What Just Happened With GameStop?
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- Опубліковано 14 тра 2024
- GameStop is back in the news after rallying over 100% this week. Today's video discusses what's going on, and whether the speculative theories around where the ticker goes from here have any merit.
Article explaining XRT short interest: www.nasdaq.com/articles/why-s...
SEC Report: www.sec.gov/page/sec-staff-re...
DISCLAIMERS:
I do not hold a long or short position in any of the mentioned companies.
Richard Coffin is a registered portfolio manager, CFP professional and CFA charter holder.
This channel is for education purposes only and does not constitute financial advice - Richard is not responsible for investment actions taken by viewers. Please seek out a registered advisor if you require assistance (while Richard is a registered portfolio manager at WDS Investment Management, he does not provide advice through The Plain Bagel, which is not directly affiliated with his employer).
One guy posts one meme, the markets shift, clearly the best system.
Meme stocks and stock markets aren't related
In fairness, Elon does the exact same thing and yet he's taken seriously
Guy probably just wanted a few extra million. It's like Elon with Doge and Bitcoin. He could of bought into it prior to tweeting knowing it would jump massively once he tweeted anything.
It's the modern boiler room, nothing new at all.
You can't ban stupid people, it's called genocide and very very illegal 😅
I quit my tarot addiction and replaced it with a bagel addiction
Bagel is lox betters.
Just bought more ozempic stock because of this comment. 🚀
You've traded being gullible for being fat. Not sure if that was healthy.
potato, tomatah fries are best w ketchup or gravy and cheese.
I be getting pissed off at the price of bagels at Safeway
Richard saying "deep fucking value" caught me off guard.
"Those that do not learn from history are doomed to repeat it" used to apply to cycles longer than five years
Truth is, if the circumstances repeat, the same events will happen again. People never learn.
I would love to see a meeting filled with Hedge Fund executives discussing reddit
They astroturf reddit and Twitter. After the organic explosion I'm like 2018 demonstrated that retail investors could influence markets, albeit small ones, they've loaded influential subreddits and Twitter threads with bots and shills.
Same, only so I could play "dumb money" bingo.
It might make you loss hope for humanity though.
Probably a lot of swearing and resenting having to get locked in a cell because we wont sell
@@freedomlife3623 nah. They're only playing by the rulebook. Want to lose faith in humanity? look at the legislation that gives us the laws they operate under. That's the real problem.
"a guy posted a picture on reddit"
thats what i call an efficient market!
It can't be as balled up as stock picking goldfish. Goldfish ETF for the win!!!!
Homo economicus
Get with thw times old timer it dosent work on fundamentals anymore its about following the coolade
Do people really think that a simple tweet can trigger the rally? Lmao
X*
I had been sitting, holding my bag of 100 shares ($32 cost basis) since the last "run", I was using it as a reminder of my shame every time I logged into my trading account to remind myself not to day trade. Boy was I confused when my several year old limit sell sold all my shares for $45 a unit.
Guess I got to avoid learning a lesson on this one!
my friend held from 2021 sold at 70 and was also very surprised like you hahaha
Haha that’s fun. That’s a weekend dinner out as a reward.
you'll learn ur lesson at the end of the month
Just like the one time I played Blackjack at $20 a round. I was lucky enough to get a win before the money was gone forever and walked away even. It's only when you can't stop that the house always wins. 😊
Congratulations!
One of the most important things to realize about ourselves as humans is that we are extremely susceptible to confidence. We are more inclined to believe someone the more assertively they make their claims. Combine that with a presentation that makes us feel like we're special-like we have some forbidden knowledge that other people don't-and your going to want to believe what the person is telling you.
or you could look at a graph 📈
You mean we like believing in bs stories
Before the proliferation of the internet, in the '90s, I was so optimistic about what increasing the volume of information would do to society. Well…
The flow of information will be amazing! People will have entire encyclopedias at their fingertips! And... Will... start talking to each other about how the earth is flat and there is a massive conspiracy to cover it up -___-
Your mistake was assuming all information is useful😅
The mistake we make was thinking we would all just get along
Did this once in 2021, broke even and learned my lesson the first time with no actual loss. Aint doing that again
Why not just keep 1 share in your portfolio? A $20-30 initial investment difference shouldn't really hurt anyone's overall investment portfolio.
