[News] GameStop and the Stock Market

Discussion of GameStop, stock trading, and this week's market crash(?) / rise(?)

so uhh... i don't know if this is in bad taste or what... .but it looks like their next target is SLV (silver). There's a few top posts on redit talking about it. they say not to do it until next week, but it seems likely if you get an order in before markets open today you'll make a few bucks because everyone is watching this like a hawk right now. don't put your life savings in it or anything, just have fun with it.

https://www.reddit.com/r/wallstreetb...

I’m not up to snuff on all the ins and outs of the stock market, but I do have a strong dislike of rich men making themselves even richer at the expense of everyone else (f* career politicians in particular). At the very least, I’m rooting for u/ssauronn over on Reddit:

https://www.reddit.com/r/wallstreetb...

I was in my early teens during the '08 crisis. I vividly remember the enormous repercussions that the reckless actions by those on Wall Street had in my personal life, and the lives of those close to me. I was fortunate - my parents were prudent and a little paranoid, and they had some food storage saved up. When that crisis hit our family, we were able to keep our little house, but we lived off of pancake mix, and powdered milk, and beans and rice for a year. Ever since then, my parents have kept a food storage, and they keep it updated and fresh.

Those close to me, my friends and extended family, were not nearly as fortunate. My aunt moved in with us and paid what little rent she could to my family while she tried to find any sort of work. Do you know what tomato soup made out of school cafeteria ketchup packets taste like? My friends got to find out. Almost a year after the crisis' low, my dad had stabilized our income stream and to help out others, he was hiring my friends' dads for odd house work. One of them built a new closet in our guest room. Another one did some landscaping in our backyard. I will forever be so proud of my parents, because in a time of need, even when I have no doubt money was still tight, they had the mindfulness and compassion to help out those who absolutely needed it.

To Melvin Capital: you stand for everything that I hated during that time. You're a firm who makes money off of exploiting a company and manipulating markets and media to your advantage. Your continued existence is a sharp reminder that the ones in charge of so much hardship during the '08 crisis were not punished. And your blatant disregard for the law, made obvious months ago through your (for the Melvin lawyers out there: alleged) illegal naked short selling and more recently your obscene market manipulation after hours shows that you haven't learned a single thing since '08. And why would you? Your ilk were bailed out and rewarded for terrible and illegal financial decisions that negatively changed the lives of millions. I bought shares a few days ago. I dumped my savings into GME, paid my rent for this month with my credit card, and dumped my rent money into more GME (which for the people here at WSB, I would not recommend). And I'm holding. This is personal for me, and millions of others. You can drop the price of GME after hours $120, I'm not going anywhere. You can pay for thousands of reddit bots, I'm holding. You can get every mainstream media outlet to demonize us, I don't care. I'm making this as painful as I can for you.

To CNBC: you must realize your short term gains through promoting institutions' agenda is just that - short term. Your staple audience will soon become too old to care, and the millions of us, not just at WSB but every person affected by the '08 crash that's now paying attention to GME, are going to remember how you stuck up for the firms that ruined so many of us, and tried to tear down the little guys. I know for sure I'll remember this. In response, here is a list of CNBC sponsors and partners. They include, but are not limited to, IBM, Cisco, TMobile, JPMorgan, Oracle, and ZipRecruiter. Their parent company is NBCUniversal, owned by Comcast and GE.

To the boomers, and/or people close to that age, just now paying attention to these "millennial blog posts": you realize that, even if you weren't adversely effected by the '08 crash, your children and perhaps grandchildren most likely were? We're not enemies, we're on the same side. Stop listening to the media that's making us out to be market destroyers, and start rooting for us, because we have a once in a lifetime opportunity to punish the sort of people who caused so much pain and stress a decade ago, and we're taking that opportunity. Your children, your grandchildren, might have suffered as I described because of the institutions that we're fighting against. You really want to choose them, over your own family and friends? We're not asking you to risk your 401k or retirement fund on a single GME bet. We're just asking you to be understanding, supportive, and to not support the people that caused so much suffering a decade ago.

To WSB: you all are amazing. I imagine that I'm not the only one that this is personal for. I've read myself so many posts on what you guys went through during the '08 crash. Whether you're here for the gains, to stick it to the man as I am, or just to be part of a potentially market changing movement - thank you. Each and every one of you are the reason that we have this chance. I've never felt this optimistic about the future before. This is life changing amounts of money for so many of you, and to be part of a rare instance of a wealth distribution from the rich to the poor is just incredible. I love you all.

