Boiler Room: The Official Stock Market Discussion

[L&HH]

Great post for those nervous about holding:

 

[humminbird]

Yesterday Robinhood broke the chain. The price fell and many of those hedge funds probably got out so the question is does this cycle continue with that fall in price?

it really depends if the hedge funds truly got out of their short positions
if not the call expirations today will exercise and they'll have to cover more of their positions
the other part is that they'll keep trying to short the stock because they want to cash in on the crash
there is a ceiling on this though I just don't know what it is

 

[No1]

No it doesn’t. The float on GameStop was 140%. On AMC it was like in the 60% range I think.

I’m not saying it was going to hit GME hit. I’m saying that the pathway and strategy was similar. It was a clear pump for the latter. I wasn’t about type out a paragraph lol. I think we all said in here multiple times that AMC isn’t something any of us have that level of faith in.

 

[El Bombi]

NAKD

 

[Panther]

I haven't gotten any work done this week

 

[winb83]

This has been stated multiple times - GME was a short squeeze. The other stocks are a pump, tho a case can be made for the long term potential of BB.

anyone who bought the others looking for a GME rise shows why even when playing along with memes, you need to understand what the play is

I disagree with BB. I think it was a long play for them but it got caught up in this madness. A lot of stocks got sucked into this that had no business there. We got people looking at AMC and BBBY and NOK or whatever else is out there trying to recreate this but those weren't valid options. GME was a very unique situation and it will have suffered because of people throwing money at anything that moved instead of focusing their efforts on GME. This isn't gonna happen again for a long time if ever. The next exploit will have to be something else.

 

[GetRichOrDieTryin]

Great post for those nervous about holding:

didnt read but im holding on to the stocks like a pair of round t*ts

 

[jdubnyce]

This is the Gamestop situation as I understand it.

The hedge funds were circling Gamestop like vultures because it looked like it was finished. They went to brokers and borrowed a ridiculous amount of shares sold them and then if I'm correct they went back and borrowed more and sold them to the point where the amount of borrowed shares was more than the outstanding shares of the company. Apparently they saw it going to 0.

When the hedge funds borrow the shares they're taking those from real shareholders. The broker has to make those shareholders whole in the event the hedge fund can't. Also all sorts of options are being sold that could possibly be exercised and have to be covered.

WSB inserts themselves by buying options and shares and the plan is hold them and take them out of circulation. As the price rises the brokerage has to cover the options and the shorts in the event the hedge fund can't so the brokerage starts buying the underlying asset which puts more upward pressure on the price. The hedge funds see this and they have to return those shares so they buy and the price continues to rise.

As long as retail holds the shares since the float was more than the outstanding shares there's a permanent shortage of shares and an infinite loop continues pushing the share price higher and higher.

WSB gambit was never about investing in Gamestop it was a cheat code to riches. I was looking at Gamestop like it was an investment not a cheat code. That's why I lost out. I don't wanna buy that company but buying into that cheat was totally worth it.

BB doesn't have the float Gamestop did. Nor does Nok. The people investing in those looking at Gamestop are wasting their time.

Feel free to correct me where I'm wrong.

yup - here's the analogy I'm working with:

gamestop - one nightstand (maybe the most fun night of your life)
bb/nok - long term relationship (potential multiple nights of fun...but you gotta build towards it)

 

[Chrishaune]

it really depends if the hedge funds truly got out of their short positions
if not the call expirations today will exercise and they'll have to cover more of their positions
the other part is that they'll keep trying to short the stock because they want to cash in on the crash
there is a ceiling on this though I just don't know what it is

I saw something where it costs much less for them to just take a penalty so they might just wait for people to sell out and buy as needed. It's still going to cost them money, but there always seems to be a less painful out when it comes to the rich.....

 

[ExodusNirvana]

I’m not selling until we’re at $4200.69 a share. Beskar hands brehs

This is the way

 

[OneManGang]

I just want AMC to hit 18 again so i can recoup my investment. Then make my next move

 

[dora_da_destroyer]

I haven't gotten any work done this week

Least productive I’ve been since election week lol

 

[winb83]

We still get people here buying AMC, buying NAKD, buying SNDL. Those are all a waste of time. Even if the share price of GME is higher than those if the cheat code is still in play it will go higher. The question is did enough institutional money take advantage of the opportunity Robinhood created and get out to permanently break it.

It's also completely clear why Robinhood did what it did. If that cheat code continued they would have ran out of money and not been able to cover the shorts and options. Robinhood had to do what it did and they did it to protect themselves but also to protect their customers in a round about way because if Robinhood became insolvent who really wins? Maybe SIPC steps in and makes them whole? If a mass wave of brokers go insolvent that can't be good for the market.

 

[Tribaligenesis]

I just want AMC to hit 18 again so i can recoup my investment. Then make my next move

It will probably hit higher than that. Think the GME rally will push it along. Infact I'm gonna assume everyone that missed the boat on GME will rally to AMC.

 

[dora_da_destroyer]

I disagree with BB. I think it was a long play for them but it got caught up in this madness. A lot of stocks got sucked into this that had no business there. We got people looking at AMC and BBBY and NOK or whatever else is out there trying to recreate this but those weren't valid options. GME was a very unique situation and it will have suffered because of people throwing money at anything that moved instead of focusing their efforts on GME. This isn't gonna happen again for a long time if ever. The next exploit will have to be something else.

Bro, go read the threads on BB, they were about a short pump and long term value.

as for your point about GME - people who knew what this was have been saying that for a couple weeks now, seems like folks are just now deciding to research the actual reason for this.