Is the stock market going to tank?

**Brock Landers** · 01-26-2021, 04:48 PM

I mean look at the chart. Has it spiked up 30%+ over the last...say...2 weeks...and come back down, even if for a day. It being “down” for a day would probably be like 50%+.

**sirbumpsalot** · 01-26-2021, 05:38 PM

What would happen to GME stock and options if SEC stepped in and shut this shiite show down?

**LeeLau** · 01-26-2021, 05:41 PM

Originally Posted by CovertM

It tickled $250 and my hands started grasping for the sell button. Lee pulled me back, can't jump off the train and turn into a spectator yet.

Just took a bit of time to collect my thoughts.

Unwound hedges at 132 when it dropped to 90 so this is new as of today.

Positions: xxx shares. Covered calls against 50% xxx at 200.

I've never been in a squeeze so violent or managed so much profit attained so quickly so just my thoughts.

- I've already taken profits on 15% of xxx.
- Let the 200C assign. This would take profit on 50% leaving me with 35% of xxx.
- Sell CCs on the remaining 35% till they too get assigned with a hard stop at 690.
- Sell 100P to take advantage of " inevitable retracement" ( my words) and get even more premium
- Take profit on all but 690 shares at $420. Then sell the remaining 690 at $ 690? For no reason other than being part or this squeeze has been like an endless quintuple overhead fairy dust perfect stable pow run.

That's all I have for now

**LeeLau** · 01-26-2021, 05:42 PM

Originally Posted by sirbumpsalot

What would happen to GME stock and options if SEC stepped in and shut this shiite show down?

Same as with Luckin. Options expire. Shares remain halted. However there is no basis for a SEC halt

**alias_rice** · 01-26-2021, 05:51 PM

Originally Posted by BobMc

BBBY up 40%+ today. I'd planned to hold it for a while, but if it goes all GME I'm gonna sell.

I sadly have missed the GME fun, but I did put a little in BBBY a few weeks back. It’s been a nice little run. How long are you thinking of holding?

**shroom** · 01-26-2021, 05:59 PM

without trump i don’t think we would have had the divergence of WSB and 4chan to separate autist varieties enough to make this possible

see capitol plunge vs GME

ty donald, let’s drain this swamp

**CovertM** · 01-26-2021, 06:48 PM

Originally Posted by LeeLau

Just took a bit of time to collect my thoughts.

Unwound hedges at 132 when it dropped to 90 so this is new as of today.

Positions: xxx shares. Covered calls against 50% xxx at 200.

I've never been in a squeeze so violent or managed so much profit attained so quickly so just my thoughts.

- I've already taken profits on 15% of xxx.
- Let the 200C assign. This would take profit on 50% leaving me with 35% of xxx.
- Sell CCs on the remaining 35% till they too get assigned with a hard stop at 690.
- Sell 100P to take advantage of " inevitable retracement" ( my words) and get even more premium
- Take profit on all but 690 shares at $420. Then sell the remaining 690 at $ 690? For no reason other than being part or this squeeze has been like an endless quintuple overhead fairy dust perfect stable pow run.

That's all I have for now

Any significant retracement tomorrow that would cause you to double down?

Out of pride I don’t want to fuck up my avg. cost

Sent from my iPhone using Tapatalk

**LeeLau** · 01-26-2021, 07:12 PM

Originally Posted by CovertM

Any significant retracement tomorrow that would cause you to double down?

Out of pride I don’t want to fuck up my avg. cost

If it tanked 50% from the close then I may come close to the 60P assigning which would get me 5% of my position back. As it stands at close IV was so high that even when GME went to 150 the 60P still had $ 2 value and I don't see why I'd buy them back so I'll let them expire worthless by end of week and keep the premium. I got filled on some 100Ps right at close so going to let those ride too. If the 100P and 60P assign that would mean I'm back to about 90% of xxx which would IMO be too much. If that happened I would sell more weekly CCs but perhaps going higher than 200C to take profit there.

If it tanks 50% that would also mean I don't lose the shares from the 200C so that would mean my position would be still fairly big. Basically I'm zen about the 200C and doubt I'll try to trade my way out of that and let the chips fall where they may.

Since I don't really think it will tank that much (too much short pain thus reflexivity effect with panic begetting panic) TLDR I think I will end up taking the profits at 200

**BobMc** · 01-26-2021, 07:52 PM

Originally Posted by alias_rice

I sadly have missed the GME fun, but I did put a little in BBBY a few weeks back. It’s been a nice little run. How long are you thinking of holding?

I bought 100 shares back in early May, I’m in them $6.40/per. My original plan was out at $16.40, but modified that when I liked what they were doing business wise. I had planned on holding them long enough to get out tax free. I still like what they’re doing even after the last lackluster earning report, Tritton is trying to move them into more house brands which should do well for margins.

