Can someone explain what has to happen for the short sellers to be forced to buy all available shares which in turn makes the price of the stock “Skyrocket” or “Go to the moon”? It is still confusing to me when it might occur.
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r/superstonk. Read the DD. Come to your own conclusions. But when you figure it out, don’t forget to DRS
Ooops MOASS, my bad.
I’ve read through that but it didn’t make a lot of sense. Just wanted an idea of what needed to occur to start it happening.
Positive earnings should do the trick.
DRS?
Direct registration of stocks in your name. In gamestops case, with computershare
I’m not selling mine, I have DRS’d them and will wait and see what happens. There’s a lot of investors doing the same, I’m not sure how many, but lots, and there has recently been quite a bit of institutional buying.
I have a small amount and I’m keeping them. I will add to them when I’m able to. It’s worth the risk to ride it out and see what happens.
Yes, I agree, and all the people that are on superstonk agree too. They are the ones that did all the research and they know more than I do about exactly why this is possible, basically when the price goes up, their margin costs go up, Apes not selling will increase the price. The higher the price goes, the more it costs them to get rid of their shorts. They bought a ton of shorts way back when the price was super low and didn’t get rid of them and now they really can’t afford to get rid of them. Earnings coming up soon and we will see how many shares are DRS’d.
It's not going to happen, because it's all corrupt, but here's how it would work in a world where folks follow the rules:
When you short a stock, what you're doing is selling a stock that you do not have. You still have to get enough shares of the stock by the end of the day to deliver them to the buyer. Where this works to your advantage is if the price of the stock goes down later in the day, because you could have sold a stock for $100 and then bought it for $90, making $10.
But it can also go the other way, where the price of the stock rises after the sale, and you lose money. So you sold the stock for $100 but then it goes up to $110 and you've lost $10.
Now what happens if no one is willing to sell to you? You've got to offer more and more money until someone agrees to sell.
But the market is rigged, so we'll never see gme hit the moon.
They'll halt trading.... Change the rules... Make exceptions...
I had this thought too. But it is still worth holding some in the event there is some sort of a squeeze again. It's unprecedented times
I'm sure many people would be wiser now and still if it goes up in the range of $40 to $80 in a short time
Thanks for the info.
Shorts never closed doomers
In my opinion GME is no longer in play.
Way back when, a trading/investment sub reddit saw a mass shorting of GME by looking at volume purchases on the down side. They spread the news and started buying like crazy to fuck over the institutions trying to short GME. That is called a short squeeze, where small traders in mass keep buying, forcing the stock price up, which forces the leveraged contracts on the down side to buy at a higher price than their purchase price to mitigate extraordinary losses, which also raises the stock price.
Then the institutions, thinking it was over, tried it again and were caught a second time by masses of small traders fucking them over. It is done and over with IMO.
GME is no longer in play by big investment houses because they lost twice and they know everyone is watching. So they take their money and will play with some other company.
At this point, keeping GME is an act of faith in a religion that is dead IMO. GME will not see $24 a share again, at least not without systemic changes to monetary policy, and US oil production being unleashed, which is not going to happen under Biden.
You may be right but I do not invest and hold, I trade for short term gains, in and out like the wind.
I cannot fathom holding a position for months on end on sheer faith. I can roll that same money over a hundred times sniping profits, while the faithful wait for Moses to part the Red Sea for a third time.
IMO long term investments, in this climate, are far more risky than sniping small gains a hundred times and getting your money back out.
Edit: I would not buy anything Kramer recommends either. But that's just me.
Would you recommend a newb to buy and hold as a sound investment?
A lot of the original gme guys are loading up on bbby. Massive short interest and the cost to borrow is thru the roof.
Go to r/bbby and read the DD
Thanks for the info.
Basically the shorts themselves cause increased demand because they're frantically all trying to find shares to cover their positions.
High demand, low supply, and usually happens on top of an already sharply increasing price.
GME sailed already. AMC/APE and hodl.
I’m too dumb to understand what this guy is talking about https://twitter.com/donnahuegeorge?s=21&t=9YmN9aFwn80iyi_P9EoZ6g But we would have been to the moon and back already if not for the criminality of Wall Street.