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

[forty_three]

A bit of an over-generalization but if that is in part behind it...

 

[sabresfaninthesouth]

Famed GameStop bull 'Roaring Kitty' is a Massachusetts financial advisor

A YouTube streamer who helped drive a surge in the shares of GameStop is a 34-year-old financial advisor from Massachusetts.

www.cnbc.com

 

[Comeds]

I got some Babbage's stock, in the form of gift certificates, anyone interested?

PM me, and make sure you're not being followed

 

[puckhead]

Yeah totally

well explained by sabres -

in super simple terms:
hedge funds had borrowed a bunch of shares thinking they would go down.
This is public information, so people found a vulnerability, and by grouping together to make the shares go up to hurt the hedge fund and force them to buy back the shares to limit their losses (which drives up shares even more).

all fun and games, except this stock is super over-valued now, and everyone knows it. will eventually return to a more normal price.
there will (rightfully so) be a rush to get out once the stock starts to fall back to normal, so this sucker is going to craaaaash.
the ones that believe "no hold on, we can control this" are going to be left with the losses.

if you are buying this now, it's because you hope to be able to sell it to a "bigger fool"

a side benefit, anyone who held the stock for investment purposes just got a bit of a lottery win.
and the biggest shareholders should probably be senior management, who should be selling every single share they can.

 

[puckhead]

it used to be super easy to short stocks, they just had an "uptick rule", when meant you could only place a short-sell order when they last trade was higher than the one previous. (when you short-sell you nee to declare that's what you are doing on the order)
They changed that to where you had to actually find the shares to borrow. On large stocks there is a centralized system, so as long as they are available somewhere, you could borrow.
Small stocks is a different story. you had to find them yourself.

One time i actually borrowed stock from the CEO of a company so I could short it. lol.
that was an awkward conversation.

 

[jstewismybastardson]

A bit of an over-generalization but if that is in part behind it...

The revenge of the economically anxious! At least this time theyve targetted the rich and not the poor/immigrants/poc

 

[mattola]

well explained by sabres -

in super simple terms:
hedge funds had borrowed a bunch of shares thinking they would go down.
This is public information, so people found a vulnerability, and by grouping together to make the shares go up to hurt the hedge fund and force them to buy back the shares to limit their losses (which drives up shares even more).

all fun and games, except this stock is super over-valued now, and everyone knows it. will eventually return to a more normal price.
there will (rightfully so) be a rush to get out once the stock starts to fall back to normal, so this sucker is going to craaaaash.
the ones that believe "no hold on, we can control this" are going to be left with the losses.

if you are buying this now, it's because you hope to be able to sell it to a "bigger fool"

a side benefit, anyone who held the stock for investment purposes just got a bit of a lottery win.
and the biggest shareholders should probably be senior management, who should be selling every single share they can.

both your guys explained it well. thanks

 

[dare2be]

I have a dead stock that's going nowhere well below where I purchased it. Can we bump it up so I can at least break even?

 

[sabresfaninthesouth]

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

I hope his mom also taught him to set aside 15% of that gain for Uncle Sam.

There are definitely some good stories like this about people who have had the stock for years getting a nice bonus.

What's scary is knowing that there are probably plenty of people cashing in their life savings who are gonna be the ones holding the bag.

 

[jstewismybastardson]

I have a dead stock that's going nowhere well below where I purchased it. Can we bump it up so I can at least break even?

I have shares in Clovis Oncology that are just sputtering along and i saw wallstreetbets mentioned the ticker $CLOV in the past days and i was all

a minute later i was all

 

[esls79]

it used to be super easy to short stocks, they just had an "uptick rule", when meant you could only place a short-sell order when they last trade was higher than the one previous. (when you short-sell you nee to declare that's what you are doing on the order)
They changed that to where you had to actually find the shares to borrow. On large stocks there is a centralized system, so as long as they are available somewhere, you could borrow.
Small stocks is a different story. you had to find them yourself.

One time i actually borrowed stock from the CEO of a company so I could short it. lol.
that was an awkward conversation.

Did you have a crowbar in your hand during said conversation?

 

[jstewismybastardson]

Many of you may have seen it since its old but netflix has the series “dirty money” and one of the episodes is called “drug short” about valeant/bill ackman ... good explainer about shorting, smart money and dumb money

 

[puckhead]

Did you have a crowbar in your hand during said conversation?

no i had been pretty supportive of the company in the past and he knew it.
had some warrants that i wanted to short against, so the company was going to be getting some more cash in treasury from me anyway.

 

[jstewismybastardson]

What's scary is knowing that there are probably plenty of people cashing in their life savings who are gonna be the ones holding the bag.

 

[jstewismybastardson]

Heh

 

[dare2be]

Speaking of presidents, my wife doing genealogy stuff just discovered that her 7th great grandfather is Martin Van Buren.

 

[sbb122]

Speaking of presidents, my wife doing genealogy stuff just discovered that her 7th great grandfather is Martin Van Buren.

 

[thedddd]

Speaking of presidents, my wife doing genealogy stuff just discovered that her 7th great grandfather is Martin Van Buren.

She did modern portaits for presidents and here is Van Buren.


Out of them all he still looks like he is from the 1700's.

 

[davnlaguna]

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????

Watch trading places
Sell something you don’t have today and buy it tomorrow at hopefully a lower price

 

[puckhead]

I have been giggling for about three hours about this kid whispering the same phrase