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Except shorts pay borrow fees but longs can hold indefinitely for free. Borrow fees on $GME often go as high as 80%
by delaaxe 6y ago
Except shorts pay borrow fees but longs can hold indefinitely for free. Borrow fees on $GME often go as high as 80%
- nostrademons 6y ago80% annualized is tiny on a daily basis - it's like 0.25%. They can afford to wait until next week when WSB has moved on to AMC and BB. Sustaining these high prices requires a continuous influx of new money; once the folks who believe GME is going to $1000 have already bought, what's left are the folks who believe it's worth $10.
- delaaxe 6y agoExcept when it's already too shorted and there's nothing left to short
- conanbatt 6y agoIt's a huge tax. You cant hold that more than a few weeks and you need a huge upside.
- dcolkitt 6y ago> you need a huge upside. Shorting a stock at $300, when it was trading at $16 last month is pretty much the definition of huge upside.
- conanbatt 6y agoTrue, but 80% a year means that you might have to inmobilize a multiple of the capital and by 6 months lose half the investment. Note that if you short at 300 and it flash jumps to 1000 you are toast.
- david-gpu 6y agoIt seems unlikely that wallstreetbets and other retail investors are going to have much patience. They are already pumping other stocks.
- ookblah 6y agothis is probably the exact mentality that got the funds in this position. they have more patience than you think when it comes to making money (which is the end goal), and the other pumping is getting rooted out as shills or distractions.
- david-gpu 6y agoGME has crashed since we wrote this 8 days ago. Do you still feel the same way?
- scoopertrooper 6y agoThat assumes the longs are unified. The WSB community are heavily promoting Friday as the day their grand scheme comes to fruition. How many of these novice first-time investors will defect when Friday comes around and the shorters opt to wait them out? How many need to defect before panic sets in? Shall be an interesting week. Edit: looks like it's already falling apart, the price is down 30% on post-market trading! Expect things to get real once the market opens up.
- pivoter 6y agothis aged badly.
- scoopertrooper 6y agoI just checked it again, they're still down 15% from the market close.
- llampx 6y agoAny trader knows that after-hours price action does not necessarily translate or carry over into RTH. It is much easier for price to be manipulated in thin after-hours trading.
- delaaxe 6y agoFriday has nothing to do with the shorts (not the short squeeze). Friday is about the gamma squeeze because options expire on Fridays
- 6y ago