I have 2 sons that have been telling me updates over the last 4 or 5 days. The tards (they call themselves that) were GameStop fans and figured out the wall street guys had over short it (140% of the stock float so lots of naked shorts). Thousands or tens of thousands of millennials have decided To screw the big hedge funds for their greed. I will say it is humorous to see the big hedge funds sweating bullets for their now 3.5-4.0 billion dollar loss so far over the last week or two. The tards decided to buy and hold. Force the price up. Then others did the same. There are kids (relatively) sitting 100k or more in stock due to the run up. They are saying they won’t sell to drive the shorts to hell. They seem quite pleased with themselves. I have no clue what the SEC will do.
It’s very much a David vs Goliath. I read some of it on Reddit.
I will add this. If the tards do hold, then the shorts have to buy to cover their shorts. If that happens the price will temporarily go very much higher. There are more shorts than stocks in float. Think about that. 140% more. People are jumping in at these prices thinking the shorts will get slaughtered. I’m not convinced when I read some 20 something saying he can pay off his student loan or buy a car or a house based on the current price. They say they are holding but greed is a funny thing.
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”.
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 ...