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Posted: 1/25/2021 8:50:56 PM EDT
[#1]
Not going to lie, that GME knife they stuck in the chest of the hedge boys on wall street was a fun story lol.
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Posted: 1/25/2021 8:52:06 PM EDT
[#2]
Quote HistoryQuoted: This can’t be overstated enough. Quote HistoryQuoted: Quoted: Options are literally gambling. He's lucky but behind his success are many others who have literally killed themselves over losing more. This can’t be overstated enough. *cough* *cough* its ALL gambling *cough* |
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Posted: 1/25/2021 8:56:23 PM EDT
[#3]
Years ago when I was a stockbroker, I was in an office where a new broker (like had his license for about ten days) and put a new client into an option position for $10k. A week later the stock went in play and this kid cashed out the client for $350k.
He calls the guy, who was ecstatic, and then had to hear those words he dreaded: "What's next?" To his credit, the broker told him to put it all in CDs, and said he knew he just got lucky. In the same office a veteran broker lost a client $14 million in the 1987 crash. When I asked him about it, he said "Do you really think that was all the money he had? Get serious, he has more where that came from." The '80s were crazy. 
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Posted: 1/25/2021 9:18:56 PM EDT
[#4]
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Posted: 1/25/2021 9:29:42 PM EDT
[#5]
Quote HistoryQuoted: Two Types Puts and Calls. A call is an option to buy something at a stated price at a date in time, A put is an option to sell. Say IBM is at 10 bucks a share. You think the price will go up, you buy a CALL option with a strike price of 15 dollars for December 31st 2021. You pay 2 dollars for the option. IBM is trading at 40 bucks on December 31st. Your call option is worth 25 dollars because you can EXERCISE the option to buy IBM at 15 dollars and sell the stock for $40. 40-15-2= $23 profit. (current price - exercise price - premium = profit) Now lets say you think the stock will go down. You buy a put option with a strike price of 7 dollars for 3 bucks. IBM goes down to 2 bucks a share. You can now exercise the option to SELL at 7 dollars even though its 2 bucks a share. 7-2-3 = $2 Profit (exercise price - current price - premium = profit) Quote HistoryQuoted: Quoted: I still don't understand options  Two Types Puts and Calls. A call is an option to buy something at a stated price at a date in time, A put is an option to sell. Say IBM is at 10 bucks a share. You think the price will go up, you buy a CALL option with a strike price of 15 dollars for December 31st 2021. You pay 2 dollars for the option. IBM is trading at 40 bucks on December 31st. Your call option is worth 25 dollars because you can EXERCISE the option to buy IBM at 15 dollars and sell the stock for $40. 40-15-2= $23 profit. (current price - exercise price - premium = profit) Now lets say you think the stock will go down. You buy a put option with a strike price of 7 dollars for 3 bucks. IBM goes down to 2 bucks a share. You can now exercise the option to SELL at 7 dollars even though its 2 bucks a share. 7-2-3 = $2 Profit (exercise price - current price - premium = profit) Thats a hell of a gamble. I can see why people do options. |
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Posted: 1/25/2021 9:33:52 PM EDT
[#6]
Quote HistoryQuoted: Games shop stock $6 September Now $61 WTF GOING ON? THOUGHT THEY GOING OUT OF BUSINEES Yeah, I was really surprised to see their stock go way up. They have been losing hundreds of millions of dollars a year for years. |
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Posted: 1/25/2021 9:34:31 PM EDT
[#7]
Pffffft.... gme is so yesterday... bb is where it will be as people start moving profits from gme to the next big thing...
