Boiler Room: The Official Stock Market Discussion
Market can stay irrational for a long time. Id be careful with thatOK, I think I might take some of my spare cash and buy some Gamestop puts. This is getting silly
If you didn't get in already I'd stay away. There's nothing driving this but WSB and short squeezes. The company itself isn't in a good place right now and this won't last.OK, I think I might take some of my spare cash and buy some Gamestop puts. This is getting silly
How is it that? It's just a bunch of retail investors on a forum agreeing to buy the same stock. They have no real pull.
No. They are not coordinated. Just a bunch of people sharing their opinions.
Oh ok, I'm a beginner, just was a bit confused. So Citron Research would be the market manipulator?
Saysumthinfunnymike
VOTE!!!
GME puts will likely print thats a good trade
If you got them
If you got them
Citron is nitrous
They are a short seller so yeah they put out their research and claim a stock will drop. Tbf they not even wrong about the company GameStop. However, WSB isn't buying GME because they think it's a good company. They are buying because of the short squeeze opportunity. Lots of funds thought GME was done so they loaded up on puts. Retail investors noticed the huge short volume and saw if they brought a bunch of shares and calls they could force short sellers to cover and buy shares (driving the share price higher).
Short version: Institutional investors engaged in very risky trading, retail investors noticed and are making them pay massively by huge positions in GME.
One WSB trader owns .05% of the company
Saysumthinfunnymike
VOTE!!!
Citron is nitrous
They are a short seller so yeah they put out their research and claim a stock will drop. Tbf they not even wrong about the company GameStop. However, WSB isn't buying GME because they think it's a good company. They are buying because of the short squeeze opportunity. Lots of funds thought GME was done so they loaded up on puts. Retail investors noticed the huge short volume and saw if they brought a bunch of shares and calls they could force short sellers to cover and buy shares (driving the share price higher).
Short version: Institutional investors engaged in very risky trading, retail investors noticed and are making them pay massively
Didn't the same thing happen with bed bath and beyond? Not to this extent but you can see what the short float is on these muthafukkas got short squeezed on that too
Spree At Last
All Star
i'd highly recommend waiting until the volatility goes down before getting into this trade. for example, currently a GME 50p for 1/29 is going for $8. the breakeven on that put is at $42. even if it slowly bleeds down into the money by next friday, that's a losing trade. it only wins if GME crashes rapidly back down to the thirties or below. which is definitely possible, but it's a lot of risk for a trade that's not even that lucrative.
if you want to play GME options, you should wait for a consolidation period before hopping into puts. but imo anyone getting into any GME option at this point has already missed the potential for big gains.
I was about to post the same thing I saw it on TD tooGME
My TD Ameritrade notification:
"GameStop shares are trading higher on above-average volume amid continued volatility in the name stemming from increased popularity amongst traders. Not seeing any company-specific news to justify the price action."
Yeah if they keep identifying short squeeze opps and the forum dives in heavy they could make massive gains by punishing funds
