The Investment Thread (5 Viewers)

[bclemms]

Dammit.

I sure hope that waits until April 12th. Only short positions I have right now are UVXY deep calls and and a few TSLA puts at various deep levels. If it crashes it better go hard. lol

 

[Turfie]

Sometimes I type in random letters into the search bar. Here is DSP. Down 90% since it’s IPO in February of 2021.

 

[Turfie]

GameStop NFT

Power to the players

nft.gamestop.com

I hope they make the NFT marketplace real simple. I hope they let you create a wallet and let you fund that wallet easily.

 

[Turfie]

GameStop has more registered shareholders than Amazon, Google, and Apple combined.

 

[itztime]

GameStop has more registered shareholders than Amazon, Google, and Apple combined.

Glad all of the government agencies we pay for are watching out for us.

 

[St. Geezy]

GameStop has more registered shareholders than Amazon, Google, and Apple combined.

This is where the predicament for me lies and why my mindset is starting to change about these particular two plays, AMC and GME...why are MMs being made out to be villains for doing their jobs by creating liquid markets? We got mad last year that the buy button was turned off, however we are also mad about all the naked shares out there...we can't have it both ways.

And that raises the question - what makes us believe that all of these naked shorts will be covered in the fashion some envision? I believe the "real" shorts need to be covered, but I am starting to have my doubts that ALL of the naked shorts will be covered, because the MM that gave us liquidity did what they were supposed to do and should not be made fully responsible for it (hence why I think large institutions like Blackrock and such are likely helping them keep those two tickers under control).

I alluded to this earlier in the thread, but I am starting to come around to the thinking that AMC/GME may indeed be the ULTIMATE distractions from many other much more fruitful, low cost plays out there of the same ilk, especially for options players.

Why buy a GME call option contract that's $30 out the money and expires this upcoming Friday for $120, when you can buy a BBIG call option that's only $0.23 out the money that expires in DECEMBER for $72?

It's because everyone and their mother is selling a story about this magical $100,000 share price ride that would require something to occur that I don't believe is legally obligated to ever occur. Meanwhile, while holding onto this magical MOASS scenario position, your dreams could be getting fulfilled with many of the smaller plays out there.

I am continuing to use BBIG as an example only because it's one of the first ones I have studied, but take for instance the $3.50 strike for 12/16. A 1% stock ticker move yesterday produced a 20% rise on those calls, going from $0.58 on the day to $0.70. BBIG is currently trading at $2.77, and is subject to the same cyclical price spikes as GME/AMC are. There are many other examples of this elsewhere, such as BKKT, SPCE, OCGN, EVGO, etc., and again, they're the same type of 100% Short Utilization play as the big two.

I think what I plan to do is to take a significant amount of time this weekend identifying all of the plays like this, finding the best value, and going heavy on a couple of them on far out dates. I will keep a small portion of my AMC position, however my mindset is shifting from using other plays as swing trades in order to feed AMC to now using AMC swing trades to feed other plays. I'll hold onto a (relatively) small call position on AMC indefinitely in case some magical MOASS scenario occurs, but I think I am done chasing a ghost on that one (I sold a large portion at $32 on the latest run-up with intentions of going back in on a dip like this one, but have now changed my mind on my approach).

 

[bclemms]

This is where the predicament for me lies and why my mindset is starting to change about these particular two plays, AMC and GME...why are MMs being made out to be villains for doing their jobs by creating liquid markets? We got mad last year that the buy button was turned off, however we are also mad about all the naked shares out there...we can't have it both ways.

And that raises the question - what makes us believe that all of these naked shorts will be covered in the fashion some envision? I believe the "real" shorts need to be covered, but I am starting to have my doubts that ALL of the naked shorts will be covered, because the MM that gave us liquidity did what they were supposed to do and should not be made fully responsible for it (hence why I think large institutions like Blackrock and such are likely helping them keep those two tickers under control).

I alluded to this earlier in the thread, but I am starting to come around to the thinking that AMC/GME may indeed be the ULTIMATE distractions from many other much more fruitful, low cost plays out there of the same ilk, especially for options players.

