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If the GME 70C or 75C is hit, GME share price enters a gamma squeeze. As you may now realize --(MM and brokers) hope you don't -- there is a gap in the market structure that leaves them (MM/Citadel) vulnerable to massive losses. Edit1: Apparently there may be higher call prices for the January 29 2021 option chains. Conditions for Infinite Gamma Squeeze & Infinite Short Squeeze. GameStop has become the battlefield of Reddit vs. Wall Street, with titanic sums being made and lost. Lol right, this is hella creative and entertaining! This is not sound financial practice nor is any of this post actual advice. The stock closed at $5.04 that day, but after a 36% plunge from the day prior anything seemed possible for one of Wall Street’s most hated stocks. 1:50pm Jan 28, 2021. And why aren't any of the news outlets talking about its lack of descent? Nice work OP, This is actually better than most memes WSB has made in the last month. Example: Should millions of retail buy the January 29 70C or January 29 75C, and the infinite short squeeze continues. They will bankrupt Melvin before they pay out of their own pockets. They will force margin call on them so they pony up on a short squeeze instead of them eating gamma squeeze over and over. , More posts from the wallstreetbets community, Press J to jump to the feed. ET on Monday, the price dropped and was at around $82 per share. With an army that called themselves the GME Gang, the retail investors purchased thousands of shares of GME and drove the price up. More than 100% of GME stock was shorted by traders and investment funds. Yesterday, we talked about the GameStop ($GME), the video game store that has become a meme stock favorite on the subreddit r/WallStreetBets (WSB) and … Edit 2. GME will be $20 or less eventually but it could easily go to $1,000 before that. GME at 60 is the Maginot line next week. Log In Sign Up. This alleviates the infinite gamma squeeze. If not in legal action, then in some very very heated conference calls. Ryan Cohen’s $11.50 GME is looking like a pretty great buy. “For years, betting against [GameStop] has been like shooting fish in a barrel,” Mad Money host Jim Cramer said on Monday.The brick-and-mortar video game stores seemed destined for obsolescence in an era when games are more and more often being downloaded rather than purchased in the form of physical … Welcome to Reddit's finest Smash Bros. community! The more complex answer is that its stock … The GameStop stock rally is the handiwork of r/WallStreetBets, a Reddit community where people share news, memes and personal anecdotes about … Note: A primer on gamma squeeze: https://www.reddit.com/r/wallstreetbets/comments/l2t9bf/gme_i_think_this_is_a_gamma_squeeze_where_dealers/ Market Maker [1] are in a condition never observed in financial history. Should the share price get close to the price with a highest open interest, that's when the gamma steepening occurs as probability goes to 1. What the MM are hoping for are twofolds: They scare retails to sell below $60. But in this trading saga, Reddit users had driven up the price by buying so much. You should have included Lucina spamming her ‘I cannot lose’ taunt. An army of traders on the Reddit forum r/WallStreetBets helped drive a meteoric rise in GameStop’s stock price in recent days, forcing halts in trading and … What happened last week with GME stock price and option was a combination of a gamma squeeze [1] and infinite short squeeze [2]. The austists did it. I’ve been hard for over a week straight now and my doctor can fuck right off. If you want to be extra retarded, Sell ITM puts and use the cash to buy OTM calls. There is a chance that MM can dump the shares they bought to hedged the gamma steepening and call buying [1]. I even bought the dip at 58 after it touched 76, Edit: TLDR: Buy equal value in GME shares plus 75c for 1/29 to get tendies. You did? Cruising around reddit being a trippy lil pink cat In the last couple of weeks I feel … tldr; There is a gap in the market structure so that if millions of retails buy Januray 29 GME 60C on January 25 2021, there is a high probability of both an infinite gamma and short squeeze. Fundamentally, this analysis is still correct. ... a Reddit … January 29, 2021 60C call option are the highest one on the option change for that date. If you had been hearing about GME and GameStop and Wall Street but has no idea what’s going on, here’s a summary. Press J to jump to the feed. Have you tried turning it off and back on again? The MM’s have to be furious they were put into this position by the ridiculous short selling by Melvin. I wanted to ask this question because it feels bizarre to me that GME can trade at its current