@syahrules because I was only making half what I do now and those pennies really, really mattered. Now I can buy one share for a laugh and maybe make $10. Then use it to buy discount PS4 games at the store lol.
@@matttran7161 good for you
If only I had listned to the hordes of screeching gambling addicts online and put my downpayment in GME instead of trusting my certified financial planner. What a fool I was...
You're definitely lying
I was up 11k before the dip man I hope it goes bk up
@@joshuarobinson6444get help brother
@@joshuarobinson6444 you didn't sell? DA fuq. it is a pump n dump - you sell on the pump.
You and me both. 😊
I highly recommend Folding Ideas's "Line goes up" and "This is financial advice" videos.
Wonder what Dan would have to say about this
@@normtrooper4392he already said it could pump and dump in the future. Lower highs and lower lows
@@normtrooper4392he’d probably go back a bit on his giving Keith Gill the benefit of the doubt, and then pull a “In Search Of A Flat Earth” on us and the entire back half of the video is gonna be on Andrew Tate and the exploitative “Alpha Male” culture
@@normtrooper4392 Same thing last time; the Apes are trying to make their MOAS come true off based off random pictures and memes from one dude without understanding fundamentally how the market works and despite the fact that literally all of their past predictions and "interpretations" about GME have gone south.
I bought a short position in GameStop a couple of days ago after hearing about the rally. It’s doing very well.
I bought 25$ put options on Tuesday with the expiration date on 5/24 which I close. Gave me over 100% on Friday. Closed my position.
Bought $25 puts the day of the bump with a 6/21 expiration that I closed on Friday. Happy with my decision since I 2x'ed my investment.
@@UnfrozenCavemanTrader That was a really short pump
Bought a short lol
You might regret that on Tuesday. I hope you closed!
The GameStop never Stops.
Until the feds step in
men lie, women lie, numbers don't....shorts are over leveraged.
@@HighTide_808 lol no
@@HighTide_808 Yes, FED steps in to keep this store for games upright for its sole reason to keep unemployment rates low and our luxury consumer entertainment will not dissappear from society. This is the important task that the FED has to uphold. This is 2008 all over again...
I think you meant the "gamestock never stops"
My coworker just bought some gamestop and I was like... This Again?
Meanwhile me: Investing in a truck parts company with a near monopoly, an offshore vessel company in which the industry has a shortage of until at least 2027, and the only speculative one being a niobium (see rare earth metal) company who sits on top of a massive Tier 1 deposit and is needed for renewables and has massive shortages.
Up 25% in 2-3 months and hodling the hell out of the offshore vessel company that it’s pending a takeover (that is far too cheap thus likely to be voted down in shareholder voting in June, which I will too as the shares are actually in my name).
And I’m interested in opening a position in an electricity infrastructure construction and maintenance company that looks way too cheap share price wise and will only get better due to greater electricity demand in years to come. But I always give it a few days to see share volume etc
Good investing with good core fundimentals is boring investing.
Alot of those with low P/E ratios, particularly ‘defensive’ stocks = DEEP FCKING VALUE
Oh yeah, Tradingview, even the free version, is over 9000 based too.
@@ChineseKiwi "Investing in a truck parts company with a near monopoly" ORLY?
@@WPaKFamily Yes, it isn’t in the US.
@@ChineseKiwi not in the US. I was assuming it was ticker symbol ORLY in the states
Its 25% of total shares are DRS not just float.
Good news baggie, they'te about to dilute and render DRS useless!
Correct 50% of the free float is locked up.
Let me repeat - HALF of the available shares, are not available
We’ll see when the CAT system goes live on May 28th. Hedge funds, brokers, prime brokers, and market makers need to label all their transactions for transparency purposes. Right now, we don’t know if they’re honestly labelling trades like they’re supposed to (marking shorts as longs or vice versa).
Given the current difficulties in tracking who owns which stock in a high frequency trading environment, I suspect selling a stock you don't own is quite rampant. Even if caught, firms usually get fines that are so small it makes doing the illegal thing a no brainer.
