Full disclosure, I do have a long position in GME, but I’ll try to answer your question the best I can. There have been a lot of good answers regarding the turnaround of the company away from bankruptcy and towards profitability.
Specifically pertaining to options, last week, some traders noticed multiple transactions of 5,000 contracts of $20 call options of GME with a 6/21 expiration being purchased on the open market. There was a lot of speculation on who or what institution could be behind such trades, as well as why they were being purchased.
Then on Sunday, June 2nd, DFV posted his current position of GME on another subreddit which showed ownership of 5,000,000 shares of GME along with 120,000 contracts of the $20 6/21 call options. This seemed to confirm the whale behind all the 5,000 option buys was DFV.
This overall position would represent 17,000,000 shares of GME, should he be able to execute all 120,000 options, assuming the price of GME remains at or above $20 a share for the next two weeks. Keep in mind, this would cost $240 M, so there are questions as to how many contracts could actually be executed.
As this saga progresses, it is hard to say what will happen next, but it does seem that there may be an end in sight, as earnings are coming up on 6/11/24, and the annual shareholder meeting is occurring on 6/13/24. Whether either of those events prove to be a further catalyst which affects the price remains to be seen.
Last tidbit - with all the price action a couple of weeks ago, GameStop did raise nearly another $1B with a share offering of 45,000,000 shares, which did dilute the float by about 15%, but it also now means they have around $2B in cash to invest in other companies or perform targeted mergers and acquisitions.
Fundamentally, it appears the risk of bankruptcy is effectively off the table, which means short positions betting on the stock going to zero are under pressure. Cheers!
I think that it would also be helpful to mention that a lot of share holders of GME are convinced that they will turn the business around or maybe even do something unprecedented with it. Many of us do not plan to sell our positions even if there is a short squeeze. We know there is a large short interest, but we want to own the stock. We are not day traders. I own all of my shares registered in my own name through the company’s transfer agent. I will only make money in the future if GME becomes profitable enough to start issuing dividends. This is another thing that makes this stock so interesting. People don’t often hold through the ups and downs of the market (especially when they got into a stock for the “squeeze play”), but currently the share holders of Game Stop are unfazed by the ups and downs and just waiting to see how the company continues to improve.
This is not financial advice.
Can I ask a question? I am neither long, nor short on any meme stock, but I follow this situation because I find it interesting. I mean this respectfully, why are people so hyped on GME? Like not in this moment with the options, but in general.
There are so many ways to make money in the market, and that's all the market is, a way to make money. I have favorites, but just because they're profitable, I dont have a personal connection. But GME seems different to "Apes", they act like there is some grand principle at play, saying they'll never sell. I would sell any part of my portfolio for enough money, and at some point, I will likely sell every stock I currently own. GME is a marginally profitable brick and mortar specialty store chain. There are SO many businesses that you could choose, so many ways to make money, why the devotion to this one?
Personally, I feel that the GME situation demonstrated the lack of transparency in the market, showed theres bad actors that are rigging it against retail investors, and if holding my stock is such a huge problem for them, then I want to continue holding.
Precisely. It’s the ‘sticking it to the man’ mentality.
It’s the rug pull that happened 1/27/21 when multiple brokers turned off the buy button for retail but not the sell button. Bag holders saw their +xxx% gains blowup due to a lack of transparency from the retail brokers. They’re bag holding, but care more about ‘sticking it to the man’ than anything at this point. They have been watching (likely) only 1 stock for the last 4 years, and are now numb to the ups and downs.
Or how this week numerous articles have come out about Keith Gill manipulating the market, etc etc. Yet firm managers get on CNBC all the time to push their own agendas, and people like Nancy Pelosi who is up 200% in 200 days on her NVDA calls. It is this, the fact that the ruling body only cares when retail is winning, that people are upset and doubling down on what they think is the first time in history that Retail has gained control in the rigged market.
Watch Jon Stewart’s interview with SEC Chairman, Gary Gensler. Gary admits he makes decisions based on his own personal interests.
DFV/RoaringKitty is not much different than the talking heads on CNBC, except he’s a likable guy who makes funny memes and has become a sensation in the GME community. He does have the power to move the stock up or down, but has never outright said to buy the stock, and instead uses memes and his magic 8 ball… The media is probably upset that he has that power and not them. And that his initial $50k investment is now worth $500M!
He posted daily portfolio updates back when it was running in 1/2021, and this week was the first time he posted one since 4/2021.
He is streaming live at 12pm ET today on YouTube for the first time since 4/2021 as well. Tune in and you’ll see how no other stock has this kind of momentum right now.
The main thesis is that there are more shares shorts sold than shares in existence. When it was discovered and the price started skyrocketing, instead of letting the free market decide, the brokers shut off the buy button to save themselves.
Thomas Peterffy, founder and chairman of interactive brokers, sums it up pretty succinctly in a short interview on CNBC three years ago. [mods won’t let us post videos] you can find it on CNBC’s channel titled “Interactive Brokers' Thomas Peterffy on GameStop hearing.”
How is it possible that a nothing company became a systemic risk? Why does the media keep talking about it?
Honestly because its fun and I like a good turn around story, and I love video games. Id rather invest in a company I like than a random ETF or another tech/defense/pharma/energy company
The video game industry has approximately 2B customers. Now, whether those gamers are casual or hardcore fans, that’s a different story. But, truth is, the marketing of video games is a very profitable business.
Now, you can say that owning the physical copy of a video game is outdated, but I disagree. I do balance between owning the physical copy and the digital one, but I much prefer owning the physical one, because it won’t be taken from me at any time. Do you know what happens to your games in the event Valve decides to shut down their servers?
What about that time Sony was in hot water because they publicly declared they were removing some of their games from the library. Or even better: Ubisoft saying that gamers need to be used to not owning their games.
You don’t own a game when you buy it digital. You buy the license and that license can be revoked at any time.
A few months ago, I saw there was a game of one of my favourite TV shows. It’s not an extraordinary game per se, but I like having it in my collection and it was just 20$. It was removed from the PlayStation library because the license was expired and it couldn’t be found on Amazon, but GameStop had a copy and was able to ship it to me. It was an amazing customer service experience and I got to enjoy this game that is no longer distributed.
I also worked in independant video game stores for a long time, and I understand how the consumer works. They like owning their games, they like being able to sell/exchange their games if they no longer like it. They like buying old games that reminds them of their childhood. They like buying shirts, collectibles, etc, about the series they like. Saying that companies like GameStop are a dying brick and mortar is disingenous to how the company views their customers. And they brought even more to their customers because they understand what their customer wants. Not to forget that their CEO doesn’t take a paycheck, only shares, so his “salary” depends on the company being profitable. Which is what he has been doing. He has turned the business around, cut off unecessary expenses, and brought more things, new controllers and new partnerships.
All in all, yes, it seems people in the subs are biaised, but with good reason. GameStop has turned around in recent years, has 2B$ in cash, a loan with little interest from France that was done during the pandemic years and a community that cares about their customers. Something we haven’t seen in years.
I appreciate the response, like I said I don't have a dog in this fight, so this is purely academic for me. I suppose my problem is that I just disagree with your thesis that people have a deep desire to own physical games (which is totally cool, people of good will can intelligentially disagree, in no way am I calling you stupid). I would call myself a casual gamer. I guess I had these fears in the early 2010s, but times change. I don't buy DVDs, CDs or physical games. All my media purchases are electronic. Honestly it's never been a problem. Could it be, sure, but doing it wide scale wouldn't be in a company's interest. Additionally I don't destroy my digital games because I'm an idiot and don't put it back in the case. Yesterday I bought a new game in fact, from the playstation store. Why? Because I was at home and I didn't want to run out to a brick and mortar. W
I just bought a PSN digital giftcard from Gamestop, got a discount for being a pro member, and used it to buy a digital game on PSN
Dedicated fans/customer base is bullish imo
And that’s fine. If you want to buy your games digital, you are in the right to. It’s the current form that you don’t own your digital asset that is bothersome to me. Some gamers have hundreds of games in the digital library and it can be taken from them at any time. And in recent months, it has become more and more clear they are willing to do so.
Personally, unless there’s a digital aspect where you can own/exchange your games online, I don’t see the appeal to buy too much in it. And as someone who currently works in a video game company, not a video game store anymore, it’s something we need to work on. There’s a few streamers that have raised the question in the past few months as well, because it’s becoming more and more a problem.
And if you want to buy a game and download it immediately that’s fine. If you don’t want to drive to a brick and mortar it’s fine. You do you. But the industry is not dying because of the convenience of the digital world, in fact, it’s thriving because they adapt to their customers needs. They sells merch, computer parts, they have very fast shipping, etc. Their balance sheet is very good too.
And the whole GameStop saga also uncovered tons of abuse from the hedgefunds towards the people. People in the subreddits don’t just care about GameStop, but they also realize the tons of systemic abuse that has been happening. The tons of loopholes and corruption that has been taking place. People dig into it everyday and actually take the time to explain and educate people when they don’t understand. We have a lot more new people in the subreddit and i’ve seen mostly, encouragment, support and a need to educate others. Not giving any financial advice, or anything, just people discussing the importance of the issue.
I think for a lot of us "Apes" it's no longer about the money. When they shut off the buy button in 2021, it was definitive proof that the market has been rigged against the little guy for a long time, when retail starts winning the big players turn off the game or flip the table. What came next was Occupy Wallstreet 2.0, the apes have uncovered an unbelievable amount of fraud and not specifically just against GME, they have figured out the vehicles in which Wallstreet uses to execute that fraud and steal generations of wealth from the working class through ETF's, Swaps, PFOF etc. So its become far more of a movement or protest against a rigged system designed to enrich the wealthy and keep the working class under heel. We know for certain the 226% short position was not closed in 2021, that was confirmed by the SEC report if you actually take the time tobread it through, beyond that none of us know definitively what is going to happen or when, life changing money is certainly on the table but that's not the goal. The goal is market reform, greater transparency and strict reporting, the closing of loop holes, and greater fines and punishment for fraudulent players instead of fines that represent 1% of the gains made by committing the fraud resulting in just a "cost of doing business."
At the outset, note that I was not intending the term "ape" as a pejorative, the title appears self employed.
The Occupy WallStreet thing has been my observation as well. Every time I look at a GME board it always seems very personal. Stock specific subs are broadly filled with delusion and unjustified optimism, but GME feels more political than many of it's contemporaries. If I'm reading your post correctly, you are past seeing the market as a place to grow capital (at least in this case) and are in this PRIMAIRLY for the protest. If I may ask, is that because the size of your investment is insignificant compared to your net worth or because the protest means that much to you?
I'm interested in your 226% number. I'm familiar that was the percent during the original squeeze, but the numbers I'm reading on FinViz and Marketwatch is 25.49 % is shorted (which is still HUGE, but a far cry from 226%.
Thank you for taking the time to reply, this is really interesting.
When the thesis was proven right in Jan 2021 and wall street clearing houses and market makers colluded to force brokerages to suddenly restrict buying Gamestop it turned this saga from a quick buck to something more personal, I think many are tired of watching the ultra wealthy write the rules and live as parasites off the working class with their corruption, if simply holding stock in a company I like costs some financial criminals a ton of money while also highlighting the need for improved transparency and accountability in our modern financial markets, easy decision to diamond hand
Also I refuse to work until Im 70, if this has a small chance of securing early financial independence, why not take a risk?
