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Fiery Market Crash Thread

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ORD_Buckeye said:
The vultures are right. My understanding of this is that when reddit started pumping up Gamestock, the vultures all swooped in and took massive shorts on the stock. All the reddit heroes have to do is keep the stock inflated until those short positions expire, and then it doesn't matter if GameStop goes tits up the following day. However, what we're going to see (seeing already?) is that the government is going to intervene to protect the hedge funds. I'm not an expert on this though, so anyone wanting to bring new shit to light is welcome.
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If the instrument is really a short position, there is no expiration hence my comment above about big money having time to ride this out because they have the cash on the back end for fundamentals to take over. If the position is based on puts or the sale of call options then there is an expiration (strike date) in play.
 
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sparcboxbuck said:
If the instrument is really a short position, there is no expiration hence my comment above about big money having time to ride this out because they have the cash on the back end for fundamentals to take over. If the position is based on puts or the sale of call options then there is an expiration (strike date) in play.
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Yeah, the latter is what I believe they held and then bought more and more of at the legal threshold for margins the moment the stock started going up. Unfortunately, they have the money and quantitative skills to probably just keep doubling down until the pumped up stock implodes, and they recoup or at least minimize their losses. Barring that, I'm sure we'll all be bailing them out in the near future.

This whole thing, however, should lay bare the myth that Wall Street in its current iteration has anything to do with marshaling and aggregating capital to build business and grow the economy in any way. It's all a casino now. A casino where the players get to take their winnings off the table before the wheel stops spinning as well as one insulated by FDIC deposits from any financial responsibility for its mistakes, misdeeds and even crimes.
 
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exhawg said:
My biggest stock regret was seeing Zoom tank to $62 December 2019. Every vendor that I deal with switched to Zoom from WebEx by that point so I figure it would bounce back and almost put some money in it. Little did I know what Covid would do to their stock.
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I don’t know why I didn’t jump on some of the casino/sportsbook stocks back in March. I’m in that space a lot as a user. Of course they were going to bounce back when sports returned/casinos opened. :smash:

I try to avoid even looking now. Pain.
 
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sparcboxbuck said:
If the instrument is really a short position, there is no expiration hence my comment above about big money having time to ride this out because they have the cash on the back end for fundamentals to take over. If the position is based on puts or the sale of call options then there is an expiration (strike date) in play.
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Mt understanding is though, that even at $60 -$70 those positions became prohibitively expensive. Obviously there are other ways to stop the bleeding but some people were saying that the 2.9 billion infusion from Cohen, Citadel etc was the minimum Melvin needed to exit their position.. (These are vague memories from skimming yesterday and there are some reports contradicting what the numbers are, my larger point here is, this is real $ even in hedgeland. Gamestop was the 12th most shorted stock in a 70 billion dollar market... If its sucked up 4 billion to close out those positions - that we know about... There are unhappy people)

Looks like Robinhood just had to raise another billion and the bloodbath is back on.

https://www.cnbc.com/2021/01/28/rob...rities-friday-gamestop-jumps-after-hours.html
 
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