Stocks and Trading Thread - Channeling your inner Mono

[DGuller]

I just took a look.  Gamestop puts are *not* cheap.

What does that mean?  Those who sell puts think that the current stock price is not the new normal?

[Admiral Yi]

What does that mean?  Those who sell puts think that the current stock price is not the new normal?

It means demand is high and supply is low.  Not many people selling puts.

[Admiral Yi]

Thinking about making a bet on Gamestop.

[Josquius]

I admit, I bought a tiny bit of gamestop for the crack. Quite entertaining to follow it all. I don't understand it all but I've seen a few explanations and it sounds convincing. Shorted above and beyond the amount of stock available with a lot of these options expiring Friday.
Lots of talk about a target of $1000 plus and some shady market manipulation business going on to force emergency sell offs.
This is a repeat of volkswagen.... Hopefully not a repeat of 2008 as a whole.
Buzz seems to be blackberry is the next one set to blow up like so. I got in on that with a fair bit more money given it wasn't too insanely priced and actually has long term viability too.

So to use your example Squeeze, you would break even if you bought an option with a strike of $100 for a cost of 50 cents and the share price rose from $100 to $100.50, but that's only true on the last second of trading before the option expires.  You would make money if the share price rose to$100.49 on day one of the option, because the option price would now include the 49 cents *plus* it would still have several days of time value.

Thanks. Makes sense. So multi layered 3d gambles. I had thought these could only be cashed in on the day they mature? Or that's just shorts?
Way beyond me.

[Valmy]

Gamestop? The brick and mortar video game store? 

Does that business have a bright future I am not aware of?

[Josquius]

Gamestop? The brick and mortar video game store? 

Does that business have a bright future I am not aware of?

Guy who did well with a company called chewy (I've never heard of it) bought a large chunk and got involved with its management.
This chewy company successfully competes against amazon for pet food.
Buzz is with the brand recognition gamestop could manage the same and get back into decent profit.... Albeit nothing to represent whats going on here.
Mostly its that some smart unemployed guy trawled stocks and discovered the sheer amount of short sells on it.
It is worth a look at some of the main threads on wall street bets writing this all up. Just need to squint a bit past all the 🚀

[Admiral Yi]

Thanks. Makes sense. So multi layered 3d gambles. I had thought these could only be cashed in on the day they mature? Or that's just shorts?
Way beyond me.

There's no financial instrument called a short.  Short is an adjective which describes one's position in relation price rises and falls.

There are calls and puts.  Calls and puts can be "sold to close" at any time up to expiration and can be exercised at any time up to expiration.

[Admiral Yi]

Gamestop? The brick and mortar video game store? 

Does that business have a bright future I am not aware of?

What I saw on CNBC is that it's still the same shitty mall store losing hundreds of millions a year.

[DGuller]

So maybe it makes sense that their stock goes up when they can't operate due to Covid.

[Syt]

I thought it's just price manipulation for the LULZ

[Admiral Yi]

I don't see what the end game.

[DGuller]

I don't see what the end game.

You pump up the price for the shares, and then sell them to those who must buy them at any price to cover their short position?

[Admiral Yi]

You pump up the price for the shares, and then sell them to those who must buy them at any price to cover their short position?

Except there's no deadline on a short sale.  You can run one indefinitely, as long as you pay the interest (which is very low based on my shares that have been borrowed) and you post the collateral.

[crazy canuck]

Gamestop? The brick and mortar video game store? 

Does that business have a bright future I am not aware of?

https://www.vox.com/the-goods/22249458/gamestop-stock-wallstreetbets-reddit-citron

[crazy canuck]

I don't see what the end game.

There is none.