/biz/ - Business & Finance

[Anonymous No.27249459]

so this dude buys a bunch of cheap stocks, then convinces dumb dumbs to buy as well making him a millionaire? good plan

[Anonymous No.27249555]

He was already a millionaire. He just wanted to fuck the hedge funds.

[Anonymous No.27249616]

>>27249459
genius really
guy is a chad taking money from normies and redditors and putting it into his pockets

[Anonymous No.27249695]

>>27249459
Holy shit you know nothing about the stock market, do you? Fucking retard

[Anonymous No.27249712]

>>27249555
>he just wanted to fuck the system

while lining his pockets yeah?

[Anonymous No.27249757]

>>27249459
No, it's not a boiler-room bubble, it's a squeeze where hedge funds have shorted too many stocks. That's why Michael Burry called it an unprecedented financial event - as you probably know, there have been boiler-room bubbles before.

Happy to answer any question you might have to clear up your confusion on the matter.

[Anonymous No.27249872]

>>27249712
I mean, he hasn't pulled out yet. As long as he's on the ride, people should rest assured.
Of course, that can change immediately from one second to the other.

[Anonymous No.27249904]

>>27249555
He was just trying to make some cash and told reddit to help them out, it then became a movement all on its own

[Anonymous No.27249996]

>>27249757
Yeah sure this GME thing is totally organic. Nobody would ever shill a stock they own

[Anonymous No.27250114]

>>27249459
>So this board convinces you to buy tons of crypto to dump on you and become a millionaire
We are not so different.png

[Anonymous No.27250207]

>>27250114
/biz bitching about someone talking about their stocks and people buying them.
You guys are fucking tards.

[Anonymous No.27250248]

>>27249757
Is this bubble possibly worse than the housing?

All i see is troops and barricades in Washington preparing for something bad and normies stumbling upon a financial crime scene, not realizing the extent of the crime.

Where does this go? Also, is NOK a meme or is it an actual viable stock given the 5G future? That is all

[Anonymous No.27250274]

>>27249996
I am autistic, so I do not understand what you are actually trying to say when you are being facetious.

I'm not even sure what organic means, so perhaps you could tell me. However, I can say with certainty that a person would indeed be willing to "shill" a stock they own themselves, as this is the basis of those boiler-room bubbles that I mentioned in my previous post. However, while a person "shilling" his/her own stock is a necessary condition for boiler-room bubbles, it is not a sufficient one, and it would be fallacious to reason that a person "shilling" his/her own stock implies a boiler-room bubble.

Again, happy to answer any questions you have about the difference, provided you can express them more clearly.

[Anonymous No.27250275]

>>27249757
He also called it unnatural, insane and dangerous

[Anonymous No.27250294]

>>27249872
He has cashed out $13 million from this according to... him

[Anonymous No.27250350]

>>27249459
Seethe

[Anonymous No.27250356]

>>27250248
It's fucking gamestop anon.

[Anonymous No.27250442]

He's been long since Sept 2019, so it's unlikely that he directly caused anything. He's just riding the wave.

[Anonymous No.27250446]

>>27249555
>He just wanted to fuck the hedge funds.

Fuck I cannot wait until reddit leaves

[Anonymous No.27250448]

>>27249757
Can you explain the difference between gamma-squeeze and short-squeeze? How do options come into the picture?

[Anonymous No.27250470]

>>27250248
slightest good news and it will jump to 10 15 20 with this bull market
look at all the vax shit causing x4-7 gains even when some of them have barely passable results

[Anonymous No.27250597]

Are $800C a bad bet? I’m talking weeklies

[Anonymous No.27250729]

>>27250470
I've been following NOK for awhile and Kodak. I want to pull the trigger, but I don't have the income to play around with the voodoo criminal shit taking place and platforms making stock calls for me since "it's for my own good". I want to get involved and I want to make a call. Thanks.

[Anonymous No.27250767]

>>27250248
Alright listen up, this is not going to crash the economy. The only people who are scared are hedgies and oligarchs that can loose big on this. This is not a housing bubble as that just wipes out the wealth of the working class by market correction.