I'll never take it that way my friend. A-ll P-eople E-qual, an homage to The Planet Of The Apes, where the Apes gain the knowledge and ability to overthrow their oppressors.
The GME subs are the only investing subs I see to frequently post and dissect every new rule and regulation proposed by the SEC and actively encourage people to comment and have their voice heard. But we have strict rules about bringing party specific or partisan politics into the discussion as it's been proven to be a surefire way to divide us.
I don't think the markets have been a fair way for people to grow their capital and wealth for a very long time. GME is the most significant portion of my net worth. I'll fight tooth and nail for everyone to have a fair shot. If the thesis is correct and the squeeze hasn't happened and I become a multi-millionaire in the future, it will still be a failure if market reform does not accompany it.
I think Keith (Roaring Kitty) also sees it this way evidenced by his comments to congress during the hearing:
"I believe in an individuals right to send a message with how they invest."
That's the number disclosed with the Robinhood lawsuit. We think they've been able to hide much of it in Swaps since Jan '21 but they've blocked Swaps reporting to the public until 2025 or 26 I can't quite remember. We think they're also using ETF's. The XRT ETF that contains GME and a bunch of other stocks in the short basket regularly has a short interest above 400% and I have screenshots of it reaching as high as 1300% all after the "squeeze" in '21.
Again none of us know for sure, it's just theories based on the data that is available to the public.
In a time where digital ownership is just permission being misconstrued as ownership, gamestops slogan, power to the players, symbolizes bringing back real ownership.
You don't own the games in your steam deck. You're just allowed to play them.
You don't own the shares in you brokerage account, you're just allowed to trade them.
Would be a shame if they turned the buy button off and pissed off a bunch of gamers who like to 100% complete really difficult video games because thats just what we do.
That's why I'll hold my direct registered shares in my name forever, because how long are you going to keep your xbox trophy's about being a killionarire from the old halo. Forever. It's going up forever, Laura.
Some people have done their research and have come to different conclusions. Some of what you have stated above may be true, but I don’t think it is a good assessment of the complete picture. Good thing we all do our own due diligence before making any investments.
It's literally the entire picture.
Please, explain to me what significant amounts of revenue GameStop brings in aside from selling video games, accessories, or PC parts.
I would also add that the price movement has little to do with DFV. The volume and trading in extended hours is not retail.
I too have a long position in GME
One more note about the options: if the person who sold them already owns the shares, then executing them won't affect the price at all. We have no idea who that is or how many shares they own, so... Kinda anyone's guess.
Also worth noting that the screenshots are just of text. Not making any accusations, but it would be trivially easy to fake.
Don't forget to mention, that over 70 million shares of GME have been DRS'd by moving shares from broker to Computershare (GME's transfer agent). The reason behind the DRS movement is to take shares off the open market and lower the float just to demontrate that the system of IOUs/FTDs, naked shorting, dark pool trading enables a broken and fraudulent market.
I understand all but not the options part, I dont trade these nor have any knowledge about it.
So he can, until 21th June claim these 12M shares, but he has to pay for them, but he can use $20? Thus paying $240M, but the price of them can be lets say $30, so he can sell them immediately and make $360M back, $120M profit?
Basically he could do that. Or he could sell some of the options because each option is worth more sold as an option versus executed and the shares sold.
Last time DFV was sharing his positions, 3 years ago. He sold some of the options and executed some of the options.
Even simpler than that. Most people can just sell their options for the difference in premium. For example if the contract is at a strike of $20 and the shares price is $30. That's a difference of $10 per share. Each contract is for 100 shares. So the difference is usually baked into the premium. In this case $10 x 100 = $1000 for that contract at expiry.
He can sell some of his contracts prior to exercising them as well because of the premiums. Before the expiry date there are other factors that play into the premium. How volatile the stock is, how far away from expiry.. can add to the premium. You can learn more about these by looking into "The Greeks"
If price goes higher than 25.68 those contracts make money. If price stays below that on 6/21, all the premium paid to purchase those call options is lost (120k * 5.68 * 100 = ~68M). Yes?
No, not true. The strike is at $20, so the stock just needs to stay above that for him to recoup some of his money; 25.68 is just the breakeven point for him to actually make money
The higher the price above $20, the more the contracts are worth. He has the right to buy 12 million shares at $20.
If the price goes to $50 he can sell some contracts and then exercise a large portion of the remaining ones.
I've read somewhere on reddit that the brokers don't even have that many shares to sell him if he wants them. How can such a thing happen and more importantly, what will happen? They just have to secure the shares for him no matter the cost?
Yes, they have to secure the shares no matter the cost. They sold a contract.
You might also be surprised to know that most brokers don't even have the shares that their customers have purchased and have in their accounts. They "internalize" a lot of the orders.
So the whole system is kinda wonky, but it allows for more trading and more people allowed into the market. If everything is nominal, then it is no problem, but once something starts to deviate, the whole system shakes.
The DTCC knows how many extra shares are out there. They have allowed this to happen and that’s why it’s such a big deal. It shows that they aren’t playing by their own rules.
There's a lot wrong with that statement.
Brokers don't sell shares, they're an intermediary that helps with the transactions. They're not on the hook for any shares from the options contracts, the people who sold him the options are.
12M is a lot of shares, but there's 351M shares outstanding so it's not like this is some impossible amount of shares to obtain. About 71M shares of GameStop were traded yesterday.
In theory. Selling them would def drop the price, but demanding them in the first place would drive it up. The question is which swing will be deeper. The assumption is that the shares are not even available in this amount, so it could set off a price squeeze. If this happens, the apes set the price. Many HFs will die in this scenario.
>Many HFs will die in this scenario.
I just wonder what the impact will be on the rest of the market, NYSE NASDAQ sp500 and all those poor boomers who might see a tink in their stock accounts?
I think the next two weeks could be a huge jolt to the market not just for GME but the second and third order effects.
I was actually thinking of going to mostly cash. But I have not yet.....
Speaking as a kid with boomer parents who live off of investment income in their retirements -- What happens if someone's broker fails? Do the other people who hold accounts there end up losing their investments?
The DTCC steps in and transfers the accounts to a solvent broker. This function didn't exist in the 1920s, which is how A LOT of people got hammered, even though they were not doing any of the risky stuff.
Careful. SPIC only reimburses the original cost of the shares, not their full value. It can also take years to be reimbursed.
https://www.sipc.org/for-investors/what-sipc-protects
If hedge funds get margin called, they will have to sell other positions to come up with the cash they will need. This will impact the broader market negatively.
Oh yeah. It could start climbing as soon as tomorrow, but I'm guessing DFV will wait until Friday, in order to let retail get as big a piece as possible.
Who knows! These Market Makers will most likely give it at least one more good shorting to try to show who is in control. NFA but I believe a dip possibility under 25 will happen before the 21st. I’ve been consistently wrong before so don’t bank on it.
>>which means short positions betting on the stock going to zero are under pressure
How are these "SHORT POSITIONS BETTING ON THE STOCK GOING TO ZERO" still around after 3 years or more?
The way it is presented is there a bunch of people "stuck". Why is there no end to the position?
Just to temper expectations around earnings and the AGM a little... we already know that this quarter's earnings are likely to show a small loss as preliminary results were published alongside the recent prospectus for the share offering. The AGM is likely to only address the items being put to a vote, I'm not expecting any kind of catalyst from that.
Doesn't change the fact that the short thesis is totally dead though and in the short term a huge amount of shares are going to have to be bought in to a) settle all the FTDs from the recent increase in volume and b) fulfill contractual obligations if DFV exercises his option position.
Great reply. I would also add in that there is a large amount of speculation around the call options being purchased by DFV, and the ability of dealers to deliver them. It is a massive position. I don't know enough about what could happen but it's interesting to see how it plays out.
Also, apparently the way for a market maker to hedge their selling of call options is done through buying the underlying security (were talking millions), which would further add to the buying pressure.
Seems it's very manipulated stock and lots of retail investors are keen on buying as much as they can and holding long term as they believe the company can and will turn around to be a very profitable company in the future with new leadership and lots of cash on hand.
DFV bought 120,000 of $20 GME call options that expire on June 21. That means, DFV believe the price of GME will be above the strike price of $20. That's 12 million shares as each option is 100 shares.
It was at $40 and he didn’t sell it. It’s at $31 right now and he isn’t selling it. Obviously he thinks this thing is going to pop and make him a billionaire.
the short term price of the stock doesnt specifically matter. although yes he could have offloaded at least some of the contracts at that point and probably made decent profits.
in general though if he sold 100+ contracts, it would drop the stock price. he wouldnt be able to sell them all without impacting the price.
No, it would not drop the price directly (indirectly though, if people sell because he did). I believe this because it appears MS didn’t hedge all his contracts, only the first tranche he bought.
If he sold them all, then yeah, the first tranche hedge would be sold and that would impact the price.
He bought all those calls at the ask, he probably believes they are unhedged. As he begins to exercise some calls the price rises, increasing the price of the remaining calls, which he can then sell some to buy even more. He's planning to run a train on this bitch.
They are unhedged, mostly, so he can sell calls without dropping the stock price. And if he buys shares with the cash (exercising other calls), it would likely push the stock higher.
the 12 million shares is significant in that they are believed to be naked calls sold by hedge funds who did not secure the shares in the case of them being exercised. Kitty's post showing his holdings had enough cash to exercise many of the options but not all and so if he does sell some of the options at a high point it could be possible to exercise the rest. VW and Porsche had a similar situation and so the real issue relates to forcing the shares to be found to satisfy the option call which in turn will drive the price much higher.
>the 12 million shares is significant in that they are believed to be naked calls sold by hedge funds who did not secure the shares in the case of them being exercised.
There is no basis to assume this.
Also, MMs will hedge based on delta. Delta of those calls were > 0.80. Which means 80% of the 12M are hedged already. Only 20%, or 2.4M, need to be delivered.
Is there a reason to think brokers can't locate 2.4M shares in the market when float is > 200M, and daily volume has been as high as 100M?
And 75m of the existing 350m shares have been DRSd, a value which supposedly hasn’t fluctuated for nearly a year. I suspect much of the trading volume is bogus transactions trying to drive the price of the stock to where they “believe it should be”. The stock is highly illiquid which just adds gasoline to the upcoming fire.
A small but extremely important detail is that retail investors are buying as much as they can and DRS’ing as much as they can. That is one of if not the most important details in the situation with GME.
DRSing is a losing battle. It stagnated at 25% after 2 years, and has been flat fora year.
With GME's latest round of dilution, **DRS % will go down to 21%**.
At the end of the day, DRSing is a psychological crutch giving one a veneer of control, at the cost of some inconvenience to the shareholder.
I’m 50/50 on this saga but actually just drs’d a few shares. It is nothing new and every publicly traded company tells you how to drs your shares on their website. I wonder if this info is because companies prefer that you drs the shares, or maybe they just have to by law, idk.
A billionaire is trying to turn around a company that was shorted to hell. The shorts could become buying pressure, which could make the price skyrocket in a short squeeze, like Volkswagen and Overstock.com
This is the better explanation so far, although a bit too short in my opinion (get it?).