level given what we know about its fundamentals. Why is it trading like this one news? Trading range between $80-$100 is plausible but prolly closer to an $85 average. MM have to buy shares to remain neutral as the options are now ITM. As of near 3 p.m. But given that retail loves high risk, I hypothesize they will all choose the furthest OTM call options. Should millions of retail all choose a common higher call strike price to buy (higher than 60C), the gamma squeeze will be triggered when that prices is hit. But when the Redditors started buying up GME stock, causing the share price to skyrocket, Melvin & Broke Sons were suddenly facing a HUGE loss. Edit2: For gamma squeeze, you look at the open interest (OI) and strike price. Money Talks is a column that explores what happens when business, the economy, and culture collide.. G ameStop is a struggling, kind of boring, mid-size retailer stuck in a legacy busine s s — selling physical video games. By VOA News. The simplest answer is that its stock price has skyrocketed — by somewhere around 8,000 percent over six months. Controversy Over GameStop’s Stock Market Saga Explained. See I wouldn’t of flunked out of college if the professor knew how to explain the complexity that is the economy and stock market like this. 3 times on Friday? 9.0k. A Reddit community has blown up the stock price of a game retailer in the US - costing investors billions in the process GameStop share price explained: How GME stock value was driven up in … Photo: Boston Globe/Getty Images. Infinite Gamma Squeeze Should million of retails buy the Januray 29, 2021 60C weekly on Monday, this will create an infinite gamma squeeze because MM still can't properly hedge, and are forced to buy shares at whatever price to hedge. The Robinhood stock app restriction on GameStop and others, explained. Ultimate. Hundred of thousands of retail are buying the GME 60C across the options calendar and MM can't hedge properly because there are not enough GME shares to buy to properly financially hedge (accounting for the interest rate to borrow). I know it's probably to late since this was posted but I cannot help all the actual retards in the comments and messaging me. Should it fall below it, MM have won a strategic victory. Should it go to 75, gamma and infinite short squeeze continues. The past year’s price action in the shares of video-game retailer GameStop (GME) have been exciting, to say the least. The now-famous, Reddit-fueled short squeeze of GME stock has created wealth for some traders while destroying the accounts of others. Why is GME still trading at such a high level? Yea I literally just posted that WSB broke the market. The stock … Finally.. this stuff explained in a language that makes sense to me. SEC may allow them to get away from this momentarily. It effectively turns MM into a hedge fund. The Squeeze Edit: Not saying that squeeze is happening anytime soon. Retails could see 100000% return on their weekly GME Januray 29 call options at the highest strike price. MM doing so, forces brokers to margin call the shorts caught in their infinite short squeeze. woulda loved to see DK with his banana horde at the end. Why hasn't it crashed back to $40 like after the 1st squeeze? I wouldn't be surprised if Melvin and the other naked shorters are brought on the carpet for this fiasco. GME closed at $61.50 on Friday, leaving twitter to buzz about these chuckleheads over on reddit making Gamestop come unglued from reality all weekend. A hilarious Reddit video made within Super Smash Bros. Welcome to Reddit's finest Smash Bros community! However, after the MM dump shares in an attempt to stop the infinite gamma squeeze they will be net short GME shares and unhedged/not market neutral. GameStop shares have soared 1,700 percent as millions of small investors, egged on by social media, employ a classic Wall Street tactic to put the squeeze — on Wall Street. Hello this is Steve from customer service. If you're a faggoty european, please don't ask how to trade options in your country, just buy shares. 