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Posted: 1/25/2021 9:54:06 PM EDT
[#8]
Quote HistoryQuoted: Yeah, I was really surprised to see their stock go way up. They have been losing hundreds of millions of dollars a year for years. IIRC, this was partly due to the redditors. This one dude had a bunch of options that somebody's gonna have to buy back from him when the timer's up on them. The hedgefund people who will be owing him on those options will need to buy the stock to pay him back. So what happens? the users from reddit, r/WSB have been buying up all the gamestop stock at any price. Because they know it doesn't matter what they buy it at, the hedgefund people will have to buy it back from them to pay back the stocks they owe this guy. There was artificial demand for the gamestop stock created by everybody watching and playing along with this one dude with the balls of steel. |
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Posted: 1/25/2021 9:55:19 PM EDT
[#9]
Quote HistoryQuoted: IIRC, this was partly due to the redditors. This one dude had a bunch of options that somebody's gonna have to buy back from him when the timer's up on them. The hedgefund people who will be owing him on those options will need to buy the stock to pay him back. So what happens? the users from reddit, r/WSB have been buying up all the gamestop stock at any price. Because they know it doesn't matter what they buy it at, the hedgefund people will have to buy it back from them to pay back the stocks they owe this guy. There was artificial demand for the gamestop stock created by everybody watching and playing along with this one dude with the balls of steel. Quote HistoryQuoted: Quoted: Yeah, I was really surprised to see their stock go way up. They have been losing hundreds of millions of dollars a year for years. IIRC, this was partly due to the redditors. This one dude had a bunch of options that somebody's gonna have to buy back from him when the timer's up on them. The hedgefund people who will be owing him on those options will need to buy the stock to pay him back. So what happens? the users from reddit, r/WSB have been buying up all the gamestop stock at any price. Because they know it doesn't matter what they buy it at, the hedgefund people will have to buy it back from them to pay back the stocks they owe this guy. There was artificial demand for the gamestop stock created by everybody watching and playing along with this one dude with the balls of steel. And it worked... it really worked lol |
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Posted: 1/25/2021 10:05:29 PM EDT
[#10]
Quote HistoryQuoted: Options are literally gambling. He's lucky but behind his success are many others who have literally killed themselves over losing more. They can be. That's cool thing about options. You can use them as a speculator, betting for a big payoff if an unlikely move in the stock goes your way. Or you can be a hedger, buying options like a form of insurance to protect your stock portfolio to protect you in case of a big unexpected move down, like the way you buy insurance for your house or car. Still another way is to not buy options to speculate or hedge, but sell options to buyers. You're much more likely to win those trades, but the payoff is commensurately lower because of the lower risk. A lot of people trade that way, grinding out 1-2% per month in profits compounded over a year, that works out to around 20-24% a year. |
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Posted: 1/25/2021 10:15:48 PM EDT
[#11]
Quote HistoryGood stuff.
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Posted: 1/25/2021 10:22:31 PM EDT
[#12]
r/wallstreetbets has found a new darling: Blackberry
https://www.breitbart.com/economy/2021/01/25/lol-markets-blackberry-shares-jump-28/ |
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Posted: 1/25/2021 10:23:38 PM EDT
[#13]
Quote HistoryQuoted: You bet on whether or not you think the stock will go up or down. If buying calls, which is what happened here, and you're wrong then you lose all the money you paid for the call. This dude just got lucky af. He had a 1000 contracts set to expire in 2 days that he paid $7k for. If GME had a couple more red days he would have lost all that. Still had time to ride out the commons and April calls though. Edit: Also it's more like $47k into $3M. Not quite as impressive as the title would make it seem. Nevertheless, he did hit a homer. But it was mostly luck. Nobody can do that consistently. He made a big bet and won. Jeff Cooper once said something like (paraphrasing): Skill is measured by what you can do, on demand, and at any time, under all field conditions. |
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Posted: 1/25/2021 10:28:21 PM EDT
[#14]
If I'm not mistaken, all options expire in 3 months
They guy is selling and re-buying new options |
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Posted: 1/25/2021 10:28:22 PM EDT
[#15]
Quote HistoryQuoted: r/wallstreetbets has found a new darling: Blackberry https://www.breitbart.com/economy/2021/01/25/lol-markets-blackberry-shares-jump-28/ |
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Posted: 1/25/2021 10:29:30 PM EDT
