Shorted Stocks

Cute Hoor

I am going to suggest that we have a separate topic for the Shorting phenomena, and leave the Share Picks 2021 for the normal run of the mill stuff, might make it easier to follow both.

Feel free to ignore my suggestion of course

emo72

I've no idea what's going on. Basically the little guys taking on the financial giants at their own game. And all of a sudden the giants are crying foul. Fascinating.

Static M.e.

I thought this article from VICE summed it up nicely.

Fun to watch but crazy at the same time. Who knows what the ramifications will be if Melvin goes under...I'm thinking Pension funds etc.

Timing belt

Static M.e. wrote: »

I thought this article from VICE summed it up nicely.

Fun to watch but crazy at the same time. Who knows what the ramifications will be if Melvin goes under...I'm thinking Pension funds etc.

They will have already closed out their positions!!!

Bodjhrjekekr

GME nearly back to its closing price now

Shedite27

Good idea.

Currently holding AMC and NOK. Up in AMC, down in NOK.

Let's see how today goes.

Shedite27

Shedite27 wrote: »

Good idea.

Currently holding AMC and NOK. Up in AMC, down in NOK.

Let's see how today goes.

Are they being shorted?

Kilboor

Deleted User wrote: »

Are they being shorted?

Every stock that's shortable is being shorted to some degree.

It's when a large percentage of the shares in circulation (20% would be considered high, for reference GME was shorted 150%) are shorted that they have the potential to short squeeze.

WallStreetBets are hyper focused on this now so they've identified GME, AMC, BB, BBY, KOSS, NOK, and NAKD as heavily shorted companies that still have potential.

VinLieger

Deleted User wrote: »

Are they being shorted?

AMC was at about 68% on the last report

Shedite27

Deleted User wrote: »

Are they being shorted?

AMC yes

NOK no, but it's gaining momentum with the same WSB group

Bodjhrjekekr

Kilboor wrote: »

WallStreetBets are hyper focused on this now so they've identified GME, AMC, BB, BBY, KOSS, NOK, and NAKD as heavily shorted companies that still have potential.

Anyone know where to find the short interest rate for NAKD? I can't find it anywhere, even if its a report from December? Hard to tell if any of these are still being shorted as theres no up to date info

Timing belt

Bodjhrjekekr wrote: »

Anyone know where to find the short interest rate for NAKD? I can't find it anywhere, even if its a report from December? Hard to tell if any of these are still being shorted as theres no up to date info

https://www.nasdaq.com/market-activity/stocks/nakd/short-interest

updated yesterday with the short position as at 15/1/2021

Bodjhrjekekr

Timing belt wrote: »

https://www.nasdaq.com/market-activity/stocks/nakd/short-interest

thanks, but forgive my stupidity, how do you calculate the interest rate from that? Eg Gamestock had a 138% short interest rate

Fred Cryton

Gaemstop up over 1500% this year or something crazy as hedge funds have to buy the stock to hedge their short positions. Hedge funds losing billions.

This is a distortion of the market that will not end well, including for the retail investors as some or many of them will end up holding the bag.

irish_major

I am no expert but surely hedge funds are about to short the absolute **** out of Gamestock right now and just wait for its inevitable crash?

Timing belt

Bodjhrjekekr wrote: »

thanks, but forgive my stupidity, how do you calculate the interest rate from that? Eg Gamestock had a 138% short interest rate

they have 31m shares shorted 60m market cap so about 50% of the shares are shorted so unlikely that there would be a short Squeeze but watch the share price rise as people pump money into it.

Kilboor

Bodjhrjekekr wrote: »

thanks, but forgive my stupidity, how do you calculate the interest rate from that? Eg Gamestock had a 138% short interest rate

NAKD have 234 million outstanding shares.

Short Interest is 31 million.

31 mil/234 mil *100



Days to cover is 1 since the avg daily volume is now 300 mil.

Days to cover for GME was 10 for reference.

Kilboor

Timing belt wrote: »

they have 31m shares shorted 60m market cap so about 50% of the shares are shorted so unlikely that there would be a short Squeeze but watch the share price rise as people pump money into it.

This is completely wrong. Market cap does not equal Outstanding shares.

Timing belt

Fred Cryton wrote: »

Gaemstop up over 1500% this year or something crazy as hedge funds have to buy the stock to hedge their short positions. Hedge funds losing billions.

This is a distortion of the market that will not end well, including for the retail investors as some or many of them will end up holding the bag.

The hedge funds have already closed out their positions and took their loss but will probably be in the money by the time this ends as people are still pumping money into the stock.

There is a lot of disinformation out there like the short position yesterday was 138%. The short positions get reported twice a month and yesterdays announcement related to short positions as at the 15/1/2021.

