OT: Game Stop

[weedsportwarriors]

Just a week ago shares were at $39, supposed to open at over $400 a share today. Damn, I wish I had paid more attention to reddit threads. I love that the common man is doing this to all those big time hedge funders.

If you had a $5,000 and invested a week ago you would have 128 shares. That would be valued at $51,200 today.

 

[Brooky03]

And if you were really paying attention and bought a call option, that $5k would be potentially over a million

 

[Finwad32]

I called my financial guy on Monday and asked to get in at what I think was like $76 a share... He told me that if I wanted to do that I might as well drive to Turning Stone and put in on black and that it's a market gimmick.

I'm paying a lot more attention now, this is extremely interesting... Pissed off I missed the boat.

 

[GoSU96]

Hopefully this is FU money for the people sticking it to the hedge funds, because when this unwinds, very few are going to win.

Don't mind the message at all. And the fauxrage is hilarious.

 

[Cusefan0307]

 

[kuethstheman]

Hopefully this is FU money for the people sticking it to the hedge funds, because when this unwinds, very few are going to win.

Don't mind the message at all. And the fauxrage is hilarious.

The funds won't be the only ones left holding the bag.

 

[Cusefan0307]

The funds won't be the only ones left holding the bag.

It’s not about making money for a lot of these people.

 

[721Comstock]

I called my financial guy on Monday and asked to get in at what I think was like $76 a share... He told me that if I wanted to do that I might as well drive to Turning Stone and put in on black and that it's a market gimmick.

I'm paying a lot more attention now, this is extremely interesting... Pissed off I missed the boat.

Your financial guy wasn’t wrong.

Although roulette isn’t really the right analogy, because you’ve got a 50% chance of being right on that bet, but can also ‘only’ double your money.

You’d have to bet on black 9-10x in a row and have it hit every single time to equate to this.

It’s a wildly speculative “investment”.
As participating in any bubble is.

 

[Brooky03]

I wish I was paying any kind of attention at all because I happened to have some call option contracts for AMC. Bought at $88 sold about a week ago for a $400 profit, give or take, when the price hit $2.80. If I had known AMC’s stock was going to be involved in these shenanigans, that $88 investment would be worth north of $10k right now.

Oops

 

[SaltineWarrior]

By all means, buy a stock based on these short term dynamics. What could go wrong?

 

[NineOneSeven]

It’s hilarious. You can’t even buy these stocks right now.. they basically shut them down.

 

[Otto'd]

GME off the board now.


Hedge funds being protected

 

[NineOneSeven]

I wish I was paying any kind of attention at all because I happened to have some call option contracts for AMC. Bought at $88 sold about a week ago for a $400 profit, give or take, when the price hit $2.80. If I had known AMC’s stock was going to be involved in these shenanigans, that $88 investment would be worth north of $10k right now.

Oops

What’s a call option in basic terms?

 

[Cusefan0307]

It’s hilarious. You can’t even buy these stocks right now.. they basically shut them down.

Must just be on RH.

 

[NineOneSeven]

Must just be on RH.

Yeah I was going to check vanguard.

 

[Brooky03]

What’s a call option in basic terms?

A bet. You’re betting a stock price will hit a certain amount by a certain date. I had bet AMC would hit $3 by February 19th.

You pay a premium for the bet, the $88 I spent. The max I could lose is the $88 I paid. My gain is calculated by the difference in the premium for that bet between when I bought and sold it.

When I sold it, the premium to buy a $3 call for February 19th had gone up because the stock price was closer to $3 than when I had bought the call option. It was more likely the stock would hit $3 at that point in time.

That’s it in the simplest terms. A put option is the same, but you’d be betting the price goes down instead of up.

 

[QUSE]

If you wanna get in at a good price sell some way otm puts (like below $20), premiums are insane rn

 

[Brooky03]

This victory for the common man will be short-lived. These stocks will settle to their actual values (not much) in short order and the hedge funds will still short them and make their dough.

 

[Brooky03]

The safest bet in the stock market right now is that GME, AMC, and BB will fall precipitously. It’s a matter of timing.

 

[GoSU96]

The funds won't be the only ones left holding the bag.

Pretty sure that's what I said.

 

[althea]

This victory for the common man will be short-lived. These stocks will settle to their actual values (not much) in short order and the hedge funds will still short them and make their dough.

But how, they’ve shorted more than what is available.

 

[Brooky03]

But how, they’ve shorted more than what is available.

They’ve retreated from those positions, for the most part. Short squeezes like this have happened before to other stocks. Maybe not exactly like this but close.

The hedge funds won’t make their money back immediately but they will get it back in the not too distant future. These share prices are unsustainable for dying businesses.

 

[Shrmdougluvr]

Isn't this illegal and akin to "pump and dump?"

 

[Brooky03]

I’m looking forward to not being able to login to my investment account for the first hour the market is open again.

 

[UpstateSM]

Yeah I have a decent amount (by a 23 y/o in law school standards) in AMC, NOK, and NAKD and now robinhood is freezing people out in an effort to tank them.

Beyond bs and against what the platform is supposed to be used for. I guess free markets are awesome until they start to screw the people who have been raking in billions by their own manipulation and shady ish.