Anyone getting on the temporary fun screwing the Wall Street fat cats?
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In the end the bankers always win.
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That’s why I don’t mess with individual stocks. Slow and steady wins the race.
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It’s interesting to see the corps scramble to stop/ban and patch the losses.
Honestly looking at the way the Japanese pre-2000 market has gone Pokémon value growth is up there with bitcoin and telsa stocks.
2 years ago you could buy a Japanese Base Set Charizard PSA 10 for £100 GBP. Today… £5500 GBP last sold. 50.5x value 2 years ago.
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That’s some bad math lol
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Definitely fun messing around.
There should be a straw poll to anonymously see who from the forum is involved at any degree.
Let’s see what percentage of us aren’t afraid to lose it all for the meme.
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In my opinion, suddenly bankrupting a bunch of hedge funds and all the investment groups that back them can crash the market hard. This is definitely uncharted territory and things could get really weird by Monday morning.
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I’m rooting for all the rebels!!
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I have the same mindset as I do with Pokemon if this happen: I’ll just buy real stocks if they do dip! Today and Wednesday we have seen this happening where the market goes down and yesterday it was stable as they restricted the wild ride we are on.
I have no idea what’s happening at wallstreet or how any of this works, but I’m seconding your opinion.
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Its pretty funny but really goes to show how fucked and corrupt the system is. Hopefully we’ll get some real legislative change from this but I doubt it.
Nah you’ll be fine. That has been my rate this year too. Last year recovered and ended at 21% for me but in March everyone thought the world was going to end.
It’s a potential gamma squeeze brought on by expiring short contracts by hedge firms that set shorts at a ratio of 140% of the actual shares that are outstanding. that’s all! ha
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To explain it in Pokemon terms:
A big shop sells preorders for Shining Fates without having it in stock → people meanwhile buy the actual product from legit sources that have it in stock and the price goes up → big shop has to buy into the inflated price point to cover his orders → is not liquid enough so has to sell wotc boxes → wotc boxes tank, big shop loses a lot of money.
edit: to make this even funnier, ebay regulates buying on shining fates and just allows selling, helping the big shop
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^^ this. It’s a blend of a vanilla short squeeze (guys who got greedy and shorted 140% of shares and even more egregious % of float) and a gamma squeeze. Basically to lay it out simply:
a short is when somebody borrows and sells 1 share of stock, and then agrees to sell it back later. If this price has gone down, they profit (borrowed and sold at $5, and then rebought at $3 and repaid the share back) and if it goes up they have lost (borrowed and sold at $5 and rebought at $7 and repaid the share). They also pay a fee for borrowing this share but that’s an aside for now
So a short squeeze is when people apply pressure on these leveraged shorts and drive the price up so much that shorts are at risk of losing so much money that they need to “cover” and close the position. So they may have shorted $1M at $10… but now the stock is at $40, $50, $60… what do they do. They can lose essentially unlimited money at this pace so at some point they are outside of their risk threshold and will cover. What happens when they cover? They need to… buy a share! this puts more buying pressure on the stock driving the price up even further.
So now a gamma squeeze / vortex / whatever you wanna call it is that for people who SELL OTM (out of the money) options, so say an option on $50 a share when the price was $10, well if the price hits $50 they are going to need to sell them a share of the stock at $50, so the gamma defines more or less the options risk/value per $1 movement in the underlying stock. So as the price gets closer and closer to the strike price and being ITM the option seller is forced to buy some % of those shares in order to limit risk of not being able to pay out the options buyer
so what does this do? well… it means they need to buy more stock… further driving the price up (and more options into the money!)
So what started as a simple short squeeze on a very overleveraged set of shorts turned into this wild event when yes they were getting squeeze but retail kept buying and option sellers kept having to buy to satisfy their risk which kept driving prices up further and putting more options sold at need of doing this and forcing more shorts to cover… it’s been a beautiful thing really. Crazy, but beautiful ;p
cliffs: shorts got caught with their hand in the cookie jar and got driven into a perfect storm of pain. RIP Citron, Melvin, etc.
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I made a cool $1,200 and got the hell out.
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Autists gonna be eatin’ tasty tendies to the moon.
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