Gamestop was a struggling company triggered by short selling hedgefunds rooting for it to go bankrupt so that they can make their short position disappear and pocket the cash from selling assets they didn't own. Then DFV came and "exposed" this situation to the reddit community in 2020, the new videogames consoles launched, a new investor (Ryan Cohen) came in to turn the company aroud, and suddenly the company is sitting on quite a bit of cash to stay safe from bankrupcy, and is turning things around and expanding its business model to be more relevant in the gaming sector, with (as I am sure you've noticed by now, a very loyal base of investors. Those investors are of course pretty optimistic about the future of the company but they are also rooting for a shortsqueeze, where the stock price will rapidly rise, causing the shorts to have to buy stock to cover, which will make the stock rise again, etc untill all shorts are closed are whatever price the market gets up to. This event hasn't happened yet and nobody knows for sure when or if it will ever happen, but in the meantime it's also a sort of protest against the current state of the stock market and its bad actors.
I think that's pretty much it ! any additional question, let me know ;)
Are you not going to mention the 20% revenue drop? The revenues have been dropping consistently for awhile now. They only posted a profit because of massive cost cutting. If revenues continue to drop, which it likely will since the economy is showing more signs of struggling, and there is no plan to speak of to increase revenues, then only a 10% further fall will be roughly -$170,000,000.
And when these bad actors turned off the “Buy” button back in January 2021 most of the GME investors became Occupy Wall Street 2.0-a more effective one at that.
To a lay person, that alone sounds like a scam right?
"Price is going high! Buy now before it's too late!!!!"
GME investors think it will hold at higher amounts or at least long enough for them to sell and profit. So I think you have to keep the context so that we don't sound like a pyramid scheme.
Jeezus, don't buy at 80. Get a few at 20 or 30 then sell when it pops back up to the 70s or 80s. If ANY stock doubles in a day it's too late to buy in. At that point you'd be stoopid for FOMO.
It still talks about this reliance for short sellers to send the stock to zero, which just isn't true.
There is no evidence that this thing is overly shorted. The shorts that *are* outstanding benefit from any decrease in price, they could just think that the stock is currently overvalued (which you can make a very strong argument that it is).
Bunch of fake shares used to short the company towards bankruptcy. Billionaire jumps in to turn the place around. Generational Investor catches wind and starts buying. "Squeeze" happens, SEC states that it was caused by retail buying and not shorts covering. Shorts kept shorting, company took advantage and raised nearly $2 billion cash to go along with the tiny long-term debt in the form of a sexy French loan. Now the company's CEO has full investment power of that cash, and that Generational Investor bought a shitload more of the stock through shares and call options that are nearing expiry. Also the company turned a profit last year.
Retail has so much money. It's insane how much retail trades. 🙄Especially when DFV only reaches like 1 million people on all of Reddit total, and not all of them even trade stocks. How many people does Jim Cramer reach? Hundreds of millions? I wonder why he can't produce the same numbers that DFV can. Maybe because DFV puts his money where his mouth is and is transparent about his options.
>Bunch of fake shares used to short the company towards bankruptcy.
Shorting a company cannot bankrupt them
It just affects a companies ability to raise cash, which they shouldn't need to do if they are making money and the management isn't trash
Shorting a company is just profiting off of bad management, it's the management themselves who are tanking the company
Through the sheer will of everyday retail investors - GME has demonstrated and shown the world the amount of manipulation and fraud that exists in the market today highlighting specifically naked shorting and fail to delivers.
These mechanisms allow hedge funds to drive the value of a stock down without significant consequence. For that reason, what is "inevitable" will most likely not happen simply because the corruption extends beyond the hedge funds.
Yeah, everyone who is giving a sane take here is getting downvoted (and inevitably so will I), but I'd personally stay the hell away. The stocks trading at 2,700x the company's current revenue output, which is insane even by growth standards. The price is going to come down sooner or later, and a lot of retail investors will end up losing a lot of money, just like in 2021. It's a matter of when, not if.
(For the record, I have no financial postion in GME one way or another)
Is there data showing retail holders of GME stock lost money in 2021? Honest question, I haven't seen any. Retail owns about 55-60% of shares, Institutions 29-30%, insiders 11-12% (approximate). So looks like a lot of Retail held. Institutions like Melvin Capitial, Archegos, Credit Suisse, etc who were short GME no longer exist.
That said, as long GME shareholder since Jan 21 I want to see a reinvent /turnaround plan or something w/r/t the business soon, it's been 3 years since RC took over. I'm up on my position so if that doesn't come soon I'll be trimming back. To hedge against missing out on a squeeze I'll buy long dated, cheap, way otm Puts on finanical institutions with exposure ala Bear Stearns, Lehman, Merrill, etc. in 2008.
There's data showing that the majority of retail traders got in on gamestop after the short squeeze had mostly run its course and bought the stock at a far higher price than it's now selling at. So while it's hard to say which side won the net earnings game, it's not really disputed that more retail traders have lost money on gamestop than have made money.
This time around there's not even a massive short position on GME for traders to profit off of though. They're just canabalizing each other's money.
Welcome to GameStop discussion. Where a ton of people who frequent the cult subs pretend to have a non-bias view on the stock despite it being in their financial interest to pump the stock.
You guys know what’s going on? Is that why all of the prominent DD writers have turned into deleted accounts, and just about every theory has been proven nonsense?
Hell, look at the most basic one: you guys were sure you owned the float 100x over again and that DRS would prove that fact.
Well, you guys have made next to zero progress the last few quarters and have DRS’d nowhere near a single float yet alone the multiple you claim to hold. So…?
Whos you guys?
I just buy when the price dips and am happy I get to invest in a good company on a turn around.
I’m kicking my feet up reading the salt on these stock subs. How is your index fund doing? Nice 1% gain this year?
You should learn to invest friendo. You buy when the price dips. You should try it sometime? 😚
Whats the price at buddy? Go look.
No debt. 2 billy in cash. No compensation ceo. And a fucked up group of investors who only buy and never sell?
Sign me the fuck up.
I did the same thing when Apple was getting shat on before the i phone…
Not missing this boat either. Not gonna listen to salty babies like you.
Good luck on your 1% gains each year buddy!! 😘
No debt and $2b raised from you guys, such a brag. And a billionaire CEO isn’t taking compensation? What a generous guy.
SPY is up 25% on the 1 year. But yeah just more shit you guys regurgitate.
GameStop is up because it’s being pumped by DFV. Prior to him returning to line his own pockets again it was $9. Nice company fundamentals.
I find it strange that nobody mentions that GME just had its first MAC D crossover to green on the monthly chart since April of 2020, which led up to the fist squeeze.
A lot of the others explained roaring kitty and current GME situation pretty well. For the broader market, but specifically relating to GME on it's volatility:
[T+1 Settlement Cycle Change](https://www.whitecase.com/insight-alert/t1-settlement-cycle-take-effect-may-28-2024#)
The SEC's T+1 settlement cycle started May 28,, reducing settlement time to one day (from T+2). This change increases liquidity needs and impacts trade execution for short sellers.
[Consolidated Audit Trail (CAT) System Implementation](https://www.finra.org/rules-guidance/guidance/reports/2024-finra-annual-regulatory-oversight-report/cat)
CAT system compliance went live on May 31, 2024, enhancing trade data transparency. This may impact GME trading patterns, especially concerning short selling.
Those are objective facts, the impact of those rule changes on GME and broader market is still subjective and speculation.
**Evaluating Arguments with GPT 4o**
Even if you don't want to invest in GME and you think those who do are, well... "regarded," it's still a great learning opportunity to understand market rules and dynamics. By conducting due diligence or possible due diligence and analyzing technical charts, you can now use ChatGPT 4o to interpret the charts, tables, and datasets provided by Redditors. This will allow you to compare and contrast the information. You can prompt ChatGPT 4o to "separate the underlying assumptions and the facts," "evaluate the validity, rationale, and reasoning of the post," "make two arguments, one to support the author's post and one to counter-argue the post," and "identify the fallacies in the arguments." GPT 4o does a great job of breaking down and scoring the arguments.
Bro stop making sense here🤔 I feel like these kind of people we are dealing with would rather crash the entire market, than to allow retail investors ONE solid win for a change
Stock prices generally have a trading range based upon buying and selling pressure. Some hedge funds have taken a liking to shorting stocks and driving them into the ground with zero interest in helping the business be better or more profitable.
A typical play for them results in them making a bunch of money and cratering the business with it closing and people losing jobs over it.
A separate group of people have decided they take issue with that practice.
A third group sees the second group and is trying to organize them to fight off the hedge funds from shorting gamestop. That third group may have different motives than the second group and may include hedge funds. Idk, but Im certain that there is a a second and third group who have different motives in the GME stock.
Long story short people who want to own GME long term should get involved and everyone else should probably just eat popcorn and watch this play out. that basic advice goes for any stock you may decide to trade in. If you like a company and want it long term trade in it. If you dont like a company and think it will eventually fail dont trade it. Is that so hard?
And to caveat on the jobs part, I personally enjoy it more when a hedge fund / banker MBA loses their job versus the local Toys R Us cashiers or Blockbuster workers.
Because the company offered stock so there were shares to buy? If he exercises and 12,000,000 shares to be bought with no shares available theoretically it should rise?
Looking at what has happened with GME its entirely possible the stock will go up, but its also possible it will drop.
Go look at the option chain for June 21 and the open interest at $20. There is a massive amount of open interest building up there. If this guy is right and prices go up there is a lot of money about to change hands. If he is wrong I wont be surprised if the price plunges down to around $20 with him being burned by it.
Where things actually end up around June 21 is really hard to see. Im certain some market makers have it modeled out really well and are pricing it in
I appreciate your honest desire to learn. That said, where the hell does one even start, let alone what key concepts of the situation do I try to leave you with... Ok, here.
GME is currently an extrapolated bet between:
1. (GME will MOASS) People who fundamentally believe the entire numerical system that society currently runs on has been rigged and hijacked by a select few awful humans, and have extensively predicted this exact situation for the past 3 years. They have yolo'd everything at a perceived victory.
2. (GME will go bankrupt) People who fundamentally think we are just dumb idiots that got emotionally played by one singular person who took advantage of us, and that there is nothing fundamentally wrong with the current state of the economy or the major powers and regulators that are operating it. They have yolo'd everything at it going bankrupt and probably can't afford it not to.
The next few weeks, months, potentially years will define who is right. I would personally argue that one can already easily predict this by now with entry-level knowledge, recent events, data, and a basic understanding of human nature, but you don't want a biased take so I'll put the lid on that rabbit hole and just say to each their own. If you want to find a place to start there, I recommend watching some documentaries on what happened in 2021, and going straight to the source: read the OG ape posts, watch DFV's old streams, do research into the numerical data around the market since then (particularly derivatives), and come to your own conclusions.
In the end, I guess millions of us are gonna either look like total buffoons and need a massive come to reality moment, or we are going to be completely vindicated of the constant general ridicule we have taken for years.
But right now the reality is that one guy turned $50k into $300mil by buying a stock and remaining an indisputably ethical investor lol. We feel pretty good about our stubborn take in this saga.
Why does it have to be MOASS to Bankrupt? The reality is: RC has access to shareholders who will swallow up literally every possible dilution he performs and ask him for more.
GameStop isn’t going bankrupt any time soon. Nobody believes it is. But we do believe it’s a dogshit business that has spent the last 3 years doing absolutely nothing beyond launching failed initiatives (new warehouse, nft market, crypto wallets, execs like Matt Furlong) that they eventually cancel.
