People talked about $GME a whole bunch in January, but I don't think you realize just what is happening in the market and how this one stock could result in the greatest transfer of wealth in human history... so, I give you this thread:
Why is GameStop a game changer?
It all begins with the fact "retail is dying" people buy things online, games now have downloadable content and you don't need to by disks or cartridges any more. So, people don't visit the store as often. The storefronts are tired and 20 years old, and profits were spent on buying back 30$ of its stick to keep the price from dropping so much they get delisted. They went from 100 million shares to 70 million shares (20 million of which are owned by insiders and can't be freely traded). Then about 35 million of the remaining 50 million shares are owned by big investment and index funds, while the remaining 15 million shares are owned by retail investors. Average folk like you and me who are too poor to be invited by a hedge fund but put these shares in our meager portfolios or 401k.
It is important that you remember that there are only 50 million shares that can trade.
Now, to stay afloat GameStop issued some bonds and the first big set of bonds (imagine as of they took out a multimillion mortgage on their entire busoness) scheduled to mature do so in the next week or so. Sometime last year some shit ass hedge fund bros saw $GME struggling, then got hit by the pandemic and decided it was time to short the shot out of the stock and become kajillionaires. They borrowed the stock, millions of shares of it, from the index funds and then sold it expecting the price to crater and then scooping up the cheap shares and giving them back to the people they borrowed them from. If $GME were to bankrupt, then they wouldn't even need to give back the shares or even declare capital gains. Billions in profit tax free! So, fully expecting GameStop to default on their bonds, they shorted, and they borrowed more and they shorted, and they borrowed some more and they shorted... but who was buying the shares? Regular dorks like us. Retail investors, were buying and hoarding the stock.
By January the shares on GameStop had been shorted something like 140%... how does that happen?
Well, once the stock is borrowed and shorted, and someone like me buys the shares, I would get counted as an owner and the fund from which the shares were borrowed gets counted as an owner too. Then, the stock sits in my brokerage account and my broker lends the stock to a hedge fund and shorts it again. So someone else bought the shares and they're counted as an owner, I'm counted as an owner, and the index fund is counted as an owner... before long this had gotten out of control and the index funds wanted their shares back, but the price of the stock had risen above what the HFs had shorted it for, and the retail owners refused to sell. This is called a "short squeeze" and the result was the stock going from $2.57 to $480 in a year. It wasn't that $GME generated business that warranted such a high price, but the fact that the HFs got out over their skis and their greed hoisted their Petar. Eleven hedge funds went bankrupt and the biggest, Melvin Capital was down 53%! The stock fell and bottomed out around $40 a share, but it wasn't done, more HFs loans were due and they had had buy the stock and give it back to their lenders, so the price spiked again last week to around $200.
This caused a new problem: options markets.
Options markets are weird to the average person. Basically, people have the stock in 100 share blocks, and sell "options to buy" known as "call options" where you purchase the right to buy the stock at at a set price of the market for that stock goes up. For example: an options writer makes an "out of the money" (OTM) option for $GME back at Christmas for $80 a share that has a date of February 26th. This means if someone buys that option at like $1 a share for 100 shares and by February 26th the stock is more than $80, they can exercise that option and get all $100 shares for below market value at $80 a share. The options writer MUST sell them those shares OR ELSE.
Well, when a stock is trading at $20 and the options writer sells an $80 option, the don't actually own the shares because who expects a shitty stock like $GME to shoot up 300+%? This is called a "naked option" and the options trader now has to find the shares to fulfill the order. The problem is that he only got paid $81 per share and last Friday shares were $100 each. So the options guys are hemorrhaging money because the stock went from $40 to $100 in three days and all the contracts due on 2/26 from $100 on down were now "in the money" (ITM). On top of this, a whole bunch of short sellers were doing naked shorts, meaning they were selling stock they didn't have on the promise that in two days they will find the shares and deliver them, betting that the price would drop and they could find cheap shares to fulfill their order.
As it stands, between the shorts, naked shorts, and naked call options, the rich douchebags have to find something in the neighborhood of 200 million to 500 million shares to fill their orders. There are only 50 million physical shares in existence, all now in the hands of retailer investors who are refusing to sell... and millions more naked shares from call options will be ITM come tomorrow afternoon if the price remains above $100.
Every evening after the market closes the brokerages do some accounting with the clearing houses.
They even their books see that x-number of shares moved here and y-dollars moved there and sometimes they find that 3 million shares are supposed to move from a hedge fund account with brokerage A to accounts with brokerage B, but the HF account with brokerage A only has 2 million physical shares to give. This is known as a "failure to deliver" (FTD). So, brokerage A looks at their other accounts and sees that there are another million shares owned by their customers and loans these 1 mil shares to the hedge fund to give to brokerage B, and A's hedge fund account has 21 days to find 1 million more shares OR ELSE.