JoeCole26

AMC seems to be stuttering this morning - down around 7.54% - i think between today and tomorrow we will start to see an end to all this "market manipulation" by the Reddit group. Its a pity they wouldnt target NIO with this.

VinLieger

Timing belt wrote: »

The hedge funds have already closed out their positions and took their loss but will probably be in the money by the time this ends as people are still pumping money into the stock.

There is a lot of disinformation out there like the short position yesterday was 138%. The short positions get reported twice a month and yesterdays announcement related to short positions as at the 15/1/2021.

And yet the stock is climbing in premarket?


Also stop talking like you know something has happened that you literally have no evidence for.

Bodjhrjekekr

Timing belt wrote: »

The hedge funds have already closed out their positions and took their loss but will probably be in the money by the time this ends as people are still pumping money into the stock.

There is a lot of disinformation out there like the short position yesterday was 138%. The short positions get reported twice a month and yesterdays announcement related to short positions as at the 15/1/2021.

How do we know they closed out positions? I see there are articles about Melvin closing but how do we actually know? Genuine question by the way!! Is it reported by NYSE? Or Melvin?

2ndcoming

I know nothing about or extremely little about investing but this whole GameStop thing has me bamboozled.

The company in every way I can see is doomed. There is no future in bricks and mortar video game shops, and the bigger problem they have is the imminent situation where games for a given platform are only available directly through the company that own the platform, Microsoft - Sony - Nintendo, so there won't even really be anything for them to sell online except very niche collectibles.

What future can there be in stock in a company that makes absolutely no money in the real world?

Bodjhrjekekr

2ndcoming wrote: »

I know nothing about or extremely little about investing but this whole GameStop thing has me bamboozled.

The company in every way I can see is doomed. There is no future in bricks and mortar video game shops, and the bigger problem they have is the imminent situation where games for a given platform are only available directly through the company that own the platform, Microsoft - Sony - Nintendo, so there won't even really be anything for them to sell online except very niche collectibles.

What future can there be in stock in a company that makes absolutely no money in the real world?

It will crash back to normal when everyone cashes out, don't know when people will cash out yet though

VinLieger

2ndcoming wrote: »

I know nothing about or extremely little about investing but this whole GameStop thing has me bamboozled.

The company in every way I can see is doomed. There is no future in bricks and mortar video game shops, and the bigger problem they have is the imminent situation where games for a given platform are only available directly through the company that own the platform, Microsoft - Sony - Nintendo, so there won't even really be anything for them to sell online except very niche collectibles.

What future can there be in stock in a company that makes absolutely no money in the real world?

Theres no future that warrants the current prices, people are trying to kill the short sellers that's it

Read this to understand

https://www.vice.com/en/article/pkdvgy/send-this-to-anyone-who-wants-to-know-wtf-is-up-with-gamestop-stock

Timing belt

Kilboor wrote: »

This is completely wrong. Market cap does not equal Outstanding shares.

you are right... was having a blonde moment

Kilboor

2ndcoming wrote: »

I know nothing about or extremely little about investing but this whole GameStop thing has me bamboozled.

The company in every way I can see is doomed. There is no future in bricks and mortar video game shops, and the bigger problem they have is the imminent situation where games for a given platform are only available directly through the company that own the platform, Microsoft - Sony - Nintendo, so there won't even really be anything for them to sell online except very niche collectibles.

What future can there be in stock in a company that makes absolutely no money in the real world?

I'll copy what I wrote over on Share Picks.

I was an investor in GameStop from last Summer to January this year purely on a value basis, I never thought the short squeeze would be this big.

"Gamestop are an excellent brand name in an ever growing market and are still a number 1 go to for new games on disc as well as new consoles.

They also have a huge database of customer analytics and subscribers which Ryan Cohen loves from his experience at Chewy.

The strategy is to close unprofitable stores, create a more customer friendly service online, and to expand the product range to include PC gaming items (monitors, graphics cards) as well as e-sports focused items. They are in a good position with the brand name, locations, and customer analytics they have to reposition themselves.

The agreement with Microsoft is also an excellent revenue generating scheme."

Like Chewy in America became the hub for all animal lovers, GameStop will become the hub for all gamers.

Static M.e.

Genuinely happy for you Kilboor, I hope you hit the jackpot. I can't imagine what point I would have sold, 100% up, 200%??!..

Why is everyone not shorting this now? Once the herd moves it is going to crash spectacularly.

supersonic21

2ndcoming wrote: »

I know nothing about or extremely little about investing but this whole GameStop thing has me bamboozled.

The company in every way I can see is doomed. There is no future in bricks and mortar video game shops, and the bigger problem they have is the imminent situation where games for a given platform are only available directly through the company that own the platform, Microsoft - Sony - Nintendo, so there won't even really be anything for them to sell online except very niche collectibles.

