The GameStop/Reddit thing is huge with the young folk
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https://www.fool.com/investing/2021/01/31/the-worst-mistake-gamestop-investors-can-make-righ/
For a sense of scale, one single contract at $320 requires an investor to pony up $32,000 to buy the shares at expiration. At some point between market close on Friday Jan. 29 and market open on Monday Feb. 1, affected former GameStop options investors will wake up to find they are now GameStop shareholders. Not only are they now shareholders, but they are out tens of thousands or hundreds of thousands of dollars or more.
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@jon-nyc said in The GameStop/Reddit thing is huge with the young folk:
Squeezes like this rarely end well,
He spelled ‘never’ wrong.
I suspect the 3 million kids bought options with their stimulus money for 320 not caring if they lost that. I doubt they can come up with 32k so it should be very interesting to see how this unwinds.
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@loki said in The GameStop/Reddit thing is huge with the young folk:
Horace- how is your silver doing? Did you hold?
Currently up 100% from when I bought it. I don't have plans to sell, though.
@horace said in The GameStop/Reddit thing is huge with the young folk:
@loki said in The GameStop/Reddit thing is huge with the young folk:
Horace- how is your silver doing? Did you hold?
Currently up 100% from when I bought it. I don't have plans to sell, though.
Nobody ever went broke counting on the kindness of strangers.
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@horace said in The GameStop/Reddit thing is huge with the young folk:
Currently trading at 178.
@89th should have shorted!
The Brad
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@horace said in The GameStop/Reddit thing is huge with the young folk:
Currently trading at 178.
@89th should have shorted!
@lufins-dad said in The GameStop/Reddit thing is huge with the young folk:
@horace said in The GameStop/Reddit thing is huge with the young folk:
Currently trading at 178.
@89th should have shorted!
It's taken a beating in after hours trading. It closed at about 220.
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@horace said in The GameStop/Reddit thing is huge with the young folk:
Currently trading at 178.
@89th should have shorted!
@lufins-dad It’s pretty much impossible to borrow
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@horace said in The GameStop/Reddit thing is huge with the young folk:
Currently trading at 178.
@89th should have shorted!
@lufins-dad said in The GameStop/Reddit thing is huge with the young folk:
@horace said in The GameStop/Reddit thing is huge with the young folk:
Currently trading at 178.
@89th should have shorted!
Ha! It's one thing to "know" (as we all did) that a stock's price will soon plummet. It's another to put money on the short knowing there is in theory no limit to the losses you could incur if the stock price goes to the moon.
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Even if you can put up the money and have enough money in reserve to withstand the risk, sometimes there is no stock for you to borrow to “short” the stock. Recall I linked to an article earlier about more than 100% of GameStop stock have been shorted. That’s a pretty good indication that there is none left to be borrowed.
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GME price movement must be nearly unprecedented. In the first 2.5 hours of trading today, it's fallen by 50%, then doubled, then fallen again by 25%. And that's all from an opening price of 40% less than the close the day before.
