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Read the news - what you are describing didn't happen. Look at Melvin - they are trying to convince the market they are still solvent. Citron closed their sho

by anewaccount2021 6y ago

Read the news - what you are describing didn't happen. Look at Melvin - they are trying to convince the market they are still solvent. Citron closed their shorts at a huge loss. This really is a case of "seasoned professionals" getting slaughtered on awful trades, and they didn't appear to have a safety net set up. edit: people seem to think I am cheerleading WSB...far from it, someone there will also get slaughtered by being the last fool to walk in on a risky trade. Trading is merciless, caveat emptor! edit2: the article above does NOT refute my claims. Melvin took a $2 billion emergency infusion from Citadel. You don't do that if you safely closed your trades without hazard. Sorry I'm going to trust Bloomberg over "nope-its-lily"

darepublic 6y ago
Egging on reddit certainly doesn't help. I agree with the notion of shorting game stop but don't make a big fuss about it.
TameAntelope 6y ago
WSB certainly has the narrative locked up, but that doesn't actually mean anything when it comes to who is walking away with fatter wallets. There is zero percent chance that this is actually playing out the way WSB is claiming it's playing out.
- allie1 6y ago
  >There is zero percent chance that this is actually playing out the way WSB is claiming it's playing out. What makes you say that? Any idea of what is happening?
  - TameAntelope 6y ago
    Basically, because they're not wrong on the facts, and they're far from the first to realize that. There's a decent not-meme-based story around GameStop's turnaround, and a number of actual investment firms saw it weeks before they did. Investment firms are betting against each other, as per usual. Also, now that GameStop has all this extra value, they can actually improve, so the not-meme-based story becomes even more compelling.
gruez 6y ago
>Look at Melvin - they are trying to convince the market they are still solvent. From the article in my previous comment: >Even assuming the worst case scenario here (let’s assuming somehow the put value was $10 and they held until now and the put is worthless, the max loss is $54 million for a hedge fund with $20 billion AUM, for a max risk of about 0.27%), Melvin Capital is sleeping fine. Because they bought puts, and didn’t short shares directly, their max loss is capped (the premium they paid).
- nceqs3 6y ago
  You don't know if they shorted shares. Shorts are not disclosed on 13f's. Often times funds buy puts and short at the same time. It sounds like they did short shares of gamestop. When the first article came out it said their puts had already expired. Gabe Plotkin called into CNBC this morning and said their "short had been covered" meaning that they did short shares.
- deeeeplearning 6y ago
  Daddy Cohen just loaned them 3 Billion so they could stay solvent. Might want to check your math. https://www.ft.com/content/8be64f49-7c90-4fae-8370-c5c5c96d812c https://www.ft.com/content/8be64f49-7c90-4fae-8370-c5c5c96d8... TLDR Melvin Capital is already down 3.75 Billion 3 weeks into 2021...
  - mmastrac 6y ago
    Kinda feels like Billions got this whole industry right.
    - xtiansimon 6y ago
      I seen that show, and I enjoyed it--though, not because it offered insight into hedge funds or wall street. I enjoyed it because they dramatized wall street. one hopes a good drama will say something 'right' about suffering, triumph, betrayal, love, in the process all while putting likable and interesting actors in key roles. I agree; good show.
- 6y ago

darepublic 6y ago

Egging on reddit certainly doesn't help. I agree with the notion of shorting game stop but don't make a big fuss about it.

TameAntelope 6y ago

WSB certainly has the narrative locked up, but that doesn't actually mean anything when it comes to who is walking away with fatter wallets. There is zero percent chance that this is actually playing out the way WSB is claiming it's playing out.

allie1 6y ago
>There is zero percent chance that this is actually playing out the way WSB is claiming it's playing out. What makes you say that? Any idea of what is happening?
- TameAntelope 6y ago
  Basically, because they're not wrong on the facts, and they're far from the first to realize that. There's a decent not-meme-based story around GameStop's turnaround, and a number of actual investment firms saw it weeks before they did. Investment firms are betting against each other, as per usual. Also, now that GameStop has all this extra value, they can actually improve, so the not-meme-based story becomes even more compelling.

gruez 6y ago

>Look at Melvin - they are trying to convince the market they are still solvent. From the article in my previous comment: >Even assuming the worst case scenario here (let’s assuming somehow the put value was $10 and they held until now and the put is worthless, the max loss is $54 million for a hedge fund with $20 billion AUM, for a max risk of about 0.27%), Melvin Capital is sleeping fine. Because they bought puts, and didn’t short shares directly, their max loss is capped (the premium they paid).

nceqs3 6y ago
You don't know if they shorted shares. Shorts are not disclosed on 13f's. Often times funds buy puts and short at the same time. It sounds like they did short shares of gamestop. When the first article came out it said their puts had already expired. Gabe Plotkin called into CNBC this morning and said their "short had been covered" meaning that they did short shares.
deeeeplearning 6y ago
Daddy Cohen just loaned them 3 Billion so they could stay solvent. Might want to check your math. https://www.ft.com/content/8be64f49-7c90-4fae-8370-c5c5c96d812c https://www.ft.com/content/8be64f49-7c90-4fae-8370-c5c5c96d8... TLDR Melvin Capital is already down 3.75 Billion 3 weeks into 2021...
- mmastrac 6y ago
  Kinda feels like Billions got this whole industry right.
  - xtiansimon 6y ago
    I seen that show, and I enjoyed it--though, not because it offered insight into hedge funds or wall street. I enjoyed it because they dramatized wall street. one hopes a good drama will say something 'right' about suffering, triumph, betrayal, love, in the process all while putting likable and interesting actors in key roles. I agree; good show.
6y ago