Gamestop?

Freedom56 said:
Wall Street firms are now asking the SEC to curb social media traders. What the SEC should be doing is preventing short interest to exceed 100% of the float. Reddit is a great site for just about everything so I have no issues with what a stock trading Subreddit was organizing and promoting. It's no worse than Wall Street firms drawing investors into speculative bubbles.
Click to expand...

Hedge funds want the SEC to "save" them from the kids. What a load.

Easy answer: don't short the stock I'd you can't afford it.
 
Koss has 7.41 million shares outstanding, but only 1.37 million shares are floating.

The volume today is 24 million shares. Wowza!

What a painful short squeeze. It's like having your private parts in a vise grip.
 
ExFlyBoy5 said:
The issue I see is that the Reddit group has gotten way too big and they are shouting out too many companies. There is strength in numbers and this is a fracture in their system. KOSS is an example...so many wild swings in the last couple of hours 35 to 70 to 40 to 90 and that is a recipe for wiping out Robin Hood account pretty quick. I think there are going to be some hard lessons learned in the next couple of weeks.
Click to expand...

Yeah, sounds like they are drunk with "power" which rarely ends well. I won't say I'm rooting for the hedge funds, but power can be abused by any group - even one as disorganized as the folks wanting to "destroy" something "bad." I don't participate in this whole mess (at least I don't think my "managed" funds do) but we all have a stake (steak:LOL:) in a reasonably stable market. Let's hope this all works itself out with ONLY the participants suffering - not all of us who just want to participate in Mr. Market. YMMV
 
Koolau said:
Yeah, sounds like they are drunk with "power" which rarely ends well. I won't say I'm rooting for the hedge funds, but power can be abused by any group - even one as disorganized as the folks wanting to "destroy" something "bad." I don't participate in this whole mess (at least I don't think my "managed" funds do) but we all have a stake (steak:LOL:) in a reasonably stable market. Let's hope this all works itself out with ONLY the participants suffering - not all of us who just want to participate in Mr. Market. YMMV
Click to expand...


I am sure the Redditors who instigated the short squeeze will make out like bandits. Their followers will get hurt, along with the hedge funds maybe.

I wonder if the hedge fund guys won't wait to short these stocks again at the top. Perhaps that's why the trading volume is so high. It's a tug of war, and the whole thing will just collapse as quickly. Winners are the guys who sell last, short or not. :) Would you want to be long these crazy stocks right now?

Meanwhile, I have added to some of my "innocent stock" positions, or sold put options to buy them at lower prices. Darn, my stock AA may go up to 80% again.
 
Last edited:
I don't know the market details, but wondering why naked calls and puts can't be banned.
Of course Hedge funds would miss opportunity (and danger) of spending money they don't really have, but seems to me it would prevent this type of thing from happening.

This downdraft effect has made one of my puts (cash covered) coming close to be callable, so I could be the proud owner of some discounted stock soon.
 
Sunset said:
This downdraft effect has made one of my puts (cash covered) coming close to be callable, so I could be the proud owner of some discounted stock soon.
Click to expand...


That's why I only sell puts on stocks that I do not mind buying at the strike price of the option.
 
NW-Bound said:
I am sure the Redditors who instigated the short squeeze will make out like bandits. Their followers will get hurt, along with the hedge funds maybe.

I wonder if the hedge fund guys won't wait to short these stocks again at the top. Perhaps that's why the trading volume is so high. It's a tug of war, and the whole thing will just collapse as quickly. Winners are the guys who sell last, short or not. :) Would you want to be long these crazy stocks right now?

Meanwhile, I have added to some of my positions, and sold put options to buy them at lower prices. Darn, my stock AA may go up to 80% again.
Click to expand...

It occurred to me that several hedge funds could outbid the "$200 club members" - even combined. I could see this being a "war to the death" because, if the "kids" win, the whole game will never be the same again. I could see several hedge funds working together - just this once - to outlast the kids. Just thinking out loud since I don't have any (actual) money in the game. As always, YMMV.
 
Koolau said:
It occurred to me that several hedge funds could outbid the "$200 club members" - even combined. I could see this being a "war to the death" because, if the "kids" win, the whole game will never be the same again. I could see several hedge funds working together - just this once - to outlast the kids. Just thinking out loud since I don't have any (actual) money in the game. As always, YMMV.
Click to expand...

Just this once could turn into guerilla warfare...it's not going to be a war to the death for the little guys that actually buy the stocks.

Pretty sure what you mention is very much against market rules.
 
Montecfo said:
Hedge funds want the SEC to "save" them from the kids. What a load.

Easy answer: don't short the stock I'd you can't afford it.
Click to expand...
Oddly I had to sign all kinds of things and attest to my understanding of options, margins.... before Fidelity allowed me to do them. Too bad the hedge funds didn't throughly understand the risks before they established their positions. I have no sympathy nor do I understand how they can legislate folks talking about buying certain products.

Whole thing has been happening in the open, for over a year. Redditor u/deepf*ck*ngvalue has posted their position dating back to June 2019. Their end of day trade value was $47,973.298.84 from $754,991.37 investment
 
MRG said:
Oddly I had to sign all kinds of things and attest to my understanding of options, margins.... before Fidelity allowed me to do them. Too bad the hedge funds didn't throughly understand the risks before they established their positions. I have no sympathy nor do I understand how they can legislate folks talking about buying certain products.

