GME Short Squeeze depth Analysis. It’s one of those confluence-of-events types of scenarios where everything’s set up just so, and the setup is so widely followed that it takes on a life of its own. Sure, some Redditors made millions of dollars or 50x’d their investments in less than a week. Here's what to know about short selling, a short squeeze, how Reddit is involved, and why Wall Street is shook. So, if you want to play, have fun. Here’s the story of how Reddit’s Wall Street Bets subreddit gamed the system and profited off of Citron Research’s shorting positions. Wall Street (NOT REDDIT) crashes the … Therefore, I suggest you have an explanation like this prepared: The story of GameStop short squeeze for dummies: Wall Street did Illegal Thing (naked shorting), Reddit "apes" found out Wall Street was doing Illegal Thing (naked shorting), Reddit apes bought stocks (completely legal) to screw over Wall Street, Wall Street (NOT REDDIT) crashes the economy to screw YOU over, Of course, the actual situation is way more complicated than this simplification - You can elaborate on these points as needed. The GameStop Short Squeeze Explained. Here's what happened. A place for theoretical discussions about business and stocks - specifically Gamestop Stock ($GME). To find out, we need to take a look at the investment maneuver called a “short”. They believed that GameStop… I see a lot of screenshots to this effect. Short selling is a finance practice in which an investor, known as the short-seller, borrows shares and immediately sells them, hoping to buy them back later ("covering") at a lower price, return the borrowed shares (plus interest) to the lender and profit off the difference. Steve says, “Sure!”, but then Marvin turns around and sells the shares for $18. The CEOs of Robinhood, Melvin Capital, Citadel, Reddit… The House Financial Services Committee held a hearing investigating the r/WallStreetBets GameStop short squeeze. The practice carries an unlimited risk of losses, because there is no inherent limit to how high a stock's price can rise. Reddit "apes" found out Wall Street was doing Illegal Thing (naked shorting) 3. Fuck em! Have you tried explaining GameStop naked short selling and ended up looking like Pepe Silvia? Hedge Funds were now forced to buy back the shares they had sold short which further drove the prices even higher. (For example: "Who is Wall Street? But in my humble opinion (not financial advice) it is WAY less stressful to just keep your mouth shut, and let them be blown away after the squeeze instead of spinning your wheels into the ground trying to make people believe you. AOC Twitch Stream w/ Alexis Goldstein - GameStop Short Squeeze Explained DD This is a bit out of date (end of Jan), but if like me you have a crush/girl-crush on Alexis Goldstein, it's worth a watch! Short sellers, or investors who bet the price of a stock would fall, are getting crushed. GameStop shares experienced a short squeeze this month, largely thanks to a Reddit community called WallStreetBets, which, as of now, has more than 5,6 million subscribers. GameStop Stock Explained: Robinhood, Short Squeezes, And Reddit. Seeing that a significant interest has developed around the fabled GME short squeeze, I have Or to put it more simply, he wants GameStop to become the ultimate But according to some retail investors in Reddit and tradingview GME has ... www.reddit.com How a short squeeze is making Reddit happy and short sellers sad GameStop’s stock price has skyrocketed from where it was at the start of the … Later, if the stock price does as they expect, they can buy the stock at a lower price and keep the difference. It was my fault for not directly asking if the short position in GameStop must be covered. The GameStop Short Squeeze Explained. GameStop’s stock was recently part of a short squeeze after a group of traders on Reddit used their collective power to boost the stock’s price. After it happens, you’ll be a genius. Squeeze happen in gamestopcrypto. Reddit apes bought stocks (completely legal) to screw over Wall Street. The story of GameStop short squeeze for dummies: Wall Street did Illegal Thing (naked shorting) 2. 4. Melvin Capital and Citron were caught in what's known as a short squeeze, forcing the funds to buy more GameStop stock to cover their losses, which ended up driving the stock price even higher.This has happened before, most famously with Tesla stock.. Here’s the story of how Reddit’s Wall Street Bets subreddit gamed the system and profited off of Citron Research’s shorting positions. How you look like explaining the GME short squeeze (Also: This is probably wrong). In a short sale, they borrow a share of GameStop and then sell it. There will be multiple ups and downs. None of this is financial advice. For those that missed it, GameStop warned those holding short positions about the potential of a squeeze in their 10K SEC filing. An idea of what the short squeeze will look like. Press question mark to learn the rest of the keyboard shortcuts. I start with “do you know what short selling is?” and then go from there to “last year, when GameStop stock was at $3, several hedge funds made the worst bet in stock market history.”. Why is it bad to buy gme with margin? The short can be explained like this: Steve owns 5 shares at a value of $18. Gamestop buy … Also of importance: guys I know it’s hard to not tell everyone if GME is your life and you want them to be excited with you, but if you can’t explain this stuff well enough to teach a class on it, it might be less stressful to just keep your mouth shut until after the squeeze. What’s a Short? That is a short squeeze, which is not what happened on Friday. : Citadel Securities, Melvin Capital, etc. After all, GME is STILL a large brick and mortar store that is trying to sell a product that could be very easily purchased using the power of the internet. That would inadvertently drive up the price. The revenue of GameStop for the past few quarters is … Of course they’re going to think you’re crazy. First, let me say GameStop is a pig stock. Every game I’ve bought recently was a digital download, meaning no game disc required. Marvin asks Steve if he can borrow his 5 shares for a bit. Gamestop will announce a futur way of gaining this currency (with no immediate impact or a slow one) SHF have to