HUGE GameStop Short Squeeze - What is a Short Squeeze? & Why it's Working
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- Опубліковано 6 вер 2024
- What is a short squeeze, and how Wall Street Bets and everyday investors have been able to drive the price of the stock up over 3,000% in a year? GME is up more than 1,700% in 2021.
How are there more shares short than there are shares in the float? Technically, the broker that lends the hedge fund shares to short, can loan those same shares to other funds/investors as well. Therefore, we end up with a short interest larger than what’s available for purchase. Hence the HUGE spike in GME Stock.
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How are there more shares short than there are shares in the float? Technically, the broker that lends the hedge fund shares to short, can loan those same shares to other funds/investors as well. Therefore, we end up with a short interest larger than what’s available for purchase. Hence the HUGE spike in GME Stock.
it is ironic that the latest hype in this crazy market is called "Game Stop" lol
Is this a US issue only? From my understanding the brokers in my country are only allowed to borrow out shares from their customers (and only once per share), and that is if their customers agree to making the shares available for shorting. Makes the market more fair IMO (as do the lack of market makers in our markets).
Hi Jimmy, surely there is a cap on the amount of times a share can be loaned out? I don’t get how that’s legal 😂. It reminds me of a ‘Synthetic CDO’. great video once again btw!
I always thought shares could only be loaned out once. But in reading about GME, I've read time and time again that shares can be loaned out multiple times. Which does seem wrong to me
@@LearntoInvest if that is the case the Brokage firms are setting the buyers and sellers up for failure, although they are willing participants.
Jimmy always gives the best information in the easiest to understand way.
Jimmy, never change. Best investing channel. I'm grateful it exists.
If I come across 100 UA-cam channels I may subscribe to one. This channel I subscribe to. Not only is it great information but Jimmy is a likeable dude! Keep up the good work!
Much appreciated 😁👍🙂
Jimmy is awesome. In a world where someone wants to learn investing it's very hard to come across a Jimmy!
I'm always sticking with Jimmy he's one of the best.
This Gamestop issue seems to me to be the latest in a decades-long trend (a trend I like) of the opening of the stock market to "the masses." Online brokerages, reduced cost (and now essentially free) trading, low minimum brokerage balances, large volumes of relevant data for individual investors, etc. I worry that regulators are going to use these incidences to limit or prevent the free exchange of investing data among individual investors on forums like Reddit or UA-cam. I fear that regulators and legislators will trot out enough tragic stories of people caught up in these short squeezes until they generate enough "demand" for the government to get more involved. I am glad that content creators like Jimmy focus on EDUCATION instead of hype. He doesn't so much advocate a style of investing as he explains the potential benefits and risks of different styles. Keep up the good work.
True unbiased information is what Jimmy offers. One reason I definitely watch him. Well put @Richard King.
🤲🏽💎 DIAMOND HANDS BABY , DIAMOND HANDS
WE SHALL SEE THE STARS !!!! 🚀🚀🚀🚀
I think you missed something Jimmy. The short seller has to pay interest on their position which is valued at the daily price of the stock. Meaning that, the short seller LOSES money as time passes. While the buyer doesn't have to pay any interest.
He said that in the first half of the video
@@calebcooper2333 must've missed it. Thanks.
Best explanation so far.
Great video Jimmy! Your explanations are wonderfully concise thank you
You were the only person i know that realy make this easy to understand!!! Thanks
Jimmy, can you make a video on how to do covered call or put options? And how to decide a proper option buy or sell prices? Thanks.
Thanks for the good explanation Jimmy. I imagine the SEC will revisit the rules after all this.
best explanation on this channel. thank you
Power to the people
When memes become dreams, hedge funds die. Thank you Jimmy!
hedge fund don't die, they are just replacing/borrowing from each other at the front line. This thing won't last forever, last man standing in the short position get all the $$. This is why short position is still standing at 130% this morning. Last one in the long position is left holding the bag
Jimmy, could you please explain what is a gamma squeeze and how it relates to gamestop? Thanks.
Very well explained! Thank you!
DIAMOND HANDS 🚀🚀🚀💎💎💎🙌🏻💎💎💎🚀🚀🚀
Ironically, Michael Bury of The Big Short is long this stock and it was 11% of his portfolio, the biggest position, as of end of Q3 2020. Guy is just straight up lucky..lol!
Or smart lol
Best UA-cam channel ever
Very well explained! Thanks a lot !!
Gone is the time for DII & FII..
👇 Respect for Retail investors..
the people are taking back the power
Jimmy actually listens to the people!
How can you sell short stocks more than there is available (float)??? Can someone please explain
I believe it's called a naked short. And I think that means they've actually created a position without actually having any of the stock on hand but they can get that stock if needed at a premium price. But I'm no expert so....
Well explained, thanks for breaking it down!
Hello Jimmy, Would like to know where you get information on short interest for stocks
I was waiting for this video lol, good job jimmy amazing video also nice to see you got a new camera (noticed in the other videos too)
HOLD THE LINE
HODOR!!!!!
Hold the line boys!! 💎✋🤚
Thanks for the update Jimmy!
Thanks for explaining it so well for those of us who are dumbfounded by it all
I'm dumbfounded as well, this is a crazy situation to be watching
This was very informative. Thx!
Well it's not $1000 but it went pass $500 today alright 🤭..! How about the out of the money call options which might be expiring tomorrow?
apparently friday -tuesday is the endgame when the expiry dates arrive for the big companies, creating the biggest surge in price.. can you explain this more?
