4 ms·

I doubt this is the end. It still has a lot of room to run, probably. The shorts haven't covered, they've doubled down.

asdfasgasdgasdg 6y ago
Why wouldn't they double down? Fundamentally, Gamestop isn't a thirty billion dollar company. The odds that retail investors stay greedy long enough to force the current shorts to cover are not very high, IMO. Some of these redditors are going to want to cash in their gains, and when that happens I guess it's going to collapse very quickly. I don't buy individual stocks and even I'm tempted to get in on the short side right now. Seems like an easy way to turn $1k into $10k. Take my wife out for a nice dinner or something.
- thebean11 6y ago
  The stock is going up because of shorts. If the cycle of old shorts covering and new shorts taking positions continues, combined with the positive feedback loop of retail FOMO, the stock will continue to go up. > I don't buy individual stocks and even I'm tempted to get in on the short side right now. Seems like an easy way to turn $1k into $10k. Sure, if you call the top, otherwise you'll turn $1k into -$20k pretty quickly
- andrethegiant 6y ago
  This doesn't have to do with GameStop as a company -- they are merely the rope in a tug of war between retail investors and wall st. Buying shares seems like the easy way to turn 1k into 10k given how many success stories have happened over the last few days.
- stu2b50 6y ago
  If you short gme you're about to be in very heavy debt to your broker. At least buy a put or something instead. I don't think anyone is actually long on gamestop at $350 per share, but trying to short is not about company expectations at this point, it's about timing this hysteria wave, and if you mistime it you get destroyed by infinite risk and your broker liquidate your position and you leave with not 10k, but -100k.
- hervature 6y ago
  The max gains on shorting stock is 100% and that’s ignoring fees you have to pay which are extremely high for GME right now. Unless you plan to use 10x leverage or trade options, which I doubt if you don’t trade individual stocks, you can’t 10x by shorting. On the flip side, if you shorted at $20, you would have lost your entire portfolio if you shorted with 5% of your capital. Shorting here is trying to catch a falling knife, don’t do it.
  - asdfasgasdgasdg 6y ago
    I definitely won't. Thank you for the correction r.e. short selling upside. If I had realized it was max 100% upside, it wouldn't have been tempting. There's not an amount I'm willing to risk on this trade that would make a mere doubling of my money worth the effort.
- Majromax 6y ago
  > Why wouldn't they double down? Because short sellers accept potentially unlimited liability in the event of a price increase. Remember the old maxim: the markets can remain irrational longer than you can remain solvent. The operating theory of the WallStreetBet hivemind is that the short sellers (collectively) are in so deep that further price increases will force them to close out their positions by buying back stock at a loss. Short sales are ultimately made on margin (because they're a debt of a share), and margin accounts will be called in at some ratio. That "short squeeze" would cause the price to spiral ever further, and that price increase would then force any remaining short sellers out of the market. See https://moxreports.com/vw-infinity-squeeze/ https://moxreports.com/vw-infinity-squeeze/ for a well-known, circa 2008 short squeeze that happened to Volkswagen. The issue with the operating theory is that it's fuzzy; there's no way to know what price point will trigger such a short squeeze. > I don't buy individual stocks and even I'm tempted to get in on the short side right now. Seems like an easy way to turn $1k into $10k. Only if you are highly leveraged yourself, exposing you to those dramatic losses if you mis-time the market even slightly. If you do want to take the down-side of Gamestop, it'd be safer to buy a put option to limit your potential loss. However, the high implied volatility also makes the trade a bit expensive right now. (Edit to add: I have no financial interest in Gamestop, up or down.)
- nkozyra 6y ago
  > Seems like an easy way to turn $1k into $10k. Who wants to tell him?
- Miner49er 6y ago
  Fundamentals don't matter right now. If you don't time it just right, and it keeps going up, you'll get margin called and be forced to cover for a huge loss.
  - asdfasgasdgasdg 6y ago
    Yeah I'm not actually going to do it. Also, as someone pointed out, max gain is 100% (I was confused), so there's really not enough upside to bother with, at least for the amount of money I'm willing to plonk down on it.
- deeeeplearning 6y ago
  >Why wouldn't they double down? Because everyone with an internet connection and half a brain knows that the shorts are totally screwed if the WSB turds keep buying.

