3 ms·

Again though, the retail investors unload to who? Everyone knows GME is over valued by an insane amount, who do people expect to be snapping up shares at $500?

by MSM 6y ago

thebean11 6y ago
The short sellers. They are short so they must buy the stock to close out their positions. (not saying this is indeed what would happen, just explaining the though process)
- notyourday 6y ago
  > The short sellers. They are short so they must buy the stock to close out their positions. This is incorrect. Short sellers only need to close out their positions if: 1. They cannot maintain them. If they can raise funds ( which they did ) they can maintain the positions. In fact they are probably shorting more, short averaging up if they can get a locate. GME yesterday was on a hard to borrow not on non-borrowable list. 2. Their shares are called back. GME looks like a crazy stock around 1998/1999 ADEP(?), I think, which went from sub 3 to over 75 two days before Thanksgiving peaking with a couple of trades over 97 followed by a quick crash into teens and a really slow side into pennies. Some of the short sellers covered by putting up classified ads buying stock certificates from the cause the short squeeze by asking to deliver the certificates crowd a few years later.
  - thebean11 6y ago
    I think you misinterpreted what I said. Rephrased: "in order to close out their positions, they must buy the stock". I didn't intend to state that they would close them. I will say though, price going up forcing short sellers to close out (due to margin calls, fear, whatever) is not some made up thing..it's called a short squeeze. I do not know what will happen with GME.
    - notyourday 6y ago
      > I think you misinterpreted what I said. Rephrased: "in order to close out their positions, they must buy the stock". I didn't intend to state that they would close them. They do not need to close out their positions until the stock becomes non-borrowable, causing their position to be called in.
      - deleted 6y ago
        [deleted]
  - katbyte 6y ago
    > They cannot maintain them. If they can raise funds ( which they did ) they can maintain the positions I think at this point for a lot of people its "hold until they can't maintain, this isn't about money it's about screwing over the man!!!!" - as they say the market can remain irrational longer than you can remain solvent.
    - notyourday 6y ago
      "The man" is much more liquid and much more capable of raising funds to maintain its positions compared to the WSB buyers of last several days. Margin calls after today's close are going to be brutal.
    - sokoloff 6y ago
      Two days ago, the view (of some) was "WSB can remain irrational longer than short-sellers can remain solvent..."
      - bilbo0s 6y ago
        Doesn't look like that was the case. The people they targeted borrowed liquidity and may have even short averaged up. To be honest, in the end, the net effect of this thing may be something similar to a pump and dump. I feel bad for the retails that are really gonna take it on the chin. At the same time, I'm sticking to my guns. We have to let all the people who lose in this thing fail, or nothing will be learned. It will need to be painful for people to be more careful in the future.

Again though, the retail investors unload to who? Everyone knows GME is over valued by an insane amount, who do people expect to be snapping up shares at $500?

by MSM 6y ago

Again though, the retail investors unload to who? Everyone knows GME is over valued by an insane amount, who do people expect to be snapping up shares at $500?

thebean11 6y ago

The short sellers. They are short so they must buy the stock to close out their positions. (not saying this is indeed what would happen, just explaining the though process)

notyourday 6y ago
> The short sellers. They are short so they must buy the stock to close out their positions. This is incorrect. Short sellers only need to close out their positions if: 1. They cannot maintain them. If they can raise funds ( which they did ) they can maintain the positions. In fact they are probably shorting more, short averaging up if they can get a locate. GME yesterday was on a hard to borrow not on non-borrowable list. 2. Their shares are called back. GME looks like a crazy stock around 1998/1999 ADEP(?), I think, which went from sub 3 to over 75 two days before Thanksgiving peaking with a couple of trades over 97 followed by a quick crash into teens and a really slow side into pennies. Some of the short sellers covered by putting up classified ads buying stock certificates from the cause the short squeeze by asking to deliver the certificates crowd a few years later.
- thebean11 6y ago
  I think you misinterpreted what I said. Rephrased: "in order to close out their positions, they must buy the stock". I didn't intend to state that they would close them. I will say though, price going up forcing short sellers to close out (due to margin calls, fear, whatever) is not some made up thing..it's called a short squeeze. I do not know what will happen with GME.
  - notyourday 6y ago
    > I think you misinterpreted what I said. Rephrased: "in order to close out their positions, they must buy the stock". I didn't intend to state that they would close them. They do not need to close out their positions until the stock becomes non-borrowable, causing their position to be called in.
    - deleted 6y ago
      [deleted]
- katbyte 6y ago
  > They cannot maintain them. If they can raise funds ( which they did ) they can maintain the positions I think at this point for a lot of people its "hold until they can't maintain, this isn't about money it's about screwing over the man!!!!" - as they say the market can remain irrational longer than you can remain solvent.
  - notyourday 6y ago
    "The man" is much more liquid and much more capable of raising funds to maintain its positions compared to the WSB buyers of last several days. Margin calls after today's close are going to be brutal.
  - sokoloff 6y ago
    Two days ago, the view (of some) was "WSB can remain irrational longer than short-sellers can remain solvent..."
    - bilbo0s 6y ago
      Doesn't look like that was the case. The people they targeted borrowed liquidity and may have even short averaged up. To be honest, in the end, the net effect of this thing may be something similar to a pump and dump. I feel bad for the retails that are really gonna take it on the chin. At the same time, I'm sticking to my guns. We have to let all the people who lose in this thing fail, or nothing will be learned. It will need to be painful for people to be more careful in the future.