Why buy a GME call option contract that's $30 out the money and expires this upcoming Friday for $120, when you can buy a BBIG call option that's only $0.23 out the money that expires in DECEMBER for $72?

It's because everyone and their mother is selling a story about this magical $100,000 share price ride that would require something to occur that I don't believe is legally obligated to ever occur. Meanwhile, while holding onto this magical MOASS scenario position, your dreams could be getting fulfilled with many of the smaller plays out there.

I am continuing to use BBIG as an example only because it's one of the first ones I have studied, but take for instance the $3.50 strike for 12/16. A 1% stock ticker move yesterday produced a 20% rise on those calls, going from $0.58 on the day to $0.70. BBIG is currently trading at $2.77, and is subject to the same cyclical price spikes as GME/AMC are. There are many other examples of this elsewhere, such as BKKT, SPCE, OCGN, EVGO, etc., and again, they're the same type of 100% Short Utilization play as the big two.

I think what I plan to do is to take a significant amount of time this weekend identifying all of the plays like this, finding the best value, and going heavy on a couple of them on far out dates. I will keep a small portion of my AMC position, however my mindset is shifting from using other plays as swing trades in order to feed AMC to now using AMC swing trades to feed other plays. I'll hold onto a (relatively) small call position on AMC indefinitely in case some magical MOASS scenario occurs, but I think I am done chasing a ghost on that one (I sold a large portion at $32 on the latest run-up with intentions of going back in on a dip like this one, but have now changed my mind on my approach).

I completely agree. I've jumped in for some swing trades but never thought the MOASS was happening on AMC or GME, at least not again. Really felt like the small guys won when they ran GME to $400 and it was really awesome to watch. Since that time I've felt bad for those chasing that ghost and becoming the bag holders and not realizing they won.


I also fully agree that the short squeeze potential is in the low volume stocks people have forgotten about. Kodak was the first one that really got my attention early on in the pandemic. Overly shorted stock left for dead, suddenly they announce they will be switching from cameras to making medication. Stock shot up like 5000% from the combo of buys on the stock and shorts buying to close. Problem is trying to figure out which will go. I'd love to see the investment strategy of buying calls in dozens of thse stocks over years. It could pay off. Lose a little on a bunch of companies but hit one so big it does't matter what you lost.

 

[Turfie]

On the topic of other potential moon plays. I’ve been reading about Rite Aid and the involvement of Bain Capital. There is a lot of dirty laundry all over rite aid.

Here is a recent DD. Potential language.

 

[Turfie]

BBBY could also be a nice play. Their subsidiary Buy Buy Baby is worth billions (yet BBBY has a market cap of just 1.8 billion).

Kinda reminds me of the Dillards mini squeeze. Somebody looked through the financials of Dillards. They realized that Dillards wasn’t renting the physical properties that their stores sit at. They OWNED that property.

Dillards the entire time was a real estate play. The land they owned was worth way more than the market cap of the company.

 

[Turfie]

More on Rite Aid.


David Wollenberg. Pretty high up at Rite Aid. He also got his training at……drum roll…..


Man. There is enough smoke around ALL of this Wall Street crap.

 

[St. Geezy]

On the topic of other potential moon plays. I’ve been reading about Rite Aid and the involvement of Bain Capital. There is a lot of dirty laundry all over rite aid.

Here is a recent DD. Potential language.

Looks like a great swing trade stock, I must say.

 

[Turfie]

HSI dipped last night. Crypto dipped. Red all over in pre market.

And yet I wouldn’t be stunned if the major indices climbed to green by about noon.

 

[bclemms]

HSI dipped last night. Crypto dipped. Red all over in pre market.

And yet I wouldn’t be stunned if the major indices climbed to green by about noon.

I’d be shocked. Sell off ahead of inflation data. It started a day early but was about as obvious as it could be. I mentioned it several times in here referring to the data on the 12th.

Especially the tech sector and growth stocks. Good buying opportunities setting up for After the inflation data is released.

 

[jboss]

Glad I bought more DKNG on Friday.

 

[bclemms]

Glad I bought more DKNG on Friday.

Rounding bottom pattern setting up but may be a bit early for the big run. This is one I’m wanting to load up on in my invest account.