[#16]
Quote HistoryQuoted: Yeah GME had a big run today. I wish I understood how options worked. Someone please explain to me what he did and how it all worked out the way it did. Yourr buying the option to either buy at a set price (the strike price) or force someone else to buy from you at a set price. You pay a fee (premium) for the option contract. The price of the contract is based on how close to the strike price the stock price currently is, and the expected volatility (implied volatility) of the stock. When volatility goes through the roof like it has with GME, you get paid if you pick the right direction. |
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Posted: 1/25/2021 10:30:14 PM EDT
[#17]
Quote HistoryQuoted: If I'm not mistaken, all options expire in 3 months They guy is selling and re-buying new options No, some shares have options through 2022.. depends on who is writing the options. And OP, stop telling everyone how rich I am. Now the IRS knows about me. |
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Posted: 1/25/2021 10:38:51 PM EDT
[#18]
Quote HistoryQuoted: Options are literally gambling. He's lucky but behind his success are many others who have literally killed themselves over losing more. Depends. I used to sell calls against stocks I owned. |
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Posted: 1/25/2021 10:40:34 PM EDT
[#19]
Quote HistoryQuoted: If I'm not mistaken, all options expire in 3 months They guy is selling and re-buying new options I think big volume ETFs like QQQ and SPY are starting to get even daily expirations. |
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Posted: 1/25/2021 10:47:11 PM EDT
[#20]
Quote HistoryQuoted: It looks to be a short squeeze and nothing more, you could probably go grab some puts and ride it back down once the squeeze is over and the price returns to "normal" since there is no foundation to support where it is This is not a simple short squeeze. The only event comparable was the VW infinity squeeze. This is definitely uncharted water, even if the underlying fundamentals are understood. |
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Posted: 1/25/2021 10:58:32 PM EDT
[#21]
Quote HistoryQuoted: Yeah GME had a big run today. I wish I understood how options worked. Someone please explain to me what he did and how it all worked out the way it did.  GAMESTOP Short Squeeze! Citron Weak AF. |
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Posted: 1/25/2021 11:08:06 PM EDT
[#22]
Quote HistoryQuoted: "A short squeeze and nothing more." lol the people on this site sometimes some big hedge funds just went insolvent and had to get bailed out, and the entire industry method of short-selling has been potentially jeopardized depending on how the rest of the week shakes out this could get even worse for the short sellers You're defending naked short sellers? Bold strategy, Cotton. |
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Posted: 1/25/2021 11:10:42 PM EDT
[#23]
Quote HistoryQuoted: You're defending naked short sellers? Bold strategy, Cotton. Not at all, it's just weird to see people actually get what they deserve for once. And not by a rival investment firm, but by internet memelords |
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Posted: 1/25/2021 11:11:45 PM EDT
[#24]
Quote HistoryQuoted: Options are literally gambling. He's lucky but behind his success are many others who have literally killed themselves over losing more. |
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Posted: 1/25/2021 11:19:09 PM EDT
[#25]
Quote HistoryQuoted: The much bigger story is how a group of borderline-retarded retail investors investing for the memes just fleeced institutional short-sellers. It has nothing to do with the fundamentals of Gamestop the company. It's almost a direct wealth transfer lol My guess is with biden the institutions are going to push to lock out or hinder retail investors for" the safety of the economy" |
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Posted: 1/25/2021 11:24:55 PM EDT
[#26]
Quote HistoryQuoted: You're defending naked short sellers? Bold strategy, Cotton. Midget porn and stonks @WhiskersTheCat |
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Posted: 1/25/2021 11:31:32 PM EDT
[#27]
Quote HistoryQuoted: *cough* *cough* its ALL gambling *cough* I put my hard-earned money to work...sticking it in savings while we've had the market conditions we've had for the past few years, is doing one's self a disservice. |
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Posted: 1/25/2021 11:32:36 PM EDT
[#28]
Quote HistoryQuoted: Thats a hell of a gamble. I can see why people do options. |
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Posted: 1/25/2021 11:42:36 PM EDT
[#29]
Quote HistoryQuoted: Less so when you do your DD and buy leaps... Quote HistoryQuoted: Quoted: Thats a hell of a gamble. I can see why people do options. I don't have that kind of stomach. I dabble with play money. My real money I max out my ROTH and throw a chunk into an index fund. |
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Posted: 1/26/2021 12:03:33 AM EDT
[#30]
I was reading about this earlier today. Fascinating story what's unfolding here.