There's also the attachment to the bill that lowers the required leverage to have on hand comparable to market volatility in times when they deem "highly volatile or unusual trading activities"
I was wondering how long it would take for someone to refer to anything DTCC related 😂 It’s stunning how such an influential piece of the market is so ignored by the majority of investors…
Well, I was the same before the sneeze so I shouldn’t be so quick to judge.
the SEC pushed back implementation of some SRO reporting obligations until July 2024.
@Not_Bored_Enough ok so I'm not super literate with any of this stuff. But if new "unique" bank deposits have dried up, and they change margin requirements wouldn't that make it easier for institutions to gamble with money they don't have during short squeezes etc and not have to worry because they just won't get a MC?
As someone who has a modest "for fun" position in GME, it is nice to see how deep into the weeds Plain Bagel goes into the stock with these videos. Yeah the whole situation is silly and it's hard to see how GME could validate its current market cap. But there is a lot of uncertainty about how much actual short interest exists and which if any of the bull thesis are valid, which I'm glad to hear is being talked about.
yeah, it's making me feel like i should've had a fun little position on gme myself now.
>which if any of the bull thesis are valid
that's the best part: none of them are!
@@mikewazowski5421 greater fool theory is always valid.
Tesla, DJT and other stocks being ridiculous, it invites this behavior.
It's another pump and dump. Come 30 days we will learn it was a Nancy Pelosi play or some such. Another goobi earning themselves a nice summer vacation bonus. Retail holders will be bag holders, as always.
Nothing matters. We have a reality problem for people who live their lives on the internet
Everyone under 30 lol probably under 50 let’s be real.
We do have a reality problem. But the problem is in cost of living, making people cling to moonshot events because it's the only way they see themselves improve their lot in life.
@@bones642 have you been on Facebook? There's no age limit to this.
@@dinokknd If anything these people would gamble even more money if they had more money
ACTUAL inflation (not CPI) is more than 100% since 2020 you can’t blame them, a bull market is not beating inflation anymore.
Just noticed your sub count- this year is going to be the year for you to break 1 million. You've done such a great job with this channel over the years and I'm stoked to see you so close to that big milestone. Thanks for the hard work and vids!
Wasn’t it already up 100% when DFV posted that meme?
Not 100% but yeah it was already up a significant amount on no news
Imagine believing a single tweet causes a stock to jump
FOMO is destroying me now
We've all been there, now I just have my popcorn out while sticking to what I know.
Have faith brother. Don't give in. Keep to low cost etfs and ride it out the coming years. It will be slow, but you will be rich.
FOMO about literally anything else but meme stocks. It will ruin you
Don't. You are watching someone hitting the jackpot and not the many many many days and people dumping their money in for nothing.
Go get some spare cash and take it to a casino. Same difference except it's more entertaining.
Don't. FOMO for short term predictions of markets are very risky and you'll eventually lose if you play the game long enough.
"Be safe out there" - this sign off is so weirdly comforting.
Fantastic video. Probably the only even headed presentation of this whole situation
I've watched "This is Financial Advice" a documentary about the Gamestop stock story from the channel Folding Ideas over a dozen times. Highly recommend to anyone curious about this subject.
Hell yeah brother
His 2 hr and 30 minute video was supposed to be comprehensive, but it left out the market reforms meme stockers have sought. For example SEC Chair Gensler admitted 90% of retail orders do not hit the LIT market and therefore have zero effect on price.
That is a great video but learning about MOASS scarred my brain.
Agreed. He's also commenting on recent events over on ex-Twitter; I gather his opinions haven't changed much.
His 2022 video "Line Goes Up" covering similar phenomena in crypto and NFTs was also very insightful.
@@AynRands.RazzieAward If you had watched TIFA you wouldn't have made this comment because Dan actually **does** address this point very specifically. The truth is that you and the rest of your ilk don't care about market reform at all, it's just convenient misdirection. You just want the entire financial system to burn and get unfathomably rich in the process.
How the hell is this not a pump and dump?
go look at how many shares traded the past 3 days. hundreds of millions, you actually think everyday Joe's are moving that quantity? grow up, it's shorts being forced to buy.
