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The WSB guys are talking about this in their coded meme terms about diamond hands and it's not over til it's over language. They're basically loudly signalling

The WSB guys are talking about this in their coded meme terms about diamond hands and it's not over til it's over language. They're basically loudly signalling that they will not sell until the short float is down.

newacct583 6y ago
Trust the plan, as it were. Where they go one, they go all. It's really eerie, the overlap between the worldviews.
- rzz3 6y ago
  Overlap between which world views? Are you saying between the short sellers’ world views and WSB’s? I have a feeling that a lot of the people on WSB actually work on Wall Street and are just on their phones at work. There seem to be some experienced professional traders there(among many who aren’t), but I don’t see much similarity between them and the shorters in particular.
  - newacct583 6y ago
    I'm saying that WSB true believers and Qanon nuts sound similar and use similar logic.
    - tacocataco 6y ago
      Could you provide some examples? I've never heard of WSB being linked to Qanon/trump/alt right until all this short drama started.
      - newacct583 6y ago
        I'm just saying that it's all the same magical thinking. I'm not saying it's the same people, though given the demographics I suspect the overlap is bigger than we think.
        rzz3 6y ago
        Your suspicion, and you’re baseless assumptions about the “demographic” of several million Reddit users, sounds a lot like “magical thinking” without any evidence to offer.
    - rzz3 6y ago
      It’s really creepy how you just compare WSB to a group that half the country considers “supporters of terrorism” or literal terrorists. This is the “magical thinking” to me. The original GME investment groupthink (Reddit always works this way, it’s lovingly called “the hivemind”) was based on complex, but logically-sound technical reasoning. A lot of due diligence was done. QAnon, as far as I know at least, was based on a post on 4chan with no verifiable evidence whatsoever. WSB’s GME buying was motivated by logic and evidence at its core, and many aspects of this logic have happened exactly as predicted (for example, the multiple gamma squeezes). Unlike QAnon, the more you learn about this, the more it makes sense (though, very obviously, the price is going to crash eventually, and these people know it). Respectfully, I think it’s disingenuous and below-board to try to baselessly compare something you don’t understand well to an alt-right hate group. Show me the solid due diligence and technical analysis that underlies QAnon, and maybe I’ll give your comparison a closer look.
ZephyrBlu 6y ago
Which is insane, because then it's basically a mexican standoff.
- esyir 6y ago
  Technically not. Shorts have a borrow fee, and if you trust the wsb guys on this number, the current borrow fee on gme is 80 percent per annum. So if I'm not getting anything wrong here, short sellers do have a bit of a clock.
  - ZephyrBlu 6y ago
    Yes, but I think hedge funds will easily be able to cover that cost on new short positions basically indefinitely.
  - saalweachter 6y ago
    Does 80 percent per annum mean that carrying the short for ~9 months will cost roughly the same as closing it out today, assuming the price remains constant for the next 9 months?
    - esyir 6y ago
      Probably not. Perhaps if the brokerage blocks didn't cap their momentum allowing the earlier shorts to get out at 120
    - totalZero 6y ago
      It means your broker will charge you that carry cost on a pro rata basis, assuming borrow also remains constant. (It's generally not a fixed rate.) So if you carry a 9mo short with 80% borrow rate on a stock that realizes 0 vol, you played yourself. If you don't want to deal with borrow, you can buy a put and sell a call on the same strike (usually slightly higher than ATM) which comes with an implied borrow rate that is locked in.

newacct583 6y ago

Trust the plan, as it were. Where they go one, they go all. It's really eerie, the overlap between the worldviews.

rzz3 6y ago
Overlap between which world views? Are you saying between the short sellers’ world views and WSB’s? I have a feeling that a lot of the people on WSB actually work on Wall Street and are just on their phones at work. There seem to be some experienced professional traders there(among many who aren’t), but I don’t see much similarity between them and the shorters in particular.
- newacct583 6y ago
  I'm saying that WSB true believers and Qanon nuts sound similar and use similar logic.
  - tacocataco 6y ago
    Could you provide some examples? I've never heard of WSB being linked to Qanon/trump/alt right until all this short drama started.
    - newacct583 6y ago
      I'm just saying that it's all the same magical thinking. I'm not saying it's the same people, though given the demographics I suspect the overlap is bigger than we think.
      - rzz3 6y ago
        Your suspicion, and you’re baseless assumptions about the “demographic” of several million Reddit users, sounds a lot like “magical thinking” without any evidence to offer.
  - rzz3 6y ago
    It’s really creepy how you just compare WSB to a group that half the country considers “supporters of terrorism” or literal terrorists. This is the “magical thinking” to me. The original GME investment groupthink (Reddit always works this way, it’s lovingly called “the hivemind”) was based on complex, but logically-sound technical reasoning. A lot of due diligence was done. QAnon, as far as I know at least, was based on a post on 4chan with no verifiable evidence whatsoever. WSB’s GME buying was motivated by logic and evidence at its core, and many aspects of this logic have happened exactly as predicted (for example, the multiple gamma squeezes). Unlike QAnon, the more you learn about this, the more it makes sense (though, very obviously, the price is going to crash eventually, and these people know it). Respectfully, I think it’s disingenuous and below-board to try to baselessly compare something you don’t understand well to an alt-right hate group. Show me the solid due diligence and technical analysis that underlies QAnon, and maybe I’ll give your comparison a closer look.

ZephyrBlu 6y ago

Which is insane, because then it's basically a mexican standoff.

esyir 6y ago
Technically not. Shorts have a borrow fee, and if you trust the wsb guys on this number, the current borrow fee on gme is 80 percent per annum. So if I'm not getting anything wrong here, short sellers do have a bit of a clock.
- ZephyrBlu 6y ago
  Yes, but I think hedge funds will easily be able to cover that cost on new short positions basically indefinitely.
- saalweachter 6y ago
  Does 80 percent per annum mean that carrying the short for ~9 months will cost roughly the same as closing it out today, assuming the price remains constant for the next 9 months?
  - esyir 6y ago
    Probably not. Perhaps if the brokerage blocks didn't cap their momentum allowing the earlier shorts to get out at 120
  - totalZero 6y ago
    It means your broker will charge you that carry cost on a pro rata basis, assuming borrow also remains constant. (It's generally not a fixed rate.) So if you carry a 9mo short with 80% borrow rate on a stock that realizes 0 vol, you played yourself. If you don't want to deal with borrow, you can buy a put and sell a call on the same strike (usually slightly higher than ATM) which comes with an implied borrow rate that is locked in.