What future can there be in stock in a company that makes absolutely no money in the real world?

It's nothing more than a group of people out to get a hedge fund.

you're right — GME is a sh*itshow, with absolutely no future. (that's why it was shorted to begin with!)

the 99% (wsb) saw the 1% (hedge funds) shorting GME and decided to pump it up, causing the HF to make huge losses. It was pretty smart, and to be honest, I'm here for it. We're seeing regular people make big gains and its funny to see the hedge funds run to the SEC because the wrong people are making money from the markets.


my related positions: AMC (+21%), BB (+50%), GME (+20%), and NOK (+45%) and I put around 775 USD between them all — but I see these as no different than sticking money on a horse.

Shedite27

America waking up, GMW and AMC getting going now

Quantum Erasure

irish_major wrote: »

I am no expert but surely hedge funds are about to short the absolute **** out of Gamestock right now and just wait for its inevitable crash?

Wasn't there something about tulip bulbs in Amsterdam a while ago...?

Kilboor

Static M.e. wrote: »

Genuinely happy for you Kilboor, I hope you hit the jackpot. I can't imagine what point I would have sold, 100% up, 200%??!..

Why is everyone not shorting this now? Once the herd moves it is going to crash spectacularly.

Sold roughly 400% up, I sold at 35.50 based on my own price target of 30+.

Not life changing at all unfortunately, now if I held to 100+ then yes it's a down payment on a house for me. At 300 it's maybe a house in cash. But that's life.:p

Bodjhrjekekr

Static M.e. wrote: »

Genuinely happy for you Kilboor, I hope you hit the jackpot. I can't imagine what point I would have sold, 100% up, 200%??!..

Why is everyone not shorting this now? Once the herd moves it is going to crash spectacularly.

I am also new to this, from what I am reading the issue is: "A stock that doesn't decrease in value quickly enough ends up costing the investor interest."

Reference: https://www.investopedia.com/ask/answers/012915/how-long-can-trader-keep-short-position.asp#:~:text=There%20is%20no%20mandated%20limit,replaced%20at%20a%20later%20date.&text=Stocks%20are%20shorted%20by%20many%20investors%20every%20day.


At the moment its still increasing

Timing belt

VinLieger wrote: »

And yet the stock is climbing in premarket?


Also stop talking like you know something has happened that you literally have no evidence for.

It is not possible to know what the short position was yesterday unless the dealers let the market know. The short positions get released twice a month and what was released yesterday was the position at the 15/1/2021.

here is a link to the reg reporting requirements on how the gather the data etc.

https://www.finra.org/filing-reporting/short-interest/regulation-filing-applications-instructions

Any hedge fund that kept a short position open like that would need to post crazy Variable margin and the cost alone of this would make them close out their position.

For all the people saying that there was not enough shares to close out the short positions is rubbish as the short position was 61m and 810m shares have been traded since the 15/1/2021.

Maybe I am totally wrong and funds decided to keep there positions open to loose more money!!!!

supersonic21

irish_major wrote: »

I am no expert but surely hedge funds are about to short the absolute **** out of Gamestock right now and just wait for its inevitable crash?

I doubt it given the community tracing their moves. If they short it, WSB will push for more people to add to GME, forcing hedge funds to buy GME to cover their shorts, driving the price up further, which is exactly what happened in the first place.

Timing belt

supersonic21 wrote: »

I doubt it given the community tracing their moves. If they short it, WSB will push for more people to add to GME, forcing hedge funds to buy GME to cover their shorts, driving the price up further, which is exactly what happened in the first place.

They will short it intra day to keep it moving

2ndcoming

I get the whole sticking it to the hedge funds aspect, and I dig that. If everyone doing it is willing to lose their small investment to punish them well and good.

The part I'm not getting is the "Gamestop is going to take on Amazon, Steam, Sony, Microsoft and Nintendo in the real world marketplace and win". That bit is lunacy.

completedit

It's amazing seeing how bloomberg, Wall Street journal etc. are covering this story. Incredible reading the WSB reddit. It's a movement. An act of defiance. A rebellion. I can't even get my head around what is happening but it seems thousands of working class autists on the Internet have bandied together and put it to the HF's. There's nothing better than when rich insiders get their comeuppance

timmyntc

Timing belt wrote: »

It is not possible to know what the short position was yesterday unless the dealers let the market know. The short positions get released twice a month and what was released yesterday was the position at the 15/1/2021.

here is a link to the reg reporting requirements on how the gather the data etc.

https://www.finra.org/filing-reporting/short-interest/regulation-filing-applications-instructions

Any hedge fund that kept a short position open like that would need to post crazy Variable margin and the cost alone of this would make them close out their position.

For all the people saying that there was not enough shares to close out the short positions is rubbish as the short position was 61m and 810m shares have been traded since the 15/1/2021.

