OT: This is so freaking cool part II trying to keep it cool

[Comeds]

Pretty cool article.

Monitoring the Weather at the Edge of the World (Published 2021)

Marsibil Erlendsdottir runs a farm and provides weather reports from a remote outpost in eastern Iceland. The job requires vigilance and an unfailing resolve.

www.nytimes.com

 

[mattola]

Sooo I got promoted to assistant operations manager at work today ...

 

[Comeds]

Sooo I got promoted to assistant operations manager at work today ...

Sure it wasn't assistant to the operations manager?

Congrats!

 

[Slimpikins]

Congrats Matty!

 

[dare2be]

Did you hear that Mattola got promoted today? Congrats, Mattola!

 

[thedddd]

Did you hear Mattola got mattola’ed at mattola today?

Oh crap I mattola’ed.

Seriously congrats!

 

[dash]

Sooo I got promoted to assistant operations manager at work today ...

Ruth, Gehrig, DiMaggio, Mantle, Mattola?!?

 

[sbb122]

 

[dash]

Wait a minute, that's not Triple H.

 

[dare2be]

Nope, it's Pops of the Fam-a-lee.

 

[jstewismybastardson]

Very interesting ... but i think the people like their conspiracy theories better lol

 

[thedddd]

Nope, it's Pops of the Fam-a-lee.

Just for @forty_three

 

[thedddd]

Very interesting ... but i think the people like their conspiracy theories better lol

I forget what show I was watching and they came away with all scientifically proven things that happened to those people. I will try and find it but like you said a good conspiracy theory is sexier.

 

[jstewismybastardson]

I forget what show I was watching and they came away with all scientifically proven things that happened to those people. I will try and find it but like you said a good conspiracy theory is sexier.

I think theres 2 or 3 conspiracy theory /unexplained mystery type series on cdn netflix and all of them have a dyatlov pass episode lol

 

[thedddd]

 

[forty_three]

NOT THE MAMA

 

[mattola]

Can someone smarter than me (which is everyone) in finance (which is also everyone) tell me what is happening with GameStop/stocks/hedging and why? @mooger_35 @puckhead ?????? Anyone, everyone????

 

[sabresfaninthesouth]

Can someone smarter than me (which is everyone) in finance (which is also everyone) tell me what is happening with GameStop/stocks/hedging and why? @mooger_35 @puckhead ?????? Anyone, everyone????

Haha, it's not easy to understand, but here's the long and short (<- you'll see what I did there) of it. Sorry that the post is lengthy, but it's complicated.

Short selling is, in its simplest form, borrowing stock that you don't have so that you can sell it, with a promise to return those shares to the person you borrowed them from in the future. An example: Stock A is currently trading at $50 but I think it's going to drop to $20 soon. I don't own any shares of Stock A, so I borrow some (let's say 100) of them from someone who does and I then sell them for $5000 on the open market. In return for letting me borrow those shares, I agree to give back 100 shares plus a $5 per share fee in a set time period (say 30 days), but I can return then earlier if I want.

So today I have $5000 from selling the shares minus the $500 I've already paid to borrow them. If the stock price goes down to $20 (or lower, I can do this anytime I want, but we're keeping math simple) in the next 30 days, I now buy 100 shares for $2000 on the open market. I return the shares to whoever I borrowed them from and the transaction is ended. I now have $5000 original sale cash -$500 borrowing fee-$2000 buy cash = $2500 PROFIT because the price went down.

But if the price went up to $100 instead of down, all those numbers would reverse and I'd now have my $5000-$500-$10000 that I had to spend to buy 100 shares to give them back to the lender, for a LOSS of $5500. You can see then that short selling can be super profitable, but is also potentially very risky.

That out of the way, what's happening with GME is that a Reddit board of supposedly independent retail (i.e., little guys like you and me) traders got together and decided to "squeeze" short sellers, all of whom were betting the price would drop further. Instead, by generating enough interest in it, they managed to start driving the price up, which created a feedback loop.

As the price went up, more people decided they wanted in on it. At the same time, all those short sellers were suddenly faced with losing a lot of money (higher the price, bigger the losses), so they started buying the shares that they borrowed at the market price, essentially throwing in the towel and cutting their losses or they ran out of time (i.e., their 30 days was up and they needed to return shares to whoever they borrowed from). Obviously this created even more demand because they needed actual shares, which further drove up the price and furthered the feedback loop.

