- Jul 15, 2014
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We were talking about whether or not Robinhood was in fact a by old school definition bucket shop and if that is why they shut things down.Interestng! I'd say w/regard to your conversation(s) it was random.
We were talking about whether or not Robinhood was in fact a by old school definition bucket shop and if that is why they shut things down.Interestng! I'd say w/regard to your conversation(s) it was random.
Yep, this is pretty much the way I see it.Pretty good take, here. Can't speak to the details, but wouldn't be surprised if it's accurate at least in the broad strokes -- especially the last 4 paragraphs.
Anyone who didn’t recognize that the WSB people were heavy hitters deserve to be cannon fodder. You can probably dump $1,000,000 into a small cap stock like GameStop and it will barely register a blip.
This was a sophisticated move, pulled off by people with major capital. I just wish I had bought some well timed calls, followed by the puts. The return would be huge.
Now the air is out of that play, and the cannon fodder is still trying to give it CPR. The smart money on WSB has probably moved on.
No doubt: unless you were in it at the start of the year, the cost to play was way to high, and the train had already blown by.I agree that there were plenty of big guys, momentum types and algos involved, but as the stock began to move, the option premiums became extremely expensive and that was one of the reasons the stock began to turn. Both out of the money puts and calls became ridiculously expensive that they became almost as risky as the stock.
Anyone who didn’t recognize that the WSB people were heavy hitters deserve to be cannon fodder. You can probably dump $1,000,000 into a small cap stock like GameStop and it will barely register a blip.
This was a sophisticated move, pulled off by people with major capital. I just wish I had bought some well timed calls, followed by the puts. The return would be huge.
Now the air is out of that play, and the cannon fodder is still trying to give it CPR. The smart money on WSB has probably moved on.
That's because it's what CNBC wants you to see. "Fun with axes." Why not start the chart on January 12th, when the stock was $19.95/share. Had you bought in then, like most wsb members (not the millions that piled in the day your chart starts), and bought just one share, you'd have had a 5x return on the day your chart starts, a 7x-8x return when Elon tweeted... over 100x return the next day...What I found interesting though was this chart that implies that elon musk had more to do with the huge run up than reddit:
I think you are reading a little too much into this. CNBC doesn't care whether it's Musk or Reddit.That's because it's what CNBC wants you to see. "Fun with axes." Why not start the chart on January 12th, when the stock was $19.95/share. Had you bought in then, like most wsb members (not the millions that piled in the day your chart starts), and bought just one share, you'd have had a 5x return on the day your chart starts, a 7x-8x return when Elon tweeted... over 100x return the next day...
This is absolutely baffling to me.MARKETS
Reddit user who helped inspire GameStop mania says he lost $13 million on Tuesday, but is still holding on
Keith Gill — who goes by DeepF------Value on Reddit and Roaring Kitty on YouTube — says he suffered a loss north of $13 million on Tuesday alone from his GameStop bet, but he’s still not selling.
- Keith Gill, AKA Reddit’s DeepF------Value, apparently lost more than $13 million on Tuesday alone from his GameStop bet as the shares dropped 60%.
- Despite the losses, the investor is holding onto 50,000 shares of GameStop as well as 500 call options in the brick-and-mortar video game retailer.
- At GameStop’s record high last week, Gill’s total return in the name ballooned more than 2,000% to as much as $33 million, according to his Reddit posts.
He’s the man who helped inspire the epic short squeeze in GameStop last week that sent shockwaves through Wall Street. Through YouTube videos and Reddit posts, Gill attracted an army of day traders who cheered each other on and piled into the brick-and-mortar video game stock and call options, creating a massive short squeeze as the shares jumped 400% last week alone.
Gill says he has been holding 50,000 shares of GameStop as well as 500 call options in the brick-and-mortar video game retailer since the start of 2021. At GameStop’s record high last week, Gill’s total return in the name ballooned more than 2,000% to as much as $33 million, according to his Reddit posts.
However, the short squeeze in GameStop started to fade this week, taking a big bite out of Gill’s massive gains. The trader apparently lost $13.6 million on his positions in GameStop shares and calls, following a more than $5 million loss on Monday.
The gaming retailer stock dropped 60% on Tuesday and it has lost more than 70% of its value since Friday.
Gill started touting GameStop six months ago on YouTube, explaining to his subscribers how the 100%-plus short interest in the name could work to their advantage. While on Reddit’s infamous WallStreetBets forum, he’s been posting screenshots of his GameStop returns for more than a year, in what he calls his “GME YOLO update (You Only Live Once).”
The investor owned 10,000 shares of GameStop at the end of 2020 and increased his holding in the new year, according to his posts on Reddit.
Gill’s latest seven-hour YouTube live stream on Jan. 22 detailing his GameStop trades garnered more than 650,000 views.
“Cheers everybody,” Gill said in the video to his more than 300,000 subscribers, holding a champagne class. “A historic day today, no doubt a gigantic day.”
The Wall Street Journal interviewed the 34-year-old investor last week in a profile, which revealed his background as a college track star as well as a a former marketer for Massachusetts Mutual Life Insurance.
Gill didn’t respond to CNBC’s request for comments via Twitter and Reddit.
This is absolutely baffling to me.
I don't see how the stock ever clears $200 again. Most of the shorts have closed.
He did put $13 million in cash so he has life changing money no matter what happens, but he could have had $50 million.
Maybe he really believes it hasn't seen its peak. Maybe there is some kind of psychological thing going on where he can't cut his losses after seeing it so high. Maybe the SEC came and talked to him and he is trying to create proof that this wasn't a pump and dump. These all seem unlikely to me, but I can't think of any other reasons.
I said after the second or 3rd day of this thread that there's more than one player in this game that is on both sides...they are laughing all the way to the bankMaybe he has another account where he's trading the ups and downs, knowing that his posts consistently move the price up a few dollars, and his absence results in a downtrend by a few dollars. Just another possibility.