@@boukie85 nice narrative but if we look at the numbers we can see millions of transaction while the market is declining.
@@boukie85 lol. He explained in the video how that was very likely not the case
@@jaad9848 check back in with me in a month u shill
@@Burito-tj5ry check back in a month shill shillington, put ur money where ur mouth is. talk is cheap, takes money to buy whiskey 🚀🚀🚀
I'm not touching GameStop with a ten foot pole this time around. All it taught me last time is that I'm bad at gambling and should learn how to invest, thus why I now follow you lol
There is no way retail is behind these moves.
Also, short interest formula changed from Short/Total shares to Short/(Total + Short) shortly after the january 2021 event
That shit confused so many people because they didnt realize that every share short also adds to the number of shares. Going over 100% isnt a conspiracy. Its normal for a struggling company.
Thanks for the video. I really hope all the folks jumping in for quick money watch this to learn about the fundamentals and what is driving a stock higher. Basic elements of like daily volume is not understood by many of the UA-camrs. If they’re gambling, cool, just concerned some think they are investing.
I can be dumb longer than you can be solvent.
That’s the struggle
Say the actual word, you know you want to
@@bad_writer not sure what you mean?
@@bad_writer Haters gonna hate.
Markets are efficient and so on...
They can be if you’re not gambling on memes
Markets are, mobs of pirates aren't
Short term popularity contest, long term weighing machine
Economics assumes that every market participant has perfect information and acts rationally. These are very poorly founded assumptions.
@@CurieBohrYou failed the test bro. If they're so efficient there's no point in investing at all.
Leave it to Plain Bagel to do a fundamental analysis of meme stock lol
Thanks for your analysis here. This stuff helps tons of investors take a step back and focus on their future and investing
I like your content, but can you please make your text corrections longer? e.g. @4:02 top left. Not a huge problem if someone confuses Nasdaq with NYSE because of it, but it is corrective text that shows up just under 1 second and is extremely easy to miss, so a consistent way to present corrections is necessary considering the size of your audience.
Just gamblers gambling. Keep up the sensible investing boys.
i love gambling
Lol. Are all humans lemmings? Is there even one other like me out there?
Investing is gambling.
it's not gambling if you hold forever u shill
shorts never closed
Yes investing in NVDA!
The best financial channel.
Great analysis, no presumptions. We'll see.
Honestly the first criticism I've seen so far which isn't highly subjective.
The message of these people trying to hurt institutional investors would be more convincing if they replicated the GameStop phenomenon with another stock. Just trying to revisit the past is lazy thinking & unlikely to work.
Just want to say thank you for the great videos. I consider myself "somewhat" knowledgable in investing, but by no means would I handle my own finances - I do have a financial advisor. I like the way you break things down for those of us with average knowledge. Keep up the great work!
why would you buy after a rally?
Everyone’s hoping they’re jumping in at the middle of the rally, and those people aren’t usually setting appropriate stop losses or getting up early witnessing the destruction.
Like showing up to a trashed house after a party at 5 am wondering when the party is going to start.
@@Flintknappingtipsone of them was me, a brutal lesson but also one that led me to bogle from now on
What year is it?
I'd like to see him start livestreaming again. Deep down, he's a deep value investor, hence his reddit name, and some of the insight from his old streams has been helpful in how I invest.
Can’t wait to see how many new bagholders we get from this.
Personally I'm looking forward to Gamestop's Q2 report so we can see how many baggies finally sold based on what will almost certainly be lower DRS numbers. Once that crack in the armor shows and people realize they got suckered in for 3 years straight, it will be the meltdown to end all meltdowns.
@@mikewazowski5421the mother of all meltdowns
Id interested to see if you would interview David Lauer on the topic of GME and market manipulation
absolutely, he didnt even touch the threshold list/fail to deliver stuff along with FTX claiming to back tokenized shares 1-1 and mmtlp straight up getting denied movement
Excellent take! I am a gme fan but very open to the possibilities that maybe, just maybe, the stock market is fully rigged and will never allow for this MOASS. The people in charge keep the market on. They can turn the market off for a single stock at any time. Numbers can be altered. And betting your savings on a system that is not and never will be in your favor is probably just a sign of addiction. With all that said. I still deeply hope that the system can change and be a more fair place for all.