That last lackluster earnings report is probably what landed them on the most shorted list. Near as I can tell with my googlefu they’re the second most shorted stock behind an obscure pharmaceutical, AMC is also high on the list and would probably make an easier target with the lower buy in price.

I’ll probably wait at least through tomorrow to see if it takes off, I have some fomo, but I also don’t want to lose the current gain. I’ll probably watch it closely tomorrow and any sign of a retreat take some profits and hope to establish later at a more viable price with more shares.

**Brock Landers** · 01-26-2021, 08:11 PM

Originally Posted by BobMc

AMC is also high on the list and would probably make an easier target with the lower buy in price.

I don’t get the short thesis on amc. From where it was ($2 something) you’re betting on bk which is off the table for now. With all the $ being pumped to individuals and vaccines coming out...when’s bk coming?

I also heard they will be selling box wine in AMC locations. So there’s that.

**BobMc** · 01-26-2021, 08:28 PM

Originally Posted by Brock Landers

I don’t get the short thesis on amc. From where it was ($2 something) you’re betting on bk which is off the table for now. With all the $ being pumped to individuals and vaccines coming out...when’s bk coming?

I also heard they will be selling box wine in AMC locations. So there’s that.

From the perspective of WSB, I would imagine manipulation of a small market cap like AMC would be a lot easier than a large cap. A play on a vaccine benefitting stock would be much easier to pump up than boring old BBBY. AMC is shorted almost as much as BBBY. Neither are to the rate of GME that started the whole firestorm so I don’t think either would enjoy the same bonfire. But one (me) would think AMC would be the better target. Is GME a one off? This rise up in AMC and BBBY makes me wonder.

You bring the box wine to the bypass and I’ll bring the snacks,

.

Edit: If you were asking me why big funds were short on AMC, beats the fuck out of me. I’m just some dumb dude turning wrenches trying make sense of this shit while making some pennies.

**paulster2626** · 01-26-2021, 08:33 PM

The play is to hold GME until $1000. YOLO that shit!

Sent from my iPhone using TGR Forums

**Brock Landers** · 01-26-2021, 08:40 PM

Originally Posted by BobMc

Edit: If you were asking me why big funds were short on AMC, beats the fuck out of me. I’m just some dumb dude turning wrenches trying make sense of this shit while making some pennies.

Haha that’s what I was asking. Just grasping at anyone’s opinion.

**BobMc** · 01-26-2021, 08:58 PM

AMC announced new funding YESTERDAY, I’d imagine the short interest isn’t something new. I looked at AMC months ago, didn’t want anything to do with that. Like you said, rumors of bk.

Short interest baked in, not enough time to get out of it when GME hits. Investment firms thinking it won’t propagate, holding firm.

JMHO

**LeeLau** · 01-26-2021, 09:24 PM

A good read.

https://mcusercontent.com/0d29cf83b7...ate_202012.pdf

"Our long-held strategy
of shorting garbage stocks has hurt us and hurt us
some more."

I have 18 longs and two shorts. DASH and soon to be WKHS. I wouldn't doubt my shorts will likely hurt me

**BobMc** · 01-26-2021, 09:49 PM

“It would work out all right for the shorts in the end provided they could hold on.“

Hubris.

Thanks for the read.

**LeeLau** · 01-26-2021, 09:50 PM

Another good read. Book value Boomers can ignore

https://www.bloomberg.com/opinion/ar...ource=url_link

Too many zingers

"The stock has gapped up or down because people aren’t paying attention: It is “really” worth $100 or whatever, and lots of people in the world would happily buy it for $100 and lots of other people would happily sell it at $100, but they’re all out at lunch and there are just a few algorithms trading the stock and they have accidentally pushed it down to $90. (Or up to $110.) So the exchange halts trading for five or ten minutes, so that everyone who wants to buy or sell has time to get back to their desks and put in orders. “This stock is trading at $90, that’s a steal,” people will think, if they have five minutes to think about it, and they’ll put in buy orders and push the stock back to its natural price when it reopens.

I do not think this theory really applies to GameStop. It has all the prices at once. If you halt GameStop for going up too much, people are just going to hang out on Reddit talking it up more until it reopens. Or the other way: Between 10:45 and 11:15 yesterday, GameStop fell from $159.18 to $88.09, with four trading halts along the way. When the stock plummeted from $159.18 to $132.32, and then was halted for five minutes, nobody said “oh wow this $159 stock is trading at $132, what a bargain, I’d better jump in.” Those concepts mean nothing now"

" at worst this is a sort of honest pump, people banding together to do it for the lolz and hoping they can get out before it collapses.
I’m not even convinced it’s that though. The stock closed Friday at its all-time high. Roaring Kitty was up $11 million. Everyone came back on Monday and did it again. My model here—and I should emphasize this is purely a guess—is that the people most identified with the GameStop trade on Reddit, at this point, are much more interested in securing their legendary status on Reddit than they are in taking profits at the expense of whoever came in later. "

"The SEC’s core concerns, about people lying about stocks and tricking the innocent, don’t seem especially implicated here; everyone is having reasonably informed and consensual fun."