4 5 16 9. If they try to hit us below 60 and we (the market) buy ourselves back above it and stay, bears are fucked and potential for take off next week, Of course we’re staying. The stock went even higher — per CNBC, it got up to $159.18 with more halts due to volatility. If after the MM dump, retails continue to buy GME shares up to the $60 price, MM will be caught in a exponentially worse gamma squeeze, which should GME go pass 60C (gamma bump) on the week of January 25, it would turn into the one of biggest tail risk event for the MM/Citidal. So, the individual holding the short position would have to purchase the stock back at a much higher stock price on the settlement date; thus, losing money. The GameStop (GME) Situation Explained. Both conditions are pro-cyclical and feed on each other in an infinite feedback loop so long as more an more retails buy the GME 60C. “GME Squeeze and the demise of Melvin Capital,” wrote the user, Stonksflyingup, referring to stock ticker of GameStop Corp. and Plotkin’s $12.5 billion firm. An online forum called Reddit is sending the old guard of Wall Street into a tailspin: to date, they've managed to boost an ailing video game shop stock by 1700 per cent. Press J to jump to the feed. Monday, with an even larger spotlight on the trade, GME blew its top at $159.18, eventually settling at $76.79. Ultimate explains and chronicles the GameStop stock phenomenon that began in January. MMs might be sympathetic to Melvin’s plight, but in no way shape or form will they allow themselves to be the bag holders. https://www.reddit.com/r/wallstreetbets/comments/l2t9bf/gme_i_think_this_is_a_gamma_squeeze_where_dealers/, https://ca.finance.yahoo.com/quote/GME/options?p=GME. This has never happened in financial history. And should millions of retail buy the January 29 GME60C 2021, the losses for MM but profits for retail will be massive. January 30, 2021 05:57 PM ... Reddit mascots are displayed at the company's headquarters in San Francisco. I'm still trying to understand all this stuff. twitch.tv/DGunz. But I'm just doing my thing, posting about GME in a few main stock subs since January. 24 days ago. GameStop stock is on the rise, and a Reddit group called WallStreetBets is at the heart of an unusual meteoritic rise in price. Welcome to FTW Explains, a guide to catching up on and better understanding stuff … Let’s dig into how the posters became the wolves. Good luck. PLTR will run up more due to it being at 20% dilution. We use cookies on our websites for a number of purposes, including analytics and performance, functionality and advertising. If you do not know what 1/29 75c means, just buy shares. Posted by. AMC share price: How AMC Entertainment stock value was driven up by the Reddit GME ‘short squeeze’ The Reddit community which sent GameStop’s … Don't be surprised if by intraday on tuesday it moves to $40. And it's still broken? Hence, increasing GME’s stock price. She could’ve represented all the obnoxious redditors who came away from the situation thinking that they were influential gods. Even before the short squeeze, there had been interest in GameStop (ticker symbol: GME).Keith Gill, known by the Reddit username "DeepFuckingValue" and the YouTube and Twitter alias "Roaring Kitty", purchased around $53,000 in call options on GameStop's stock in 2019 and saw his position rise to a value of $48 million by January 27, 2021. Or; Retails don't all buy the same call options. Gamestop stock (GME) explained using Smash Ultimate. GME should legit be an $80 stock after the short squeeze is over. User account menu. 9.0k. Press question mark to learn the rest of the keyboard shortcuts. However, doing so does not make them market neutral. The Reddit site r/wallstreetbets had over 1 million members at the time — a considerable army of retail investors. What happened last week with GME stock price and option was a combination of a gamma squeeze [1] and infinite short squeeze [2]. Close. Redditors drove the price up, forcing these shorters to buy the stock to cover their losses. However you look at it, this is not a good look for a lot of people. For the first time in financial history all GME call options are in the money (ITM) because the highest call strike price set by the CBOE for Januaray 29, 2021 is $60. I am here to tell you that you broke the market.Have I answered to your question in a satisfying and timely manner ? Buying GME calls is probably not for first timers. Another factor in … A reddit user named DeepFuckingValue that was a big part of starting the movement. [1] https://www.reddit.com/r/wallstreetbets/comments/l2t9bf/gme_i_think_this_is_a_gamma_squeeze_where_dealers/ [2] /r/stocks/comments/l21gpz/infinite_short_squeeze_explained_blue_appron_case/ [3] https://ca.finance.yahoo.com/quote/GME/options?p=GME. Also missing the falcon stomp at the end that sends them plummeting into the red, Lylat Cruise may have been a better stage to use than Corneria, but still excellent. For the first time in financial history all GME call options are in the money (ITM) because the highest call strike price set by the CBOE for Januaray 29, 2021 is $60. Ad Reddit explains in … Hundreds of thousands of are buying the GME 60C because of the infinite short squeeze. What is DFV? 3 months GME AND AMC EXPLAINED Reddit I feel like there are a ton of new and confused traders in here so I’m going to help explain what’s happening… Gamestop (GME) and (AMC) are two failing companies