pay Dividend for their short. Therefore it would be a domino effect to buy shares in order to close your short, when the price is rising faster than you can buy to close your short. A short squeeze that can take a stock into the stratosphere can last longer than anyone expects, but they're not usually based on long-term expectations. Stay stonky, San Diago. How Reddits GameStop short squeeze exploited an investment firm tactic Short selling is a tactic used by hedge fund managers and investors who are predicting that. Desperate buys. And GameStop sells… games on disc, new and used. Only a limited amount of this currency exist and they can't hide because of blockchain. Press question mark to learn the rest of the keyboard shortcuts. Wall Street has been watching GameStop in awe as a band of Reddit-obsessed retail investors managed to push the stock up 1,500% in two weeks, squeezing out short … After years of poor performance, GameStop's stock has surged to record highs in the last week. GameStop was one of the companies that loads of hedge funds (companies who do these bets) had bet on to lose a lot of value. Short selling is a tactic used by hedge fund managers and investors who are predicting that a stock's value will go down If you are wondering (like I was) why they would do this, I think I found the answer. This is in contrast with taking a longposition (simply owning the stock), where the investor's loss is limited to the cost of their in… Press J to jump to the feed. The billionaire hedge funds’ “sophisticated bet” was to short GameStop stock. Therefore, it is important that you have a SIMPLE, EASY TO UNDERSTAND explanation of the GME short squeeze that you can explain to your friends/parents/local policemen when they inevitable try to blame this on you. Posts about equities, options, forex, futures, analyst upgrades & downgrades, technical and fundamental analysis, and the stock market in general are all welcome. If a short-seller wants to close his position, they would have to buy shares first. The GameStop rally came after investors saw glimmers of hope for the company this month when the chain changed the makeup of … In a short sale, they borrow a share of GameStop and then sell it. After years of poor performance, GameStop's stock has surged to record highs in the last week. GameStop shares experienced a short squeeze this month, largely thanks to a Reddit community called WallStreetBets, which, as of now, has more than 5,6 million subscribers. Several Reddit users called for people to pile into GameStop shares, pushing up the price to put pressure on the short-sellers - a process known as a short squeeze. I'm Pepe all day everyday. It’s been all over the news recently, but many consumers are still confused. Later, if the stock price does as they expect, they can buy the stock at a lower price and keep the difference. Thanks to u/JabbaLeSlut for the original post of this here . In the coming months, you will likely see. GameStop Short Squeeze Explained With this in mind, institutional investors took a short position which means they bet on the stock price falling further. The short squeeze that the armchair investors had fought for had arrived and hedge funds were looking for an exit strategy. Here's what you need to know. This is what … There’s no simple reason that Gamestop (NYSE: GME) became the subject of the most high-profile short squeeze anyone can remember. GameStop share price explained: How GME stock value was driven up in ‘short squeeze’ by Reddit traders News and analysis, direct from Westminster to your inbox Email address is invalid In a short sale, they borrow a share of GameStop and then sell it. GameStop found itself in the middle of a short-squeeze mania brought on by the Reddit group rwallstreetbets which looked to take on hedge funds who bet that the stock would fall. He also explained that the SEC has been turning a blind eye to these situations because they are RARELY over 100%. Here's everything you need to be equipped for the inevitable conversation about why GameStop's stock is rising, what short squeeze means, and how a Reddit … GME share price explained: Why GameStop stock value has increased again a month after Reddit ‘short squeeze’ The stock closed at $265 on Wednesday … Melvin Capital, a well-established hedge fund, took massive losses on its bets that GameStop … Press J to jump to the feed. "), TLDR; prepare your explanation for the MOASS. And the reality is, your “GME theory” doesn’t mean shit until the squeeze happens. As the thesis for short squeeze is laid out, the thesis for the short sellers is also crystal clear. Opinions and memes welcome. GameStop Stock Explained: Robinhood, Short Squeezes, And Reddit. That said, the GameStop short squeeze was a highly risky way to make money. A short squeeze in silver is on the precipice of occurring, and could add gasoline to a bonfire, current short interest is 513% SLV is a scam, if you own it then sell and purchase PSLV (and the same goes for GLD, you can buy PHYS instead) But other people bought in far too late, after the stock had already jumped in price. We use cookies on our websites for a number of purposes, including analytics and performance, functionality and advertising. Who cares! I dont get why its really risky vs cash? Welcome to /r/StockMarket! Before the squeeze almost no one is going to believe you, they’re going to tell you you’re wasting all your money, they’re going to say you’re an idiot. With this in mind, institutional investors took a short position which means they bet on the stock price falling further. More posts from the StockMarket community. I call it GameJunk. In a short sale, they borrow a share of GameStop and then sell it. But huge numbers of people in the wallstreetbets Reddit … Here's what to know about short selling, a short squeeze, how Reddit is involved, and why Wall Street is shook. The reason being is it’s a dying business model — it’s Blockbuster, it’s Sam Goody. GameStop stock saga explained: The long and ‘short’ of how Reddit users annihilated Wall Street pros The GameStop stock debacle is so very, very delicious. Our objective is to provide short and mid term trade ideas, market analysis & commentary for active traders and investors. The … This is what happened and why! 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