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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

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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.

[Deleted User]

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.

Jim2007

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?

Well if your the client of a discount broker, you may be doing it already for free... check the account type you have and the conditions.

Timing belt

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?

Because they will make money in Fees and charges.

JazzyJ

riffmongous wrote: »

.. but why would you lend your stock to someone who is just going to devalue it and keep the profit for themselves?

Its the market that defines whether the stock is decreases or increases. The person shorting the stock can lose money too as is the case at the moment.

ardinn

Is there anywhere I can get in on the fun? I want to do a bit for the craic, have 2-300 to play with, I did open a degiro account but my feckin passport expired and it wont verify me - so im wondering is there somewhere or a broker that will take that small an amount.

[Deleted User]

Thanks guys, I can see how it happens now, the broker was the missing link

JazzyJ

ardinn wrote: »

Is there anywhere I can get in on the fun? I want to do a bit for the craic, have 2-300 to play with, I did open a degiro account but my feckin passport expired and it wont verify me - so im wondering is there somewhere or a broker that will take that small an amount.

You'd want some big balls to be getting in at this point! I've been saying that since Monday though

Dr Turk Turkelton

ardinn wrote: »

Is there anywhere I can get in on the fun? I want to do a bit for the craic, have 2-300 to play with, I did open a degiro account but my feckin passport expired and it wont verify me - so im wondering is there somewhere or a broker that will take that small an amount.

Try Revolut, you can buy shares on it.

ardinn

oh ok - thanks

bluemachaveli

I threw €500 at it on Monday @$88.25 for a spin on the hype train. Going to take my initial investment out today and see how tomorrow goes with the rest, but will bow out at some stage sooner rather than later.

I'm pretty much a novice at this stuff and don't understand a huge amount of it, have the basics, but options and calls etc. mean nothing to me.It's crazy to see the hedge funds scream bloody murder when the tables are turned on them.

dpforce

Pump and dump at it's best. A lot of similar raise and fall can be observe in penny stocks.
I agree that all this was initiated on reddit forums, but big boys had to step in as app traders with their average 200 -5000K accounts dont have enough fire power to pull this off. Especially create more than 30 billion daily trading volume.
This thread is good example how free trading apps changing things - people don't even understand what's going on, but want piece of actions and jumping on it to make easy money.
What can possibly go wrong?