How is it possible, that there were 69.7M of Outstanding Shares and 71.2M shares in their short interest at the same time? Could you please explain?
I’m not totally certain, but shorting a stock isn’t technically buying, but “borrowing”.
Hedge Funds use this tactic to completely crush a business. More outstanding debt than available.
Only, now the shoes on the other foot. They are a success again. Now they have to buy back more shares than available, creating a perpetual buy back, making the stock price continue to go up
The key is that when a fund shorts a stock, they 'borrow' those shares from their broker. BUT, the broker can lend those same shares to multiple funds/investors. So in theory the short interest could keep going up even if the shares outstanding stay the same
You should make a video about DFS (Discover Financial Services)
Fantastic explanation!
Thanks jimmy
We’ll see how all these play out. Very interesting
I am up big on $NAKD and waiting for the $CTRM shoe to drop.
I was able to to purchase 56 stocks at 30 cents for ctrm
It's a curious and interesting situation, buy very dangerous. The irony is while they damaged a couple of hedge funds, many professionals are making benefit of this craziness - not because they're big, but because they're smart... And thus making the bubble bigger. It's not just retail “investors”.
awesome explanation, well said!
Well also the options are too dangerous for atleast four reasons:
- stock violatilty which can easilly kick out You from them,
- options must be hedged by normal shares which again makes a supply and demand issue,
- the premiums for call options are now off the charts so You really You must pay more for them than for the shares,
- the regulators may step in which will cancel those options or make you sell them without Your consent
Best explanation on the situation on UA-cam!!
Great insight! Can you do an analysis of National Health Investors ($NHI)? Looks like an undervalued company with a safe 6% dividend. Thanks!
AMC TO THE MOON 🚀
Jimmy thank you for your channel it is a gift to all of us investors!
thanks Jimmy for explaining GameStop situation
Hi Jimmy. Is what the hedge funds doing naked short selling ?
Excellent video. Following GameStop closely. The one area I’m still fuzzy on ... I do research and think I see a short squeeze in stock xyz, I buy X number of shares. That alone won’t make a bit of difference against these institutions who are shorting. So, how many stocks need to be purchased to make an impact on the shorts? How do you figure that number out?
WE LIKE THE STOCK
You explained this very well I had to subscribe 😊
I'm sure a lot of institutions are riding the momentum as well on the buy side doing all the arbitrage they can.
AMAZING explanation!!
Thank you Jimmy :)
Please Jimmy. do a LMT video!!!
Will do, it's on my list 👍🙂
thank you
What's the DCF valuation of GameStop compared to its stock price?
Don't forget, market makers have to buy the underlying stock to offset the risk of writing call options.
I don't understand why Gamestop's board hasn't issued more shares. They could literally issue 1 million plus shares today, and then buy them back at a tenth of the price a few weeks or months later and have a much stronger balance sheet for it. They'd be doing a great disservice to the company long term if they don't issue more shares during the short squeeze.
They have to apply and get approve before issuing stocks. Don’t think they can get approve soon due to the current situation.
What about CLF? Steel prices and cash flows are rising. Short float - 14 %.
Awesome explanation!!!!
well done video....thanks
Excellent explanation of the Wallstreet Bets stock strategy.
Hey Jimmy
Great vid and hope your well. What system/ site do you use to check how many shares are shorted on a company? (If you don't mind me asking)
Hoping to hear from you
Ben
Cheers man
Hearing Jimmy have to say gamestop stock 😆
Lol, I don't know how many times I messed up and said GameStock Stock. 😬👍🙂
Thank you for such a detailed explanation Jimmy. Annoying what they do, even if they pay interest to do it🙈
KEEP BUYING GME
Hey Jimmy, could you do a stock analysis video on Facebook? At $260 it looks like a buying opportunity. What do you think?
Great video!
HOLD!
Please update on REITs that can benefit with the new Admin. Thanks
9:45 that's exactly what happened
Great analysis..you are a genuis..
Good video
What will happen if GME do stock split now?
Jimmy, can you analyze Nokia please?
The amount of people thinks it won't crash is just ridiculous.
AFFY will be the next GME. Spread the word !!!
My head hurts
Top notch! 😀
Today, do we buy NOK?
Not as easy since most of us are on robinhood and they blocked them there
Robinhood took gamestop off there brokerage unbelievable
I'm guessing tens of thousands of people will be stuck holding $350 bags when the stock drops to ~$10 during 'technical difficulties' or out of hours.
forget all things about fundamental
Waste Connections to the moon.
GameStop. AMC. American Airlines.
Share shares shares shares....
Me: ohhh okay 🤯🤔
Or they band it
At the end of the day, there will be a lot of retail investors with nearly worthless stocks on their hands.
This shenanigan is just passing around the money each other.
There will be some winners and a lot of losers.
Hope people don't throw out their hard-earned saving at this.
It's time for Nokia !!!
A REVOLTA DAS SARDINHAS....MUITO BOM, QUE SEJA APENAS O COMEÇO!
Thanks Jimmy
Great video!!
How is it possible, that there were 69.7M of Outstanding Shares and 71.2M shares in their short interest at the same time? Could you please explain?
You can borrow the shares from someone, then sell it, then borrow it again from the next buyer, and do this multiple times. There's no limit to the amount shares that can be sold short.
@@xitvono that would mean they are lending the same stock to multiple people
@@jgbains It's the same shares, but not the same person lending the shares.