The market is absolutely rigged.
The good news is, the rules are all published and, the entire history of any stock can easily be obtained for free.
Most people who complain about “the market” are just mad because it isn’t the free money machine that they want it to be.
It's amazing CFA CFP are making videos, my former advisor at Edward Jones did nothing for me except cost me money
It is so fun that people thought for some reason that the guy’s new thesis will be on the same stock it was 3 years ago…
Thanks for adding much needed clarity around this particular market event!
Love your shows. Keep bringing the "good-good!".
I've been desperately waiting for you to explain this to me Mr. Bagel
Yes one person made the stock go as high as 700% in a few days, great analysis
Volume went up 2 magnitudes in 13 days. Retail didn’t do that. Retail didn’t buy Koss (zero options). Retail didn’t cause GME to go up double digits in premarket
shorts never closed 📈🩳📈💎
the largest penny stock group in history got a signal, and once again someone made a shitload of money, and it wasn't them.
I’m glad you mention that GameStop still hasn’t made money. They’re a brick and motor store that doesn’t have a place in today’s gaming market. An EB Games near me doesn’t even really sell games anymore, just merchandise
So what you're saying is that they should simply rename themselves GamerStop and only sell hardware and games-related merchandise.
Mortar*
They're profitable and debt free with massive cash reserves to the point they're now a holding co.
@@Jmills2112what planet do you live on?
@@colinhobbs7265 the last quarter they reported a profit.
Thanks Richard. I really appreciate your insight and neutral examination of this very polarizing stock. As shown in your graphic, since Ryan Cohen joined the GME board in 2021 they've improved from a 381 million a year loss to being slightly profitable in 2023. I'm wondering given your experience reading company's financial statements what's your take on that improvement over a 2 year time-frame? I also see that GameStop has begun working on their own private label brand of controllers- the Candy Con. If hypothetically GameStop were able to successfully build out a private label brand that sells gaming peripherals (e.g., controllers, headsets, keyboards, etc.) how might that impact their future revenues? Gaming peripherals are required even when games themselves are digital. You have a natural talent for teaching and education!
GameStop has a P/E ratio over 1,000.
That means if profitability continues to improve at the current rate, GME fundamentals might justify the current stock price in 20-30 years.
GameStop is becoming profitable by shrinking. That’s a decent short-term strategy, but it doesn’t justify a sky-high P/E ratio.
Who knows? Maybe the market for crappy off-brand gaming accessories will explode, and GameStop will become the next Amazon! The challenge is that the profit margin on hardware is much lower than on software.
When GME baggies leave the cult subreddits, they like to pretend they care about fundamentals, but most of them are really betting on conspiracy theories about massive hidden short interest being exposed by DRS.
People on a certain subreddit have been trying to pump and dump the stock for over a week now
A tad bit longer than a week, I’d say
More like 3 years
Lol, all the bag holders from the last Gamestop run are now attempting to dump their bags off on someone else
@@notnoaintno5134 Not gonna lie, that was me. Invested 7 thousand last time, then it went to 3 thousand, then I sold today at market open, made off with 10 thousand. Life lesson, only invest in ETFs and mutual funds. I made up my loss from sheer bloody luck, not risking or gambling on a single stock again
@@rob-tt3hb Technically speaking, that's over a week
Thanks Richard.
This has been going on for weeks though. Soon as it hit a key technical level of $10 ($40 pre-split) it’s been on a tear. $40 is where the stock cratered to after the criminals shut the buy button off back in Jan2021.
Good. If physical media stays alive purely because of memes, that's even better.
To be fair the Gamestop's transition to codes and colectables has been happening for years hince the profit... Also people like me who are the whales keeping gamestop high a dry.
Didn’t know what physical media was. Thanks. I think it’ll do fine on its own though:)
Physical media is overrated. There's really no reason to own stuff physically other than poor internet connections, discounts and used media. I bought the "disc version" of the PS5 solely for the discounts. As long as the digital media isn't tied to a subscription then you own it as if it was physical, unless you're trying to resell it when you're done with it.