[Anonymous No.27250848]

>>27249712
annnd.......?

[Anonymous No.27251029]

>>27249459
He's a god, he told everyone back in August to buy GME at $6 and even made a video explaining his reasoning.

[Anonymous No.27251032]

can anyone explain to me when the hegde fonds have to pay?

[Anonymous No.27251053]

>>27249459
dcns

[Anonymous No.27251078]

>>27250448
Short squeeze
>shorts owe shares to their creditors and have some break even price beyond which they lose
>if the price goes up, they need to buy to cover their debt, which causes the price to go up more, which attracts outside buyers
>can turn into a cycle and cause a huge amount of buying
Gamma squeeze
>options
>call writers sell calls and have some break even price beyond which they lose
>call buyers buy a bunch of calls
>writers need to buy more shares of the underlying stock to hedge the calls they sold
>stock price goes up
>call buyers profiting, buy more calls
>can become a cycle and cause a huge amount of buying

[Anonymous No.27251105]

Everyone knows the hold meme is to make a new generation of bag holders. Reddit might get shutdown after the inevitable lawsuits against wsb for getting normies to turn their live savings into bags

[Anonymous No.27251132]

>>27249872
Newfag, he probably has multiple wallets.

[Anonymous No.27251154]

Gamma squeezes also work in the inverse direction for puts.

[Anonymous No.27251215]

>>27250248
NOK is just a meme the fingolians started.

[Anonymous No.27251254]

>>27250767
Ok. I've been crash studying all things money since August. My knowledge is novice at best. Once GME is dried out, does everyone walk through the next open door (AMC tier short) and grab ang go, or will (they) stop the party and limit us from participating in future trades? It seems to me that this won't stop with GME.

[Anonymous No.27251283]

>>27249459
>>27249555
It depends on whether or not he holds. If he sells then he will lose his reputation.

[Anonymous No.27251309]

>>27251032
they lost 70 billion so far and allegedly closed all their shorts but according to market watch the stock is still 140% short interest floated

[Anonymous No.27251409]

>>27251309
correction 121.07% now

[Anonymous No.27251461]

>>27251309
Short interest is reported every two weeks on an eight day delay.

[Anonymous No.27251462]

>>27251309
so the goal is to get the price so high, and then hold so the rest of 140% is closed? Is there a time limit or such? Or rents? Something have to push theyr time aswell I guess

[Anonymous No.27251552]

>>27249555
Go back

[Anonymous No.27251594]

>>27251309
Also. Where does the money from the shorters go?

[Anonymous No.27251596]

>>27250448
A call is a type of options contract that gives you the right to buy a particular stock, at a particular price, at a particular time.
If you sell a call, the person who is buying it has a right to buy that stock from you in the future. You would sell a call contract if you believed the price of the stock is going down, so that the market price would be cheaper than the strike price at the time of expiry. I that instance, you make money.
If the market moves in the other direction, then the person who is holding the call option at expiry would come to you to exercise their right to buy that stock at a lower price than market value. In this case, you would lose money.
Market makers who sold call options need to hedge their losses by buying the stock before it gets too expensive, otherwise the call options that they are on the hook for would cost them a lot of $
As the expiry dates of these call options come closer, and the probability that the call options are going to expire in-the-money increases, market makers are forced to go into the market and buy the stocks to cover their positions. This is a gamma squeeze.

This is different to a short squeeze. Short positions have no expiration date, because a short is basically the sale of a borrowed stock. But you do have to pay interest on the stock you borrowed, and that interest climbs higher and higher as time goes on and as the market moves up. Eventually, the short positions have o be closed by buying the stock back at market value. If the price increases too much, then at some point the interest + paper losses would wipe out the entire hedge fund.

[Anonymous No.27251604]

>>27249459
Yes and they praise him for it. Redditors are truly subhuman.

[Anonymous No.27251606]

>>27249757
So is 10k realistic?

[Anonymous No.27251616]

>>27249555
Chewy.com co-founder Ryan Cohen acquired a 12.9% stake in GameStop last year for $76 million.

You made this guy a billionaire.

