Reddit and GameStop

Discussion in 'Business, Investing & Finance' started by Alumni Guy, Jan 27, 2021.

  1. Alumni Guy

    Alumni Guy Newbie
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    Anyone hear of this story about a bunch of people on Reddit getting together to gobble up GameStop stock, thereby raising the price of the stock from $19.26 on 12/31 to a high of $354 a few days ago.

    these Redditors killed it it on options, some dude saying he made over $11MM on GameStop this year alone.

    How GameStop’s Reddit- and Options-Fueled Stock Rally Happened

    So, who wants to go in with me and artificially create demand for a crappy stock, like Applebee’s or Zima.

    I can chip in $250.00, and some Oxbucks: is that enough to tilt the market in our favor?

    (side note: is this collusion or some other type of fraud?)
     
    • Detroitgator

      Detroitgator Well-Known Member
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      Yes, I posted about it in the other thread. Son #1 almost doubled his money yesterday and he's followed the main Reddit thread for a year. Here's the screenshot of the main guy's account yesterday. He started with $50K a year ago, only GME plays. 20210126_185332.jpg
       
      #2 Detroitgator, Jan 27, 2021
      Last edited: Jan 27, 2021
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      • Concrete Helmet

        Concrete Helmet Hook, Line, and Sinker
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        Better jump on Express...
         
      • Detroitgator

        Detroitgator Well-Known Member
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        PS that means his $23M at the close yesterday i likely sitting north of $50M today. Less than 3 weeks ago, his balance was at just under $3M.

        The GME memes/videos on Reddit are pretty damn funny... especially regarding the busting of Melvin Capital on their short positions.
         
        #4 Detroitgator, Jan 27, 2021
        Last edited: Jan 27, 2021
        • Alumni Guy

          Alumni Guy Newbie
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          It’s gotta crash. No way it holds. Those guys who made millions on the way up, are going to make just as much on the way down.

          I’ve never played with options or shorting, but both are sounding very sexy.
           
        • Taco Gratis

          Taco Gratis Well-Known Member

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          I've been watching for a week. It's something to behold.
          And here I was patting myself on the back for being up 24% for the month.
           
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          • Taco Gratis

            Taco Gratis Well-Known Member

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            Couple of good Twitter threads on this:



             
            • BMF

              BMF Bad Mother....
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              They're expecting it to crash....most likely by the close on Friday. They f*cked over the hedge fund bigtime. It's a very interesting story.

              I'd like an education (@Detroitgator ??) on how to trade options, calls, etc. I'm afraid to do it because I don't fully understand it.

              Also, can someone post the link to the reddit thread?
               
            • Taco Gratis

              Taco Gratis Well-Known Member

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              https://www.reddit.com/r/wallstreetbets/

              "Like 4chan found a Bloomberg Terminal"
              :lol:
               
              • Taco Gratis

                Taco Gratis Well-Known Member

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              • Concrete Helmet

                Concrete Helmet Hook, Line, and Sinker
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                I'm watching Bloomberg right now...some of the big boys are getting pissed putting restrictions on...f vck them
                 
                • Taco Gratis

                  Taco Gratis Well-Known Member

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                  :headbang:
                   
                  • Taco Gratis

                    Taco Gratis Well-Known Member

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                    Pretty much says it:

                     
                    • Taco Gratis

                      Taco Gratis Well-Known Member

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                    • Concrete Helmet

                      Concrete Helmet Hook, Line, and Sinker
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                      I only wish my balls would have dropped a little earlier this morning....but at least I'm positive overall thanks to a little Blackberry and Express...
                       
                      • Taco Gratis

                        Taco Gratis Well-Known Member

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                      • Detroitgator

                        Detroitgator Well-Known Member
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                        Then don't do it!

                        FWIW, I wouldn't touch GME right now. The "smartest" play right now would be to set up conditional orders for its inevitable crash to reality. That said, good luck trying to short sell it, I doubt anyone on here is using a trading platform that would have any available short positions. You could buy puts, but, "fire bad!" It's now below its 21, 50, and 100 moving averages, so it's likely rolling over, but I would stay away... ALL the algos are on it now.
                         
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                        • BMF

                          BMF Bad Mother....
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                          I wasn't suggesting getting into GME - just an lesson trading shorts, options, calls, etc. I mostly just buy and sell (or buy and hold).
                           
                          • Alumni Guy

                            Alumni Guy Newbie
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                            I understand the theory of shorts, you sell now what you must buy later, and either profit from or lose from the difference in the two numbers.

                            I just don’t see how you can sell what you don’t own. Which is why I stay away from derivatives and options

                            I’m a buy then sell guy, not a sell then buy guy.
                             
                          • no1g8r

                            no1g8r Bringing Reason to the Masses
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                            So normally you buy a stock that you think is going up, and sell it when it hits the target, right? In this case you sell a stock that you think is going down, and buy it when it hits the target. There's no real difference, except when you short a stock you have to pay a cost to borrow the stock to sell to someone else, and that carries a percentage that is typically .30% or so per year, so relatively small. But in the case of a hard to borrow stock, the rates will be much higher, and is usually calculated daily, if you can borrow it at all.

                            The other factor to consider is risk. If you go long (buy) a stock, you have at risk the entire amount of your purchase, in the case that the stock goes to zero. If you short a stock, you theoretically have unlimited risk to the upside, so you have to do things to mitigate the risk. Your brokerage will require additional margin to cover this, and you may wish to purchase protective options to further mitigate your risk.

                            Lastly, if the stock is a dividend stock, you'll be responsible for paying any dividends that the stock pays to the buyer. Your broker will debit your account when this time comes, so it pays to remain aware of ex-dividend dates to avoid this happening to you.
                             

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