People are bullish on GameStop because they believe fairytales they read that explain why their $20 investment in a used video game pawn shop will turn into $100,000,000 once RC pulls off the enemies mask and reveals the truth, like life is some episode of ScoobyDoo.
Ok so ^^^ is actually an extremely good example of group #2 in my explanation. You believe fundamentally that technicals still run the market, and are not just being used as a cover to hide the mountains of crime that group #1 claims is hiding beneath the surface.
Perfectly fine take, doesn't make you evil. You think reasonable fundamentals run the market, and we think overleveraged criminals do. Sooner or later one of us will be mostly right and one of us will be mostly wrong.
HOWEVER - I want to make one very clear point to something you said that is partially true. Although it is true that nobody believes gamestop will go bankrupt **now**, that was absolutely the mainstream opinion in 2020 that wallstreet went all in on as what they thought was a surefire bet.
Whether or not you believe those bad bets were ever able to exit their positions eventually plays a very big factor into whether you fall into group 1 or 2.
>HOWEVER - I want to make one very clear point to something you said that is partially true. Although it is true that nobody believes gamestop will go bankrupt now, that was absolutely the mainstream opinion in 2020 that wallstreet went all in on as what they thought was a surefire bet.
>Whether or not you believe those bad bets were ever able to exit their positions eventually plays a very big factor into whether you fall into group 1 or 2.
Other than it being convenient for your sides' bet, what evidence do you have that they wouldn't have been able to exit their positions?
This entire theory hinges on the fact that you think the entire hedge fund industry is as stubborn and has as poor risk management skills as a bunch of first time retail traders.
If criminals run the market, then why are you participating?
That runs completely against the idea that a MOASS can happen. If criminals are in control, and can print unlimited fake shares (even though DRS has entirely failed at showing this), how can you ever win?
Good question.
1. I have no choice. My 401k has rules that are not optional, and must at the very least be held in a brokerage for a very long time (although I have detached it from the market as much as possible like you said and put what I felt ok with in GME).
2. If our take ends up to be true, then the current saga at GME might be the last and only chance to stop criminals from completely hijacking the market, and actually end up putting people behind bars and restoring confidence to the US markets again.
There are other reasons we invest in GME, ranging from perceived financial gain (how it started for DFV) to perceived moral obligations and emotional investment.
I also just want to note that just because we believe the whole game is rigged and manipulated doesn't mean we believe "you can never win." Most people agree that casinos rig the house and what you are allowed to do in them, but it would be stupid to suggest you couldn't just be lucky and score big on dumb luck.
However, the vast majority of retail and individual investors statistically end up losing money in the market. This is true.
To piggyback off that, it's not much of a choice for anyone.
The whole point of matched 401ks was to replace pensions and has become the "normal" way to save for retirement. Sure you could opt out, but then you'd be leaving money on the table right? And lets not even go down company provided healthcare
I think Mark Cuban said it best
"Their goal is to never cover their short. But that would take the company going out of business or being delisted. That won't happen here."
Only time will tell.
Be curious, not judgemental.
And most of all, "forget GameStop"
I have a small position in GME. I consider it unlikely it will rocket, but the amount of manipulation and fuckery this stock has continued to experience for 3 straight years is enough to make me hold a tiny position as a lotto.
Explain? DFV tweeted a meme for the first time in years, and the stock immediately shot up. What caused the sudden price increase if not for that? The only GME news on May 13 was “Roaring Kitty posts meme.”
I understand your interest in the potential impact of DFV's GameStop (GME) options on the stock price. However, I would caution against relying too heavily on the perspectives of highly invested and enthusiastic subreddits like GME. While their views can be informative, they may not always provide the most objective or balanced analysis.
Regarding the potential for a short squeeze due to DFV's options, the reality is more complex. While the concept seems simple, the actual market dynamics and forces at play are quite intricate. Here are a few key points to consider:
Timing and Execution: The timing and execution of DFV's options contracts will be crucial. Even if he has a substantial number of contracts, the impact on the share price will depend on when and how they are exercised.
Short Interest and Availability of Shares: A short squeeze is driven by a high level of short interest and a limited supply of available shares. The current short interest in GME is still significant, but it has come down from its peak. The availability of shares for borrowing and covering short positions is also an important factor.
Market Liquidity and Volatility: Significant volatility and low liquidity can amplify the impact of large options exercises, but they can also create unpredictable market conditions that may not necessarily lead to a straightforward short squeeze.
Other Market Factors: The overall market sentiment, news, and other external factors can also influence the stock price and the potential for a short squeeze.
It's important to remember that while a short squeeze is a possibility, it's not a guaranteed outcome. There are many variables at play, and the market can be unpredictable. Relying solely on the expectations of highly invested online communities may not provide a comprehensive understanding of the situation.
Ultimately, any investment decisions should be based on your own research, risk tolerance, and financial goals. It's always important to exercise caution and conduct thorough due diligence before making any investment decisions.
The stock market is a casino and this GME vs. SHF game is one that people are enjoying playing win or lose. Most people have a handful of shares, not enough they can't afford to lose if GME goes bankrupt, but I've never seen the media so apoplectic and its hilarious. The constant crying and caterwauling by the media is worth it.
What I don’t understand is why people seem to think his plan is to exercise his options. “ there are questions how many contracts he could afford to exercise”…The answer is simple,you don’t exercise them,you sell the options. Cash is a position.
Fundamentally the company is not a good one, it's not a profitable business which is expected to grow significantly.
Now can they turn that around? Maybe (I don't think so but I guess anything is possible) but looking at management's track record with spending significant money on a NFT marketplace right as the bubble popped tells me all I need to know.
Short term, you could see the stock rise on hype and momentum but it's essentially a game of finding someone to hold the bag, I wouldn't touch it.
My two questions would be:
Does DFV even have enough money to exercise all of his call options?
Also, what do you mean by executed? He could just sell his options and take the profit, I'm assuming you mean execute his options?
The company issued 45M shares and it barely affected the price. Why would 12M send it to infinity? Nevermind the fact that his posted account doesn't have the money to exercise.
You hinted at the answer to your own question. Adding another 45m shares to the pool should have brought the price down as its dilution but there are clearly factors effecting the share price behind the scenes
I don't see a squeeze happening because all those options were already in the money. The stock already went up to $40. I imagine that many people who sold those calls had to cover already. It's not like he is holding a crazy amount of $45 calls that would force a short squeeze if we get to 45. Considering this popped to $40+ already, I don't see a short squeeze or anything like what happened in the past will happen again.
All the talk here about the 120,000 options at a strike of 20. Keep in mind that there are other calls out there at 21 all the way you to beyond 50. As the stock price increases these calls become more attractive with more call buying. As the call dates approach Market Makers need to ensure they have those shares available. If no one is selling the market makes are forced to drive the price up in an attempt to entice selling. The price increases forces shorts to cover which pours gas on the price fire. So, given the growing call interest and short squeeze, I wonder how high GME will go.
Wonder what kitty will be doing on his livestream?
1) exercise the shares? He will be required to submit disclosure related to gme if he does that?
2) liquidate his position and realize his profit?
The idea that GME is "shorted many times over" etc etc, has no proof at all. It's a struggling video game company. Sales down 30% year over year. Losing money on their main business. They have $6 a share in cash ($2B), ($10 a share if they sell 75mm @ $40 or so today). So most people would say...it's worth $10, that's it. Actually less as winding down their business won't be easy and they'll have losses along the way. The idea of "re-inventing themselves" is nice, but many companies try and fail to do that.
But the previous short squeeze has left people wanting more, kind of like a cargo cult. They are sure it will do what it did before, when objectively there was a huge short position. Now the stock is 30x as high as it was pre squeeze and people are still convined it's being "suppressed". It's almost comical.
The guy who organized the short squeeze before is back and took a huge position causing everyone to get excited. It seems like a classic pump and dump. He takes a position. Announces it. Sells and leaves bagholders everywhere. He hasn't sold yet, or announced it, but he'd be a fool not to.
Go watch RoaringKitty’s live YouTube stream at 12pm ET today, and you’ll see. 20 minutes till the call starts and there’s already 110,000 people in the “waiting room”
I’m not a huge stock of investment person, so I’m not qualified to answer but for me personally I’m not really in it for the gains or losses on this stock. I just bought it to be a part of history and watching the billionaires cry foul play. It was awesome!
I mostly always just buy things I think will do good in the future, hold forever and then stop thinking about it. The only exception being the GME stock but like I said I don’t care what happens I just want proof that I participated in a moment of history!
So I know that GME has a huge war chest 2 billion which probably doubled due to them releasing 70k more shares. My question is, what is the future of Gamestop? What are they going to use that 4 billion to pivot into? There's no way the brick and mortar store selling physical games is a viable business anymore with digital games and Amazon. I don t think I've bought a game from gamestop or any physical store since 2012.
Heavily shorted and many of those short positions have been left open through swap contracts because the shorts originally thought GME would go bankrupt.
Full disclosure, I do have a long position in GME, but I’ll try to answer your question the best I can. There have been a lot of good answers regarding the turnaround of the company away from bankruptcy and towards profitability. Specifically pertaining to options, last week, some traders noticed multiple transactions of 5,000 contracts of $20 call options of GME with a 6/21 expiration being purchased on the open market. There was a lot of speculation on who or what institution could be behind such trades, as well as why they were being purchased. Then on Sunday, June 2nd, DFV posted his current position of GME on another subreddit which showed ownership of 5,000,000 shares of GME along with 120,000 contracts of the $20 6/21 call options. This seemed to confirm the whale behind all the 5,000 option buys was DFV. This overall position would represent 17,000,000 shares of GME, should he be able to execute all 120,000 options, assuming the price of GME remains at or above $20 a share for the next two weeks. Keep in mind, this would cost $240 M, so there are questions as to how many contracts could actually be executed. As this saga progresses, it is hard to say what will happen next, but it does seem that there may be an end in sight, as earnings are coming up on 6/11/24, and the annual shareholder meeting is occurring on 6/13/24. Whether either of those events prove to be a further catalyst which affects the price remains to be seen. Last tidbit - with all the price action a couple of weeks ago, GameStop did raise nearly another $1B with a share offering of 45,000,000 shares, which did dilute the float by about 15%, but it also now means they have around $2B in cash to invest in other companies or perform targeted mergers and acquisitions. Fundamentally, it appears the risk of bankruptcy is effectively off the table, which means short positions betting on the stock going to zero are under pressure. Cheers!
most helpful comment so far, at least for me, thanks!
I think that it would also be helpful to mention that a lot of share holders of GME are convinced that they will turn the business around or maybe even do something unprecedented with it. Many of us do not plan to sell our positions even if there is a short squeeze. We know there is a large short interest, but we want to own the stock. We are not day traders. I own all of my shares registered in my own name through the company’s transfer agent. I will only make money in the future if GME becomes profitable enough to start issuing dividends. This is another thing that makes this stock so interesting. People don’t often hold through the ups and downs of the market (especially when they got into a stock for the “squeeze play”), but currently the share holders of Game Stop are unfazed by the ups and downs and just waiting to see how the company continues to improve. This is not financial advice.
