The Investment Thread (14 Viewers)

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superchuck500 said:
Interesting. What’s the value in holding a massively inflated asset? Are they planning another push at some point? I suppose it could be to support prices on option positions?

For the rank and file of this movement that are only trading shares, I think hold is risky. Everyone knows this stock is coming back to where it started. Even coming back to double where it started would be remarkable but that’s only $46.
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They really believe the stock will go above 1,000. Super risky. Someone on that forum took a loan out just to buy more GME stock.
 
Turfie said:
They really believe the stock will go above 1,000. Super risky. Someone on that forum took a loan out just to buy more GME stock.
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It’s all so unusual. The only reason to believe that is to believe in the crowd-sourced bid, there’s literally no other reason.

I’m going to buy more puts tomorrow.
 
superchuck500 said:
Interesting. What’s the value in holding a massively inflated asset? Are they planning another push at some point? I suppose it could be to support prices on option positions?

For the rank and file of this movement that are only trading shares, I think hold is risky. Everyone knows this stock is coming back to where it started. Even coming back to double where it started would be remarkable but that’s only $46.
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I think some of them that are holding no matter what are ones that bought in real early and didn't pay much for the shares.
 
Yeah, just read the sub forum. They are on a 🚀 to the moon, and that moon is the $1,000 mark per share. I have to believe that many people have sold off in the process as they are posting about all the great things they are doing with their profits, and unless market economics changed this week along with GME’s price, you have to sell in order to realize those profits. Many folks are posting screenshots of their RH accounts, so those accounts are all unrealized profits.

We all know that there will be bag holders once this bubble bursts. I am interested to see what the canary in the coal mine will be. What will signal to people to get out? The folks who bought in using loans are crazy, and will most likely get burned if another Thursday situation plays out. Best thing to do if you are in is take out your initial investment so that everything from here on is gravy, but I can see many doing that due to FOMO on a larger target exit price.
 
There is speculation that Siler SLV is next, but I did see a post on WSB that rebuked that theory.
 
itztime said:
There is speculation that Siler SLV is next, but I did see a post on WSB that rebuked that theory.
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Yeah, I heard that too and was curious about it. To me the stock of the company has an underlying asset, the company. So even though the short squeeze is simply market mechanics, there’s something there at least that has value and is a going concern. Silver and gold are just symbolic in nature. Unless you’re really convinced silver is the future of green energy conduction then I don’t really get it. No one cares about the underlying asset and it doesn’t matter if it’s real or not. They can make up any number for the price of it because the end market and purpose of it is limited
 
SaintInBucLand said:
So you are hoping for these average people to lose money so you can make it?

You are quite literally putting yourself against those who are going against the hedge funds.

Not very ethical.
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I’m not “hoping” anyone loses money. I hope they all sell their positions for big gains. Buying puts based on a realistic expectation is not an ethical question - it doesn’t affect the share price, so it doesn’t do anything to those holding shares.

I’m simply looking at the reality of a $23 stock that was bid up $350 on a premise wholly detached from the company’s fundamentals. Those fundamentals are what drive the realistic share price - and when all of this detached activity fizzles out, the stock will settle back down a its realistic, fundamental-driven value. Even if all of this interest manages to support a stable/equilibrium price of double (100% gain) where it started, which would still be remarkable, that’s only $46.

Right now the April 16 $300 puts are $200, which reflects a parity stock price of $100. At some point, $100 is going to be well over the trading share price. Will that be in April? Not sure, my sense is yes.

Playing a basic put option is not the same as what the hedge funds were doing - shorting the stock even greater than the float. The Reddit premise was to crowd source a short squeeze and when those positions get covered, the price will go even higher - making big returns and putting it to the hedge funds.

A put option is simply a contract right to sell shares. You can’t get squeezed, you can’t lose more than you spent on the contract. And put action doesn’t impact the share price (at least not if/until it gets converted), it’s a derivative market.
 
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superchuck500 said:
I’m not “hoping” anyone loses money. I hope they all sell their positions for big gains. Buying puts based on a realistic expectation is not an ethical question - it doesn’t affect the share price, so it doesn’t do anything to those holding shares.

I’m simply looking at the reality of a $23 stock that was bid up $350 on a premise wholly detached from the company’s fundamentals. Those fundamentals are what drive the realistic share price - and when all of this detached activity fizzles out, the stock will settle back down a its realistic, fundamental-driven value. Even if all of this interest manages to support a stable/equilibrium price of double (100% gain) where it started, which would still be remarkable, that’s only $46.

Right now the April 16 $300 puts are $200, which reflects a parity stock price of $100. At some point, $100 is going to be well over the trading share price. Will that be in April? Not sure, my sense is yes.

Playing a basic put option is not the same as what the hedge funds were doing - shorting the stock even greater than the float. The Reddit premise was to crowd source a short squeeze and when those positions get covered, the price will go even higher - making big returns and putting it to the hedge funds.

A put option is simply a contract right to sell shares. You can’t get squeezed, you can’t lose more than you spent on the contract. And put action doesn’t impact the share price (at least not if/until it gets converted), it’s a derivative market.
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I think for some at least its that they've nothing to lose. They know it's not rational. They know they can lose it all. They also know the system is unfair to them and has put such squeeze they are comfortable losing it all as it's all they've ever known.

 
A few are trying to talk some sense into people...

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I didn't get in on GME, but I did on BB, NAKD, AMC and NOK. I also have 336 shares of Blockbuster from years ago just for SnGs. No since in selling them, they already bottomed out.
 
According to Reuters, the short interest is still very high at 113%. It could be the short squeeze hasn’t happened yet or people continue short as others closed their positions.

 

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