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A picture of a short squeeze in progress...

Brio

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Ebie

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But GME is down 100 so someone was selling.
Not really "selling": Counterfeit shares, semi-legally created via "naked shorting"
 
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<SLV>

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Cointerfeit shares, semi-legally created via "naked shorting"
Which begs the question, who validates shares? Are there serial numbers for each share? How do you identify counterfeit stock, and once it is identified how is it remedied?
 

Voodoo

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The DTCC holds and really owns all the shares that are held in "street"name. At least that is my understanding. And they are the ones responsible for doing all of the settlements.
 

ZZZZZ

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The DTCC holds and really owns all the shares that are held in "street"name. At least that is my understanding. And they are the ones responsible for doing all of the settlements.

True. I used to work for a mutual fund company, and DTCC is the hub of it all. But they're a dinosaur and they are out of control. Lots of things are out of balance.

DTCC needs to get into the 21st century, and put all the shares of all the securities on a blockchain. Everything will always be in balance and trades will settle in 3 hours instead of 3 days (or longer).
 

Ebie

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True. I used to work for a mutual fund company, and DTCC is the hub of it all. But they're a dinosaur and they are out of control. Lots of things are out of balance.
DTCC needs to get into the 21st century, and put all the shares of all the securities on a blockchain. Everything will always be in balance and trades will settle in 3 hours instead of 3 days (or longer).
Yes,of course, a blockchain. But there are much simpler things they could do in the meantime, and they are not doing them.
 

Ebie

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Which begs the question, who validates shares? Are there serial numbers for each share? How do you identify counterfeit stock, and once it is identified how is it remedied?
This issue only comes up, rarely, when a company is sold.
Sometimes they cannot sort out who owns what--or so I heard.
Also, companies, sometimes have elections.
I have heard that is is common that more than 100% of the shares are voted.
 

Voodoo

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They aren't doing anything because all of the loopholes / problems are where their friends cheat like hell and steal Billions. Why would they do anything?
 
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Ebie

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Which begs the question, who validates shares? Are there serial numbers for each share? How do you identify counterfeit stock, and once it is identified how is it remedied?
I am no expert, but I will try to answer/guess

who validates shares?
->The brokerage company

Are there serial numbers for each share?
->Not by the time the retail dealer "sells" it. Not as far as I know.

How do you identify counterfeit stock?
->I don't know. What does that even mean? If a retail broker sells 400% of the stock it has of company "x" which of the shares are counterfeit? They are just electrons on a computer screen.
Anyway, in theory none of them are truly counterfeit. They just have to "remember" to cover their shorts...theoretically.
 
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edsl48

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A different view today from the investment porn circus

GameStop Plunged 30% Today, Is the Short Squeeze Over?
https%3A%2F%2Fimages.saymedia-content.com%2F.image%2FMTc4NjU1OTAxMDY0ODk4MjA0%2Fgamestop-signs-of-a-top.png

Mish
20 minutes ago
https%3A%2F%2Fmaven.io%2Fapi%2Fuser%2FzmfATcSa4EegwR7v_znq6Q%2Fphoto%3Fversion%3D0

GameStop fell from $316 to $212. What's ahead?
Squeeze Likely Over
My guess is the squeeze is over. Hedge funds have covered their shorts. And we have a three surge stage that frequently marks tops in short squeezes.
https%3A%2F%2Fimages.saymedia-content.com%2F.image%2FMTc4NjU1ODc1ODMxOTY1NDcy%2Fgamestop-hourly-chart.png

The remaining shorts are small players who rode it out, hedge funds who recently got short timing the play much better, or the market makers who are now the ones net short in size.
If my thesis is correct, GameStop will go back where it came from. The market makers will pull bids as they did today.
Option Buying
Put speculation is now on the rise. Until now it was call speculation. The call sellers hedged by buying shares driving up the price.
That dynamic has changed. PUT sellers short stock as PUTs get into the money.
Options bets fuel both rises and declines, especially in illiquid stocks.
How to Play?
I am not touching this. For starters I could be wrong about the squeeze being over. I doubt it but I could be.

One could try options, but the premiums are nuts.
GameStop Option Prices
https%3A%2F%2Fimages.saymedia-content.com%2F.image%2FMTc4NjU2MTgzOTk1ODY4ODI4%2Fgamestop-options.png

Those are near-term, near the money Option Prices From the CBOE.
Each option represents 100 shares but prices are per share. Thus prices are 1/100th of the money to buy or sell an option.
For a strike 215 PUT option that expires on February 12, in 9 trading days you will pony up $7,485 dollars or $78.85 per share.
To make any money, shares will have to decline enough for you to recover your price paid, and it has to happen by February 12.
The break even price is $215.00-$78.85 = $136.15 and it's at $225 now.
Who Wins?
You may win if you are correct about getting a big enough plunge in the next 9 days.
But the market maker who sells you the PUTs will make money no matter what happens.

He will hedge by shorting if the price declines and just watch you lose all your money if the price rises.
Maximum Pain
Don't count out price manipulation in which the price on February 12 falls at the exact price that makes the most options (PUTs and CALLs) expire worthless. That is known as "Maximum Pain".
There are technical hedging reasons why Maximum Pain happens but manipulation also happens if the market makers can get away with it.
GME Home Runs
Nonetheless home runs can and do happen. But in this case the home runs are likely in the past.
People rode this up from $17 to $413 and you want to get in now on the long side?
Why?
Yet the short side is not without risk as two hedge funds nearly blew up over this. One lost half their money in a month. It's possible the squeeze is not over.
But if you believe like me that the squeeze is over but don't like huge option premiums, the buying deep in the money PUTs will effectively turn your option play into a short without the risk of getting squeezed out.
For example, a Feb 26 strike $800 PUT would set you back $602 but the cost would be $60,020. To gain on the trade GME would have to close below ($800-$602 = $198) vs the current price of $225.
The first advantage in the trade is you have a maximum defined loss of $60,020 vs an unlimited loss in shorting.

