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Posted: 1/13/2021 8:16:34 PM EDT
Truly an amazing yolo. Been watching this guy since April and thought he was crazy, but he hit a homerun.
https://www.reddit.com/r/wallstreetbets/comments/kwpviw/gme_yolo_update_jan_13_2021/  ETA  |
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Posted: 1/13/2021 8:19:24 PM EDT
[#1]
Boss.
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Posted: 1/13/2021 8:19:56 PM EDT
[#2]
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.
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Posted: 1/13/2021 8:20:20 PM EDT
[#3]
hes got bigger balls than i do.
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Posted: 1/13/2021 8:25:49 PM EDT
[#4]
Wait if im reading that chart correctly he turned $73 into over a million alone!!
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Posted: 1/13/2021 8:27:53 PM EDT
[#5]
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. 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. 
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Posted: 1/13/2021 8:28:24 PM EDT
[#6]
Quote HistoryQuoted: Wait if im reading that chart correctly he turned $73 into over a million alone!! $7k not $73. |
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Posted: 1/13/2021 8:30:15 PM EDT
[#7]
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. One example is he bought $20 options with a Jan 15 2021 expiration for 7 cents each. So he paid $7,000 for the right to buy 100,000 shares of GME for $20 each. Today the stock is trading at $32 and his Jan 15 2021 $20 call options options that he paid 7 cents each for are valued at $11.38 each.... |
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Posted: 1/13/2021 8:30:48 PM EDT
[#8]
Nice!
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. Honestly, it’s best to just take the time to read a good website that has an in-depth explanation. Once you have a handle on the concept, use play money to trade on whatever platform allows it. There isn’t a great short way to explain it that will give you a clear understanding. In this case, if you look at the attached picture, the investor was “betting” the price of GameStop would exceed a certain value (strike price) by a certain date (expiration date). It looks like one of his “bets” was a strike price of $20 by Jan 15, 2021. As it gets closer to or exceeds the strike price, the value of the “bet” increases, as long as it is prior to the expiration date. If the price of GameStop does not exceed the strike price by the expiration date, the option expires worthless. The “bet” is lost. However, since GameStop’s price is constantly rising or falling, the “bet’s” value increases or decreases all the time, and the owner of the options can sell anytime before the shares expire. This is extremely high level and only touches on call options. It doesn’t touch on taking delivery of the shares if your options expire “in the money” (stock price > strike price upon expiration). |
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Posted: 1/13/2021 8:32:41 PM EDT
[#9]
Quote HistoryQuoted: Wait if im reading that chart correctly he turned $73 into over a million alone!! *Edit* Other posters had better and more accurate explanations |
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Posted: 1/13/2021 8:34:54 PM EDT
[#10]
Quote HistoryQuoted: *Edit* Other posters had better and more accurate explanations Quote HistoryQuoted: Quoted: Wait if im reading that chart correctly he turned $73 into over a million alone!! *Edit* Other posters had better and more accurate explanations Option contract price = (# of Contracts) x (Contract Premium) x 100 Each contract represents 100 shares. |
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Posted: 1/13/2021 8:36:39 PM EDT
[#11]
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
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Posted: 1/13/2021 8:42:40 PM EDT
[#12]
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 You mean like Tesla? Or twitter sometime last week had it occurred to anyone? |
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Posted: 1/13/2021 8:57:43 PM EDT
[#13]
Quote HistoryQuoted: You mean like Tesla? Or twitter sometime last week had it occurred to anyone? Quote HistoryQuoted: Quoted: 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 You mean like Tesla? Or twitter sometime last week had it occurred to anyone? Absolutely not, TWTR has a short float of 2.80% and TSLA has one of 5.96%, in order to get a good squeeze you need to have over 20% of the float short. Another factor is the size of the total public float, ,market leading stocks have huge floats. |
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Posted: 1/25/2021 6:20:37 PM EDT
[#14]
almost $14m now. Was over $25m at one point today.
