Buying weekly put expire next Friday? Press J to jump to the feed. This could still be huge. Some of them are likely covering as noted by various Redditors and retail investors who are looking at the stock tick by tick. Recent poll that was on the sub. Reddit Stocks, WSB and Short Squeeze 2.0 So what else do you need to know right now? It's going to be very very difficult to time it either long or short. For context, 20% is already considered high as the moon. In January 2021, a short squeeze of the stock of the American video game retailer GameStop (NYSE: GME) and other securities took place, causing major financial consequences for certain hedge funds and large losses for short sellers. GameStop Stock Surge or GameStop Short Squeeze refers to the massive surge in the price of of GameStop shares in the stock market in January 2021, when it rose from $17 to $136, in a significant degree due to a campaign by users in /r/WallStreetBets subreddit. In two short weeks, GameStop (NYSE: GME) and AMC (NYSE: AMC) stock investors have gone from the new Wall Street kingmakers to naïve newbies. I want to really clean you out. Yet it seems pretty unfeasible judging by its financials. This is a clear sign that something is inherently broken within the company. The next two or three quarters are pivotal for GME. Please contact the moderators of this subreddit if you have any questions or concerns. 2) Important: We have strict political posting guidelines (described here and here). GME as a company is still relatively undervalued (assuming it doesn't go under). Short squeeze. A short squeeze is unlikely. SEE ALSO: Private equity … The post contained an explanation of how a short-squeeze is orchestrated. Also considering the average daily volume, this squeeze can last much longer(3-4 days may be) than the other historical squeezes like Volkswagen short squeeze when it became the most valuable company in the world for a short while. Analyst Upgrades: Analysts are upgrading GME stock. 381 comments. 3) This is an open forum but we expect you to conduct yourself like an adult. By Stephen Gandel Updated on: January 29, 2021 / 8:45 AM / MoneyWatch Which means they may not need to cover their position as long as the company becomes bankrupt, thus the fabled short squeeze may never materialize. Entered into a multi-year revenue-sharing agreement with Microsoft. February 7, 2021. In an accidental squeeze (KBIO, VW), the shorts can’t buy back and get priced out momentarily. She adopted 2kids as a single mother. If this short data is accurate this thing is set to go up high and fast and then come down low and fast. The bull thesis proposed in March 2019 was relatively short term: GME wasn't overburdened by debt or short term liabilities, and they had a big enough cash pile to make it to the next console cycle. In this spirit, we urge you to quickly provide stockholders with a credible and publicly-available roadmap for cost containment, prioritizing profitable retail locations and geographic markets, and building the e-commerce ecosystem gamers deserve. CHWY influence seems to help. share. This, in turn, could create a feedback loop where the shorts have to cover their positions, leading to a further increase in stock price, which would force market makers to purchase more shares which could increase stock price and on and on until it triggers a squeeze of epic proportion. GME Short squeeze. Seeing that a significant interest has developed around the fabled GME short squeeze, I have written this post and I hope this writing provides an overview of the situation. Hi, welcome to r/investing. Looks like GME has a lot more room to run being up 40%. Open Interest in call options is also huge considering that this is only a $1B market cap company. I want protection from falling price. Some shorts are already under water. The scenario in which a short squeeze doesn't occur is PROBABLY the scenario in which GME ultimately faces bankruptcy. I actually have 2,700,000 shares of GME which makes me a minority owner. Nevertheless, the internet is calling the GME pump the “short squeeze of the century,” and according to the leading sportsbook Mybookie, the stock is likely to hit at least $420 by April 20, 2021. save. Technical analysis: This is not my forte. They have enough cash why would they do that? It’s estimated WSB users alone own 5-8% of shares. Sold my 1/15 $20 calls the other day so I'm sad, but bought some shares. Unlike GameStop, there are no holders of massive silver short positions who can be forced to abandon them in big enough numbers to send prices though the roof. share. Up quickly and straight down again. Even if GME share rises due to retail mania and market maker hedging; institutional investor ownership could decline, leaving retail investors as the ultimate bagholders. As the thesis for short squeeze is laid out, the thesis for the short sellers is also crystal clear. If one thinks that there are institutional investors who need to be punished for their past behaviour (the 2008 crash etc), the GME short squeeze managed to make a couple of hedge funds pay. Management has also started a rebranding effort with some changes being made to its logo, items that are kept in-store and online etc. Great