Soldato
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yep exactly as i take from it. GME presumably was shorted as it's expected to be even lower than what it was, so i'm expecting a heavy drop when it does go down.
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- Thread starter mcast123
- Start date
Why are you looking to buy a short squeeze then? I dont understand
Soldato
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Haven't you seen it? It's going up! You literally can't lose!
ha..yea.
The trade is gone, the time to spot it and get into position was last year.
GME IV -
Soldato
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at 76 last night i am hoping a final jump again today after the news yesterday. yesterday it started at 65 and went to over 150 finishing at 76. it was all over the news, lots of chat about this, and people hearing reddit made it go to 150, while it's currently at 76 i feel will tempt enough for another go.
my thought yesterday was in at 76, out at 120, leave some to 168 if i can hold my nerve.
based on what though? why not just buy something that will go up based on fundamentals instead of gambling it.
I read some analysis (on reddit) that the short squeeze almost happened yesterday but the hedge fund holding most of the short positions (Melvin Capital) was bailed out at the last minute. The logic being that as GME was ramping up past $115 to $150 yesterday, the rest of the market was diving for no apparent reason. This may have been due to the Melvin Capital liquidating their other positions in the market in preparation to cover their shorts on GME. Then they got a $2.75 billion bailout so the squeeze didn't occur as they had enough liquidity to cover their margin. I think the conclusion was that they now have the capital to manipulate the price to cover their shorts unless the retail investors have the capital to match.
Edit: https://www.reddit.com/r/options/comments/l51vnz/implications_of_citadel_point_72_bailout_of/
) that the short squeeze almost happened yesterday but the hedge fund holding most of the short positions (Melvin Capital) was bailed out at the last minute. The logic being that as GME was ramping up past $115 to $150 yesterday, the rest of the market was diving for no apparent reason. This may have been due to the Melvin Capital liquidating their other positions in the market in preparation to cover their shorts on GME. Then they got a $2.75 billion bailout so the squeeze didn't occur as they had enough liquidity to cover their margin. I think the conclusion was that they now have the capital to manipulate the price to cover their shorts unless the retail investors have the capital to match.Edit: https://www.reddit.com/r/options/comments/l51vnz/implications_of_citadel_point_72_bailout_of/
I read some analysis (on reddit
Edit: https://www.reddit.com/r/options/comments/l51vnz/implications_of_citadel_point_72_bailout_of/
Yea, the process is the same when short covering, you buy to cover. It just depends on how much capital you have tied up in the short position and whether you have enough to cover. Sounds like Melvin Capital were all in on this short so didn't have the capital to take the other side. Reddit users gonna get wrecked when there is a 2.75b loan available to Melvin
reddit people have short attention spans they will be on the next ticker before you know it.
don't put faith in them, it's playing with fire
Soldato
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True. I do agree which is why I'm not putting as much as I'd like to put in it.
It is based on the last couple days performance though so not entirely randomly betting. Seeing what happened Friday, what happened yesterday, what's happening with the news since and then over night now, I feel it's going to jump up again today, potentially for the last time but enough to make a quick bit of money
It is betting. You can't say why the price is going up apart from to say "i feel it's going to jump up again today"
What does price/volume/volatility and ivol say?
What do the fundamentals say?
I don't think fundamentals come into play here. As you say it's purely gambling on an outcome. The main elements being there's a lot of people on Reddit who don't really invest and piled in at $150 with the "lets throw my life savings in and hold forever and call people who sell stupid" mentality.
Given the current situation i think there's certainly an opportunity for a quick return. If i was @Apex though i'd be setting that buy limit around $95-$100 max just incase and be prepared for it to drop and accept that risk.
Given the current situation i think there's certainly an opportunity for a quick return. If i was @Apex though i'd be setting that buy limit around $95-$100 max just incase and be prepared for it to drop and accept that risk.
Frequently when short squeezes happen, there is some massive divergence in the outcome of the company. I haven't looked into it, so there might some fundamentals about it. I'm gonna have a dig into it today and tomorrow and see whats up, i certainly won't be buying now, if there is turnaround play happening here then you should be buying at $15/$20, and waiting for this short squeeze to finish. It might not do a 100% retrace but you get my drift. I certainly would not be buying at $75, if there is a turnaround play then fair value isn't $75 yet. Fair value can't go from $20 to $160 in a couple of days
The point is, people should be able to explain that, otherwise it is purely betting and best to stay out. Capital preservation is just as important as making money
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Repeatedly adding/subtracting 1p until you get the business?Having a lot of fun with this, it's very much like eve online markets.
Surely we've all missed the boat on that one!
Soldato
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Imagine going long on GME right now.
To play this game, you need to buy call options. We don't have that available to us, so why get involved?
Just sit back, watch the carnage and laugh at the hedge funds.
To play this game, you need to buy call options. We don't have that available to us, so why get involved?
Just sit back, watch the carnage and laugh at the hedge funds.
Soldato
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Yes it is betting. Who said it wasn't?
I can say why I think the price is going to go up to make a quick bit of cash.
I did in fact say why