And here we go. I look forward to WSB adapting and seeing if they can juke this.
I didnât see this, which company was it?
Wirecard, hereâs a Reuters article on it
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And, now, GME down to $69.
Reddit players getting disinterested, stock price going back toward a price at which someone (the rational average market) would buy the whole company.
No doubt institutions are shorting like crazy to take advantage of this inevitable fall. Can reddit muster enough brave warriors to combat this second wave of shot sellers
Some are hyping that. The data on shorts seems spotty (not an expert), but some are finding indications that short interest is up, not down. Which may be true, but these new shorts are short at like $300, youâd have to have another massive leg up before they get hurt. I think one reasonably common theory is that these short sellers, at some point, need a stock to buy back. And if Reddit can grab up all the float, then the shorts are toast. In theory I suppose thatâs possible. In practice, unless you control nearly all the shares, there will be enough float to keep prices sane, and the shorts can just cover whenever, seems unlikely GME will hit $300 again any time soon.
I mean, just practically, there would be a lot more short squeezing if it was as simple as that, right?
$69 was so last hour. $57 and falling, LOL.
Iâm guessing it settles in the $15-$20 range when the dust clears. But really does it still have a viable business model? It seems like folks that timed rise and bailed and execs who we able to dump stock at inflated prices and the short sellers who got in late are the winners. The schmucks who thought it was going to $1,000 who bought in and held and early short holders who got squeezed are the big losers.
Been saying this all along. Itâs fun for us all to band together and rejoice that the billionaires got screwed in the first run up. But there is another really big group of people who are going to get burned by this. Itâs all the average Joeâs that jumped in at any price above $20 ($45, $90, $150, $250, $300, $400, $450) and didnât get out.
This is a classic penny stock pump and dump, except itâs been done on a much larger scale to a ârealâ company. The losers in the pump and dump are the average joes that buy in on the way up and donât get out before it goes back to a penny.
I do feel bad for some of these folks that got caught in the hype and bet more than they should. I saw people posting that they were using student loans, one person dumped in their whole 401k when it was $200-ish, lots of people were putting in every penny they could on payday for a few weeks. Itâs fun to watch people gamble and lose on Reddit when itâs fun money, but for some this went too far.
(toward Shana) They bought their stocks. they knew what they were getting into.
(turn to camera) I say, let 'em crash.
People should not have to learn anything the hard way, but thatâs what happens sometimes. Touch the hot stove, place your fingers near where a hammer might land if it misses the intended target, walk out into the street without looking both ways, ride a bike (pedal or motor or hybrid) without wearing a helmet, play football,âŚ
okay GME just jumped to $150, wtf is going on
People (who are definitely not cats) like the stock.
I think a short and/or gamma squeeze is the narrative. It seems unlikely that short sellers, having just had weeks to get it together, are about to be caught naked when the tide goes out.
But the alternatives⌠could just be a huge demand? Volume was pretty high today. So I doubt it was retail driving it, could be market makers if someone bought a ton of calls today (no idea on call volume).
I guess one question that may be worth asking: why today? What changed from yesterday?
literally the question since the beginning of trading history
Obviously interest waned and people were scared, and the inevitable crash came last time. But it was not as far as one would expect, stalling for quite some time at $40-$50, rather than returning to pre âpumpâ levels ($5? $10? $20?).
At first I thought it was all over, and it would be done. And the reason it didnât get as low as before, is because there would be enough of the âsuckersâ (apologies to anyone negatively impacted by this) that would refuse to sell (if youâve lost 90% of your investment, why not hold on to that last 10% in the hopes it bounces back, or just for spite).
But there is still some cult aspect to this. And one of the main personalities is u/deepf***ingvalue, who turned ~$50k into $40m+ at one point. He is still holding on. And in fact, he went longer recently. I suspect this is giving it this second life. I expect the second life to look a lot like the first, but not get as high and not last as long.
The question is how far it will drop this time. Maybe this gives some of those âsuckersâ mentioned above a more palatable out. And when it drops this time it returns to pre-pump levels.
From an article on it.
This latest volatility in GameStopâs share price comes after news on Tuesday that Jim Bell, the retailerâs chief financial officer, is resigning. Bell will resign from GameStop on March 26, the company said in a release. Diana Jajeh, GameStopâs current senior vice president, will serve as interim CFO while the company searches for a permanent replacement.
Bell didnât leave the company willingly, according to Business Insider. He was reportedly pushed out by the board over a lack of faith and an initiative to reshape the company by Ryan Cohen, co-founder of Chewy, who made a large investment in the video game retailer last year.
Doesnât seem like something that should make itâs stock price jump that much. But after what happened I wonder if a lot of people are constantly watching it and a little good news turns into something crazy now.
I donât think the swap in CFO is driving most of this.
DFV did add 50k shares⌠maybe a week or so ago? I think the cult aspect canât be ignored, there are now about 9M people on WSB, and Iâm sure this is trending on WeBull and wherever else. That attention may drive retail to buy. Can I make up a scenario? Letâs say 1M retail investors pile in $500 each. At $40/share theyâd be chasing 12.5M shares, and the float is about 40M. That is enough to tick the price up but I donât think nearly enough to triple it. And much of this buying has been going on for weeks now.
I donât know where to find options volume daily. I wonder if someone, probably institutional, bought calls that nobody was offering for sale and the market makers had to create them. In that case, you get the gamma. Lots of people bought calls quite some time ago, many with expiry out in 2021. As prices rise, existing options would cause feedback. But that wouldnât light the match, right? In fact, if those options are out of the money and the expiry gets closer, wouldnât market makers need fewer shares to hedge? Maybe I have that wrong.
And disclosure: I am not long or short GME currently
When this was all going on the first time around, I effed around with some options (both puts and calls) on GME, AMC, and BBBY. Won some, lost some. Missed a chance for a really solid return when I thought the bull run had one more day of legs on it.
Anyway, one of my winning bets last month was a $60 monthly put on GME. I bought it for $12 during the boom, sold it for $19 at expiration. At multiple points it was worth >$20, maybe as much as $24. Well with todayâs run up, the monthly $60 put (March this time, February last time), dropped down below $10. So I decided to run it back. Same thinking. Very good chance this returns to historical levels in the next 3 weeks. At least $45, if not even $25, or $10, or $5.
Wish I had gotten in on the calls a couple days ago. I honestly considered it when I saw that DFV had gone longer. But work got in the way. The $400 call was $5 a couple days ago. $20 this morning, $50 at one point today.
I like your odds, good luck! Even if it pops higher, I suspect you have time for it to burn back down.
GME saga continues. Surge continues from a couple weeks ago, with steady, somewhat stable increases (this part shocks me). Today touched $350. Writing this post prompted me to check again, and just hit a market stop on a drop, then a market stop on a surge. So back to the original level of craziness (which is very good for me, in general).
Looking like my March 60 puts are going to be losers. I quadrupled down yesterday for $1.25 each, just in case the crash comes quickly.
Then this morning, when I further lost confidence that it would return to historical levels in the next 10 days, I decided to buy some April puts. Bought some 90s for what I view as really cheap (~$12.50).
Iâm becoming a bit perplexed here (which means I shouldnât be gambling on this). I predicted another run for GME, but would never have expected that to be sustained, or be gradual, or reach back up to these levels. I saw the articles about them hiring people / starting initiatives on moving to an online platform, but still. $22b valuation at some point today. Like, no. No chance the company is worth $22b. You couldnât find a single private equity company willing to buy them for anything close to that number. And PE pays a premium to buy companies.
So what now? Please return to historical levels in the next 10 days!