This or else is big, because if 21 days pass, and the hedgfund hasn't found the shares, brokerage A is required to liquidate the hedge fund's assets and buy the stock at any price to fulfill their obligation. If the retail investors demand $1 million a share, then brokerage A has to pay $1 million a share and liquidate $1 million of the hedge fund's assets to pay for it. The same goes for the options writers. If they go 21 days from when they sold the shares and don't deliver, they now have to liquidate assets and pay any price for these shares... and they all have to do this hundreds of millions of times, because remember, there are 200 to 500 million naked/synthetics shares out there but only 50 million physical shares. They don't know if they will get a physical share or a synthetic one when someone offers to sell and they have to keep buying until all orders are filled.
Hedge funds and entire options markets will go bankrupt.
If there are 500 million shares shares bought at $100,000 each, then these groups have to come up with $50 trillion. No one has that kind of money. So, they will be liquidated pit of existence, and then the insurance companies and the clearing house themselves will have to start buying shares with their $63 trillion insurance fund (which is basically just the federal reserve printing money).
The entire global economy is only $87.8 trillion... and for a brief few days $GME has the power to not only be a $7 trillion company making Ryan Cohen possibly the world's first trillionaire, but to essentially see almost all the cash on earth go to fulfilling a whole bunch of shitty bets a bunch of douchebros made filter into the hands of poor schlubs from reddit who called their bluff. Something like 63 multibillion hedge funds could face annihilation.
It takes $1 million in liquidity and a yearly salary of $200k or more to invest in most HFs. Much of the 1% is about to lose all their wealth to a bunch of potty-mouthed degenerates from internet message boards, and the fear is palpable.
Thus, potentially the greatest transfer of wealth in human history is but days or weeks away!
P.S. you'll notice that you will not see CNBC or FBC talk about the dire implications of all of this. I really hope that @Marketplace and @kairyssdal go into depth with what is about to happen this month with this really weird, once-in-a-lifetime storm that is brewing.
P.P.S. for every $1 GameStop is up at from last Friday another 20,000 or more contracts are "in the money" that options guys have to scramble to find. All the failure to delivers from last Friday have until the 19th before they start facing the OR ELSE part of their bet.
Forbes has stepped in with their analysis:
https://threadreaderapp.com/thread/1367743123279867909.html
https://twitter.com/TheHoustonWade/status/1367743123279867909
https://gab.com/ChrisAndDebbie/posts/105843091153552267
Kinda wish we had gotten in in this game, but alas, we did not.
However, we ARE stacking silver.....
It's not too late.
I avoided $GME like the plague in my portfolio until yesterday. I just knew it was gonna crash and burn but Trump's cool interest cuts dropped off a few days ago and guess who the only real stock seeing any growth in the last few days has been? $GME
It's stabilized at $130 or so a share and ain't dropping.
I'm only holding one ticket to the moon now but if $AMC and $RKT don't do something Monday I'm dumpling the rest of my day trade portfolio into $GME and riding it out.
I too am stacking silver BTW
Dude AMC/RKT are literal pump and dumps. I’ve been on this shit since January. NOTHING is the new $GME. I’m currently sitting on 60 GME @120
Holding this shit til I’m a multi-millionaire
Exactly why I bought them.
I have some long term investments that I let money sit in but keep about $500 in a day trading account to gamble with.
I was betting on $AMC and $RKT Friday but was sorely disappointed. Friday morning I only had about $150 in my gambling account so I bought on share of $GME for $131 and I ended the day with a profit.
That one stock turned a profit while $AMC pretty much broke even and $RKT too close to a 6% loss.
When I looked at the pattern all week it became evident that as soon as Biden allowed Trump's interest rates to rise then most of the "gambling stonk" was tanking and about the only reliable daily earner left is $GME
It does seem like there might be some white hat assistance here, crashing the Fed for an hour, which unleashed GME and a few other manipulated stocks to jump. This exposed to the public the Fed's AI algorithms that manipulate the stocks for the benefit of the HFs instead of the retail investors.
I gotta think this is part of the plan to start to transfer of stolen wealth BACK to us little guys. I bought in and am holding no matter what until it launches into space.
Hodl fellow tard ... I'm gonna liquidate everything Monday and dump what few tendies I have left into it $GME
Silver (check) Ammo (check) $GME (check)
We ready for a revolution now baby!