But the advantage of that trade is you only need a decline of $27 not $89 to break even. You would also have until February 26, not February 12 to be correct.
Care to put up $60,020 per option? I don't. Care to bet on a $90 plunge by February 12? I don't but some have.
I suspect option premiums are so high that near term, near the money CALL and PUT buyers both get wiped out.
Number 1 Rule

Above all, remember my #1 rule: You may win but the casino never loses.
Mish
https://www.thestreet.com/mishtalk/economics/gamestop-plunged-30-today-is-the-short-squeeze-over
 

Goldhedge

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This is good

Reaction To GameStop Short, Robinhood & Reddit Drama

 

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<SLV>

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That was brilliant from Mark Cuban. Practical truth.
 

Goldhedge

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Coming back to reality, but the WSB retards are still holding.
anyone have a clue as to short positions?

Screen Shot 2021-02-02 at 10.29.42 AM.png
 

<SLV>

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Screen Shot 2021-02-02 at 12.07.58 PM.png


 

solarion

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gringott

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Yes. It's a fraud, a fixed casino. Because you might win a few bucks does not change a thing.
 

Voodoo

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solarion

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Note how old that data is, Jan 15 was just 2-3 days into the big breakout. Now, all guesses at short interest today or yesterday are all guesses. It takes 8 freaking business days after the 15th or 31st to report the next short interest.
They don't wish you to be able to operate on current information...while they counterfeit nearly everything constantly and use those counterfeits to rig allegedly free markets.
 

Voodoo

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I don't think its over yet. We've got one more push at least I think. Going to be very volatile no doubt. But Martin Armstrong, who did warn you should take profits Friday, appears to be projecting a possible retest of the breakout in the 45-65 range by March. His arrays appear to point to a top in June.
 

Ensoniq

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Lancers32

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But GME is down 100 so someone was selling. Was bid up to $385 which I'm not sure the hedgies would??

39% short interest last I heard.

Originally had somewhere between 114% and 140%.

Heard around 50 but not sure your number might be right.
 

Ensoniq

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You’ve made or lost nothing until the sale
 

gringott

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You have to book the profit or loss or it's like it never happened.
Until the Democrats tax your shit daily for any profits.
 

Fatrat

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The 52 week low is 2.57, so 90 is still pretty good. I Wonder what the short percentage is now...
 

solarion

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1612322183723.png
 

Voodoo

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Nice slow day and some stability as well as up 15%. This is good. I'm also noticing the other site where everyone and their brother was trying to jump in, some bought way OTM puts and others are leaving to other pastures cause GME is too boring. This is a really good sign. Maybe not for a near-term squeeze but I've always been in this for a longer trade with a squeeze potential.
 

Voodoo

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An excellent ~30 min video that pretty much covers the whole Gamestop story.

 

anywoundedduck

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Voodoo

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We're Back.

The shorts refused to get out at $5. I'm pretty sure they weren't going to give in at $50.
 

Fatrat

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Shorts had their chance to get out cheap for a while. They didn't., and now they are going to reap the whirlwind.
This is a game that can be played repeatedly, there are way too many shorters.
 

<SLV>

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Actually, most of the short interest was closed out of GME. From 140% to something like 20% Not sure where it stands now, but I expect this reprise rally to fizzle today.
 

solarion

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If those WSB guys that were underwater on GME long positions aren't selling into this latest price spike...well at some point, what can you say. GTFO.

They've proven they can hurt the hedge fund crooks. They've proven the equity markets are fake and blatantly rigged. They've proven that regulators don't give a damn what happens to little people. No sense being a financial martyr for stubborn's sake.
 

oldgaranddad

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If those WSB guys that were underwater on GME long positions aren't selling into this latest price spike...well at some point, what can you say. GTFO.

They've proven they can hurt the hedge fund crooks. They've proven the equity markets are fake and blatantly rigged. They've proven that regulators don't give a damn what happens to little people. No sense being a financial martyr for stubborn's sake.

I agree and disagree. You are correct about them being financial cannon fodder but the real goal is to hurt the bankers and traders so much that they stop the manipulation of the stocks or someone comes in and forces them to stop.

Sort of like little kids behaving when an adult is in the room but then run wild when the adult leaves. The WSB crowd is sort of a 4AM blanket party crowd to the trouble maker.
 

solarion

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They've hurt the hedge funds. They've gotten the attention of the powers that shouldn't be. They've caused the scumbags to change the rules to stamp them out. Now they need to retreat so that they can live on to fight another day. They'll not be doing much of anything to hurt the banksters going forward if they can't come up with two nickels to rub together.

Ironically, their most important contribution, may turn out to be their misguided attempt to squeeze silver by piling into the SLV. It brought huge attention, inspired the creation of WSS, and caused two garbage ETFs to frantically amend their prospectuses.
 

Voodoo

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Gamestop isn't done. I think that first spike was just a preview but not the real deal. We shall see. Building a new base over $100 speaks volumes. I'm not sure how but they've managed to hide the real short positions. There are far more "owned" shares than should really exsist.