Looks like the hedge funds won. Or at least stopped their loss for now.
Getting the popular trading platforms to prevent people from buying the joke stocks.
Which is quite disgusting.

At least it also seems to have stabilized the normal market.

And a step further, apparently Citadel and Point72 just infused Melvin Capitol for $3b.

https://www.axios.com/rwallstreetbet...

On the other hand, apparently the RobinHood block on buying GME right now only applies to the USA and redditors from other countries are jumping in to action.

https://www.reddit.com/r/wallstreetb...

I appreciate u/ssauronn and his struggle, but it will be a losing battle and in the end it will most likely only hurt him. Stock trading is gambling and in gambling the house always wins.

Nevin73 wrote:

I appreciate u/ssauronn and his struggle, but it will be a losing battle and in the end it will most likely only hurt him. Stock trading is gambling and in gambling the house always wins.

From what I’ve read in most of the threads over there on Reddit right now, most of these people don’t care about the money and many of them intend to give earnings to charity. For them, it’s about fighting fire with fire and screwing over the people that use hedge funds and short sales to screw over the general public while making themselves richer.

Even with Citadel’s infusion, Citadel itself is apparently heavily invested in GME short sales and are they are the ones working with RobinHood to block purchases right now. Between their own losses and their infusion to Melvin Capital, they’re in a tight place right now as well and there’s already discussion of lawsuits against RobinHood and Citadel for colluding to prevent common investors from doing what they want with their money.

To summarize, it’s like Game of Thrones (pre-Season 8) on Wall Street right now.

Mixolyde wrote:

Conference Call regular Lara Crigger wrote about it:

https://www.etfaction.com/featured/r...

This is a great summary that gets at the nuances of the call options.

A lot of the simplified explainers that are going around online are a bit too simplified, focusing on analogies about the short but ignoring that the WSB redditors are trading in options. Which means a lot of the brief summaries can lead to bad intuitions about the dynamics. (My summary above might or might not fall in that category, I'm not knowledgeable enough to evaluate it.) Lara gets at some of the nuances.

vypre wrote:

most of these people don’t care about the money and many of them intend to give earnings to charity.

IMAGE(https://i.imgur.com/mXOvBi3.jpg)

Rat Boy wrote:
vypre wrote:

most of these people don’t care about the money and many of them intend to give earnings to charity.

IMAGE(https://i.imgur.com/mXOvBi3.jpg)

You dropped the “from what I’ve read” part; I don’t claim to know the inner minds of the authors. On the other hand, even if it’s not true, maybe a few normal people get rich. Worst case scenario, they all lose their own money; they knew the risk when they started.

As far as I’m concerned, even if they keep it all, f* hedge funds and those who invest in them.

Malor wrote:

It's probably just that a lot of new people were reading WSB, discovered what a sh*thole it was, and raised hell.

In my mind this isn't getting enough attention. 10 seconds on any thread and you'll see 20-30 mentions of WSB redditors referring to themselves as "r-words or autists". I don't give a sh*t what they're trying to do, if you're using disabled people and autism spectrum as a cover or self deprecation for your sh*tty decisions and actions I have no place for you at all.

It's a toxic place that happened to get lucky. f*ck them.

IMAGE(https://i.imgur.com/S9Og8dz.jpeg)

IMAGE(https://i.imgur.com/Y6IvJyS.jpeg)

IMAGE(https://i.imgur.com/XuknWfP.jpeg)

vypre wrote:
Rat Boy wrote:
vypre wrote:

most of these people don’t care about the money and many of them intend to give earnings to charity.

IMAGE(https://i.imgur.com/mXOvBi3.jpg)

You dropped the “from what I’ve read” part; I don’t claim to know the inner minds of the authors. On the other hand, even if it’s not true, maybe a few normal people get rich. Worst case scenario, they all lose their own money; they knew the risk when they started.

As far as I’m concerned, even if they keep it all, f* hedge funds and those who invest in them.

I wasn't directing it at you, I was directing it at the notion of trying to deify these people.

I don’t think anyone here has deified anyone. There’s just a few of us that are finding it comical to see the game flipped on a bunch of shady “businessmen”.