**LeeLau** · 01-26-2021, 09:51 PM

And more

"A popular conclusion from the GameStop story is “well I guess the stock market is nonsense now,” and I’m not sure that conclusion is wrong. Seems like the sort of thing the SEC wouldn’t like. But what can they do about it? "

". I’m sure that now Plotkin can get into the exclusive clubs where, like, the guys from Long-Term Capital Management hang out and tell war stories. “I can see by your scars that you took a bailout from Ken Griffin,” one of them will say, lighting a cigarette with a faraway look in his eye. “I took a bailout once. It was the Russian crisis of ‘98 that did me in. What got you?” And Plotkin will have to say “well see there’s this subreddit"

**shroom** · 01-26-2021, 09:53 PM

truth, tendies or nuthin

**Mazderati** · 01-26-2021, 10:10 PM

Not sure how that article does anything but support the gambling thesis but OK.

**LeeLau** · 01-26-2021, 10:22 PM

Originally Posted by Mazderati

Not sure how that article does anything but support the gambling thesis but OK.

It was a smart gamble against an ambushed party.

**LeeLau** · 01-27-2021, 12:12 AM

I remember KBIO -https://moxreports.com/kbio-infinity-squeeze/ - a 10,000% squeeze. GME from 12 to 240 is "only" 2000%

There have been other short squeezes just as violent but none documented except in "Scam Dogs and Mo Mo Mamas" re the early dot com shorting days.

The last big squeeze I recall was the Oil QM contract from March of 2020 where USO tanked and the QM future went negative. That was people cornering oil storage facilities due to tremendous decrease in demand for oil and tremendous increase in demand for storage to put surplus oil.

**Brock Landers** · 01-27-2021, 07:05 AM

Feb 12 amc $7 call options...sell today or ride it out longer?

**paulster2626** · 01-27-2021, 07:41 AM

Originally Posted by LeeLau

Another good read. Book value Boomers can ignore

https://www.bloomberg.com/opinion/ar...ource=url_link

Too many zingers

"The stock has gapped up or down because people aren’t paying attention: It is “really” worth $100 or whatever, and lots of people in the world would happily buy it for $100 and lots of other people would happily sell it at $100, but they’re all out at lunch and there are just a few algorithms trading the stock and they have accidentally pushed it down to $90. (Or up to $110.) So the exchange halts trading for five or ten minutes, so that everyone who wants to buy or sell has time to get back to their desks and put in orders. “This stock is trading at $90, that’s a steal,” people will think, if they have five minutes to think about it, and they’ll put in buy orders and push the stock back to its natural price when it reopens.

I do not think this theory really applies to GameStop. It has all the prices at once. If you halt GameStop for going up too much, people are just going to hang out on Reddit talking it up more until it reopens. Or the other way: Between 10:45 and 11:15 yesterday, GameStop fell from $159.18 to $88.09, with four trading halts along the way. When the stock plummeted from $159.18 to $132.32, and then was halted for five minutes, nobody said “oh wow this $159 stock is trading at $132, what a bargain, I’d better jump in.” Those concepts mean nothing now"

" at worst this is a sort of honest pump, people banding together to do it for the lolz and hoping they can get out before it collapses.
I’m not even convinced it’s that though. The stock closed Friday at its all-time high. Roaring Kitty was up $11 million. Everyone came back on Monday and did it again. My model here—and I should emphasize this is purely a guess—is that the people most identified with the GameStop trade on Reddit, at this point, are much more interested in securing their legendary status on Reddit than they are in taking profits at the expense of whoever came in later. "

"The SEC’s core concerns, about people lying about stocks and tricking the innocent, don’t seem especially implicated here; everyone is having reasonably informed and consensual fun."

There's too much money at play thought to just be Reddit users. Yes, some of them have a lot of cash to throw around, but imo it doesn't add up.

There are some big players here trying to take advantage of a situation that is only made popular by reddit and the media covering them. What makes me warm inside is that there are now a bunch of uptight necktie-wearing boomers reading r/WSB now trying to understand what's happening, only to find a bunch of people who call themselves autistic retards, say that their wife is fucking someone else, and drink their own piss martinis from time to time. And some of them are making millions. It's amazing.

**warthog** · 01-27-2021, 07:58 AM

Originally Posted by Mazderati

Not sure how that article does anything but support the gambling thesis but OK.

Can anyone explain the difference to me?

I mean, I get that what Warren Buffett does is a whole different game, and I get that corporate pension funds and the like are run differently, but how is your typical day trader any different than the 60 year old raspy voiced lady pulling at the penny slot? Is it because it is more high brow? Just curious, as a risk averse fund investor.