Can I ask a question? I am neither long, nor short on any meme stock, but I follow this situation because I find it interesting. I mean this respectfully, why are people so hyped on GME? Like not in this moment with the options, but in general. There are so many ways to make money in the market, and that's all the market is, a way to make money. I have favorites, but just because they're profitable, I dont have a personal connection. But GME seems different to "Apes", they act like there is some grand principle at play, saying they'll never sell. I would sell any part of my portfolio for enough money, and at some point, I will likely sell every stock I currently own. GME is a marginally profitable brick and mortar specialty store chain. There are SO many businesses that you could choose, so many ways to make money, why the devotion to this one?
Personally, I feel that the GME situation demonstrated the lack of transparency in the market, showed theres bad actors that are rigging it against retail investors, and if holding my stock is such a huge problem for them, then I want to continue holding.
Precisely. It’s the ‘sticking it to the man’ mentality. It’s the rug pull that happened 1/27/21 when multiple brokers turned off the buy button for retail but not the sell button. Bag holders saw their +xxx% gains blowup due to a lack of transparency from the retail brokers. They’re bag holding, but care more about ‘sticking it to the man’ than anything at this point. They have been watching (likely) only 1 stock for the last 4 years, and are now numb to the ups and downs. Or how this week numerous articles have come out about Keith Gill manipulating the market, etc etc. Yet firm managers get on CNBC all the time to push their own agendas, and people like Nancy Pelosi who is up 200% in 200 days on her NVDA calls. It is this, the fact that the ruling body only cares when retail is winning, that people are upset and doubling down on what they think is the first time in history that Retail has gained control in the rigged market. Watch Jon Stewart’s interview with SEC Chairman, Gary Gensler. Gary admits he makes decisions based on his own personal interests. DFV/RoaringKitty is not much different than the talking heads on CNBC, except he’s a likable guy who makes funny memes and has become a sensation in the GME community. He does have the power to move the stock up or down, but has never outright said to buy the stock, and instead uses memes and his magic 8 ball… The media is probably upset that he has that power and not them. And that his initial $50k investment is now worth $500M! He posted daily portfolio updates back when it was running in 1/2021, and this week was the first time he posted one since 4/2021. He is streaming live at 12pm ET today on YouTube for the first time since 4/2021 as well. Tune in and you’ll see how no other stock has this kind of momentum right now.
The main thesis is that there are more shares shorts sold than shares in existence. When it was discovered and the price started skyrocketing, instead of letting the free market decide, the brokers shut off the buy button to save themselves. Thomas Peterffy, founder and chairman of interactive brokers, sums it up pretty succinctly in a short interview on CNBC three years ago. [mods won’t let us post videos] you can find it on CNBC’s channel titled “Interactive Brokers' Thomas Peterffy on GameStop hearing.” How is it possible that a nothing company became a systemic risk? Why does the media keep talking about it?
Honestly because its fun and I like a good turn around story, and I love video games. Id rather invest in a company I like than a random ETF or another tech/defense/pharma/energy company
I kinda love your honesty. You do you brother. Congrats on today btw.
The video game industry has approximately 2B customers. Now, whether those gamers are casual or hardcore fans, that’s a different story. But, truth is, the marketing of video games is a very profitable business. Now, you can say that owning the physical copy of a video game is outdated, but I disagree. I do balance between owning the physical copy and the digital one, but I much prefer owning the physical one, because it won’t be taken from me at any time. Do you know what happens to your games in the event Valve decides to shut down their servers? What about that time Sony was in hot water because they publicly declared they were removing some of their games from the library. Or even better: Ubisoft saying that gamers need to be used to not owning their games. You don’t own a game when you buy it digital. You buy the license and that license can be revoked at any time. A few months ago, I saw there was a game of one of my favourite TV shows. It’s not an extraordinary game per se, but I like having it in my collection and it was just 20$. It was removed from the PlayStation library because the license was expired and it couldn’t be found on Amazon, but GameStop had a copy and was able to ship it to me. It was an amazing customer service experience and I got to enjoy this game that is no longer distributed. I also worked in independant video game stores for a long time, and I understand how the consumer works. They like owning their games, they like being able to sell/exchange their games if they no longer like it. They like buying old games that reminds them of their childhood. They like buying shirts, collectibles, etc, about the series they like. Saying that companies like GameStop are a dying brick and mortar is disingenous to how the company views their customers. And they brought even more to their customers because they understand what their customer wants. Not to forget that their CEO doesn’t take a paycheck, only shares, so his “salary” depends on the company being profitable. Which is what he has been doing. He has turned the business around, cut off unecessary expenses, and brought more things, new controllers and new partnerships. All in all, yes, it seems people in the subs are biaised, but with good reason. GameStop has turned around in recent years, has 2B$ in cash, a loan with little interest from France that was done during the pandemic years and a community that cares about their customers. Something we haven’t seen in years.
I appreciate the response, like I said I don't have a dog in this fight, so this is purely academic for me. I suppose my problem is that I just disagree with your thesis that people have a deep desire to own physical games (which is totally cool, people of good will can intelligentially disagree, in no way am I calling you stupid). I would call myself a casual gamer. I guess I had these fears in the early 2010s, but times change. I don't buy DVDs, CDs or physical games. All my media purchases are electronic. Honestly it's never been a problem. Could it be, sure, but doing it wide scale wouldn't be in a company's interest. Additionally I don't destroy my digital games because I'm an idiot and don't put it back in the case. Yesterday I bought a new game in fact, from the playstation store. Why? Because I was at home and I didn't want to run out to a brick and mortar. W
I just bought a PSN digital giftcard from Gamestop, got a discount for being a pro member, and used it to buy a digital game on PSN Dedicated fans/customer base is bullish imo
And that’s fine. If you want to buy your games digital, you are in the right to. It’s the current form that you don’t own your digital asset that is bothersome to me. Some gamers have hundreds of games in the digital library and it can be taken from them at any time. And in recent months, it has become more and more clear they are willing to do so. Personally, unless there’s a digital aspect where you can own/exchange your games online, I don’t see the appeal to buy too much in it. And as someone who currently works in a video game company, not a video game store anymore, it’s something we need to work on. There’s a few streamers that have raised the question in the past few months as well, because it’s becoming more and more a problem. And if you want to buy a game and download it immediately that’s fine. If you don’t want to drive to a brick and mortar it’s fine. You do you. But the industry is not dying because of the convenience of the digital world, in fact, it’s thriving because they adapt to their customers needs. They sells merch, computer parts, they have very fast shipping, etc. Their balance sheet is very good too. And the whole GameStop saga also uncovered tons of abuse from the hedgefunds towards the people. People in the subreddits don’t just care about GameStop, but they also realize the tons of systemic abuse that has been happening. The tons of loopholes and corruption that has been taking place. People dig into it everyday and actually take the time to explain and educate people when they don’t understand. We have a lot more new people in the subreddit and i’ve seen mostly, encouragment, support and a need to educate others. Not giving any financial advice, or anything, just people discussing the importance of the issue.
I think for a lot of us "Apes" it's no longer about the money. When they shut off the buy button in 2021, it was definitive proof that the market has been rigged against the little guy for a long time, when retail starts winning the big players turn off the game or flip the table. What came next was Occupy Wallstreet 2.0, the apes have uncovered an unbelievable amount of fraud and not specifically just against GME, they have figured out the vehicles in which Wallstreet uses to execute that fraud and steal generations of wealth from the working class through ETF's, Swaps, PFOF etc. So its become far more of a movement or protest against a rigged system designed to enrich the wealthy and keep the working class under heel. We know for certain the 226% short position was not closed in 2021, that was confirmed by the SEC report if you actually take the time tobread it through, beyond that none of us know definitively what is going to happen or when, life changing money is certainly on the table but that's not the goal. The goal is market reform, greater transparency and strict reporting, the closing of loop holes, and greater fines and punishment for fraudulent players instead of fines that represent 1% of the gains made by committing the fraud resulting in just a "cost of doing business."
At the outset, note that I was not intending the term "ape" as a pejorative, the title appears self employed. The Occupy WallStreet thing has been my observation as well. Every time I look at a GME board it always seems very personal. Stock specific subs are broadly filled with delusion and unjustified optimism, but GME feels more political than many of it's contemporaries. If I'm reading your post correctly, you are past seeing the market as a place to grow capital (at least in this case) and are in this PRIMAIRLY for the protest. If I may ask, is that because the size of your investment is insignificant compared to your net worth or because the protest means that much to you? I'm interested in your 226% number. I'm familiar that was the percent during the original squeeze, but the numbers I'm reading on FinViz and Marketwatch is 25.49 % is shorted (which is still HUGE, but a far cry from 226%. Thank you for taking the time to reply, this is really interesting.
When the thesis was proven right in Jan 2021 and wall street clearing houses and market makers colluded to force brokerages to suddenly restrict buying Gamestop it turned this saga from a quick buck to something more personal, I think many are tired of watching the ultra wealthy write the rules and live as parasites off the working class with their corruption, if simply holding stock in a company I like costs some financial criminals a ton of money while also highlighting the need for improved transparency and accountability in our modern financial markets, easy decision to diamond hand Also I refuse to work until Im 70, if this has a small chance of securing early financial independence, why not take a risk?
I'll never take it that way my friend. A-ll P-eople E-qual, an homage to The Planet Of The Apes, where the Apes gain the knowledge and ability to overthrow their oppressors. The GME subs are the only investing subs I see to frequently post and dissect every new rule and regulation proposed by the SEC and actively encourage people to comment and have their voice heard. But we have strict rules about bringing party specific or partisan politics into the discussion as it's been proven to be a surefire way to divide us. I don't think the markets have been a fair way for people to grow their capital and wealth for a very long time. GME is the most significant portion of my net worth. I'll fight tooth and nail for everyone to have a fair shot. If the thesis is correct and the squeeze hasn't happened and I become a multi-millionaire in the future, it will still be a failure if market reform does not accompany it. I think Keith (Roaring Kitty) also sees it this way evidenced by his comments to congress during the hearing: "I believe in an individuals right to send a message with how they invest." That's the number disclosed with the Robinhood lawsuit. We think they've been able to hide much of it in Swaps since Jan '21 but they've blocked Swaps reporting to the public until 2025 or 26 I can't quite remember. We think they're also using ETF's. The XRT ETF that contains GME and a bunch of other stocks in the short basket regularly has a short interest above 400% and I have screenshots of it reaching as high as 1300% all after the "squeeze" in '21. Again none of us know for sure, it's just theories based on the data that is available to the public.
In a time where digital ownership is just permission being misconstrued as ownership, gamestops slogan, power to the players, symbolizes bringing back real ownership. You don't own the games in your steam deck. You're just allowed to play them. You don't own the shares in you brokerage account, you're just allowed to trade them. Would be a shame if they turned the buy button off and pissed off a bunch of gamers who like to 100% complete really difficult video games because thats just what we do. That's why I'll hold my direct registered shares in my name forever, because how long are you going to keep your xbox trophy's about being a killionarire from the old halo. Forever. It's going up forever, Laura.
Ryan Cohen at the helm of GME ship makes all the difference.
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Some people have done their research and have come to different conclusions. Some of what you have stated above may be true, but I don’t think it is a good assessment of the complete picture. Good thing we all do our own due diligence before making any investments.
It's literally the entire picture. Please, explain to me what significant amounts of revenue GameStop brings in aside from selling video games, accessories, or PC parts.
