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> There’s orders of magnitude more money to be made today shorting $GME at $400 than there was shorting it at $20. I have been running scenarios of this in my
by PartiallyTyped 6y ago
> There’s orders of magnitude more money to be made today shorting $GME at $400 than there was shorting it at $20.
I have been running scenarios of this in my head over the previous days. This play would be to short while the squeeze is near closure and force the remaining shorts to purchase your stock. The problem with this play is that eventually you need to cover, albeit at much lower price, unless, of course, the bag holders i.e. remaining retail isn't willing to sell to you at a lower price, so you can never close. If anyone else attempts to short at the rebounded prices, you can close your position, but this becomes a perpetual game of hot potato. For this play to you work, you need to assume the retail will paper hand, but if WSB is any indication, WSB can, as they put it, stay retarded longer than you can stay solvent and if they don't paper hand at those prices, they won't give it to you that easy.
The alternative play, is to make a deal with other firms where you rotate who owes the shares and you share the profits from shorting the top, but I suppose that constitutes market manipulation. If we were to assume that the market moves up and the profits can be reinvested and profit more than the interest, this play makes the most sense.
These two plays assume that all the floating shares are held by WSB, and if that is true; the bag holders will be people willing to let the prices literally moon. Then the only solution would be to wait for GME to issue more shares. The most plausible case is that WSB will be the ones holding the shares when it eventually squeezes and the shorts need to cover since all others in retail would have already sold.
This isn't a particularly good position for anyone to be in because no institution will be selling and nobody will be buying, so you will end up with a staring contest between you and WSB, and if the past few days are any indication, your only bet is your profits outweigh the interest.
If you can imagine the actual play executing in a scenario where WSB doesn't hold you by the ..., please share, I am interested.
- boatsie 6y agoOn Thursday, Citadel reported overall retail GME activity was 50.2% sellers and 49.8% buyers[1]. Assuming they aren’t lying about this, retail as a whole isn’t “diamond handing” and holding to the moon, just a few outspoken redditors who stand to gain the more others hold. [1] https://www.bloomberg.com/opinion/articles/2021-01-29/reddit-traders-on-robinhood-are-on-both-sides-of-gamestop https://www.bloomberg.com/opinion/articles/2021-01-29/reddit...
- PartiallyTyped 6y agoThursday was artificially limited, I want to see how Monday, Tuesday and so on will be.