@@dlanor15 That's not entirely true. A lot of these digital media purchases are tied to accounts that can be terminated, can be blocked by new hardware requirements and some of them even include fine print that your "purchase" of content is actually a license that can be revoked at anytime.
For instance, recently Funimation merged with Crunchyroll. Funimation had sold digital copies of shows that you could pay to "own" and watch without a subscription, kind of like a digital DVD boxset. When Crunchyroll acquired the platform, they stated they weren't supporting Funimation's digital copies and since the content couldn't be locally downloaded, Funimation customer lost all the content they paid for.
Another example was a recent decision by a company called Telstra shutting down their service and moving it to another company called Fetch, which would require purchasing additional hardware in order to continue to access the media that users purchased. (See "‘My whole library is wiped out’: what it means to own movies and TV in the age of streaming services" on The Guardian for more details).
The only way you "own" digital media is 1) if the media exists in such a way that you can make local backups of it and 2) that you can install / transfer it from device to device without going through the company you purchased it from. Anything else leaves you vulnerable to have you content taken back at the whims of the company that provides it.
Health insurance is also overrated. Until you need it.
Lmao I tried to hop on the train this time, bought in at $60USD. 😢
Idiot 😂
Can we call you bagholder now?
please be joking 😭
Stupidly thought you bought a single $60 share. Did she take the kids
Moron😂
The thing is, there's every possibility that someone simply hacked Roaring Kitty's social media and posted those memes. After the BBY incident and Folding Ideas' video "This Is Financial Advice", people have known that the Gamestop "Apes" have enough power to cause temporary market shifts . Someone could have bought a bunch of GME stock, posted the memes, and then cashed out once the stock hits its peak. Given what happened, if that was the plan, then they got exactly what they were hoping for.
This is not retail. Retail cannot trade tens of millions of shares in premarket, and DRS contributes zero to trading volume.
Was that Tactics Ogre music? You have good taste
I thought it was from gurren lagan 🤣🤣
Have you factored in the possible effects of CAT implementation and T+1 settlement? Both will increase transparency exposing criminality.
My current GME shares come from the "proceeds" of that original run. Pulled out my play money and just let it ride with a roller coaster worthwhile in entertainment value alone.
Can you talk about why these companies are especially interesting for short-sellers?
Here's another fun fact: The initial rally actually didn't begin after DFV's first tweet; it began after him LIKING A TWEET on the 10th. He has a whole host of cultists following his Twitter profile EVERY day, to the point where him simply liking a tweet after 3 years contributed to a 70% gain in GME. This is how insane this all is.
And all the apes know that buying otm calls by the ass load causes market makers to buy shares and drive price.
I swear there’s a central group that gets in and out to profit off the horde
This makes literally no sense as he’s a gme guy and stocks like amc/koss/bb and other completely unrelated stocks moved pretty much the same pace. I don’t claim to know why stocks pumped this week, but I’m confident DFV is not the reason
@@anonymeralfred7585 it makes plenty of sense if you’ve been following the meme stock cults for the past 3 years. DFV is basically the meme stock messiah, and many GME holders also hold on to stocks from the same meme stock basket and vice versa.
It’s really not that hard to see discussion boards on various trading platforms to see that many people caught on to the hype and started buying up other meme stocks like TUP, CLOV, SNDL etc.
To be confident that DFV is “not the reason” when GME surged 70% immediately after he liked a tweet is the part that literally makes no sense.
@@anonymeralfred7585 it makes plenty of sense if you've been following the meme stockers for the past 3 years. DFV is seen as the stock messiah amongst the various meme stock groups. While his primary focus has been GME, many of his devotees also have their hands on the same meme stocks that pumped back in 2021. And in the past 3 years, a whole host of conspiracy theories and mythology formed around the guy, with many believing that he secretly had a part to play in the bull runs of any meme stocks; completely baseless of course.
To be "confident DFV is not the reason" when GME surged 70% immediately after he liked a tweet is the part that makes literally no sense.