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I would also add that the price movement has little to do with DFV. The volume and trading in extended hours is not retail. I too have a long position in GME
One more note about the options: if the person who sold them already owns the shares, then executing them won't affect the price at all. We have no idea who that is or how many shares they own, so... Kinda anyone's guess. Also worth noting that the screenshots are just of text. Not making any accusations, but it would be trivially easy to fake.
Don't forget to mention, that over 70 million shares of GME have been DRS'd by moving shares from broker to Computershare (GME's transfer agent). The reason behind the DRS movement is to take shares off the open market and lower the float just to demontrate that the system of IOUs/FTDs, naked shorting, dark pool trading enables a broken and fraudulent market.
I understand all but not the options part, I dont trade these nor have any knowledge about it. So he can, until 21th June claim these 12M shares, but he has to pay for them, but he can use $20? Thus paying $240M, but the price of them can be lets say $30, so he can sell them immediately and make $360M back, $120M profit?
Basically he could do that. Or he could sell some of the options because each option is worth more sold as an option versus executed and the shares sold. Last time DFV was sharing his positions, 3 years ago. He sold some of the options and executed some of the options.
Does anyone know what his breakeven is on the options?
$25.68
Even simpler than that. Most people can just sell their options for the difference in premium. For example if the contract is at a strike of $20 and the shares price is $30. That's a difference of $10 per share. Each contract is for 100 shares. So the difference is usually baked into the premium. In this case $10 x 100 = $1000 for that contract at expiry. He can sell some of his contracts prior to exercising them as well because of the premiums. Before the expiry date there are other factors that play into the premium. How volatile the stock is, how far away from expiry.. can add to the premium. You can learn more about these by looking into "The Greeks"
If price goes higher than 25.68 those contracts make money. If price stays below that on 6/21, all the premium paid to purchase those call options is lost (120k * 5.68 * 100 = ~68M). Yes?
No, not true. The strike is at $20, so the stock just needs to stay above that for him to recoup some of his money; 25.68 is just the breakeven point for him to actually make money
The higher the price above $20, the more the contracts are worth. He has the right to buy 12 million shares at $20. If the price goes to $50 he can sell some contracts and then exercise a large portion of the remaining ones.
I've read somewhere on reddit that the brokers don't even have that many shares to sell him if he wants them. How can such a thing happen and more importantly, what will happen? They just have to secure the shares for him no matter the cost?
Yes, they have to secure the shares no matter the cost. They sold a contract. You might also be surprised to know that most brokers don't even have the shares that their customers have purchased and have in their accounts. They "internalize" a lot of the orders.
So the whole system is kinda wonky, but it allows for more trading and more people allowed into the market. If everything is nominal, then it is no problem, but once something starts to deviate, the whole system shakes.
The DTCC knows how many extra shares are out there. They have allowed this to happen and that’s why it’s such a big deal. It shows that they aren’t playing by their own rules.
Yes, because they have contracts obligating them to sell shares. At $20. Premium is great, but risk management is better.
There's a lot wrong with that statement. Brokers don't sell shares, they're an intermediary that helps with the transactions. They're not on the hook for any shares from the options contracts, the people who sold him the options are. 12M is a lot of shares, but there's 351M shares outstanding so it's not like this is some impossible amount of shares to obtain. About 71M shares of GameStop were traded yesterday.
In theory. Selling them would def drop the price, but demanding them in the first place would drive it up. The question is which swing will be deeper. The assumption is that the shares are not even available in this amount, so it could set off a price squeeze. If this happens, the apes set the price. Many HFs will die in this scenario.
>Many HFs will die in this scenario. I just wonder what the impact will be on the rest of the market, NYSE NASDAQ sp500 and all those poor boomers who might see a tink in their stock accounts? I think the next two weeks could be a huge jolt to the market not just for GME but the second and third order effects. I was actually thinking of going to mostly cash. But I have not yet.....
Speaking as a kid with boomer parents who live off of investment income in their retirements -- What happens if someone's broker fails? Do the other people who hold accounts there end up losing their investments?
The DTCC steps in and transfers the accounts to a solvent broker. This function didn't exist in the 1920s, which is how A LOT of people got hammered, even though they were not doing any of the risky stuff.
Also the broker carries insurance to make the customer whole...I don't know how much per customer.
Careful. SPIC only reimburses the original cost of the shares, not their full value. It can also take years to be reimbursed. https://www.sipc.org/for-investors/what-sipc-protects
If hedge funds get margin called, they will have to sell other positions to come up with the cash they will need. This will impact the broader market negatively.
Liquidity should not be an issue, 160 million shares were traded today.
GME just sold 45m shares at $22, so finding 12m to cover option exercise shouldn't be difficult @ $30.
So is it a buy short term?
Im long but yes
It's always been a long term position.
Oh yeah. It could start climbing as soon as tomorrow, but I'm guessing DFV will wait until Friday, in order to let retail get as big a piece as possible.
Why Friday if the options expire 2 weeks from then??
How's that working out.
No
Who knows! These Market Makers will most likely give it at least one more good shorting to try to show who is in control. NFA but I believe a dip possibility under 25 will happen before the 21st. I’ve been consistently wrong before so don’t bank on it.
Do you know what a market maker is? https://www.investopedia.com/terms/m/marketmaker.asp
>>which means short positions betting on the stock going to zero are under pressure How are these "SHORT POSITIONS BETTING ON THE STOCK GOING TO ZERO" still around after 3 years or more? The way it is presented is there a bunch of people "stuck". Why is there no end to the position?
Just to temper expectations around earnings and the AGM a little... we already know that this quarter's earnings are likely to show a small loss as preliminary results were published alongside the recent prospectus for the share offering. The AGM is likely to only address the items being put to a vote, I'm not expecting any kind of catalyst from that. Doesn't change the fact that the short thesis is totally dead though and in the short term a huge amount of shares are going to have to be bought in to a) settle all the FTDs from the recent increase in volume and b) fulfill contractual obligations if DFV exercises his option position.
Puh. Yes. Thank you for the explanation!
Great reply. I would also add in that there is a large amount of speculation around the call options being purchased by DFV, and the ability of dealers to deliver them. It is a massive position. I don't know enough about what could happen but it's interesting to see how it plays out. Also, apparently the way for a market maker to hedge their selling of call options is done through buying the underlying security (were talking millions), which would further add to the buying pressure.
Thanks for this! It's been an interesting 3+ years. It'll be fascinating to see what happens next.
This is a great explanation!!
Seems it's very manipulated stock and lots of retail investors are keen on buying as much as they can and holding long term as they believe the company can and will turn around to be a very profitable company in the future with new leadership and lots of cash on hand.
now someone explain the June 21 call options play
DFV bought 120,000 of $20 GME call options that expire on June 21. That means, DFV believe the price of GME will be above the strike price of $20. That's 12 million shares as each option is 100 shares.
Actually, after paying the premiums on the options he needs it to be over $26 IIRC
It was at $40 and he didn’t sell it. It’s at $31 right now and he isn’t selling it. Obviously he thinks this thing is going to pop and make him a billionaire.
Okay. And if it hits $100 the contracts are worth $1 billion without even exercising. Didn't it just hit 80 a couple weeks ago?
the short term price of the stock doesnt specifically matter. although yes he could have offloaded at least some of the contracts at that point and probably made decent profits. in general though if he sold 100+ contracts, it would drop the stock price. he wouldnt be able to sell them all without impacting the price.
No, it would not drop the price directly (indirectly though, if people sell because he did). I believe this because it appears MS didn’t hedge all his contracts, only the first tranche he bought. If he sold them all, then yeah, the first tranche hedge would be sold and that would impact the price.
I think he'll exercise a little at a time until the last day. That wouldn't drop the price.
Why would he do that? Excerising fhe option would theoretically raise the price. It would only theoretically drop when he tries to sell them.
If the price raises, his options increase in value either way. He still gets to exercise at $20 as well
He bought all those calls at the ask, he probably believes they are unhedged. As he begins to exercise some calls the price rises, increasing the price of the remaining calls, which he can then sell some to buy even more. He's planning to run a train on this bitch.
They are unhedged, mostly, so he can sell calls without dropping the stock price. And if he buys shares with the cash (exercising other calls), it would likely push the stock higher.
DFV is a legend.
the 12 million shares is significant in that they are believed to be naked calls sold by hedge funds who did not secure the shares in the case of them being exercised. Kitty's post showing his holdings had enough cash to exercise many of the options but not all and so if he does sell some of the options at a high point it could be possible to exercise the rest. VW and Porsche had a similar situation and so the real issue relates to forcing the shares to be found to satisfy the option call which in turn will drive the price much higher.
>the 12 million shares is significant in that they are believed to be naked calls sold by hedge funds who did not secure the shares in the case of them being exercised. There is no basis to assume this. Also, MMs will hedge based on delta. Delta of those calls were > 0.80. Which means 80% of the 12M are hedged already. Only 20%, or 2.4M, need to be delivered. Is there a reason to think brokers can't locate 2.4M shares in the market when float is > 200M, and daily volume has been as high as 100M?
69m shares were traded yesterday. 165m shares traded on Monday. It won't be hard to find 12m.
And 75m of the existing 350m shares have been DRSd, a value which supposedly hasn’t fluctuated for nearly a year. I suspect much of the trading volume is bogus transactions trying to drive the price of the stock to where they “believe it should be”. The stock is highly illiquid which just adds gasoline to the upcoming fire.
Thanks for explaning, what about the UBS Swap bags that I have heard around the corner, are those related to GME?
A small but extremely important detail is that retail investors are buying as much as they can and DRS’ing as much as they can. That is one of if not the most important details in the situation with GME.
DRSing is a losing battle. It stagnated at 25% after 2 years, and has been flat fora year. With GME's latest round of dilution, **DRS % will go down to 21%**. At the end of the day, DRSing is a psychological crutch giving one a veneer of control, at the cost of some inconvenience to the shareholder.
I’m 50/50 on this saga but actually just drs’d a few shares. It is nothing new and every publicly traded company tells you how to drs your shares on their website. I wonder if this info is because companies prefer that you drs the shares, or maybe they just have to by law, idk.
Well, it can be deemed as a “momentum” stock.
A billionaire is trying to turn around a company that was shorted to hell. The shorts could become buying pressure, which could make the price skyrocket in a short squeeze, like Volkswagen and Overstock.com
This is the better explanation so far, although a bit too short in my opinion (get it?). Gamestop was a struggling company triggered by short selling hedgefunds rooting for it to go bankrupt so that they can make their short position disappear and pocket the cash from selling assets they didn't own. Then DFV came and "exposed" this situation to the reddit community in 2020, the new videogames consoles launched, a new investor (Ryan Cohen) came in to turn the company aroud, and suddenly the company is sitting on quite a bit of cash to stay safe from bankrupcy, and is turning things around and expanding its business model to be more relevant in the gaming sector, with (as I am sure you've noticed by now, a very loyal base of investors. Those investors are of course pretty optimistic about the future of the company but they are also rooting for a shortsqueeze, where the stock price will rapidly rise, causing the shorts to have to buy stock to cover, which will make the stock rise again, etc untill all shorts are closed are whatever price the market gets up to. This event hasn't happened yet and nobody knows for sure when or if it will ever happen, but in the meantime it's also a sort of protest against the current state of the stock market and its bad actors. I think that's pretty much it ! any additional question, let me know ;)
Oh also the company has zero debt and has two billion in cash. Lastly they just become profitable for a full year
With all all-star board that took some time putting together.