[Anonymous No.27251685]

>>27249757
It's unprecedented because hedgies figured out a new way to buttfuck eachother, hiding behind retail. It's unprecedented, because millions of idiots are getting scammed, and come back for seconds. It's unprecedented, because the same techniques Facebook uses to to fuck people have been deployed by Finance, via RH and a like.

[Anonymous No.27251696]

>>27250767
*waves reddit detector over you*

BEEP BEEP BEEP

[Anonymous No.27251752]

>>27251254
I hope it doesn't stop with GME, cause that would just be market manipulation :^)
This is not going to go on forever, but it defiantly is going to make a lot for the retail trader which is what these jackasses fear.

[Anonymous No.27251774]

>>27249695
welcome to /biz/, haven of shitcoin shills

[Anonymous No.27251839]

>>27251696

[Anonymous No.27251885]

>>27251254
a lot of people missed out on the initial spike and got in late, they're hoping there's further growth ahead but are mostly looking for the exit point and the next spike. it happened once, right? surely if we keep it going, we'll get another gme level rise in some other stock that'll make us all millionaires!

unfortunately not, there are too many targets and too many people involved with gme just waiting for the right moment to sell. maybe in a few months/years someone will identify the next over shorted target and we'll see something similar, but there'll likely be too many protections in place by then for it to have the same impact.

[Anonymous No.27251971]

>>27249555
Yeah everyone knows once you're a millionaire you don't want to make money any more.

Checked for being absolutely brain dead.

[Anonymous No.27252017]

>>27249459
what people dont fucking realize is this chad is halfway out already, he's gonna dump his remaining 500 calls this week or the next for another $10-20 million and then let his shares ride for the fun of it
he was never in this game to hodl shares

[Anonymous No.27252117]

>>27251885
AMC is the only other short stock worth looking into as deepfuckingvalue suggested. Nokia is just undervalue and good on the long term if you think 5G infrastructure is the way to go.

[Anonymous No.27252153]

>>27251885
Thanks for the insight.

[Anonymous No.27252211]

>>27249555
Bullshit. He just wanted to make some money.

[Anonymous No.27252410]

>>27251885
I'm gonna say this from experience but looking for short squeezes is generally not a great way to find opportunities for sharp growth. They generally do not work out the way one thinks they will and it's hard to know exactly how much short interest there is, how many players there are, and how it's structured. Thus hard to know how much buying is necessary to start a squeeze. Most of the attempted squeezes around the market lately are going to have their pump but ultimately fail, won't tap out the shorts and will be successfully shorted by new entrants at inflated price levels. Plus names on which it makes sense to try a squeeze are typically the most hated in the market, that's why they're heavily shorted. So very often end up with expensive bags of junk not otherwise worth owning.

[Anonymous No.27252424]

>>27251078
>>27251596
bros

[Anonymous No.27252509]

>>27249459
op is dumb

[Anonymous No.27253444]

>>27251596
thanks brah, this cleared up some prior misconceptions of mine, but if there is no expiration on short positions and closing the position at market value would surely cause bankruptcy, is the interest significant enough in the case of melvin capital to force them to close out within 1-2 months?

[Anonymous No.27253548]

>>27249555
No he wasn't. He sold a quarter of his position a week ago which is why it looks like that.

[Anonymous No.27253862]

>>27253444
20-30%
They are bleeding money and most probably will try to drag it out. Still doesn't change the fact they are cornered, question is how big loses they accure

[Anonymous No.27254601]

>>27253862
the more they suffer the better

[Anonymous No.27254920]

>>27252117
maybe so, but the fact that people are even talking about nok shows that after gme the momentum will be severely diminished. some will be convinced silver is the next big score, some amc, some nok, some even doge or btc or whatever other crypto. right now we're united by the attention gamestop is getting, and all the late joiners are going to keep buying and holding partly to be part of the "fight the system" movement, but mostly because it looks like a sure way to profit.

once gme resolves, i'd say at least a third of us will sell out and be happy with their profit, and those looking to reinvest will split unevenly between other choices. it there was a way to ensure everyone was on the same page and ready to hit the next most shorted stock it'd be different, but there's too much noise and too many other directions people might be pulled.