Posted on 01/26/2021 6:54:35 PM PST by wrrock
The small investors on the r/Wallstreetbets subreddit (which has 2 million subscribers) and other sites are taking part in a conscious collective effort to drive the prices of these stocks up--most famously GameStop.
Many fund managers short sell stocks as a hedge and/or speculation. But if the price goes up to fast, short sellers get stuck and have to cover the short position by purchasing the stocks outright. This causes upward pressure on the prices of stocks.
Here is a list of stocks with the highest percentage of short positions compared to eligible shares.
Note: The price is unpredictable and the stocks can come down just as fast as they rise.
(Excerpt) Read more at toptradeguru.com ...
Shorts do add liquidity. It’ll be an interesting market without them. You’d be crazy to short in this nonsense.
The “Big Short” Guy is going to crash the market again, like he did before the great recession.
The Media blames him for that crash and not the MFers bundlings a bunch of overvalued homes filled with people that couldn’t afford a regular valued home, then selling the mess to Iceland as a “mortgage backed security”.
When The market crashes, I won’t blame him for this one, either. Tesla’s are nice, but with $2.00 Gasoline, TSLA isn’t worth more than every car mfg, combined.
Bring on the crash.
Shorts have a purpose. They dug through companies filings and do due diligence and uncover shenanigans like Enron. Naked shorting is supposedly illegal but how does one account for 100+% shorting? But they have been a destructive force against some small businesses that can’t raise capital after severe stock price decline (even if not deserved). So there’s plusses and minusses.
I wouldn’t short but I did worse, I bought gold.
GME is a historic short squeeze. Fun to participate in if you’ve guessed right, fun to watch from the sidelines otherwise.
After hours, the price went up even more. It was quoted at 209.5 in after hours trading at 8 PM (CNBC).
I’ve been there as a short seller. Get stubborn knowing “you’re right” . Best to cut bait and move on.
Gamestop is a very troubled company, and the ‘smart money’ shorted the stock expecting it drop even more. Some folks over on a Reddit Forum (and perhaps elsewhere, Reddit was the only place I saw it) started touting the stock as a short squeeze. There were also some rumors that might or might not have been true. Enough folks joined in that there was a short squeeze, driving it up even more. Some folks apparently, at least on paper, made huge profits in the short run.
Gamestop still has some fundamental issues, but folks that got in and out at the right time made some handsome money. Although it seems to still be going up, I’m not going to buy at current prices. (I own no Gamestop, never have, and have no plans to change that. So I don’t have a dog in this fight. I consider this a spectator sport.)
The thousands of kids sitting on $100K of Gamestop stonks are leveraged out the wazzoo. When some start taking profits, there are going to be thousands of 21 year old kids walking away from $500K of Debt like Strippers and Unemployed people walked away from their multiple houses in 2009.
My son in college said 3 years ago a kid lost $250K on Robinhood and stepped in front of a train the next day.
Today, the media will say he “died of Covid”.
Still, Gold is a better deal than GameStop..
On my watch list for tomorrow are VLDR, KOSS, XL, and CRBP.
GME and by relation AMC might dip tomorrow if the SEC decides that middle class long buyers are more dangerous than hedge fund shorters and shuts down GME for 10 days.
Melvin Capital, the main firm that shorted GME is rumored to be declaring bankruptcy tomorrow after furiously borrowing and selling Alibaba stocks instead of taking the hit and getting rid of their short losses early.
It drives me f...ing insane how people blame speculators and short sellers. Gov’t and Fed creates all these crazy debt instruments, SEC allows companies to issue junk debt for stock buybacks, and so on. What in the heck do they think people are going to do when they set up this madness? Most of us would love to analyze GameStop based on how many games they’ll sell and so on, but you’d be out of your mind to think that way in these fraudulent “markets”.
Instead look for liquidity waves, ride it, get out before it crashes.
A very opportune time for the small investor to buy a put or two. The stock will crash by March expiration date, maybe 2 or 3x your money in 6 weeks.
Pigs get fat hogs get slaughtered.
The big boys arent hurting , they can hold that short line forever. Once the joke is over and the blade falls , trailing stops will be a distant memory.
Last one out of the pool will have to be dragged.
A few out of the money puts would be a prudent hedge to carry if your in the deep end.
Just saying ...
Another thread to shine some light on this
GameStop extends Reddit driven hyper-rally after Musk tweet
https://freerepublic.com/focus/f-news/3929170/posts
A tight march 5th will cost you 75 bucks on a 150 stock, that means break even at 75 .. a 50% drop before your in the money. Goes to 25$ you made 50 on a 75 in.
5 weeks ... ya somethings going to happen , but I think I'll just go pound on my hand with a hammer for a while instead.
How can you have short interest higher than 100%?
Ping
This is about the craziest thing I've seen, top 5 anyway.
It really is a different market these days. I'm glad I'm not sitting in this one.
I hope there aren't too many kids out there just fronting a margin account. Waiting to late on something like this could be painfull.
“When this is over it will plummet.”
Yep. There’s many that got burned selling short, but there are always others that say “now is the time”.
“A very opportune time for the small investor to buy a put or two. The stock will crash by March expiration date, maybe 2 or 3x your money in 6 weeks.”
A very good idea! I’m going to do that tomorrow.
Or maybe not - just checked, the premiums are over 50%!!
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