Go Leafs 11 Posted January 31, 2021 Share Posted January 31, 2021 A reddit user called DeepFuckingValue (lol) saw in mid 2020 that hedge funds had naked shorted Gamestop (140%) and decided to add it to his portfolio on the off chance that Gamestop survived. When a person decides to short sell something, they are hoping the price will go down so they can buy it back when it does and book a profit. A naked short is when more shares are sold than total outstanding shares. Example: Company A issues 10 shares which people buy and then fund X comes in and short sells 15. Fund X has to pay fees to the broker for short selling and provide collateral in case the price goes up. Naked shorting is very rare in the stock market and Gamestop is the only current example so this created an opportunity. Earlier in Jan, the stock price of Gamestop started rising as more and more people started to take notice at r/wallstreetbets and bought the stock. This movement went full insane this past week as more and more people started getting involved and its gone global. The gist of this is to have as many people buy Gamestop stock and continue to hold which will drive up the price. This price increase will force whoever short sold it to pay more to the brokers on a weekly/monthly basis because of the service provided + solvency issues. In addition, if the price of the stock keeps going up, the short sellers aren't profiting at all since they short sold on the assumption that the price would fall and they would buy back at a lower price. That is essentially the squeeze: Do the short sellers continue to hang on to their position and pay higher fees and give up more collateral as the stock price rises or do they buy back the shares at a huge loss and close their position? BTW I'm not an expert on any of this so pls excuse if I got something wrong but my interest in the stock market is at an all time high right now. I've traded on and off for the past year or so but I will definitely start looking into it more now. Anyways, I'm not exactly sure why I wrote all this but it's going to be an exciting week ahead seeing all of this unfold. I have 1 share of Gamestop for the memes. How do you think this plays out? Quote Link to comment Share on other sites More sharing options...
Dickus 777 Posted January 31, 2021 Share Posted January 31, 2021 APE TOGETHER STRONG WE LIKE THE STOCK Quote The Titans Officer Ronin PK Leader Tempy Legend Link to comment Share on other sites More sharing options...
Kim 125 Posted January 31, 2021 Share Posted January 31, 2021 16 minutes ago, Dickus said: APE TOGETHER STRONG WE LIKE THE STOCK Quote Link to comment Share on other sites More sharing options...
&Justyn 445 Posted January 31, 2021 Share Posted January 31, 2021 Hold the lines Quote Link to comment Share on other sites More sharing options...
Casey 370 Posted January 31, 2021 Share Posted January 31, 2021 Been interesting to watch it happen, i bought some amc/bb/nok because I wasn't gunna spend 200$ on some gme lol, prob should've bought some and made some quick cash tho. Quote Link to comment Share on other sites More sharing options...
BleakTerror 451 Posted January 31, 2021 Share Posted January 31, 2021 why didnt anyone tell me to invest in gamestop when i was 12....thanks obama Quote Link to comment Share on other sites More sharing options...
≈david 803 Posted January 31, 2021 Share Posted January 31, 2021 diamond Quote Link to comment Share on other sites More sharing options...
Sus 136 Posted January 31, 2021 Share Posted January 31, 2021 I think its all just a bunch of bollocks tbf Quote Free Venom Link to comment Share on other sites More sharing options...
Pietru 1,230 Posted January 31, 2021 Share Posted January 31, 2021 I need to invest in something obsolete as fuck and wait 10 years Quote Tempest Old School ~ Dear You ~ Link to comment Share on other sites More sharing options...
Ssj 908 Posted January 31, 2021 Share Posted January 31, 2021 Doubt it'll shoot up again now, and the company model of gamesstop just isn't viable for them to take much advantage of the situation. lnitial frenzy was the best it will have been so I don't feel much point now in getting involved. You either missed out or didn't. Quote Ex-Envy Leader / Ex-Genesis Council / Ex-Divine Forces App Reviewer / Tempest Legend / Link to comment Share on other sites More sharing options...
Atvdinner 379 Posted January 31, 2021 Share Posted January 31, 2021 What's interesting is how different platforms handle this. The sad part is some of them stopped alowing you to trade those stocks altogether. It's sad, to shut things off because the general public is making you pay for your bad behavior. If I buy a stock and it devalues they don't stop my losses. Why is this any different? It's probably one of the most un-American thing I have witnessed is such a long time. This upsets me deeply. Quote Link to comment Share on other sites More sharing options...
Howl 945 Posted January 31, 2021 Share Posted January 31, 2021 HOLD! Quote don't be the third whale Link to comment Share on other sites More sharing options...
danex 459 Posted January 31, 2021 Share Posted January 31, 2021 hol up Quote Link to comment Share on other sites More sharing options...
≈Flukejiver 1,182 Posted January 31, 2021 Share Posted January 31, 2021 HOLDDD Quote Spoiler Link to comment Share on other sites More sharing options...
Melo C 237 Posted January 31, 2021 Share Posted January 31, 2021 I sell cocaine and cocaine accessories Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.