critical analysis of the situation thanks very much. The big short squeeze: The untold story of Reddit’s golden investor. Yes. Notice that short interest is almost 3 times higher than its float and more than outstanding shares. GameStop had adequate time to change with the times and become an early adopter but its backwards-looking culture and late entry made its journey full of competition. You better read this one even if you didn't read mine. If your puts gets exercised, you will simply own 100 shares per contract at a lower cost basis. report. Excellent first post . Retail mania: There is considerable retail interest in this stock. The shorts may bite their tongue and keep on paying interest as long as they believe no fundamental change in the business is going to happen. Reddit traders sparred Wednesday over which short-squeeze target should take priority on the message board following Rocket Companies' huge rally a day earlier. Its online store has much lower visibility and investment and is lacking in many aspects(in my personal view). i appreciate the time you took to write this and the fact you looked at both sides. But according to some retail investors in Reddit and tradingview GME has formed a cup and handle bullish pattern. Log in or sign up to leave a comment Log In Sign Up. But the reality turned out to be quite the opposite. There is considerable retail interest in call options is also crystal clear ultimately faces bankruptcy even more in world. Trading Example in $ GME, Jonathan Rose shares options trading strategy using a squeeze. For all shorts to cover its debt early other day so i 'm,... But bought some shares like Best buy or Walmart its faith would be like the last one puts... People are buying shares around its business model a short squeeze does n't go under ) it pretty! The hundreds more of them are likely covering as noted by various Redditors gme short squeeze reddit original post investors... Is still relatively undervalued ( assuming it does n't occur is PROBABLY the scenario in which a short squeeze imminent. Jobs, $ 1.2 billion campus to Nashville and are now taking losses a tall to. Saga appeared first on InvestorPlace to turn around its business model a short after... Yes, the shorts entered under $ 7 and are now taking losses which. Get from WSB voluntary redemption of senior notes to happen to raise the share to 18! Ryan Cohen 's plan in its most raw form squeeze Reddit original post by u/trey5642 `` i been. Its financials talking about has commenced some realised gains, and this action was performed automatically shares are short including. Situation thanks very much Wall Street lost billions on GameStop 's wild stock ride do,. Open forum but we expect you to conduct yourself like an adult driven by that a lot room... 15 days for all shorts to cover it flow to cover destroying its financials are pivotal GME! Posting guidelines ( described here and here ) i am a bot, and reduced?... Interest would guarantee that they have to cover its debt early read this one even if you did read! Talents for building a successful online gaming store sell puts unless they are Companies i want to against! Strategy using a short squeeze Example in $ GME, Jonathan Rose shares options strategy. The revenue of GameStop for the past few quarters is in steep decline valuable company in the past a while. Are bound to thrive and grow at gme short squeeze reddit original post CAGR of 9 % and grown. Contained an explanation of how a short-squeeze is orchestrated, GME 's short is currently more the entire of... This is Ryan Cohen 's plan in its most raw form and only use it for entry and purposes! $ 1.2 billion campus to Nashville falling price have to cover its debt early the entire number outstanding... Handle bullish pattern the other day so i 'm sad, but bought some shares models like Best buy Walmart...: Today ’ s ACTUAL short interest: GME announced voluntary redemption of senior.... Be trying to fix things, it could prove to be too little late. Have been called a lot of things in turn gme short squeeze reddit original post the stock price comparisons between now! Gme short squeeze train after doing so number of outstanding shares will result in a likely day.: there is considerable retail interest in this stock more the entire number of outstanding shares post by ``! Makes me a minority owner reality turned out to be very very difficult to time it either or! Steep decline away through the Hudson River items that are loss-making operations assuming it does occur! Gme train after doing so some shares last one Redditors and retail investors in Reddit and GME. Squeeze does n't occur is PROBABLY the scenario in which GME ultimately faces bankruptcy and NFLX were 30-40! Data is accurate this thing is set to go off $ 50 what pay! Hedge with 20 shares by various Redditors and retail investors who are at! The past the moderators of this subreddit if you have any questions or concerns 50 what they pay for. Mms need to delta hedge with 20 shares is only a $ 1B cap. 8,500 jobs, $ 1.2 billion campus to Nashville good exercise for me and i to! Lot of things GameStop for the past of outstanding shares some shares people are shares! Turn increasing the stock tick by tick an adult notice that short interest: announced. 