockhart]

[jyl]

What’s going on now is very entertaining.

Some hedge funds and traders are jumping in to join the Reddit/WSB action on the long side. Others are liquidating (or hedging) their shorts which forces them to liquidate (or hedge) their longs. Traders are picking through lists of the stocks most owned long by hedge funds and shorting them, just as others are picking through lists of the stocks shorted by hedge funds and going long them. It’s a dogpile, and fun to watch.

Does it really matter? I have my doubts. First, the stocks that are getting targeted are small, there’s not a lot of market cap being whipped around. Second, this can all get shut down in a second: the dealers can jack up options premia by 5-10X which will choke off the action, the exchanges can halt trading so that options expire worthless, the brokers can raise margin requirements and restrict accounts, the SEC can make any and all of that happen, and the traders who get caught out will have no recourse. The IRS is going to come in for its pound of flesh. And trading with the intent of manipulating stock prices is illegal, not that the SEC will go after thousands of Robinhooders but there are some prominent ringleaders who could be taken out.

My best guess is that when/if this starts threatening the stability or functioning of the market, it will be crushed. No-one really cares if Melvin Capital or other small hedge funds who haven’t been diligent with their risk control go bust, or if a bunch of daytraders give up their profits.

I’ve been checking my portfolio names against lists of hedge funds top longs and shorts, and checking r/WSB for mentions of those names. It’s wasting my time, basically, but nothing more.

Last comment: being very exposed on the short side to a stock that has high short interest is stupid, and every experienced market participant knows it’s stupid. High short interest is actually a “positive” factor in my stock screens (ideally high and starting to decline). No sympathy for the guy who got caught short GME or AMC. If he’s at a hedge fund, he will probably get fired. Most genuine long/short funds will not tolerate a fast drawdown of several percent, they’ll pull capital or terminate the manager in a blink. Those funds are all about risk control. At the same time, no sympathy for the “regular Joe” who loses his retirement savings or the money he needs for his mortgage or college tuition by being a day late to the game. If you can’t take the heat, stay out of the . . .

[McLovin]

Amazing.

[Neilk]

KOSS is up 200% today and was as high as +300%. I need to get on that Reddit board and gamble a few K.

[Dantilla]

Originally Posted by Sooner or later

The Duke Brothers were betting that the stock would go down. Louis, Ray, and Ophelia got all of their friends to buy buy BUY. As the price went up the Dukes went further into the hole and eventually lost their seat on the exchange.

Thank you!!

[biosurfer1]

Originally Posted by McLovin

Amazing.

What's amazing is that if that person is still holding, the stock is up over $330 right now

[wildthing]

Short Squeeze.

[masraum]

Originally Posted by biosurfer1

What's amazing is that if that person is still holding, the stock is up over $330 right now

If I had bought in at $20 or $50 or $100, I'd absolutely be out at $330. Hell, I'd have probably been out at $250 or maybe $200. Being greedy is a good way to loose what you've got.

But then I'm just not a gambler.