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Posted: 1/25/2021 6:25:03 PM EDT
[#15]
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 6:29:01 PM EDT
[#16]
Quote HistoryQuoted: Absolutely not, TWTR has a short float of 2.80% and TSLA has one of 5.96%, in order to get a good squeeze you need to have over 20% of the float short. Another factor is the size of the total public float, ,market leading stocks have huge floats. |
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Posted: 1/25/2021 6:33:22 PM EDT
[#17]
Quote HistoryQuoted: Options are literally gambling. He's lucky but behind his success are many others who have literally killed themselves over losing more. Eh, depends on what you’re trying to accomplish. A Hail Mary like this...yeah probably closer to gambling than investing. Luck or skill though, for this guy, the end result is the same. For now. This guy may want to consider starting to realize some of these gains. I’ve been totally wiped out on risky trades that were up several-X and collapsed within a day. If it goes sideways with options, it can happen FAST. I hope this guy cleans up. |
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Posted: 1/25/2021 6:35:57 PM EDT
[#18]
The GameStop in our local mall just announced it's closing.
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Posted: 1/25/2021 6:45:45 PM EDT
[#19]
Quote HistoryQuoted: 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. |
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Posted: 1/25/2021 6:48:20 PM EDT
[#20]
Quoted: Truly an amazing yolo. Been watching this guy since April and thought he was crazy, but he hit a homerun. https://www.reddit.com/r/wallstreetbets/comments/kwpviw/gme_yolo_update_jan_13_2021/ https://preview.redd.it/1hw6ljgfz5b61.png?width=960&crop=smart&auto=webp&s=1da177ad63a8d92096966001b80f47735ddfc483 Those were worth a lot more today. |
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Posted: 1/25/2021 6:49:05 PM EDT
[#21]
Quote HistoryQuoted: Options are literally gambling. He's lucky but behind his success are many others who have literally killed themselves over losing more. Gamestop was not a gamble. It was a short squeeze that is still happening. |
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Posted: 1/25/2021 6:49:19 PM EDT
[#22]
Quote HistoryQuoted: Options are literally gambling. He's lucky but behind his success are many others who have literally killed themselves over losing more. Footstomp here. A couple of the 3X/5X leverage funds have had high profile suicides as well. |
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Posted: 1/25/2021 6:51:42 PM EDT
[#23]
luckily for me only 33% of my networth is at risk if GME goes to zero
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Posted: 1/25/2021 6:52:00 PM EDT
[#24]
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. It's the only way anyone makes money in that kind of game. The cash has to come from somewhere. The losers are the source. |
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Posted: 1/25/2021 6:53:55 PM EDT
[#25]
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Posted: 1/25/2021 6:54:36 PM EDT
[#26]
Games shop stock $6 September
Now $61 WTF GOING ON? THOUGHT THEY GOING OUT OF BUSINEES |
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Posted: 1/25/2021 7:03:23 PM EDT
[#27]
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
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Posted: 1/25/2021 7:07:49 PM EDT
[#28]
Could have done the same thing at a roulette wheel.
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Posted: 1/25/2021 7:10:13 PM EDT
[#29]
Someone please @ me when you fuckers revert back to English.
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Posted: 1/25/2021 7:13:02 PM EDT
[#30]
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. @DetrhoytMAK Bloomberg article on what's happening |
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Posted: 1/25/2021 7:13:28 PM EDT
[#31]
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 This was done by Micheal Burry. Reddit is helping it along. |
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Posted: 1/25/2021 7:15:12 PM EDT
[#32]
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 
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Posted: 1/25/2021 7:17:39 PM EDT
[#33]
He took a risk and won, good for him. The flip side of that coin is the IRS is gonna love him soooooo tenderly!
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Posted: 1/25/2021 7:21:08 PM EDT
[#34]
Louis Rossmann just did a video on it.
 Why mainstream media's slander of wallstreetbets pisses me off regarding GME. |
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Posted: 1/25/2021 7:22:18 PM EDT
[#35]
If I was him, I'd just cash out, pay my tax bill and then retire to a tropical island.