Weed stocks, RKT, AMC, etc etc benefit the hedge funds. Nobody actually falls for it, it’s just the Hedge funds manipulating that stock in hopes that ANYONE will jump in. They’ll raise the price on a certain stock just to offset the GME losses. Fuck them. All my homies like GME
I still think AMC is in play. Short interest to borrow is at 11.4 and short float percent is at 84%...Maybe we need them all to finish the hedgies off for good....
The difference is that there seems to be “help” with the GME squeeze. Other than some gold/silver mining and rare earth mineral stocks, its all GME for me!!
Oh, and I also bought into a few inverse funds aimed specifically at the big banks and FANG stocks. They have been offsetting the others.
States are opening up and $AMC earnings statement comes out this week so we'll find out soon enough. I think the entire market is being held back to encourage people to make low buys and gravitate away from $GME.
If they really can't stop $GME then letting it hover over $100 is probably the best thing they can do. For the longest time I wasn't buying until it dropped back down to $50 and most people probably see it like I did. A ship that sailed without me.
The thing is it's back in port and the next time it leaves it's gone.
No need to rush into something you may not be comfortable with. I think your silver stacking will serve you well in the coming years.
Edit: Of course, don't let me stop you, but don't do anything you're not confident in!
The entire global economy is going to crash. THIS in my opinion is Trump's gift to Biden. Remember, the DS didn't actually want Biden to win this election, they wanted a color revolution and ultimately civil war; we refused to give it to them.
Been thinking the same thing. I got most of my mobey out of tge mkt. Now i just have metals/mineral mining stocks and GME TO THE MOON (or Mars/Andromeda, etc ha!)
Amazing post!!! Did you write this or copy and paste?
CopyPasta
Originally saw a link to the TwatFeed which is linked in the OP
This is an excellent post, and it really illuminates what's going on with GME. Thank you.
But holy shit man, you need to proofread this and fix things that autocorrect messed up. There's at least a dozen words that are wrong and change the meaning of sentences, which makes a complicated subject even harder for regular folks to understand.
I'm a potato that drinks Crayola-cola for breakfast. You're lucky it wasn't written in dick pics TBH
Could you post the dick-pic version of this article?
... asking for a friend ....
I PMed you the one I used for my telehealth visit when I got that rash ...
Ah. I didn't realize it was in braille :)
?
I got 1/3 the way through and gave up. I do copy-editing professionally but I'd charge a lot to fix this crap.
Guys, look up all of the old speeches Trump made back BEFORE 2016. He specifically mentions all of these tactics.... But against the terrorists in the middle east. He straight up said it was a bad decision for Obama to "announce" our withdrawal from Afghanistan, and he said he would do such a thing very quietly while taking the enemy out. But more importantly, he also said to financially drain ISIS, taking out their oil wells, their refineries, their slave trade. Simply replace ISIS or the Taliban in his speeches with the deepstate and it makes even more sense.
When did Scavino post the black and white pic that dramatically proclaimed GAME. ON. ?
When he did I thought it was election related. Now I wonder if it was Game Stop related. Then, when the short squeeze was really putting on the hurt, Don Jr. Posted that the look of the WSB cartoon guy was no mistake. Wish I could remember when both were posted.
What about Ryan Cohen?
Does that name appear anywhere in the Q drops?
I havnt heard a damn thang about this in weeks. Are they still holding?
They've been holding and the damn is about to bust.
So MSM is ignoring the greatest looming financial disaster since 08' and nobody finds that suspicious? What fucking timeliness is this
It exposed the corruption.
I threw 200 bucks into 9 amc stocks and 1 gme stock when it was $90. Gme dropped to $40 and I've just been holding waiting on the squeeze. In my opinion (complete noob who knows nothing about stocks) the squeeze is still bound to happen. The way it spikes up and then gradually drops is just a ploy to make idiots think "its over". I just hope I'm able to watch when it rockets to the moon, and get out with a decent profit.
Amc has really been pissing me off, hardly moves at all
I'm wit ya homie ....
I bought into $AMC first, then $GME .... Can't decide whether to hodl both or eat more Ramen
My average share price for amc was $12 if It gets close to that I'm gonna dump and try to buy another $GME. I like it better
The way AMC and GME mirrored each other last month with the short ladder attacks makes me think they're both in play...
Me thinks $AMC is about to come to a screeching halt. The owner is getting ready to flood the market with more shares per a presser I read last night. I think it comes down to the owners and Cohen is a based peed that owns $GME
Yes, I read about that too. I've seen discussions that it would flood the market and I saw that that was FUD and that they would be class B shares that would not affect the share holders. This wouldn't occur till May, so hopefully, if it did squeeze it would be before then. Obviously, we all want the same thing, to watch the hedge firms burn. It will be interesting to see how it plays out.
