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gaha | 5 years ago

I think if you really want to understand what is going on you actually have to read the DD "due diligence" and not just look at the funny memes. I found [1] might be a good starting point.

I'm not that into finance stuff, but the idea of a short squeeze still happening at the end of this week definetly seems interesting. It could be triggered by all the call options expiring on Friday, which will have to be covered by then. If that increases the price even more, I guess the short sellers will have to cut there losses and buy back stock, which supposably still might be sold short over 100%.

That's at least how I understood it and I have no clue if that might actually work. Of course there is a huge amount of people buying into GME just beacuse it is fun, memes, or whatever. But the idea behind all that definelty seems like an interesting bet.

[1] https://www.reddit.com/r/wallstreetbets/comments/l528pz/gme_...

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clxxx|5 years ago

The way I understood it, is that its a combination of a short squeeze and gamma squeeze that could potentially bring it way up and then have it plummet down. This only works is if the hedge funds have!’t already liquidated their short positions (as the media says they have) and it’s a bluff. Seeing as its down aftermarket, it may have happened already but no one really knows. Seeing as WSB is down, found this[1] to be a pretty informative breakdown into all this.

[1] https://youtu.be/J-CHwy1BdZg

hehehaha|5 years ago

No. As we approach Friday there will be greater selling pressure from all the weekly call buyers trying to cash out. This is because most retails who bought these options do not want to exercise the option to purchase. So what happens when millions of people smash the sell button on Friday? Most likely sell off starts tomorrow toward closing bell.

By the way, the move we saw today was not squeeze driven. It was entirely driven by speculation craze. They’re not squeezing anyone but each other.