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2021 Stock Market

ISUCyclones2015 said:
He started noticing this trend in 2019. He took options and stocks and kept rolling into more and more as the price went up. Started at 53k. He might be close to 50mill+ at the end of today.

He was always just posting away on WSB but then Michael Burry (IRL Christian Bale from Big Short) came in and saw the same **** and that was the first big bump to 14. Then Ryan Cohen came in and became a board director and that started the chain reaction back in December until now. Somewhere around the first week of January there was the Melvin Capital group that came out publicly and said GME was a bad investment (after already losing their shorts at the end of December). That riled up the crowd as the methodically moved up. The a quick short squeeze followed by a gamma squeeze followed by this current swell is where we are today.
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I thought I had my head wrapped around what was happening here - but this is still gibberish to me :)

But I'm pretty sure this sums it up:
a132e833-0aa0-4fca-8f98-98c9b0314ab2_text_hi.gif
 
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ISUCyclones2015 said:
He started noticing this trend in 2019. He took options and stocks and kept rolling into more and more as the price went up. Started at 53k. He might be close to 50mill+ at the end of today.

He was always just posting away on WSB but then Michael Burry (IRL Christian Bale from Big Short) came in and saw the same **** and that was the first big bump to 14. Then Ryan Cohen came in and became a board director and that started the chain reaction back in December until now. Somewhere around the first week of January there was the Melvin Capital group that came out publicly and said GME was a bad investment (after already losing their shorts at the end of December). That riled up the crowd as the methodically moved up. The a quick short squeeze followed by a gamma squeeze followed by this current swell is where we are today.
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I understood none of this.
 
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3TrueFans said:
I understood none of this.
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Attempting to translate it for you...

The peasants are outside the castle. They brought their torches and pitchforks. They seem angry.

Only the castle is Big Finance and they brought their mobile phones and trading apps.
 
This gets a little dark... but is a pretty solid recap of my observations of r/wallstreetbets since it REALLY ramped up last year (around the time $TSLA landed on the moon)
 
Sigmapolis said:
Attempting to translate it for you...

The peasants are outside the castle. They brought their torches and pitchforks. They seem angry.

Only the castle is Big Finance and they brought their mobile phones and trading apps.
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And Elon Musk
 
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Ugh, my trailing stop loss hit while I was in a meeting, only ended up 1300%, oh well, ill look for a good entry point tomorrow.

I suggest going to wsb for the memes, stay for the DD.
 
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DurangoCy said:
The real question is when does it now make sense to short GME? I was talking about this with co-workers, and none of us have the balls to do it.
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i broke my own rules and bought some put options. it's betting the stock will go down without having to actually own the stock. my downside is limited to my initial investment.
 
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DurangoCy said:
The real question is when does it now make sense to short GME? I was talking about this with co-workers, and none of us have the balls to do it.
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The pricing on March put options were insane. The price would have to drop to $3-4 a share to break even.
 
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One issue here, if the people short are having to liquidate other positions to cover their margin calls, it could have an adverse effect on those positions. Look out as this will probably be the justification to limit retail investors.
 
CYme said:
One issue here, if the people short are having to liquidate other positions to cover their margin calls, it could have an adverse effect on those positions. Look out as this will probably be the justification to limit retail investors.
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Agreed, 'we must protect them from themselves because we're losing our ass' some guy on CNBC probably.
 
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CYme said:
One issue here, if the people short are having to liquidate other positions to cover their margin calls, it could have an adverse effect on those positions. Look out as this will probably be the justification to limit retail investors.
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I agree. This seems pretty short sighted and doesn’t encapsulate or solve the whole issue though
 
mtowncyclone13 said:
yes - my GME puts went through! I got some july 21 $125 puts riding on this thing dropping



as this starts to happen to more and more small companies, you'll see fewer companies have massive short bets. Let's be honest, shorting a $5 stock doesn't leave much room for profit but a lot of room for loss.
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mtowncyclone13 said:
$72
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So, you break even with gme at $53. What's your target price? $20? You would make $3300/contract on a $7200 premium.
 
JM4CY said:
I agree. This seems pretty short sighted and doesn’t encapsulate or solve the whole issue though
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Yes, back to my post yesterday, naked shorting should not be allowed except for a few key times due to market makers needing to hedge or provide liquidity.
 
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bawbie said:
the thing about the questions is that the host was trying to get Chamath to justify that the companies "deserve" to be at a certain stock price. Which is ******** - it's a story they tell themselves, but it's all made up.

this appears to be to tear the mask off the stock market and expose it as a joke. a "game" as the host kept saying.
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Just looked up the P/E ratio for the Trade Desk. In Dec 2020 it was trading at a P/E of 332.58.

P/E isn't the be all, end all....but that seems like it's a bit high even for it's type of business (to me)

So....I can invest in TTD or not. That's what makes the market. Why would a TTD be a darling but others not? Manipulation? Collusion? Those closed door rooms?

Who would be the gatekeeper to say it's too highly priced?

This is an interesting time for the market. My bet is the powerful will keep the power....but this movement will be fun to watch.
 
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