Whole thing has been happening in the open, for over a year. Redditor u/deepf*ck*ngvalue has posted their position dating back to June 2019. Their end of day trade value was $47,973.298.84 from $754,991.37 investment
Click to expand...

oh the hedge boys are victims of their own arrogance, they think the rules only punish the little guys. They are better, smarter, have more money then God. but I guess they never read The Princess and the Pea.
 
ivinsfan said:
Just this once could turn into guerilla warfare...it's not going to be a war to the death for the little guys that actually buy the stocks.

Pretty sure what you mention is very much against market rules.
Click to expand...

I'm sure it IS against market rules. As you might know, folks don't always follow the rules. Besides, there's always the wink and nod as folks do what's in their perceived best interest - it's kind of the same with the "kids." Technically, they aren't colluding. Their piling on. Why couldn't the "big boys" do the same. They don't even need a phone call (from a burner) to know they MUST win this hand or they may lose the game for all time.

I've now told you (speculated) WAY more than I know so YMMV.
 
MRG said:
Oddly I had to sign all kinds of things and attest to my understanding of options, margins.... before Fidelity allowed me to do them. Too bad the hedge funds didn't throughly understand the risks before they established their positions. I have no sympathy nor do I understand how they can legislate folks talking about buying certain products.

Whole thing has been happening in the open, for over a year. Redditor u/deepf*ck*ngvalue has posted their position dating back to June 2019. Their end of day trade value was $47,973.298.84 from $754,991.37 investment
Click to expand...

If you want to read about a spectacular investment failure which brought financial markets to near collapse in 1998 read "When Genius Failed, the Rise and Fall of Long-term Capital Management".

Hubris.
 
MRG said:
I have no sympathy nor do I understand how they can legislate folks talking about buying certain products.
Click to expand...

To understand how they think they should be entitled to set their own rules, one need look no further than Vegas - they are quite small compared to "the Market". Casinos can eject you just because you're winning too much and they can't figure out why. Hopefully the back room - knuckle breaking is gone, but still, the "House Always Wins." The rules back them even if the odds let them down once in a while. Can't blame the "big boys" in the market for wanting the same edge - even though I hope they don't get it.

I just see this as (who mentioned?) a tug of war. No one wants to loose this one. YMMV.
 
I don't understand what is being tossed around here. All sounds vague and nonsensical.
 
jim584672 said:
I'm not an idiot. I have Securities Industry experience. These people are going on about who knows what. I don't think they even know what they are on about.
Click to expand...

Who are these people that you are talking about..I don't want to go OT here
 
Well I see the powers that be are requesting that the stock authorities have the ability to halt trading on these stocks for two months in order to "protect" small investors. LOL
 
NW-Bound said:
I am sure the Redditors who instigated the short squeeze will make out like bandits. Their followers will get hurt, along with the hedge funds maybe.

I wonder if the hedge fund guys won't wait to short these stocks again at the top. Perhaps that's why the trading volume is so high. It's a tug of war, and the whole thing will just collapse as quickly. Winners are the guys who sell last, short or not. :) Would you want to be long these crazy stocks right now?

Meanwhile, I have added to some of my "innocent stock" positions, or sold put options to buy them at lower prices. Darn, my stock AA may go up to 80% again.
Click to expand...

This idea that the small guy is going to get hurt is crazy, the one to get hurt is the people shorting, they are paying 22-33 billion for a company that had market cap of 1 billion just a month ago, that they thought was worth 500 million. Everything else is a smokescreen and claims on rule breaking are nonsense, but rules will be changed to hold down the peasants and help the elite. Every investor goes on CNBC when they buy a stock and list the reasons why, this is what is occurring in Reddit. It is supply and demand. Citron research use to go short millions then release a report on why they are short, and they bankrupted companies without any consequence to Citron. The 33 billion has gone to all the small investors. Someone at end will lose money but it will primarily be teh long term holders who lent their shares to the shorts, which when they buy the stock back return it. The short term traders will be rich.

good video discussion https://www.mediaite.com/news/cnbc-guest-scorches-anchor-for-siding-with-wall-street-over-the-little-guy-in-epic-clash-over-gamestops-meteoric-rise/
 
Last edited:
Running_Man said:
This idea that the small guy is going to get hurt is crazy, the one to get hurt is the people shorting, they are paying 22-33 billion for a company that had market cap of 1 billion just a month ago, that they thought was worth 500 million...
Click to expand...

Yes, the hedge funds are losing big at this point.

When the company market cap goes from 22-33 billion back down to 1 billion, who will be losing the big money? Who are the shareholders right now at the top?

Supposedly, the hedge funds only buy enough to cover their short. They would not be long at this point. Of course, if the company stock stays at this ridiculous price (does anyone want to bet on that?) , then the hedge funds are the only losers.

My point is that little guys ganging up to beat down big guys is not a sure win for every participant either. Late comers or wannabes will always get hurt. In dollar amounts, they will lose less, but that's because their bets are smaller. :)


PS. I don't think there should be any rules to help hedge funds. They win sometimes, and lose big some other times. That's the game that they choose to play.
 
Last edited:
You must log in or register to reply here.

Similar threads

R
Buying More Real Estate + Cash Flow?
Replies
22
Views
1K
MRHARDROCKCAFE
MRHARDROCKCAFE
Romer
Looking for an education in looking at a specific stock
Replies
24
Views
2K
DrRoy
DrRoy
S
2023 Year-End Distributions
2 3
Replies
65
Views
10K
steelhead
steelhead
Out of Steam
Auto Loans from Navy Federal?
Replies
17
Views
957
Out of Steam
Out of Steam
Tranquility Base
When to Sell Positions With Unrealized Gains
2
Replies
38
Views
2K
TheWizard
TheWizard

Latest posts

Back
Top Bottom