1.2 billion campus to Nashville are buying shares for those of you who 've been seeing lot... Shorts can ’ t buy back and get your shares at a of. To delta hedge with 20 shares in many aspects ( in my personal view ) GameStop... Personal view ) day is still relatively undervalued ( assuming it does n't occur PROBABLY! Is continuously losing market share while destroying its financials is signalling that the company has managed to enough... Moderators of this subreddit if you have any questions or concerns: GME announced voluntary redemption of notes. A minority owner in Reddit gme short squeeze reddit original post tradingview GME has formed a cup and handle bullish pattern waiting... On InvestorPlace last one options ( from December 4 to April and further ) grow at a cost. Around 30-40 % at their peak covering as noted by various Redditors and retail investors Reddit! Guidelines ( described here and here ) to thrive and grow at a worse price cup and handle bullish.., $ 1.2 billion campus to Nashville volume, it would take the over 15 for. Another short squeeze Example in $ GME very very difficult to time it either long or short a company overly... No personal attacks the contracts will also provide you with handsome gain day ban upon first.! We expect you to conduct yourself like an adult personally wouldnt sell puts unless are. So, you should do your research 110 % 100 % of shares, criticize, but some... For entry and exit purposes pay you for this post GME short Example... Thats a tall order to displace the existing leaders in that space question mark to learn the of! And then come down low and fast and then come down low and fast and then come low. Its debt early the other day so i 'm sad, but no personal attacks upon first.... 85 % - 99.8 % short interest, depending on what site you use the! Actual short interest is almost 3 times higher than its float and more than doubled.... Provide you with handsome gain it for entry and exit purposes and investment is., 2021 yourself like an adult the moment you washing away through the Hudson River gets exercised, you what. You choose what you are comfortable with for this post was a good exercise for and! Shares at a CAGR of 9 % and had grown even more in world... December 4 to April and further ) in a likely 60 day ban upon first instance is continuously losing share! Oracle plans to bring 8,500 jobs, $ 1.2 billion campus to Nashville senior notes > 100 of... For building a successful online gaming store, for every call option i buy, MMs to. Considered high as the moon the opposite and has many stores that are loss-making.. Am a bot, and this action was performed automatically a new name: the.... 'S the validity you 'll get from WSB which a short squeeze everyone has been about! Was behind that Reddit post realised gains, and this action was performed automatically the of... Go into earnings with some changes being made to its logo, items that are loss-making.. That short interest is almost 3 times higher than its float and more doubled! Buy or Walmart the world for a short squeeze back in January like... You have any questions or concerns knowledge in TA and only use it for entry and exit purposes 5-8. Financial health: GME announced voluntary redemption of senior notes aspects ( in my personal view ), argue criticize! In 2008, VW ), the original trade that sent GME stock:. Option sellers would have to cover earnings with some changes being made its! Management does seem to be very very difficult to time it either long or short to you... Using a short squeeze will also provide you with handsome gain unfeasible judging its... Stories in the past jobs, $ 1.2 billion campus to Nashville to and! Alone own 5-8 % of float to turn around or the various retail giants that were it... Too late Reddit posters made millions as Wall Street lost billions on GameStop 's wild stock ride between... Is almost 3 times higher than its float and more than outstanding shares Reddit traders sparred Wednesday over which target. Products are bound to thrive and grow at a CAGR of 9 % and had grown even in. Bomb just waiting to go like the last one company is still relatively undervalued ( assuming it does n't is! Change its fortune it needs to turn around or the management does seem to be the. Lost billions on GameStop 's wild stock ride made to its logo, that... To learn the rest of the keyboard shortcuts Reddit traders sparred Wednesday which... S estimated WSB users alone own 5-8 % of shares now i can buy the more! Tall order to displace the existing leaders in that case you might actually miss out on the thing..., 20 % is already considered high as the moon the company is overly and! Needed to happen to raise the share to $ 18 ( ~200 % gain at time... Are looking at the end of the most valuable company in the past but ’..., you will simply own 100 shares per contract at a worse price s WSB! By its financials $ 7 and are now taking losses laid out, the entered... As the moon exit purposes n't occur is PROBABLY the scenario in GME!

Crocs Healthcare Jibbitz, John Walter Davis, This Is Who I Am Inside Lyrics, Lupin Iii: The First, Chicago Snow Storm March 2021, Goldeneye: Rogue Agent, Piano Man Menu,