There is a great site with real time data on these "STONKS"... both GME and AMC. The failure to deliver on AMC is astonishing... Definitely think both are in play to destroy the hedgies... https://amc.crazyawesomecompany.com/
The writer of that article is named 'George' ?
I bought shares around $93 and $120. I don't know what is going to happen, but like Doge, I couldn't ignore the signs to buys some... My Doge is up 15X. I don't give financial advice because I am not smart or legally allowed. Wall Street is as evil as Washington, so this is a big FU to the system.
That's what finally made me break down and seriously give this thing some credit.
Now Forbes is calling it "calculated" and acting like they come up with it.
The veil is starting to rip and they are already planning the spin so the whole system isn't revealed.
When that happens, my 3 - 5 shares I'll have will pay off my house and let me retire early and if not I'm out $500
Can't pass up the golden ticket.
I no understand .... eat crayons, drink Cheetos and be merry
Didn't read your post its too long...however I read the title and can say ...maybe?
Thank you; very excellent write up!
Could be the catalyst of Nesara Gesara if it destroys the economic echo chamber they've created.
OK but say GME hits $10k a share. You go to sell but no one buys it. How does this actually transfer wealth?
Well that's the beauty of this lopsided pyramid scheme. The same federal regulations that allows these soy-fed cucks to trade stonks they don't own also says they HAVE to buy them at a certain time to repay the debt.
As long as REAL $GME share holders don't sell (and if there are truly only 50 mil in circulation the Redditt owns at least 75% of them) then they have to liquidate assets and buy the stock to repay their debts.
I like $69,420 a share ...
I've been holding my gme. My concern is what would prevent the regulators from stepping in and just making them pay us what we paid for our shares? Basically bailing the crooks out by refunding us.
Im not an investment advisor. Take this with the grain of salt it deserves of a layman of 15 years watching the shell games with no skin in them.
Gme is i think a drop in the ocean, even if its big enough to kill hedge funds, thats just one of many layers to the fiscal con. Dont get me wrong, Gme will reveal how worthless the fiat cash and stock system is today, and how broken it has become by malfeasance. This will not wipe the banks, however, but iy will knock out their security nets.
This is a shell game on top of a shell game. The financial system is something ive been waiting on an attack vector for to snap the fiat control for years, and hedges are the first shell. They will be the "low blow" that knocks the wind out of the cabal's sails. Its silver and gold that will stop their fiscal heart.
Gme, rkt, these are just the stock market shell, and only a small part. The SLVR paper has artificially deflated silver to an alarming extent. Gold shorting is equally heavy via similar means. That's the next layer of shells. Break them by buying the metal outright, with say the gme gains? And you're laughing.
Side note, gotta say im loving this trading places style subarc.
Best. Film. Evaaaaa!
Very good read thank you. I dont know much of this topic but it really makes sense. I hope you are right!
Me too brotha
i wouldn't trade gme if i were yall lol
Trade?
I don't understand ... me ape, me hodl
erhm ya
The economy crashes and were all on equal ground but we have ammo and silver
I noticed that ... the funny thing is they have strict rules about politics
You know we have our own WSB right here on .win, right? ;)
The original WSB subreddit is shot... it got taken over by new Cabal-approved mods and you can barely even post anything about GME without getting brigaded by bots and ponzi shills.
The saddest thing about that 'policy' is that politics figures so heavily in stock prices, it's stopping an information stream for due diligence. Cancel a pipeline? Gas futures go up. Transport sector grows. Warren buffet's railroad stocks go up. C'mon, man - you know, the thing.
Yeah, the .win version is brutal. Some dick bag over there downdoots the shit out of everything that isn't "Buy and Hold $GME" post.
Turning into a real shit show of a .win community.
Point taken... mods are a bit sleepy over there and Legendary1776 rubs a lot of people the wrong way.
I've been forum posting for a long time and have skin about as thick as an ape's skull but that dude is too much.
IMO if .win wants to compete with WSB then ban his ass or it's just a $GME shill echo chamber.
They did that shit with me. For about an hour the votes were as expected then all of a sudden every post and comment I'd ever written on there was at -15.
I call them the circle-jerk squad
Kek. I just noticed that. Most of my GA has been comments adding context, not first posts. You all are faster at decodes and deltas, so it's already done by the time I get to it and I'm not gonna 'metoo' something already said.
Other than that, no reason to shit up the threads here with topics best left to TDW.