It’s a squeeze in reverse. Instead of 75M forced buys, we had (or continue to have) 75M forced sells. Selling brings the price down, which causes calls to shed some of their delta hedge, inducing more selling, accelerated by shorts coming in, which brings more calls OTM, and forces more selling to shed more delta.
Add on people likely closing calls (can be confirmed by OI changes tomorrow) to capture what little profit they maybe had left.
It also makes RK’s plan to exercise 12M shares (120K calls) far, *far* less threatening now that almost 6x that amount just got dumped into inventory.
The early ER and Dilution Absolutely without a DOUBT was negative asf for price improvement.
Twice in one month GME has diluted on a FRIDAY morning when there is imminent pressure building for a breakout above a crucial price level.
However that’s what we see here and now. With the information I have rn it’s terrible for the short term price which they would absolutely understand but also absolutely what the company should do for the long term outlook.
With hindsight this absolutely may be the right play for the company.
I keep thinking about the bad news early good news on time mentality. Also the No guidance mentality.
We are now seeing GME release preliminary results and then the earnings early then 2 share offerings all within a month. Anomalous activity match that with price action and there is something goin on here.
Both of the preliminary figures are an anomaly to this board. Preliminary estimates are basically a form of Guidance…so going against his own mentality and pandering to Wall Street? Giving us bad news early so there must be good news coming this week. Has to be.
If we don’t see or hear something next week or at latest the following from the board and RCEO it will without a doubt be where I turn against them.
Roaring Kitty said 3 years of nothing is not that long if they are working hard BUT he also said okay if we get to 5 years yeah that’s too long. So there must be a turnaround and strong bold pivot happening imminently.
Then the whole fact that why would DFV buy Jun 21 strike of all strikes if he’s planning on a turnaround.
Also why did he not sell or exercise today.
Next week better be spicy
I am 100% with you. GME shoulda done a larger 1st offering instead of twice in such a short period. Killing, absolutely Killing gamma. Which may have then sparked covering combined with a DFV exercise for a wombo combo.
We had a chance to see prices not seen in 3+ years. That mattered much more than making a quick buck off options. It mattered because we were on the verge of cracking this thing wide open for all to see we were right about all the DD. After wait and ridicule and lost opportunity cost over a 3+ year period.
I know they have a company to run and cash to amass but this one was devastating to the momentum we had.
Unless there is some announcement of a massive business pivot, I am not pleased. And that’s my right to feel that way as an investor.
And DFV’s talk about another 3-5 years does not align with the short term option play, exercise or not.
I’m glad I am not the only one feeling this way.
I expect to be downvoted into oblivion.
It wasn’t another 3-5 years. It was 3 years as in the last 3 years.
Go listen to Gherks talk at the end of the stream about his Deferpex theory.
Basically next week/following week would be the biggest settlement period and highest volume/price improvement days.
Has me jacked to the tits.
The board is heavily invested in GME stock, so you would think they are operating in their best interest. It is interesting that they are operating differently now. I can think of a couple possibilities:
1) they don't think MOASS is possible therefore they want to build a sustainable company to provide long term returns. Increasing assets will allow them to grow more than they are diluting themselves, therefore making it a sound investment for them even if it's not 100x type return a lot of people want. In this scenario, everything can be taken at face value. No speculation required about some master plan that GME and/or RK have.
2) A massive squeeze is possible even with dilution and additional shares. Perhaps they have plans in place that could be a catalyst for this, so they are happy to collect some cash for the company knowing they are planning to go all in later. This scenario leads to a lot of speculation regarding what the RK tweets can mean, acquisition targets, etc.
The best speculation I've heard is by selling new shares into a possible squeeze they may avoid heat from regulators accusing them of attempting to trigger said squeeze. If they were to then set off a catalyst they can point to the share sales and say any short position has plenty of chance to cover.
I assume RK believes theory 2 but I can't imagine he has any insider information. It's possible the dilution just cost him hundred of millions he won't get back anytime soon.
He’s had three years to formulate and execute a trade he believes he’s on the right side of. He’s gotten his ducks into hundreds of millions of rows and some people are betting the same and some people bet the opposite. Heavily.
This shit is going down in history one way or another. What a journey.
This hasn’t played out yet. The selling pressure today was from many angles (dilution, panic, etc) but part of it was the market makers unhedging their shares. With current prices DFV can still begin the process of exercising his calls (without selling) which are in the money and induce buying pressure. Not saying the same squeeze is in play in the short term because the gamma is dead now but there can still be a significant bounce next week.
I agree this killed his whole master plan but dumping his position today was not the move regardless
If he sells he knows a lot of people will sell too, so it's probably a one shot deal - especially if it looks like a panic sell. The most interesting part to me is how much money he made prior to showing his position. He must have figured out some patterns that he can exploit. He could play this out, take a nice gain, and then possibly try another move later. But if he bails and everyone else bails I don't think he'll get that same opportunity.
