$gme

[Reign Man]

I got 29 shares Monday morning and will only sell when the short sellers actually do cover their losses, then buy puts to make money on the way down. Glad to see your puts are doing relatively well SplitEm, I'm thinking a top mid-week. This will be the easiest case for SEC and FINRA regulation to be taken against the brokerage firms and hedge funds. They picked a side, explicitly declared the short sellers to be losers and said straight-faced that Melvin Capital doesn't have enough capital. The billionaires don't have any money to pay their losses and they don't want them to default or repay their debts. The heads of the brokerage firms declared the 'short' squeeze to have gone on infinitely. Short sellers have lost $57 billion in January 2021.

I was ready to sell once the news came down that they had closed their positions, but I could clearly see the fundamentals had not changed. The short interest as % of float went down from 140% to 120%. The numbers didn't add up, I could clearly see they lied. They forced people to sell. Take your profits and go. They created barriers to entry on buying options as well creating brand new numbers out of thin air. Limiting % float shorts is a great start so that billionaire hedge funds can't crush small businesses like a mall video game store or a mall movie theater during a pandemic that forces malls to close. A bunch of pimple faced teenagers banded together to execute a move that the guy who wrote the book on The Big Short saw coming over a year ago.

[DSchles]

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

[SplitEm]

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.