GME Squeeze

I'd like to share some Gamestop DD (Due Diligence) after hearing several people in other threads talk about this. I am a member on subreddit GME and WallStreetBets as well. I am not giving financial advice, I am just stating my opinion and the opinions of others.

GME IS NOT OVER. The HYPE IS NOT OVER. Please please please check out these links and read what some damn smart people have to say about it. The links are to reddit and subreddits that have people way smarter than me explaining the situation. There are hundreds of thousands on board with this already from all over the world.




LINKS:


https://www.reddit.com/r/GME/commen..._what_we_need_to_know_before/?utm_name=iossmf


https://www.reddit.com/r/wallstreet...he_gme_moass_mother_of_all_short_squeezes_is/



For normal browsing and constant updates scan through the subreddit /r GME:
https://www.reddit.com/r/GME/



An insanely shorted stock (STILL) that has colossal potential. This is NOT over (as most news outlets state). Read peoples DD's (Due Diligence) posts on /r GME and /r WallStreetBets and see for yourself. The two first links I have given are the very important ones.


I currently own the stock. I have held since January from High $200's to $40's, back to $200's and will continue to hold until we hit the numbers you see on /r GME and /r WallStreetBets.


I created this thread to keep discussion on GME for people who want it, AND to spread the word.


One last thing:

F*ck Robinhood, F*ck Citadel, and F*ck the other hedgies.

 

First

 

I like the stock

 

HHHHhhhOOOOOOOOOOOOOOOOOODdddl


even after apex (you will know) keep a few as love momento trinkets and to help others out. (plus that apex might double )

 

Bring "Blockbuster Video" back

 

My favorite flavor crayon is red

 

I like yellow, tastes like

 

GME as a company? Meh.

This game is fun.

 

Save your 20 bucks. RobinHood just lays there. Citadel has the hairpiece, and not the good kind. Still waiting on callback from the other hedges but I’m known in certain circles as a “short seller” so who knows.

 

I like yellow myself

 

A few questions:

Say the stock pops off, and it goes up to thousands of dollars per share... Why would the funds who shorted it buy at such a ridiculous price versus keep paying the interest/premium (or whatever it's called) to the brokerages that they borrowed from? Is there a deadline that they absolutely have to buy regardless of price? I know very little about options and their impact on this, so maybe that's the answer. and if it is... who's going to buy my few shares at many thousands per share?

I am wondering if those of us with less than 100 GME shares are creating the conditions for options traders to ride the rocket, and not us small share owners.

I get why people were and are furious at Robinhood, but doesn't their explanation about why they had to temporarily halt trading make sense? The clearinghouses forced them to hold more cash, so they had to stop the high volume trading until they could get it. To me, that sounds more likely than they were in cahoots with citadel or whomever to stop the purchasing/selling of GME at the inflated price to save the HFs. I believe they also limited buying/selling extended to the other high volume meme stocks at the time, so it wasn't just GME and its short position.

I believe that GME is still heavily shorted, but I'm suspect that the HFs shorting it and the brokerages they borrowed from will allow a bunch of retail investors to become millionaires with this play.

 

Good answer I found for this:

-“Why don't the shorts just wait for the squeeze to end?

After all, GME is practically worthless; in 2022, the value of GME is more likely to be 10$ than 100$. If you have shorted GME and you just wait until 2022 to give it back, you won't be out any money at all.

Unfortunately for you, shorts can be closed out at any time by the lender. So rather than thinking of a short as being a bet that a stock will go down in the future, you must think of a short as being a bet that a stock will never increase above its current price before you decide to buy it back. Because if it did increase, the lender could demand it back immediately, and regardless of its long-term prospects, you lose money.

A put is a similar investment with a fixed time horizon that avoids this risk, but of course has its own disadvantages.”

EDIT: Adding that they have interest to pay on margin calls as well. They have already lost billions on this in the past few months. "A margin call on a short position (you are selling shares you borrowed from the broker) is received when the price of the underlying is going up instead of where you hoped would go, and that is down. This is because you will be asked to either return the asset (that you sold without having – you borrowed it from the broker) or pay the difference between your margin account and the market price of the underlying". Margin calls don't happen just once.







Additionally, check this link out and read the top answer. Helps make sense of the market a bit and keeps me from having to type it all out. The top answer is definitely worth a read.


https://money.stackexchange.com/que...short-squeeze-situation-to-a-non-stock-trader

-What doesn’t make sense to me is how were they not able to cover this on one ticker? This is a common trait of the market, especially with volatile stocks. You’re telling me every time a stock drastically raises RH is going to halt you from buying a specific stock, but still allow you to sell it? (in other words this still allowed the lowering price of the stock but not the increase in price because it halted demand. This also caused panic and caused even more people to sell lowering the price even more.) Lets not forget Citadel, who is the leader of shorting this stock is in tight with RH. This halt helped them out drastically slowing the gamma squeeze and stopping the short squeeze at that time. Many people smell something fishy and so does the SEC/congress. This is why they had/have to testify for collusion allegations. Link below.