Because some of us may need an explanation...I know it made what I mostly understood clearer

what I don't understand is how "the public joining together in this fashion should be illegal" Why? Do investors not have the right to talk to each other about what to buy? Seems like we have tons of talking heads that tell people what they should buy all the time (that guy Kramer comes to mind) So how could it be illegal for investors to talk to each other about buying stock. That just doesn't make any logical or legal sense to me unless the rule is actually "the rich should always make money when they want to"

IMAGE(https://i.imgur.com/4h7dQ0p.jpg)

Exactly the point. I think that there's obvious collusion going on already with the big players. CNBC guy recommends selling GameStop, hedge fund shorts GameStop, everybody gets rich.

Now it's just the public talking to each other out in the open and the insider rich guys club is pissed. Rules for thee but not for me.

That graphic is a very simplified way of putting it, but technically correct. Some things it doesn't say:

- Even bigger entities than the hedge fund in question have been on top of this, encouraged it, lent the hedge fund the stocks they shorted, and are going to win on both ends of this wild ride.
- Folks buying in now stand to lose everything, along with those who are holding. For many of them, their pain will be far above what the hedge fund managers will ever feel.

With that said, this is people democratizing something that's perfectly legal to do. They've been transparent about it and aren't lying about what they're doing (the opposite of "pump and dump"). It's also a big check on systems that are full of inequity to begin with. It won't fix a lot of those inequities, but there might be a little less bullsh*t in the future.

EDIT: Making it clear I was referring to the graphic.

You folks are far more eloquent than I. Cheers!

so about that silver....

it definitely looks like they will be trying that next..... If people invested in silver shorts know that though... why don't they just buy back their shorts now? How did they not catch wind that this will happen with gamestop?

Citadel is a minority owner of Robinhood, which has an IPO coming up soon. They consciously made the decision to block stock buys on GME, BB, NOK, and a few others. They decided that the risk of Robin Hood failing as a platform due to the inevitable class action lawsuit this causes, plus whatever limp slap on the wrist the SEC gives them, is preferable to weathering the short squeeze tomorrow.

I have a feeling they’re betting wrong, and if you don’t have every dollar you can afford to lose plowed into GME as a giant f*ck YOU to hedge funds for what they did 2008-present, then your week is going differently than mine.

FiveIron wrote:

it definitely looks like they will be trying that next..... If people invested in silver shorts know that though... why don't they just buy back their shorts now? How did they not catch wind that this will happen with gamestop?

Probably didn't expect it to succeed.
But it sounds like hedge funds have been doing exactly this in the last few days, moving out of some of their short positions, and selling other stocks to fund it.

Certainly not every dollar, but enough to keep our interest in the shennanigans.

If anyone need some motivation for seeing it all burn to the ground
https://twitter.com/bubbaprog/status...

And somewhat related, damn, AOC is amazing
https://twitter.com/AOC/status/13548...

vypre wrote:

And a step further, apparently Citadel and Point72 just infused Melvin Capitol for $3b.

https://www.axios.com/rwallstreetbet...

On the other hand, apparently the RobinHood block on buying GME right now only applies to the USA and redditors from other countries are jumping in to action.

https://www.reddit.com/r/wallstreetb...

Point72 is run by Steve Cohen, the dude who just bought the New York Mets...he's the wealthiest owner in the MLB and one of the weathiest owners in the world. His protege runs Melvin.

Just shedding some light on how deep their pockets are.

Seeing screenshots on Twitter of Robin Hood selling people's shares. WTF?

Worth a watch. Gotta love Trevor Noah (that whole first name as a last name thing withstanding) . https://twitter.com/TheDailyShow/sta...

Stele wrote:

Seeing screenshots on Twitter of Robin Hood selling people's shares. WTF?

Jesus. That sounds like a lawsuit to hand over the reins of RobinHood (and possibly Citadel) just waiting to happen. The real question is if the other rich people that get to decide these sorts of things will actually decide against other rich people.

And WeBull is allowing buys on the stocks in question

If I was gamestop, I would be creating all the new stock to sell that I possibly and legally could.

LouZiffer wrote:

That graphic is a very simplified way of putting it, but technically correct. Some things it doesn't say:

A couple of other things it doesn't cover:
- the trading going on is in stock options rather than the stocks themselves. Put/call options and gamma derivatives change the picture somewhat.
- the company float is a lot more complicated than the analogy
- WSB is one of those incredibly toxic communities that are floating around out there. Doesn't have anything to do with the graphic, but their sheer toxicity does tend to get lost in the discussion.