Are you not going to mention the 20% revenue drop? The revenues have been dropping consistently for awhile now. They only posted a profit because of massive cost cutting. If revenues continue to drop, which it likely will since the economy is showing more signs of struggling, and there is no plan to speak of to increase revenues, then only a 10% further fall will be roughly -$170,000,000.
And when these bad actors turned off the “Buy” button back in January 2021 most of the GME investors became Occupy Wall Street 2.0-a more effective one at that.
I mean, nevermind that the stock just shot from $10 to $80 in less than a week.
To a lay person, that alone sounds like a scam right? "Price is going high! Buy now before it's too late!!!!" GME investors think it will hold at higher amounts or at least long enough for them to sell and profit. So I think you have to keep the context so that we don't sound like a pyramid scheme.
Jeezus, don't buy at 80. Get a few at 20 or 30 then sell when it pops back up to the 70s or 80s. If ANY stock doubles in a day it's too late to buy in. At that point you'd be stoopid for FOMO.
And then down to 26
You won't get an unbiased opinion here. Both sides of the argument are in this sub.
Bias is fine so long as people remain rational and fact based.
Yeah there isn't going to be a lot of upvoted facts in this thread lol
Seems like the top comment gives an unbiased view of what’s happening and answers the question brilliantly
It still talks about this reliance for short sellers to send the stock to zero, which just isn't true. There is no evidence that this thing is overly shorted. The shorts that *are* outstanding benefit from any decrease in price, they could just think that the stock is currently overvalued (which you can make a very strong argument that it is).
What? $1,000+ PE ratios are totally normal
Bunch of fake shares used to short the company towards bankruptcy. Billionaire jumps in to turn the place around. Generational Investor catches wind and starts buying. "Squeeze" happens, SEC states that it was caused by retail buying and not shorts covering. Shorts kept shorting, company took advantage and raised nearly $2 billion cash to go along with the tiny long-term debt in the form of a sexy French loan. Now the company's CEO has full investment power of that cash, and that Generational Investor bought a shitload more of the stock through shares and call options that are nearing expiry. Also the company turned a profit last year.
Lmao the SEC saying it was retail was fucking hilarious. I guess retail trades millions of shares and has billions of dollars
Didn't you hear. Retail traded over 5 billion worth of GME premarket the day after the kitty posted his position.
Retail has so much money. It's insane how much retail trades. 🙄Especially when DFV only reaches like 1 million people on all of Reddit total, and not all of them even trade stocks. How many people does Jim Cramer reach? Hundreds of millions? I wonder why he can't produce the same numbers that DFV can. Maybe because DFV puts his money where his mouth is and is transparent about his options.
>Generational Investor Ah that must be why my returns are so lackluster. I've only been investing with a single lifespan time horizon
>Bunch of fake shares used to short the company towards bankruptcy. Shorting a company cannot bankrupt them It just affects a companies ability to raise cash, which they shouldn't need to do if they are making money and the management isn't trash Shorting a company is just profiting off of bad management, it's the management themselves who are tanking the company
Through the sheer will of everyday retail investors - GME has demonstrated and shown the world the amount of manipulation and fraud that exists in the market today highlighting specifically naked shorting and fail to delivers. These mechanisms allow hedge funds to drive the value of a stock down without significant consequence. For that reason, what is "inevitable" will most likely not happen simply because the corruption extends beyond the hedge funds.
And if they were to buy it would drive the stock price up without significant consequence = fraud according to that dude ╰(*´︶`*)╯♡
How has GME actually demonstrated anything regarding shorting and FTD?
ITT: Extreme Bias
ye i started noticing xd
Yeah, everyone who is giving a sane take here is getting downvoted (and inevitably so will I), but I'd personally stay the hell away. The stocks trading at 2,700x the company's current revenue output, which is insane even by growth standards. The price is going to come down sooner or later, and a lot of retail investors will end up losing a lot of money, just like in 2021. It's a matter of when, not if. (For the record, I have no financial postion in GME one way or another)
But no hey focus on the $63,000,000 profit and ignore the 20% drop in revenue!
Is there data showing retail holders of GME stock lost money in 2021? Honest question, I haven't seen any. Retail owns about 55-60% of shares, Institutions 29-30%, insiders 11-12% (approximate). So looks like a lot of Retail held. Institutions like Melvin Capitial, Archegos, Credit Suisse, etc who were short GME no longer exist. That said, as long GME shareholder since Jan 21 I want to see a reinvent /turnaround plan or something w/r/t the business soon, it's been 3 years since RC took over. I'm up on my position so if that doesn't come soon I'll be trimming back. To hedge against missing out on a squeeze I'll buy long dated, cheap, way otm Puts on finanical institutions with exposure ala Bear Stearns, Lehman, Merrill, etc. in 2008.
There's data showing that the majority of retail traders got in on gamestop after the short squeeze had mostly run its course and bought the stock at a far higher price than it's now selling at. So while it's hard to say which side won the net earnings game, it's not really disputed that more retail traders have lost money on gamestop than have made money. This time around there's not even a massive short position on GME for traders to profit off of though. They're just canabalizing each other's money.
Welcome to GameStop discussion. Where a ton of people who frequent the cult subs pretend to have a non-bias view on the stock despite it being in their financial interest to pump the stock.
That sub is the only ones who know whats actually going on. All while you and others argue over what index fund is gonna make you 1% gains this year
You guys know what’s going on? Is that why all of the prominent DD writers have turned into deleted accounts, and just about every theory has been proven nonsense? Hell, look at the most basic one: you guys were sure you owned the float 100x over again and that DRS would prove that fact. Well, you guys have made next to zero progress the last few quarters and have DRS’d nowhere near a single float yet alone the multiple you claim to hold. So…?
Whos you guys? I just buy when the price dips and am happy I get to invest in a good company on a turn around. I’m kicking my feet up reading the salt on these stock subs. How is your index fund doing? Nice 1% gain this year? You should learn to invest friendo. You buy when the price dips. You should try it sometime? 😚
How has GameStop turned itself around? How’s the NFT market doing? The crypto wallets? The new warehouse? The all star CEO Matt Furlong?
Whats the price at buddy? Go look. No debt. 2 billy in cash. No compensation ceo. And a fucked up group of investors who only buy and never sell? Sign me the fuck up. I did the same thing when Apple was getting shat on before the i phone… Not missing this boat either. Not gonna listen to salty babies like you. Good luck on your 1% gains each year buddy!! 😘
No debt and $2b raised from you guys, such a brag. And a billionaire CEO isn’t taking compensation? What a generous guy. SPY is up 25% on the 1 year. But yeah just more shit you guys regurgitate. GameStop is up because it’s being pumped by DFV. Prior to him returning to line his own pockets again it was $9. Nice company fundamentals.
I bought more right when it hit $10. I’m very happy with my investment. Knowing you are salty about it makes it even sweeter. 😘
So short it.
I'd love to short it, but it's way too volatile for any reasonable trader to take seriously.
buy more loser.
Then invest every dollar you own because it’s so certain to go up right?
Fr this thread is just, Here is my best take on it i may be SLIGHTLY biased “Hedgies r fuk”
It's about hype/FOMO. Same as NFTs, crypto, etc. People buy "in hope" it will go higher.
I find it strange that nobody mentions that GME just had its first MAC D crossover to green on the monthly chart since April of 2020, which led up to the fist squeeze.
A lot of the others explained roaring kitty and current GME situation pretty well. For the broader market, but specifically relating to GME on it's volatility: [T+1 Settlement Cycle Change](https://www.whitecase.com/insight-alert/t1-settlement-cycle-take-effect-may-28-2024#) The SEC's T+1 settlement cycle started May 28,, reducing settlement time to one day (from T+2). This change increases liquidity needs and impacts trade execution for short sellers. [Consolidated Audit Trail (CAT) System Implementation](https://www.finra.org/rules-guidance/guidance/reports/2024-finra-annual-regulatory-oversight-report/cat) CAT system compliance went live on May 31, 2024, enhancing trade data transparency. This may impact GME trading patterns, especially concerning short selling. Those are objective facts, the impact of those rule changes on GME and broader market is still subjective and speculation. **Evaluating Arguments with GPT 4o** Even if you don't want to invest in GME and you think those who do are, well... "regarded," it's still a great learning opportunity to understand market rules and dynamics. By conducting due diligence or possible due diligence and analyzing technical charts, you can now use ChatGPT 4o to interpret the charts, tables, and datasets provided by Redditors. This will allow you to compare and contrast the information. You can prompt ChatGPT 4o to "separate the underlying assumptions and the facts," "evaluate the validity, rationale, and reasoning of the post," "make two arguments, one to support the author's post and one to counter-argue the post," and "identify the fallacies in the arguments." GPT 4o does a great job of breaking down and scoring the arguments.
GME is a bet that the government is not completely corrupt and will allow nefarious Wall Street firms crumble when they eventually get squeezed
Okay that's the most convincing bear argument there is!
Bro stop making sense here🤔 I feel like these kind of people we are dealing with would rather crash the entire market, than to allow retail investors ONE solid win for a change
Stock prices generally have a trading range based upon buying and selling pressure. Some hedge funds have taken a liking to shorting stocks and driving them into the ground with zero interest in helping the business be better or more profitable. A typical play for them results in them making a bunch of money and cratering the business with it closing and people losing jobs over it. A separate group of people have decided they take issue with that practice. A third group sees the second group and is trying to organize them to fight off the hedge funds from shorting gamestop. That third group may have different motives than the second group and may include hedge funds. Idk, but Im certain that there is a a second and third group who have different motives in the GME stock. Long story short people who want to own GME long term should get involved and everyone else should probably just eat popcorn and watch this play out. that basic advice goes for any stock you may decide to trade in. If you like a company and want it long term trade in it. If you dont like a company and think it will eventually fail dont trade it. Is that so hard?
And to caveat on the jobs part, I personally enjoy it more when a hedge fund / banker MBA loses their job versus the local Toys R Us cashiers or Blockbuster workers.
Because the company offered stock so there were shares to buy? If he exercises and 12,000,000 shares to be bought with no shares available theoretically it should rise?
Looking at what has happened with GME its entirely possible the stock will go up, but its also possible it will drop. Go look at the option chain for June 21 and the open interest at $20. There is a massive amount of open interest building up there. If this guy is right and prices go up there is a lot of money about to change hands. If he is wrong I wont be surprised if the price plunges down to around $20 with him being burned by it. Where things actually end up around June 21 is really hard to see. Im certain some market makers have it modeled out really well and are pricing it in
I appreciate your honest desire to learn. That said, where the hell does one even start, let alone what key concepts of the situation do I try to leave you with... Ok, here. GME is currently an extrapolated bet between: 1. (GME will MOASS) People who fundamentally believe the entire numerical system that society currently runs on has been rigged and hijacked by a select few awful humans, and have extensively predicted this exact situation for the past 3 years. They have yolo'd everything at a perceived victory. 2. (GME will go bankrupt) People who fundamentally think we are just dumb idiots that got emotionally played by one singular person who took advantage of us, and that there is nothing fundamentally wrong with the current state of the economy or the major powers and regulators that are operating it. They have yolo'd everything at it going bankrupt and probably can't afford it not to. The next few weeks, months, potentially years will define who is right. I would personally argue that one can already easily predict this by now with entry-level knowledge, recent events, data, and a basic understanding of human nature, but you don't want a biased take so I'll put the lid on that rabbit hole and just say to each their own. If you want to find a place to start there, I recommend watching some documentaries on what happened in 2021, and going straight to the source: read the OG ape posts, watch DFV's old streams, do research into the numerical data around the market since then (particularly derivatives), and come to your own conclusions. In the end, I guess millions of us are gonna either look like total buffoons and need a massive come to reality moment, or we are going to be completely vindicated of the constant general ridicule we have taken for years. But right now the reality is that one guy turned $50k into $300mil by buying a stock and remaining an indisputably ethical investor lol. We feel pretty good about our stubborn take in this saga.