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Posted: 1/26/2021 12:12:04 AM EDT
[#31]
I wish I had a brain
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Posted: 1/26/2021 12:13:02 AM EDT
[#32]
Quote HistoryQuoted: I don't have that kind of stomach. I dabble with play money. My real money I max out my ROTH and throw a chunk into an index fund. |
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Posted: 1/26/2021 12:48:26 AM EDT
[#33]
Quote HistoryQuoted: If I'm not mistaken, all options expire in 3 months They guy is selling and re-buying new options You are mistaken. |
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Posted: 1/26/2021 12:51:12 AM EDT
[#34]
Quote HistoryQuoted: r/wallstreetbets has found a new darling: Blackberry https://www.breitbart.com/economy/2021/01/25/lol-markets-blackberry-shares-jump-28/ They need to dump it into AMC of they want to see another explosion. |
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Posted: 1/26/2021 12:53:15 AM EDT
[#35]
what a username that guy has
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Posted: 1/26/2021 1:05:21 AM EDT
[#36]
So is there even partial merit to the GME rally or should I be buying out of the money puts with a couple months to expiration tomorrow?
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Posted: 1/26/2021 1:07:29 AM EDT
[#37]
The wolf of gamer street........
Nice haul 
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Posted: 1/26/2021 1:11:07 AM EDT
[#38]
Quote HistoryQuoted: I wish I had a brain Right there with you
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Posted: 1/26/2021 1:13:16 AM EDT
[#39]
DeepFuckingValue got God mode turned on
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Posted: 1/26/2021 2:56:46 AM EDT
[#40]
Quote HistoryQuoted: Good stuff. Quote HistoryQuoted: That was helpful |
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Posted: 1/26/2021 3:19:50 AM EDT
[#41]
Quote HistoryQuoted: Two Types Puts and Calls. A call is an option to buy something at a stated price at a date in time, A put is an option to sell. Say IBM is at 10 bucks a share. You think the price will go up, you buy a CALL option with a strike price of 15 dollars for December 31st 2021. You pay 2 dollars for the option. IBM is trading at 40 bucks on December 31st. Your call option is worth 25 dollars because you can EXERCISE the option to buy IBM at 15 dollars and sell the stock for $40. 40-15-2= $23 profit. (current price - exercise price - premium = profit) Now lets say you think the stock will go down. You buy a put option with a strike price of 7 dollars for 3 bucks. IBM goes down to 2 bucks a share. You can now exercise the option to SELL at 7 dollars even though its 2 bucks a share. 7-2-3 = $2 Profit (exercise price - current price - premium = profit) Quote HistoryQuoted: Quoted: I still don't understand options Two Types Puts and Calls. A call is an option to buy something at a stated price at a date in time, A put is an option to sell. Say IBM is at 10 bucks a share. You think the price will go up, you buy a CALL option with a strike price of 15 dollars for December 31st 2021. You pay 2 dollars for the option. IBM is trading at 40 bucks on December 31st. Your call option is worth 25 dollars because you can EXERCISE the option to buy IBM at 15 dollars and sell the stock for $40. 40-15-2= $23 profit. (current price - exercise price - premium = profit) Now lets say you think the stock will go down. You buy a put option with a strike price of 7 dollars for 3 bucks. IBM goes down to 2 bucks a share. You can now exercise the option to SELL at 7 dollars even though its 2 bucks a share. 7-2-3 = $2 Profit (exercise price - current price - premium = profit) And that's just buying them. You can also sell these same contracts, though, that can be significantly more risky if you don't do right. Example: who ever sold him those options is getting fleeced since they now have to buy the stock to sell to him at a price well below the current market price. Had things gone the other way, he could have just not executed the contract and the seller would keep the premium. |
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Posted: 1/26/2021 3:59:22 AM EDT
[#42]
What’s amazing is the /r WSB is catching the large institutional with their pants down. LI isn’t going to forgive and forget.