Why wouldn't they double down? Fundamentally, Gamestop isn't a thirty billion dollar company. The odds that retail investors stay greedy long enough to force the current shorts to cover are not very high, IMO. Some of these redditors are going to want to cash in their gains, and when that happens I guess it's going to collapse very quickly. I don't buy individual stocks and even I'm tempted to get in on the short side right now. Seems like an easy way to turn $1k into $10k. Take my wife out for a nice dinner or something.

thebean11 6y ago
The stock is going up because of shorts. If the cycle of old shorts covering and new shorts taking positions continues, combined with the positive feedback loop of retail FOMO, the stock will continue to go up. > I don't buy individual stocks and even I'm tempted to get in on the short side right now. Seems like an easy way to turn $1k into $10k. Sure, if you call the top, otherwise you'll turn $1k into -$20k pretty quickly
andrethegiant 6y ago
This doesn't have to do with GameStop as a company -- they are merely the rope in a tug of war between retail investors and wall st. Buying shares seems like the easy way to turn 1k into 10k given how many success stories have happened over the last few days.
stu2b50 6y ago
If you short gme you're about to be in very heavy debt to your broker. At least buy a put or something instead. I don't think anyone is actually long on gamestop at $350 per share, but trying to short is not about company expectations at this point, it's about timing this hysteria wave, and if you mistime it you get destroyed by infinite risk and your broker liquidate your position and you leave with not 10k, but -100k.
hervature 6y ago
The max gains on shorting stock is 100% and that’s ignoring fees you have to pay which are extremely high for GME right now. Unless you plan to use 10x leverage or trade options, which I doubt if you don’t trade individual stocks, you can’t 10x by shorting. On the flip side, if you shorted at $20, you would have lost your entire portfolio if you shorted with 5% of your capital. Shorting here is trying to catch a falling knife, don’t do it.
- asdfasgasdgasdg 6y ago
  I definitely won't. Thank you for the correction r.e. short selling upside. If I had realized it was max 100% upside, it wouldn't have been tempting. There's not an amount I'm willing to risk on this trade that would make a mere doubling of my money worth the effort.
Majromax 6y ago
> Why wouldn't they double down? Because short sellers accept potentially unlimited liability in the event of a price increase. Remember the old maxim: the markets can remain irrational longer than you can remain solvent. The operating theory of the WallStreetBet hivemind is that the short sellers (collectively) are in so deep that further price increases will force them to close out their positions by buying back stock at a loss. Short sales are ultimately made on margin (because they're a debt of a share), and margin accounts will be called in at some ratio. That "short squeeze" would cause the price to spiral ever further, and that price increase would then force any remaining short sellers out of the market. See https://moxreports.com/vw-infinity-squeeze/ https://moxreports.com/vw-infinity-squeeze/ for a well-known, circa 2008 short squeeze that happened to Volkswagen. The issue with the operating theory is that it's fuzzy; there's no way to know what price point will trigger such a short squeeze. > I don't buy individual stocks and even I'm tempted to get in on the short side right now. Seems like an easy way to turn $1k into $10k. Only if you are highly leveraged yourself, exposing you to those dramatic losses if you mis-time the market even slightly. If you do want to take the down-side of Gamestop, it'd be safer to buy a put option to limit your potential loss. However, the high implied volatility also makes the trade a bit expensive right now. (Edit to add: I have no financial interest in Gamestop, up or down.)
nkozyra 6y ago
> Seems like an easy way to turn $1k into $10k. Who wants to tell him?
Miner49er 6y ago
Fundamentals don't matter right now. If you don't time it just right, and it keeps going up, you'll get margin called and be forced to cover for a huge loss.
- asdfasgasdgasdg 6y ago
  Yeah I'm not actually going to do it. Also, as someone pointed out, max gain is 100% (I was confused), so there's really not enough upside to bother with, at least for the amount of money I'm willing to plonk down on it.
deeeeplearning 6y ago
>Why wouldn't they double down? Because everyone with an internet connection and half a brain knows that the shorts are totally screwed if the WSB turds keep buying.