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Posted: 1/25/2021 7:23:02 PM EDT
[#36]
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 It's that easy, just ask Melvin Capital and Citron. |
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Posted: 1/25/2021 7:23:55 PM EDT
[#37]
This is why I dont fuck around with options. I would owe the $14 million.
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Posted: 1/25/2021 7:26:08 PM EDT
[#38]
What's more impressive than his amazing luck (or brilliant call) is his ability to hold on to his position as it passed through $1M...then $2M...then $3M....and so on and so forth.
I've got pretty good nerves but I'm pretty certain I would have folded a call option bet like that long before I hit $13M. It's classic dilemma of taking a long shots. The second they even start to come in you are presented with the conundrum of knowing when to sell. It's not like a lottery win where you wake up one morning and are worth millions of dollars or nothing at all. This dude had to sit there with sweaty palms and watch it unfold in real time and hold on. Nerves of steel. Hopefully he doesn't ride it back into the ground. |
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Posted: 1/25/2021 7:26:56 PM EDT
[#39]
Quote HistoryQuoted: Basically when GameStop was $4 a share he was buying call options with a Jan 15 2021 expirations for the right to buy shares at $10 and $20 each. Nobody expected GameStop to go anywhere at the time, so the price of the options were cheap. One example is he bought $20 options with a Jan 15 2021 expiration for 7 cents each. So he paid $7,000 for the right to buy 100,000 shares of GME for $20 each. Today the stock is trading at $32 and his Jan 15 2021 $20 call options options that he paid 7 cents each for are valued at $11.38 each.... Thank you.
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Posted: 1/25/2021 7:28:29 PM EDT
[#40]
Good for him
 Attached File |
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Posted: 1/25/2021 7:37:21 PM EDT
[#41]
He's got those yolo threads going back in to 2019, he's been on the GME train for a while it looks like. Made a hell of a lot more than I did last year right there lol. I guess good for him, but a petty side of me still wants to see him lose his shorts on one of those xD
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Posted: 1/25/2021 7:48:18 PM EDT
[#42]
"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 |
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Posted: 1/25/2021 7:52:22 PM EDT
[#43]
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 Maybe if they would have followed the rules about naked shorting that wouldn't have been needed. 
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Posted: 1/25/2021 7:52:38 PM EDT
[#44]
I still don't understand options
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Posted: 1/25/2021 8:09:12 PM EDT
[#45]
Quote HistoryQuoted: I still don't understand options Follow this link, then post back with questions. https://www.investopedia.com/options-basics-tutorial-4583012 |
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Posted: 1/25/2021 8:12:29 PM EDT
[#46]
Ive watched GME all day. Hilarious and it brought Goldman and many other down to their knees. I'm not an options guy and never will be, but man its been fun to watch.
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Posted: 1/25/2021 8:12:52 PM EDT
[#47]
Quote HistoryQuoted: Maybe if they would have followed the rules about naked shorting that wouldn't have been needed. Were these naked shorts? |
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Posted: 1/25/2021 8:16:23 PM EDT
[#48]
Quote HistoryQuoted: Were these naked shorts? Quote HistoryQuoted: Were these naked shorts? Yes Though some think the gains have been fueled by a massive short squeeze, demand for shorting the stock remains strong. About 72 million shares - or 140% of GameStop's float - were shorted as of Friday, according to S3. In the past seven days, the number of shares shorted climbed by 883,000, though the stock soared. Gamestop has around 69 million total shares of stock and 27% are held by company insiders. https://finance.yahoo.com/quote/gme/key-statistics/ |
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Posted: 1/25/2021 8:36:10 PM EDT
[#49]
Quote HistoryQuoted: Were these naked shorts? Yes. You can't have 140% of float. Look how much is held by large investors.  Attached FileIt's impossible for the shares to balance out until the institutions let go of some. |
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Posted: 1/25/2021 8:43:10 PM EDT
[#50]
Quote HistoryQuoted: 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) |
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