Like an addicted gambler, it’s the rush. I hope he can keep it. |
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Posted: 1/26/2021 5:58:25 AM EDT
[#43]
A millennial I know has been in on this GME trade. Between this hilarious shenanigan and several other trades in the last year, his net worth has went from roughly $100k to well over $1 million.
He's buying a house for cash and retiring to seasonal work. Honestly, his trading isn't that much different than a casino. Maybe with an edge like counting cards. But he gambled and won 
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Posted: 1/26/2021 6:08:44 AM EDT
[#44]
Excuse me if I laugh at the hedge funds losing billions of $$$ in the course of this.
It would be OK if they just bet on shorting a stock. But they amount of BS, false news articles, and the like that these types do all the time to knock down stock values with fear means they deserved it. I could barely understand the major details, none of the finer details, but I saw it go down today and it was insane for a while. Should have put a few bucks in but I didn’t understand it well enough. People literally made millions. Melvin has lost a couple Billion.... like buy yourself a B1 bomber money. Wow. |
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Posted: 1/26/2021 6:24:59 AM EDT
[#45]
Quote HistoryQuoted: So is there even partial merit to the GME rally or should I be buying out of the money puts with a couple months to expiration tomorrow? @woodsie Stay the fuck away unless you like trying to catch falling knives. Gamestop = Blockbuster. Everyone knows it. Hell, everyone working there knows it. Its a zombie company operating on borrowed time. Most game sales have gone digital. That means Gamestop is cut out of the retail side twice- new games and used games (used games is where they used to make 50% of their revenues from). Gamestop has turned into a company you buy Playstation gift cards from. |
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Posted: 1/26/2021 6:27:01 AM EDT
[#46]
It's turned from a short squeeze to damn near a reddit fueled pyramid scheme, don't be one of the last to get out. Take profits early and often.
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Posted: 1/26/2021 6:28:42 AM EDT
[#47]
Quote HistoryQuoted: So is there even partial merit to the GME rally or should I be buying out of the money puts with a couple months to expiration tomorrow? |
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Posted: 1/26/2021 7:50:15 AM EDT
[#48]
Quote HistoryQuoted: Reddit sub trying to dick someone that was trying to make money on shorts. There's nothing fundamental in it at all. It's now basically a pyramid scheme. Approach with your eyes wide open, someone (a lot of someones) is going to get caught trying to get out and loose a bunch. I mean, there's trying to make money on shorts, and there's being a greedy dumbass willingly shorting 141% of the float. The entire thing is absolutely hilarious. For once, the little guys are gutting Wall Street like a fish. Who knew the retail longs would have that much power. From what I understand GME is in long-term trouble, but not really near bankruptcy. These shenanigans could go on for awhile yet. Shorting is a tough game. You have to be damn good at it to win, and have nerves of steel. Some people are being reminded of that. |
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Posted: 1/26/2021 8:41:09 AM EDT
[#49]
Quote HistoryQuoted: Maybe if they would have followed the rules about naked shorting that wouldn't have been needed.  Quote HistoryQuoted: Quoted: "A short squeeze and nothing more." lol the people on this site sometimes some big hedge funds just went insolvent and had to get bailed out, and the entire industry method of short-selling has been potentially jeopardized depending on how the rest of the week shakes out this could get even worse for the short sellers Maybe if they would have followed the rules about naked shorting that wouldn't have been needed. Yes. They got their dick cut off and now are whining little bitches. |
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Posted: 1/26/2021 9:23:45 AM EDT
[#50]
Quote HistoryQuoted: What’s amazing is the /r WSB is catching the large institutional with their pants down. LI isn’t going to forgive and forget. Like an addicted gambler, it’s the rush. I hope he can keep it. Those cocksuckers deserve it. The modern financial industry does little more than add costs and increase the opacity of price discovery. They exist only because continual Government bailouts and FRC injections keep the forces of creative destruction at bay. |
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