Y'all this shit is absolutely ridiculous and I'm sure it doesn't belong on this website but holy shit. If you've got a few bucks laying around, grab a share of GME and plan to sell this Friday.
Also brace for impact because this is absolutely insane what's going on right now.
Way too much to dump here. Just letting y'all know.
You can’t cheat and borrow more shares than are available. A few things have happened.
GameStop has been massively shorted for a long time.
The float (available shares for trading) is small (46m or 49m, something like that).
Smaller float stocks are prone to squeezing on even minimal news, let alone a forum target buying).
Increased buying (by the WSB gang, mainly) has cause the price to increase. As the price increases shorts start to cover. Shorts cover by buying shares. Now WSB folks are buying, retail traders are buying (because it’s good action), and shorts are buying to cover.
(And the most interesting part of what makes this squeeze so insane). Institutions and others (regular people too) sold naked call options, which is allowed. Unfortunately for the institutions, they over played their hands and oversold them (also allowed. They can sell as many as they can back with real money). As of tonight all of those naked calls are in the money and expected to automatically execute on Friday. Anyone who sold those naked calls, who doesn’t have the shares to cover the call options with shares (that’s why it’s naked), will owe the owners of the call options the value of the shares equal to the number of contracts times 100 at market close on Friday. So institutions are panic buying now too. Cheaper to buy the shares the last couple days and pay in shares than pay in real money on Friday.
This move might bk an institution, maybe a couple. It’s definitely going to blow up some retain traders accounts. It’s definitely going to leave some novices pissed off at the end of the week. And a handful of people will make a shit load of money.
Which is why this seems like a ploy [THEY] would attempt. Very similar to the Market Crash of '07-'08. And Black Monday.
Short selling stocks should be made illegal, as it seems to be the very thing that keeps crashing markets. Over and over again.