The enormous volatility comes in when a large shareholder suddenly decides to sell everything they have because the price is so high and they want to cash in. Suddenly, even if only for a few minutes, there's another large share supply available, so the price crashes out because the supply is so much better. Then either a) everyone panics and sells and the price completely crashes out or b) people excitedly try to buy those cheaper shares and the price sky rockets again. At some point, the hype wears off, and whoever was left holding the shares loses out big time.

The Reddit board will tell you they're just a bunch of little guys trying to take some money from hedge fund managers. That's very much in the eye of the beholder. It very well could be just an excited group of amateurs, in which case, they've done nothing wrong. However, if it came to light that the person who started (or those that continued) this are stock brokers (or similar) this would be a modern take on a pump and dump scheme. If you saw Wolf Of Wall Street, essentially that but using Reddit instead of phones. And that would be super illegal.

Most of the people - the random guys who had nothing to do with Reddit but wanted to make a few bucks - would be fine, but the people who started it would be facing an SEC and probably FBI investigation.

Clear as mud?

 

[mattola]

Haha, it's not easy to understand, but here's the long and short (<- you'll see what I did there) of it. Sorry that the post is lengthy, but it's complicated.

Short selling is, in its simplest form, borrowing stock that you don't have so that you can sell it, with a promise to return those shares to the person you borrowed them from in the future. An example: Stock A is currently trading at $50 but I think it's going to drop to $20 soon. I don't own any shares of Stock A, so I borrow some (let's say 100) of them from someone who does and I then sell them for $5000 on the open market. In return for letting me borrow those shares, I agree to give back 100 shares plus a $5 per share fee in a set time period (say 30 days), but I can return then earlier if I want.

So today I have $5000 from selling the shares minus the $500 I've already paid to borrow them. If the stock price goes down to $20 (or lower, I can do this anytime I want, but we're keeping math simple) in the next 30 days, I now buy 100 shares for $2000 on the open market. I return the shares to whoever I borrowed them from and the transaction is ended. I now have $5000 original sale cash -$500 borrowing fee-$2000 buy cash = $2500 PROFIT because the price went down.

But if the price went up to $100 instead of down, all those numbers would reverse and I'd now have my $5000-$500-$10000 that I had to spend to buy 100 shares to give them back to the lender, for a LOSS of $5500. You can see then that short selling can be super profitable, but is also potentially very risky.

That out of the way, what's happening with GME is that a Reddit board of supposedly independent retail (i.e., little guys like you and me) traders got together and decided to "squeeze" short sellers, all of whom were betting the price would drop further. Instead, by generating enough interest in it, they managed to start driving the price up, which created a feedback loop.

As the price went up, more people decided they wanted in on it. At the same time, all those short sellers were suddenly faced with losing a lot of money (higher the price, bigger the losses), so they started buying the shares that they borrowed at the market price, essentially throwing in the towel and cutting their losses or they ran out of time (i.e., their 30 days was up and they needed to return shares to whoever they borrowed from). Obviously this created even more demand because they needed actual shares, which further drove up the price and furthered the feedback loop.

The enormous volatility comes in when a large shareholder suddenly decides to sell everything they have because the price is so high and they want to cash in. Suddenly, even if only for a few minutes, there's another large share supply available, so the price crashes out because the supply is so much better. Then either a) everyone panics and sells and the price completely crashes out or b) people excitedly try to buy those cheaper shares and the price sky rockets again. At some point, the hype wears off, and whoever was left holding the shares loses out big time.

The Reddit board will tell you they're just a bunch of little guys trying to take some money from hedge fund managers. That's very much in the eye of the beholder. It very well could be just an excited group of amateurs, in which case, they've done nothing wrong. However, if it came to light that the person who started (or those that continued) this are stock brokers (or similar) this would be a modern take on a pump and dump scheme. If you saw Wolf Of Wall Street, essentially that but using Reddit instead of phones. And that would be super illegal.

Most of the people - the random guys who had nothing to do with Reddit but wanted to make a few bucks - would be fine, but the people who started it would be facing an SEC and probably FBI investigation.

Clear as mud?

Yeah totally

 

[forty_three]

San Antonio 5th grader cashes in his 2-year-old GameStop stocks

When Jaydyn Carr unwrapped his GameStop shares his mom gifted him for Kwanzaa two years...

www.chron.com