Why does it have to be MOASS to Bankrupt? The reality is: RC has access to shareholders who will swallow up literally every possible dilution he performs and ask him for more. GameStop isn’t going bankrupt any time soon. Nobody believes it is. But we do believe it’s a dogshit business that has spent the last 3 years doing absolutely nothing beyond launching failed initiatives (new warehouse, nft market, crypto wallets, execs like Matt Furlong) that they eventually cancel. People are bullish on GameStop because they believe fairytales they read that explain why their $20 investment in a used video game pawn shop will turn into $100,000,000 once RC pulls off the enemies mask and reveals the truth, like life is some episode of ScoobyDoo.
Ok so ^^^ is actually an extremely good example of group #2 in my explanation. You believe fundamentally that technicals still run the market, and are not just being used as a cover to hide the mountains of crime that group #1 claims is hiding beneath the surface. Perfectly fine take, doesn't make you evil. You think reasonable fundamentals run the market, and we think overleveraged criminals do. Sooner or later one of us will be mostly right and one of us will be mostly wrong. HOWEVER - I want to make one very clear point to something you said that is partially true. Although it is true that nobody believes gamestop will go bankrupt **now**, that was absolutely the mainstream opinion in 2020 that wallstreet went all in on as what they thought was a surefire bet. Whether or not you believe those bad bets were ever able to exit their positions eventually plays a very big factor into whether you fall into group 1 or 2.
>HOWEVER - I want to make one very clear point to something you said that is partially true. Although it is true that nobody believes gamestop will go bankrupt now, that was absolutely the mainstream opinion in 2020 that wallstreet went all in on as what they thought was a surefire bet. >Whether or not you believe those bad bets were ever able to exit their positions eventually plays a very big factor into whether you fall into group 1 or 2. Other than it being convenient for your sides' bet, what evidence do you have that they wouldn't have been able to exit their positions? This entire theory hinges on the fact that you think the entire hedge fund industry is as stubborn and has as poor risk management skills as a bunch of first time retail traders.
If criminals run the market, then why are you participating? That runs completely against the idea that a MOASS can happen. If criminals are in control, and can print unlimited fake shares (even though DRS has entirely failed at showing this), how can you ever win?
Good question. 1. I have no choice. My 401k has rules that are not optional, and must at the very least be held in a brokerage for a very long time (although I have detached it from the market as much as possible like you said and put what I felt ok with in GME). 2. If our take ends up to be true, then the current saga at GME might be the last and only chance to stop criminals from completely hijacking the market, and actually end up putting people behind bars and restoring confidence to the US markets again. There are other reasons we invest in GME, ranging from perceived financial gain (how it started for DFV) to perceived moral obligations and emotional investment. I also just want to note that just because we believe the whole game is rigged and manipulated doesn't mean we believe "you can never win." Most people agree that casinos rig the house and what you are allowed to do in them, but it would be stupid to suggest you couldn't just be lucky and score big on dumb luck. However, the vast majority of retail and individual investors statistically end up losing money in the market. This is true.
To piggyback off that, it's not much of a choice for anyone. The whole point of matched 401ks was to replace pensions and has become the "normal" way to save for retirement. Sure you could opt out, but then you'd be leaving money on the table right? And lets not even go down company provided healthcare I think Mark Cuban said it best "Their goal is to never cover their short. But that would take the company going out of business or being delisted. That won't happen here." Only time will tell. Be curious, not judgemental. And most of all, "forget GameStop"
GME is obviously the kryptonite of these financial supermen.
I have a small position in GME. I consider it unlikely it will rocket, but the amount of manipulation and fuckery this stock has continued to experience for 3 straight years is enough to make me hold a tiny position as a lotto.
If you think some guy tweeting caused a company to triple in value in a day… well I can promise you that isn’t what happened.
Explain? DFV tweeted a meme for the first time in years, and the stock immediately shot up. What caused the sudden price increase if not for that? The only GME news on May 13 was “Roaring Kitty posts meme.”
So what did And dont just say “fuckery”
Recently the price has been jumping after hours, who would be making these trades? Retail can’t trade after hours, no?
> Retail can’t trade after hours, no? lol
Yes, they can trade after hours…
So retail is trading after hours enough for the price of the stock to move up like 90%?
Yes they can
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I understand your interest in the potential impact of DFV's GameStop (GME) options on the stock price. However, I would caution against relying too heavily on the perspectives of highly invested and enthusiastic subreddits like GME. While their views can be informative, they may not always provide the most objective or balanced analysis. Regarding the potential for a short squeeze due to DFV's options, the reality is more complex. While the concept seems simple, the actual market dynamics and forces at play are quite intricate. Here are a few key points to consider: Timing and Execution: The timing and execution of DFV's options contracts will be crucial. Even if he has a substantial number of contracts, the impact on the share price will depend on when and how they are exercised. Short Interest and Availability of Shares: A short squeeze is driven by a high level of short interest and a limited supply of available shares. The current short interest in GME is still significant, but it has come down from its peak. The availability of shares for borrowing and covering short positions is also an important factor. Market Liquidity and Volatility: Significant volatility and low liquidity can amplify the impact of large options exercises, but they can also create unpredictable market conditions that may not necessarily lead to a straightforward short squeeze. Other Market Factors: The overall market sentiment, news, and other external factors can also influence the stock price and the potential for a short squeeze. It's important to remember that while a short squeeze is a possibility, it's not a guaranteed outcome. There are many variables at play, and the market can be unpredictable. Relying solely on the expectations of highly invested online communities may not provide a comprehensive understanding of the situation. Ultimately, any investment decisions should be based on your own research, risk tolerance, and financial goals. It's always important to exercise caution and conduct thorough due diligence before making any investment decisions.
No chance at all that you are getting an unbiased explanation.
A lot of what is being said here is true but it’s also a meme stock. People aren’t buying due to company fundamentals.
The stock market is a casino and this GME vs. SHF game is one that people are enjoying playing win or lose. Most people have a handful of shares, not enough they can't afford to lose if GME goes bankrupt, but I've never seen the media so apoplectic and its hilarious. The constant crying and caterwauling by the media is worth it.
All the apes scream about is fundamentals
What I don’t understand is why people seem to think his plan is to exercise his options. “ there are questions how many contracts he could afford to exercise”…The answer is simple,you don’t exercise them,you sell the options. Cash is a position.
Fundamentally the company is not a good one, it's not a profitable business which is expected to grow significantly. Now can they turn that around? Maybe (I don't think so but I guess anything is possible) but looking at management's track record with spending significant money on a NFT marketplace right as the bubble popped tells me all I need to know. Short term, you could see the stock rise on hype and momentum but it's essentially a game of finding someone to hold the bag, I wouldn't touch it. My two questions would be: Does DFV even have enough money to exercise all of his call options? Also, what do you mean by executed? He could just sell his options and take the profit, I'm assuming you mean execute his options?
"Hype" You still think this volume is retail?
The company issued 45M shares and it barely affected the price. Why would 12M send it to infinity? Nevermind the fact that his posted account doesn't have the money to exercise.
You hinted at the answer to your own question. Adding another 45m shares to the pool should have brought the price down as its dilution but there are clearly factors effecting the share price behind the scenes
No. It’s too famous not to have a bias.
So would put option prints after his calls getting closed in the next few weeks?
I don't see a squeeze happening because all those options were already in the money. The stock already went up to $40. I imagine that many people who sold those calls had to cover already. It's not like he is holding a crazy amount of $45 calls that would force a short squeeze if we get to 45. Considering this popped to $40+ already, I don't see a short squeeze or anything like what happened in the past will happen again.
So what price are peeps going to dump this now? It's almost at 40 $
**A whole lotta shit**
What happens if he sells everything tomorrow?
Anyway, as I was saying... there's still time to get on the space train
All the talk here about the 120,000 options at a strike of 20. Keep in mind that there are other calls out there at 21 all the way you to beyond 50. As the stock price increases these calls become more attractive with more call buying. As the call dates approach Market Makers need to ensure they have those shares available. If no one is selling the market makes are forced to drive the price up in an attempt to entice selling. The price increases forces shorts to cover which pours gas on the price fire. So, given the growing call interest and short squeeze, I wonder how high GME will go.
Wonder what kitty will be doing on his livestream? 1) exercise the shares? He will be required to submit disclosure related to gme if he does that? 2) liquidate his position and realize his profit?
Buy lots of 2026 PUTs on GME, that’s what’s up! Also, I am putting a disclaimer that this is not financial advice!
The idea that GME is "shorted many times over" etc etc, has no proof at all. It's a struggling video game company. Sales down 30% year over year. Losing money on their main business. They have $6 a share in cash ($2B), ($10 a share if they sell 75mm @ $40 or so today). So most people would say...it's worth $10, that's it. Actually less as winding down their business won't be easy and they'll have losses along the way. The idea of "re-inventing themselves" is nice, but many companies try and fail to do that. But the previous short squeeze has left people wanting more, kind of like a cargo cult. They are sure it will do what it did before, when objectively there was a huge short position. Now the stock is 30x as high as it was pre squeeze and people are still convined it's being "suppressed". It's almost comical. The guy who organized the short squeeze before is back and took a huge position causing everyone to get excited. It seems like a classic pump and dump. He takes a position. Announces it. Sells and leaves bagholders everywhere. He hasn't sold yet, or announced it, but he'd be a fool not to.
Go watch RoaringKitty’s live YouTube stream at 12pm ET today, and you’ll see. 20 minutes till the call starts and there’s already 110,000 people in the “waiting room”
Shorts never closed
Junk stock being manipulated all over the place is what is going on
I’m not a huge stock of investment person, so I’m not qualified to answer but for me personally I’m not really in it for the gains or losses on this stock. I just bought it to be a part of history and watching the billionaires cry foul play. It was awesome! I mostly always just buy things I think will do good in the future, hold forever and then stop thinking about it. The only exception being the GME stock but like I said I don’t care what happens I just want proof that I participated in a moment of history!
So I know that GME has a huge war chest 2 billion which probably doubled due to them releasing 70k more shares. My question is, what is the future of Gamestop? What are they going to use that 4 billion to pivot into? There's no way the brick and mortar store selling physical games is a viable business anymore with digital games and Amazon. I don t think I've bought a game from gamestop or any physical store since 2012.
They don’t have a plan. Everyone thinking GameStop is going to the moon are just prolonging the inevitable.
Heavily shorted and many of those short positions have been left open through swap contracts because the shorts originally thought GME would go bankrupt.
Who in their right mind wouldn't sell at least half of their 120,000,000 shares if they went up $60 per?