Most of the strategic posts on WSB seem to be "when you sell at/near the peak, the only people buying are the shorts who have to cover their position. No rational investor sees GME at $300 and thinks that's the right price for a long term hold. So just wait until the shorts are forced to cover, and sell to them"
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Stock Thread (28 Viewers)
- Thread starter St. Louis Bob
- Start date
Most of the strategic posts on WSB seem to be "when you sell at/near the peak, the only people buying are the shorts who have to cover their position. No rational investor sees GME at $300 and thinks that's the right price for a long term hold. So just wait until the shorts are forced to cover, and sell to them"
2Squirrels1Nut
Footballguy
culdeus
Footballguy
beef
Footballguy
Capella
Footballguy
Dying insideCNBC Host: "You don't think this calls into light the integrity of Wall Street?"
Capella
Footballguy
QuizGuy66
Footballguy
I predict that GME will for a very very long time trade over its fundamental value now - even after the inevitable tumble. That the "screwed" price will still be higher than it otherwise would be. Mainly because I think that people who cleaned up will always keep some GME stock as like a sorta trophy. It'll be a mascot stock.
-QG
-QG
Sideshow Bob
Footballguy
I get the rationale. It's just not realistic. Real people ARE going to get stuck with overpriced shares of these stocks.
Desert_Power
Footballguy
Yep. Delta hedging works both ways. I wouldn't want to be on a desk doing that this week.
Desert_Power
Footballguy
Capella
Footballguy
beef
Footballguy
Chaz McNulty
Footballguy
This is exactly how it works. The bigger the percentage of float share that is shorted, the less risk for the Bulls.
GME - bulls buy until it hits $100. Hold. Now Short margin calls forces the first round of shorts to buy back the stock. Drives stock higher. 2nd round of margin calls force shorts to buy back. Drives price higher. Etc.
Most of the Bulls are not buying stock at this price.
Sideshow Bob
Footballguy
beef
Footballguy
Desert_Power
Footballguy
Dr. Parik Patel, BA, CFA, ACCA Esq. @ParikPatelCFA Replying to @chamathhe's gettingby Chamath
Chamath hasn't even lost his virginity because he never loses
Capella
Footballguy
2Squirrels1Nut
Footballguy
I like some of the stuff he's saying but he's being a #### to The Judge who has always come off as a righteous dude.
culdeus
Footballguy
Are you sure? In a situation where the longs all sell out, they are not selling to reduce the float, and longs that are selling are chasing air. I need to get a flowchart out or something to walk myself thru this.
Chaz McNulty
Footballguy
JoeSteeler
Footballguy
How do you see that a stock halted?
Redwes25
Footballguy
Great interview. Must watch tv. Host is way over his skis. Honestly who cares if these hedge funds get crushed.
Sideshow Bob
Footballguy
If you were considering shorting it at $20, how much more money does it look like you can make shorting it at $319? Assume you're an arrogant ##### with a ton of access to $$, and you're certain the snowflakes will run out of stimulus money before you can possibly break.
QuizGuy66
Footballguy
Person/personality wise sets off bells in me - it is apart from this particular convo where he is killing this host. Not inclined to go into worship mode on him.
-QG
2Squirrels1Nut
Footballguy
beef
Footballguy
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Sideshow Bob
Footballguy
Capella
Footballguy
Redwes25
Footballguy
I don’t have balls of steel but GameStop is not a 319 stock and this trade will turn sometime soon. Picking that time is hard though.
QuizGuy66
Footballguy
beef
Footballguy
Capella
Footballguy
So they are willing to ride it up to 700? 800 just on the understanding it will eventually crash? Like I said, that takes balls.
culdeus
Footballguy
It takes huge amounts of money. Banks aren't going to loan you 10 Billion dollars, if they were they'd simply cut the middle man and short the thing themselves.
![[icon]](/data/avatars/m/5/5167.jpg?1660313464){kind=avatar}
KALA has significant short interest and a low float. The shorts are getting out.
It’s all about GameStop/AMC and the Reddit effect.
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The Z Machine
Footballguy
If they've sold a small amount to cover the initial investment, then it's a freeroll financed by the shorts.
Charlie Harper
Footballguy
Hopefully I'll cash out near the top, but I'd actually re-buy some long term. Ryan Cohen (CHWY) bought 15% and is a board member now.
Sideshow Bob
Footballguy
If you double your bet every time red hits, you'll get to $0 when black inevitably hits. Right? Right?!?!?
2Squirrels1Nut
Footballguy
"There's some guys you don't know about that are very smart but just behind a screen name"
Thanks for the shout out Chamath!
Thanks for the shout out Chamath!
Desert_Power
Footballguy
Worth remembering that pension funds have been swindled into investing way too much in hedge funds.
QuizGuy66
Footballguy
One element that gets late entries killed in these scenarios is the geometric factor of the price increase.
Getting in at $333 and GME going to $1000 Is functionally the same of course as if you had got in at $33 and got out at $100. But judgement gets clouded a little with the extra 0 at the end. (i.e. the MASSIVE epic scores on GameStop are done and dusted).
This the class of little guys that ger fried.
(For the record - there are better entities for these guys to donate their 'winnings' to and that colors my view on these guys...but I digress)
-QG