Maybe I am totally wrong and funds decided to keep there positions open to loose more money!!!!

Given they over shorted GME, for them to close out their position would cause a massive spike in GME value now.

completedit

2ndcoming wrote: »

I get the whole sticking it to the hedge funds aspect, and I dig that. If everyone doing it is willing to lose their small investment to punish them well and good.

The part I'm not getting is the "Gamestop is going to take on Amazon, Steam, Sony, Microsoft and Nintendo in the real world marketplace and win". That bit is lunacy.

Is it their CEO? I saw he runs a very successful digital petstore, maybe with him and the games top brand they can adapt to the changing nature of video game sales. New consoles being released as well which will be good for business.

Kilboor

completedit wrote: »

It's amazing seeing how bloomberg, Wall Street journal etc. are covering this story. Incredible reading the WSB reddit. It's a movement. An act of defiance. A rebellion. I can't even get my head around what is happening but it seems thousands of working class autists on the Internet have bandied together and put it to the HF's. There's nothing better than when rich insiders get their comeuppance

I'd argue that apart from Citron and Melvin, a lot of rich people are making money off this too.

Burry, Cohen, Chamath, all the institutional owners of gamestop etc

This isn't occupy wall street, it's not anti capitalist. It's extremely pro capitalist in terms of showing how wealth can be made through the system for the average person. Think 99% of WSB subreddit give a crap about any movement? It's all about the money for themselves and fair ****s

completedit

Thats true. But its nice to see it in simplistic terms and that people like yourself have won the game, while the established class have lost.

Nonoperational

None of my platforms will allow you to actually short the stock. The only was is to buy a summer Put which has a premium of about 25k, too much to risk for most retail investors. Shorting it is still very risky with such volatility.

2ndcoming

VinLieger wrote: »

Theres no future that warrants the current prices, people are trying to kill the short sellers that's it

Read this to understand

https://www.vice.com/en/article/pkdvgy/send-this-to-anyone-who-wants-to-know-wtf-is-up-with-gamestop-stock

Great article, thanks. That makes it a lot clearer.

The bit about the short sellers having to buy it back to close the deal was what I was missing. So they are not investing in Gamestop on its own merits at all, and purely playing Wall Street's game back at them?

Timing belt

timmyntc wrote: »

Given they over shorted GME, for them to close out their position would cause a massive spike in GME value now.

They have probably been closing out positions all week...

If they came out on the media and said that the closed out positions when they didn't they would be sued by every tom dick and harry and be fined by SEC.... just think about it....

Everyone is thinking they are give 2 fingers to wallstreet but in reality wallstreet is making a lot of money from this and a lot of retail investors will get badly burned in the end.

VinLieger

2ndcoming wrote: »

Great article, thanks. That makes it a lot clearer.

The bit about the short sellers having to buy it back to close the deal was what I was missing. So they are not investing in Gamestop on its own merits at all, and purely playing Wall Street's game back at them?

Exactly and now wall street are changing the rules, they are pressuring all the retail brokers to stop allowing people buy GME and AMC

Shedite27

2ndcoming wrote: »

The part I'm not getting is the "Gamestop is going to take on Amazon, Steam, Sony, Microsoft and Nintendo in the real world marketplace and win". That bit is lunacy.

I don't hear anyone saying that

crushproof

Quite interesting to see some of the media reaction to this. Claiming WSB is a far right community is absolutely shocking, does that mean Share Picks 2021 is a haven for the far right too?
There's clearly an agenda in the background to get this shut down ASAP.

riffmongous

Hm I've got a basic question on shorting if someone could maybe explain it.. it's based around borrowing a stock and then returning it right? .. but why would you lend your stock to someone who is just going to devalue it and keep the profit for themselves?

Kilboor

riffmongous wrote: »

Hm I've got a basic question on shorting if someone could maybe explain it.. it's based around borrowing a stock and then returning it right? .. but why would you lend your stock to someone who is just going to devalue it and keep the profit for themselves?

- Brokers (especially discount brokers) will lend your shares out if you hold any and not tell you (if you have basic accounts)

- Brokers make money lending shares out as they charge interest for the lended shares.

- There's always someone who will bet the opposite to what you think .

- Illegal processes - naked shorting - https://www.investopedia.com/terms/n/nakedshorting.asp

timmyntc

riffmongous wrote: »

Hm I've got a basic question on shorting if someone could maybe explain it.. it's based around borrowing a stock and then returning it right? .. but why would you lend your stock to someone who is just going to devalue it and keep the profit for themselves?

If you thought your stock was going to devalue, you would sell it yourself.
If you think its going to hold or climb, then you would let someone borrow & short, and when they fail you get your stock back at same or higher price + a fee.