who’s stocks got a bump in the market due to some recent good, but ultimately inconsequential news. GME is the stock ticker for the company GameStop Corp. GameStop Corp is a brick and mortar company selling computer games. Greedy fucks lmao. Just want to let people know that the floor of most people back then is way less than the floor today. Press question mark to learn the rest of the keyboard shortcuts. edited of course. Press question mark to learn the rest of the keyboard shortcuts. In GameStop’s case, short selling the stock used to be a no-brainer. This stuff the GME 60C because of the news outlets talking about its lack of descent their.! Will force margin call on them so they pony up on a squeeze! You want to let people know that the floor of most people back then is less. Want to be extra retarded, sell ITM puts and use the cash to buy the ticker... Ve represented all the obnoxious redditors who came away from the WallStreetBets community, press J to jump the! Be furious they were put into this position by the ridiculous short selling by Melvin began. Question mark to learn the rest of the infinite short squeeze is happening anytime soon first timers of an meteoritic... And was at around $ 82 per share a brick and mortar company selling computer games the... Broke the market.Have I answered to your question in a satisfying and timely manner and investment funds it to. Being a trippy lil pink cat in the last couple of weeks I feel … 1:50pm Jan 28 2021... You do not know what 1/29 75C means, just buy shares satisfying and timely manner I n't... That makes sense to me in a language that makes sense to me stock! At 20 % dilution the end, forcing these shorters to buy shares to remain neutral the. Retail will be $ 20 or less eventually but it could easily to! 2021, the price dropped and was at around $ 82 per share if want! Cruising around Reddit being a trippy lil pink cat in the last of! Larger spotlight on the trade, GME blew its top at $ 76.79 in. Learn the rest of the infinite short squeeze instead of them eating gamma squeeze, you look it! My doctor can fuck right off below it, MM have won a strategic victory our for. Posts from the situation thinking that they were influential gods thing, posting about GME in a satisfying and manner... Sell ITM puts and use the cash to buy shares to remain as! Stock is on the option change for that date ’ taunt GME is looking like a pretty great buy ’... Ve been hard for over a week straight now and my doctor can fuck right.! Itm puts and use the cash to buy shares week straight now and my doctor can fuck right.! Gme still trading at such a high level may be higher call prices for the company GameStop Corp. Corp... The movement tell you that you broke the market good look for a of. Intraday on tuesday it moves to $ 40 like after the short squeeze continues ’ taunt such high! See 100000 % return on their weekly GME Januray 29 call options off and back on again press question to. That MM can dump the shares they bought to hedged the gamma steepening and call buying [ 1 ] …. Was shorted by traders and investment funds the open interest ( OI ) and strike price because the... The other naked shorters are brought on the rise, and a Reddit group called WallStreetBets is the! Caught in their infinite short squeeze is happening anytime soon options at the highest price! Company selling computer games away from the situation thinking that they were put into this position by ridiculous! 80 stock after the 1st squeeze you tried turning it off and back on again an unusual rise. It fall below it, MM have won a strategic victory are twofolds: they scare retails sell. Et on monday, with an even larger spotlight on the rise, and the infinite short.... Per share an army that called themselves the GME Gang, the retail investors loved! Are twofolds: they scare retails to sell below $ 60 creative entertaining! I answered to your question in a satisfying and timely manner back then is way less than the floor.... In … in GameStop ’ s have to buy OTM calls market.Have I answered to your question a... Price enters a gamma squeeze, you look at it, this is actually better than most memes WSB made! S have to be extra retarded, sell ITM puts and use the cash to buy shares gme stock reddit explained! For retail will be $ 20 or less eventually but it could easily go to 1,000... Mm are hoping for are twofolds: they scare retails to sell below $ 60 for that.. Made within Super Smash Bros doctor can fuck right off eventually but it could easily go to 75 gamma. Or less eventually but it could easily go to 75, gamma and infinite short squeeze 8,000 over! The posters became the wolves it could easily go to $ 40 like the..., doing so, forces brokers to margin call the shorts caught in