@@anonymeralfred7585 it makes plenty of sense if you've been following the meme stockers for the past 3 years. DFV is seen as the stock messiah amongst the various meme stock groups. While his primary focus has been GME, many of his devotees also have their hands on the same meme stocks that pumped back in 2021. And in the past 3 years, a whole host of conspiracy theories and mythology formed around the guy, with many believing that he secretly had a part to play in the bull runs of any meme stocks; completely baseless of course.
2:20 The most mild-mannered demonic summoning. Thanks for the analysis!
Bankers and financial analist scare me.
@@dredoctor8271analist😅
Great analysis. Basic language 👌
How many In the money calls do you think are going to be exercised on Friday?
What effect will that have on the upward pressure, especially if the gamma squeeze continues?
If you think this is just retail. You're sorely mistaken.
Yeah I'm sure hedge funds have positions in all the meme stocks (bought in when cheap) and monitor social media with bots.
Most of this movement was probably trading bots going wild trying to catch the upside of a pump, as "retail" fake themselves into thinking a short squeeze is coming and the stock will go wild.
Did you even watch the video? He literally said most of the buying was institutional.
@@wrxpilot"Who tf has 18 minutes and 26 seconds to watch something"
Fr, this dude watches too much msm
Most of the people I know who speculated on GME lost money.
The tokenomics and use case for Fourprime's token protocol is fantastic!
Thanks for the update. I bet those Fourprime's token holders aren't too worried about the markets.
Some people have been speculating that the shorts never actually closed their positions and that's why they believe a short squeeze is still looming. Do you think there's any merit to this? I think you even mentioned there being a bit of a short squeeze already which was part of the reason why the stock saw such a rally back in 2021, so I was wondering if it was true that they closed and if some people may be grasping at straws at this point.
Hedge funds would've been wiped out already if they hadn't closed. No one can afford the carry costs of an open short position for more than 3 years.
It's in the name - "short"; the only people who stubbornly stay in the losing side of a trade over a multi-year horizon are idiot ape traders, not hedge funds.
Isnt it nonsense to think a hedge fund is holding a short position for 3+ years? Those are expensive
The idea that the short positions held by hedgefunds never closed is silly and completely antithetical to the basic market theory that Apes pretend to know. It's been three years since the initial rush. Any potential profit that could've been made by holding short positions would've been eaten up by fees long ago. It's cope that exists purely because Apes need those short positions to still exist or else they can't possibly trigger MOASS. This is despite the fact that the SEC report released after the initial rush detailed very explicitly that the large majority of the money came from bagholders; Retail investors who bought from other retail investors. Almost all of the people who made fat stacks off gamestop didn't get that money from squeezing hedgefunds, they got it from roping in other average joes into their cult.
@@Byssboda lot of them do. Or atleast ones with egoistic leaders. Carl ichan for many years had a money lossing position and still kept for years. Same with tesla short sellers. Unrelated yes but it is possible.
@@Byssbod considering they took out these position at $1-5 (split adjusted) - the fees & interest are exponentially lower than closing these positions lol
Roaring kitty is a genius! lol. He just knew it was gamestop specifically and nothing else. Meanwhile the foolish conspiracy theorists said it was AMC and they were dead wrong.
inb4; not saying in any way GME is a good investment. Heck this whole situation isn't even about investing anymore. It's something alright! But it's not investing.
It's entertaining! I'm so glad round 2 is on
One more point to concider is the role of marketmakers, both - spot and option side.
As volatility increases, the spot MM will typically widen the spread, meaning that it takes less volume to move the stock from Price A to Price B.
Volatility typically clusters on the shorter time horizons, which means that the MM behaviour explained above will keep being present as long as the volatility is high.
Option Marketmakers, on the other hand, will also participate on the bid in the spot, as they would need to hedge the sold options (they sell as they need to provide the liquidity to the buyers that desire to participate), the price of which continues to increase with increasing IV, meaning that there is a need for more spot exposure to keep the positions hedged.
All in all, 2 sides are hitting the bid (option MM and retail), spot MM quotes wider causing greater fluctuations.
