GameStop short squeeze

Has any of you fellas been following the short squeeze activity around GameStop?

The WSB crowd is in an all out war against Melvin Capital and it’s simply hilarious to read what these kids are posting.

Tootle pip!

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I have been following the stock since September and I even have some money invested. I’ve been making some income by trading GME options. The high volatility and low share price before December were just too good to pass. Last week was really wild, the next week will probably be too. This one is not for the faint at heart.

Same deal here, been selling OTM puts and doing some beer money. Where do you reckon these kids will be taking the stock on Tuesday? I should have gambled on some deep OTM calls before the close on Friday.

I started with OTM puts too and actually did my first ever option plays with GME when the price was still around $10.

I really don’t know what’s going to happen next week but I think going over $40 would be a safe bet. The squeeze received more media attention on Thursday and Friday so more people might jump in. Amazingly, the number of shorts increased slightly while some must have been covering. The market cap is still way below annual revenue and some are even arguing that even with $30+ prices this is still a value investment in the long term.

Considering all that, I have some shares and I’m struggling to find a good strike for covered calls. Now might be a good time for those OTM calls (they’re expensive though!) because there was a 10% dip on Friday and the SEC uptick rule is still effective on Tuesday.

I agree. The 60C expiring next Friday trades between $1.05 and $1.10. I bet on some level of pullback and sold a CSP 26P on Wednesday but obviously didn’t get assigned. Fun times to be around. I reckon it’ll hit $50 by Friday 1/22.

What options do you trade on Swiss stocks by the way? Options on LOGN trade at good premiums but I often find that IV is just too low for Swiss stocks.

This is continuing to go mental.

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Just curious - is there any “real” business-related value, related to the newly appointed RC board members (+investors)?
Or this is just pure fun? :grin:

WSB rulez!
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Both. The new board members include activist investor Ryan Cohen who bought a big chunk of share in 2020. They are trying to turn over the company towards digital sales plus some other business models. The value investing thesis I’ve read is actually not too far fetched. Cohen made his billions by bringing pet supplies to the eCommerce era. I don’t know what a fair price would be but even after yesterday’s rally the price to sales was around 50%.

The whole story including Reddit’s wallstreetbets going against institutional investors and the short squeeze is too long to summarize here but it sure is fun to follow. I also have a small stake in this game.

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Good luck. :smiley:
I hope the game doesn’t stop too abruptly.

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This could be a year’s chart for a “growth” stock, but actually it’s today’s chart.

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Retail is now the whale, the whales are now bagholders. How hilarious.

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Insane Premarket

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I am a bit afraid of what the fallout from GME is going to be.
On reddit you see people going all in (maxing out credit card, all their life savings) in order to get in on this stock.

Once the bubble burst (WSB either moves on to a different stock, GME issues more shares to capitalize on the current stock price, someone with a large position decides to go ahead and sell and causes the prices to go down), I reckon we are going to see first time investors blowing up their accounts and people that could have been millionaires be left with a margin call/massive debt

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Like https://www.reddit.com/user/DeepFuckingValue ?

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I think he was the one that first presented the GME short squeeze thesis.
Good for him for having cashed out and having 2.6M (I imagine 1.5M after taxes probably but amazing and life changing money).
I would probably guess that now he will just let it ride until some next milestone like 10/25M and even then he will not sell everything.
The guy is set for life with one trade!

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WTF, when and how will this end? How steep will the decline be? Also what’s the difference from a ponzi scheme at this point?

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Actually the margin debt is doing well since the COVID-19 outbreak

It’s the latest data, they go only to last November!

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Who knows what will happen. Volatility is so extreme. There’s massive FOMO in the market and people are still jumping in at prices around $100 per share because the sentiment is that it will go to $1000 like VW did in 2008.

I have some shares but my profits are capped at $55 because I sold a covered call last week.I didn’t expect this to go parabolic within a week. On the other hand, the call premium serves as downside protection and at $55 per share I still make a nice double digit profit in a short time.

Browsing this subreddit is sometimes depressing. You really wonder what you should work if you can become rich by buying calls.

In another hand, a lot of people are losing money but don’t post their losses.

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