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Thread: $gme

  1. #11


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    Quote Originally Posted by Reign Man View Post
    then buy puts to make money on the way down.
    1300% implied volatility recently. Good luck with that. The ATM straddle is 350 with the stock at 325!! Have been in the business 36 years and have never seen that. The inmates are running the asylum. When the IV collapses, the stock could drop 100 points and the puts might still lose value! So, be very careful.

    Don

  2. #12


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    Quote Originally Posted by DSchles View Post
    1300% implied volatility recently. Good luck with that. The ATM straddle is 350 with the stock at 325!! Have been in the business 36 years and have never seen that. The inmates are running the asylum. When the IV collapses, the stock could drop 100 points and the puts might still lose value! So, be very careful.

    Don
    Completely agree. My $39 strike price puts (exp: 2/19) were valued the same when the stock price was $40 vs. on Thursday when the stock dropped to $150. The volatility component is out of control. I am curious to see how this ends. My understanding is that the shorts only have paper losses right now (except for those who had near term dated put options). I'm not sure how long short contracts last for, but so long as the shorts do not sell, their losses are not locked in. Do the Redditors keep this fight going for months until the hedge funds are compelled to repurchase shares to cover short contracts? I don't know. I suspect that there will be a small number of Main Street winners and a large number of Main Street losers.

  3. #13
    Random number herder Norm's Avatar
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    And a lot of lawyers who make money.
    "Croyez ceux qui cherchent la vérité, doutez de ceux qui la trouvent." --André Gide

  4. #14


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    Many of the reddit assholes will earn a hard lesson: what goes up always and inevitably comes down. Nothing has changed regarding the fundamental value of GameStop. It's was a shitty stock before all this nonsense and will remain so. It will go back to being a $20 (or lower) stock. My opinion is that the easy money by the teenagers has been had. The harder lessons are going to come, and some of them won't be pretty, especially in the options markets, where losses can be dramatic -- 100% of one's investment.

    That said, I don't know the time frame. As Keynes once famously said: The market can remain irrational much longer than you can remain solvent!

    Don

  5. #15


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    Well said, Don.

  6. #16
    Random number herder Norm's Avatar
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    A San Antonio mother wanted to give her nine-year-old son a lesson about investing. So, she bought $60 of stock, printed out a stock certificate, framed it and gave it to him as a Kwanzaa gift. He wanted an XBox. But, he thought it was cool that he owned a tiny piece of a store he really liked -- GameStop. He just sold it for $3,200.
    "Croyez ceux qui cherchent la vérité, doutez de ceux qui la trouvent." --André Gide

  7. #17


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    Quote Originally Posted by Norm View Post
    A San Antonio mother wanted to give her nine-year-old son a lesson about investing. So, she bought $60 of stock, printed out a stock certificate, framed it and gave it to him as a Kwanzaa gift. He wanted an XBox. But, he thought it was cool that he owned a tiny piece of a store he really liked -- GameStop. He just sold it for $3,200.
    Great lesson. Now the kid will think there's no need for an education or a job.

  8. #18
    Random number herder Norm's Avatar
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    True. When I was a preteen, I sat at Dean Witter and watched the ticker after my paper route. And I skipped the education part.
    "Croyez ceux qui cherchent la vérité, doutez de ceux qui la trouvent." --André Gide

  9. #19
    Senior Member drunk's Avatar
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    .....................


    right now GME is a Ponzi scheme - nothing else
    Patriot: the person who can holler loudest without knowing what he is hollering about............Mark Twain

  10. #20


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    Quote Originally Posted by drunk View Post
    right now GME is a Ponzi scheme - nothing else
    Exactly. First ones in make money; last ones in get hosed. Currently 220 points lower than its high a few days ago. Look out below! And all of the call options that are going to be worthless will be staggering.

    Don

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