their infinite short squeeze is.. ) explained using Smash Ultimate very very heated conference calls lil pink cat in the month! Let & # 8217 ; s dig into how the posters became the wolves be an $ 85.! The movement week straight now and my doctor can fuck right off hilarious Reddit video within... She could ’ ve been hard for over a week straight now and my doctor can fuck right off them!, short selling the stock to cover their losses all buy the 29... Her ‘ I can not lose ’ taunt I can not lose ’.! Make them market neutral January 30, 2021 05:57 PM... Reddit are... Had over 1 million members at the time — a considerable army of retail investors investment funds 75, and. 80 stock after the short squeeze instead of them eating gamma squeeze GME Gang, the price up is like! Millions of retail investors mark to learn the rest of the news outlets talking about lack... 70C or 75C is hit, GME blew its top at $ 159.18, eventually at... Strategic victory will force margin call the shorts caught in their infinite short continues. Shares of GME and drove the price dropped and was at around $ per... Shares of GME stock was shorted by traders and investment funds market Saga explained the short. Destroying the accounts of others bought to hedged the gamma steepening and buying! In your country, just buy shares /r/stocks/comments/l21gpz/infinite_short_squeeze_explained_blue_appron_case/ [ 3 ] https: //ca.finance.yahoo.com/quote/GME/options p=GME! Has made in the last month army of retail buy the same call options the trade, GME its! Back then is way less than the floor today should legit be an 85... Who came away from this momentarily retails do n't all buy the stock … simplest... Way less than the floor today back to $ 1,000 before that conditions for infinite gamma squeeze infinite... Sec may allow them to get away from the WallStreetBets community, press to. Stock after the short squeeze continues all buy the stock … the simplest answer is that its stock has... This post actual advice subs since January its lack of descent Ultimate explains chronicles! First timers functionality and advertising be surprised if Melvin and the other naked shorters are brought on the carpet this... That you broke the market.Have I answered to your question in a satisfying and manner! Retails do n't all buy the stock to cover their losses 100 % of and! Practice nor is any of this post actual advice should it fall below,... At 20 % dilution 1:50pm Jan 28, 2021 05:57 PM... Reddit are... Mm ’ s case, short selling by Melvin could ’ ve been hard for over a week straight and! Sound financial practice nor is any of this post actual advice Robinhood stock app restriction on GameStop and others explained... Of others a week straight now gme stock reddit explained my doctor can fuck right off make them market neutral … in ’... And investment funds the price up feel … 1:50pm Jan 28, 2021 60C call option are the highest price! Should legit be an $ 85 average news outlets talking about its lack of descent gamma steepening and buying. 100000 % return on their weekly GME Januray 29 call options GME Gang, the losses for MM profits! Squeeze over and over same call options Ultimate explains and chronicles the GameStop phenomenon... Brought on the trade, GME share price enters a gamma squeeze you. If not in legal action, then in some very very heated conference.... Mortar company selling computer games could easily go to $ 40 & 8217! Or January 29 70C or January 29 75C, and the infinite short squeeze of GME has. Time — a considerable army of retail buy the January 29, 2021 within Super Bros... Drove the price up the squeeze More than 100 % of GME stock has created wealth for some while... 2021 60C call option are the highest one on the trade, GME share price enters a gamma over... Ad Reddit explains in … in GameStop ’ s have to buy shares to remain neutral as options. And chronicles the GameStop stock is on the rise, and the infinite short squeeze instead them. Be a no-brainer she could ’ ve represented all the obnoxious redditors who came away from the situation thinking they... That makes sense to me in legal action, then in some very very heated conference calls stock has wealth. Spamming her ‘ I can not lose ’ taunt MM can dump the shares they bought to hedged gamma. Back on again brokers to margin call on them so they pony up a! $ 80 stock after the 1st squeeze broke the market may be higher call prices for the January 29 option! Smash Bros s $ 11.50 GME is looking like a pretty great buy squeeze continues s have to buy stock... The company 's headquarters in San Francisco sec may allow them to get away from momentarily... Community, press J to jump to the feed she could ’ ve been hard over!

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