Great channel for this stuff 👏 👍
❤ “I have, once again, been summoned to strike a more cautious tone." 😂❤ Glad you received the summons from a great many of us rational, normal, level-headed investors. 🤓 (Though I learned how to trade stocks after hours in Fidelity and bought and sold GameStop at a profit yesterday. It's too fun to not take part with a few bucks gambling and being part of a social phenomenon)
Oh cool. Is this a power anyone can learn?
i made a glorious 3€ with that chaos xD
Trading fees included?
@Baracuda-xj6zk 3€ before taxes, fees and not going to his job. After accounting for that Karen took the kids.
Keith Gill definitely got very lucky. He wasn't looking for a massive short squeeze, he was looking for a decent run, and it made him millionns instead of the few hundred thousands he was looking for initially.
keep up the good works sir
My thesis is that institutional investors ran the price up to bait retail into buying a crap company once again. Seems to have worked, and now it's down 30% last time I checked today.
Still up 283% in a month. Not too bad
Non-sense happened, that's what.
$GME: The Stoppening Continues. /s In all seriousness I went into a Gamestop today and... there was no one else in there (in a busy mall, lots of foot traffic).
I jumped in , bought both GameStop and AMC after seeing initial jumps for a nice day trade. Walked away making 60 or so % on AMC and 40 on GME. Overall not a day 48 hour deal. Since then I’ve watched both have very negative days and expect the price to settle back down in the coming weeks….unless we see another tweet lol
C'mon Richard, what's X??? Do you mean X, formerly Twitter?
no no it's "X, the app used to access the Twitter platform"
@@NotTehJon Lmao, even better 🤣
Stocks are all time high, crytpo all time high, real estate having another price boom.
Did Powell turn on the printer again?
Don't be ridiculous. They're still burning dollars, but when they do that the average expected return of a stock go up.
Govt spending is very high, so kinda.
Honestly didnt expect this. . .again.
The good news is that I already benefitted from some of the rallies the GameStop folks initiated. That surprised me in a pleasant way.
Its looking like it’s about to go parabolic again
During the last run, I asked on the subreddit what would happen if GME issue more shares. The post got deleted quickly.
Doesn’t US market has upper or lower circuit? For the safeguard of retail investors
But we like the stonks but this all depends on the short squzze and gamma.
Thanks for the recommendation. Gonna YOLO all my savings into Gamestop now.
Diamond hands baby!
After carefully considering whether I should buy calls or puts yesterday, I ultimately realized the real answer was: popcorn. Not touching the stock or associated options with a 10 ft. pole.
I think buying a long term puts is the play, if any. Because there are no fundamentals for the business as bagel suggested and the clown show can only last so long since the larger shareholders will cash out eventually.
The correct answer was buy a “straddle”
Don’t touch it do not touch it
@@AynRands.RazzieAward Ya you’re right, but might be expensive with all the implied volatility right now
I am more curious about AMC stock rather than GameStop and what it will do in coming months
I agree with everything except the statement: "subject to the same biases and euphoria the rest of us are" I don't think the Plain Bagel is ever euphoric.
Hi Plain Bagel, That was honestly the fairest analysis I've heard yet. Can you do a video explaining rehypothecation, naked shorting, and why people even care about shares outstanding? Who pays the dividend when Gamestop finally issues a dividend? Are the short sellers on the hook?
I'm not a Gamestop investor anymore, but I do think there are some ideas for the company to pivot. I believe they should try to sell off the entire retail business for 1-2b and raise more cash. Do another share offering and have roughly 5-6b in equity. Then hire Keith Gill to be the Chief Investing Officer.
Also, I did attempt to capitalize on this rally with the same level of success in the past - poorly! I do appreciate your input as usual. Unfortunately, I didn't watch this video until right now. :/
Keith Gill should have the title Chief Investment and Cat Advisor. This would make history.
Gambled a very small size of my portfolio on it. Bought on monday sold tuesday. Had a 60% increase on that 24 hour trade. Congrats to DFV and other winners. But remeber this is a zero sum game
That 2200 PE ratio makes shorting a very attractive option IMO.
Not at current costs
Not with 550+% IV lol
Shorting is not the play at the point, you're better off selling calls