(https://9to5mac.com/2021/02/02/robinhood-collusion-allegations-congress/)


To add even more confirmation bias and to add to the fishy-ness going on:


“RobinHood Securities says in its annual report that they shut down trading due to margin demands. That's because they are engaging in CFD practices and they/you NEVER OWNED YOUR GME SHARES DURING THE RUN-UP. The price exploded before they were able to delta hedge their naked CFD positions, and they got margin called for $3,000,000,000 to cover the shares they needed to buy.”



This link will explain that quote in way more detail:


https://www.reddit.com/r/Wallstreetbetsnew/comments/m6xehe/robinhood_the_missing_link/










I do believe something isn't right here and that this is the opportunity of a lifetime to get in on. Maybe it won't go exactly the way we all expect, but if there is a chance for history to be made, I want to be a part of it. I'm not an expert and I feed my confirmation bias on this every single day. I try to take what I read with a grain of salt and so should you. That being said I own shares in this hoping for the best possible outcome.

If you haven't already been https://www.reddit.com/r/GME/ is a good place to read up on a lot of this. Pretty crazy the amount of people in on this and the DD's(Due Diligence) people have posted on this. Additionally https://www.reddit.com/r/wallstreetbets.

 

Shares are key....Options make AND LOSE more money...
This squeeze situation could be going into May or June or further if they cover and re-short multiple times (especially via deep in the money calls)
- Options are worthless after hours. I had multiple calls and shares during the last run up and helplessly watched as my $GME assets broke $207,000 pre-market but because it was nearly ALL options I could do nothing but watch it spike and drop.
If you look at this chart from 1/28/21 when the last $GME price spike happend and they nuked it buy tinkering with the market...You can se the price hit $513 pre-market. When that happened I said "Gee...I'd really like to sell some shares here and get some profits" but at this point ALL my $GME money was in options. At 8am I exercised 3 options pre-market...Usually if you exercise an option you get shares within MINUTES...I got my shares at 10:35am...That's right, it took them over 2 HOURS to get me 300 shares to fill the 3 contracts I exercised...By the time I had shares $GME was trading at $360 and just about to be royally fucked by ladder attacks and zero ammo from people to buy because they were only allowed to sell on certain platforms.
I set a trailing stop of $100, $110, $120, $130 etc for blocks of 250 of my 300 shares when it was at $360 ($-100 from the price at that time) and as you can see...Down goes Frazier...I certainly would have sold 50 shares at $500 if I had the money and my -$100 trail would have triggered and sold the 200 remaining shares (I would have still held 50) on the way from $500 to $400...The difference here is in the area of an additional $12,000 on the 50 at $500 and an additional $40,000 in profits on the trailing stop difference...So not having shares cost me the opportunity to make an ADDITIONAL $50-60,000...

-Options could be worthless, or require exercising to get shares on a prolonged halt - Nobody knows exactly what they controlling market entities would do on a prolonged halt of $GME for multiple days...But if you had the 4/1 weekly $650 call for $GME and on say Friday 3/26 the real gamma squeeze starts...and after hours friday $GME goes over $500...and then monday pre-market it goes to $1000 a share and then the market opens and in the first 30 seconds there is a big sell off OR a price spike of 10% in either direction and it HALTS...
Options can't be traded in the first 5 minutes of the market opening. They also can't be sold to close when the market is halted...
Now the stock is halted during regular hours on 3/29 and then we get a special notification that pending some SEC whatever the stock is halted for 10 days...for whatever fuckery excuse you can think of...Mine would be market volatility. If you let $GME moon in 2 hours the whole market will crash as the hedgies sell off assets to have the money to close their short positions. This would tank so many blue chips.
So we're halted on 3/29 for 10 days with a last Ticker price of $1000...Nothing would change intrinsically, the squeeze will still happen...BUT if you were holding that 4/1 (APRIL FOOLS how appropriate) $650 call that you paid $500 for on a goof is now worth $35,000 based on a $1000 share price...Now normally you would "Sell to Close" that call for about $36,500 (a little profit) an celebrate your fresh $36K....BUT since trading is halted you're not doing that...The only choice you have is, if you choose, to exercise the option...Meaning you need $65,000 in CASH to exercise the option to get 100 shares...I'm betting the MAJORITY of leap option holders aren't sitting on that kind of cash...
THIS is one way I could see them fucking with things...They know with there being THOUSANDS of in the money calls expiring that would eliminate a lot of shares that must be fulfilled and decrease the competition for shares for the covering shorts...

So nothing against options...I still like to have 1 or 2 in my pocket if they're a bargain. But Make sure you also have shares...too

 

Oh and if you had 100 shares of $GME @ say $200 a share that you bought on the tail end of the last big spike...and you sold 1 Weekly $300 every week since the spike...you'd have banked $32,000 in expired premiums already and not lost your shares...A profit of $12,000 on your $20,000 up front...
You could then take that $12,000, buy 60 more shares @$200, have plenty of tickets to the moon shot and KEEP Selling weekly calls..

 

own shares and buy more shares.

this is the way.

 

Wow. I’ve been pushing the bad payoff on the high premium options for a bit now. I’m glad to see it’s getting a foothold on Reddit. I’ve been telling my get rich quick friends just buy 20 shares instead of a $4,000 call.

 

shares are the way