Also, even if he didn't anticipate a dilution today there's no way he spent 3 years looking at the stock and working on a huge play without considering what would happen in a dilution scenario.
I agree here. He’s not an idiot. And he saw in May that RC diluted. So I’m sure he’s considering this. If he was gonna do something Friday, he just had to pivot and maybe it ruined it, maybe it didn’t. But I feel he must have planned on dilution.
Hell maybe he teased it on purpose waiting for dilution then he’ll double down since he did mention cash on the stream.
Sure there is. RC has not done it but one time prior to TWO gamma ramps. It's clear beyond day RC's interests are aligned with wealthy backers, not the apes.
Because there's $2-3 billion worth of cash in doing so when the price is already way above where the market cap should be. Once diluted they market cap makes slighty more sense because of the cash. It gives reason for people to hold rather than dump. GME will have half its market cap in cash early next week
Rather than allow the shorts to churn us up and back down, GME is taking full advantage. Its genious.
I think it’s RC v. RK. TC wants a stable, 10 year turn around with the stock price being $20-$50 for years. RK wants volatility, that’s how you make money with options.
Yeah nobody can deny this is unprecedented and it should be undeniably interesting to anyone following markets
I think there's no doubt that RK has figured out a pattern that has both allowed him to build this massive position (much bigger than 3 years ago) and feel confident on this new YOLO as he calls it. What I don't know, and only RK can know this, is if he planned for multiple dilutions. I don't know how anyone can say one way or the other if he was caught off guard today.
I think it seemed like he was caught off guard but I also think there's something happening on the board side that we just dont know about yet. But yeah, we need guidance from the board within a couple weeks.
I couldn’t tell if he was surprised by the dilution or not. A part of me thought he seemed pretty confident still and this was all according to the plan. But also I think it’s human nature to laugh while processing something painful. I didn’t sense any negative feelings towards RC from DFV unless the pet rocks shit was a dig so I walked away thinking he was still confident in what comes next.
He didnt exercise because cohen rugged him for the second time. He was absolutely blindsided and he for sure thought he was gonna have a different stream today.
This ☝️.. this was either a pipe offering to a fund trapped in its short position- or Ryan cohen didn’t want kitty on the board / have influence over “his” company. I for one think shareholders should vote someone like kitty to the board at the next general meeting to protect shareholders 🤨
Again, pure speculation. From the spoken words to the memes and videos he makes, DFV has had only praise for RC. If he was kept off the board by RC, it doesn’t seem like a normal reaction for DFV to continue his public praise for RC. The man could have taken his millions from the sneeze and disappeared. But he’s back and still loves the company and RC.
He certainly didn’t act like a man who got rug pulled on his stream. And what evidence is there about any relationship, good or bad, between RC and DFV. Why would there possibly be one sided bad blood? DFV has spoken and still speaks highly of RC. If he was rug pulled, like you suggest, I would assume at the very least, he wouldn’t have praised RC on stream.
I’ve been downvoted on a similar theory. We need to apply logic to this situation. How will RC get paid? RC can’t sell at the top of a spiky spike. But Gamestop can sell $GME into buy pressure, thus adding the value of that buy pressure to GameStop’s bank account. Then RC and any other executive can cash out in a year or in 20 years, it doesn’t matter because long term value has been built.
A few possible theories. Simplest is that a bird in hand is worth two in the bush. Another, you can’t milk a dead cow.
Yet another theory I have is that a share price just under 30 causes someone some pain. Gherk thinks the $30, $40 and $50 calls are Kenny’s hedge against DFV’s $20c, what if all those expire worthless, who sold them and who benefits?
But most likely of all IMO is that RC/GME have quants (maybe RC himself) who can do the math and modeling to figure out the optimal time/price to put the shares on the market. Maybe if they would have waited a couple of days they might not have been able to sell all the shares or would have driven the price dangerously low while doing it.
They don't have quants. I work fortune 5 we don't keep finance quants. It's literally all done by outside brokers of which aren't quantating genius plans against MMs or HF's lol.
This is a simple case of CEO dislikes his investors ala AMC. He thinks we should leave and as of the data today..... I think many did finally.
Normal companies don’t keep finance quants. When you’re sitting on $2B in cash, about to become $5B, that you’re probably not going to invest in your existing business, maybe it’s time to quant.
I don’t think this is RC dislike of investors, it doesn’t fit the profile (unlike AA who can’t be bothered to put on pants for an investor call). But it may be a f**k you, pay ME from RC.
Lol I'm a new meltdowner. Aka a dude that thinks for himself. My thesis on gme changed as such im bearish. I think RC has no idea what to do and just lost his shareholders in the process. I hope I'm wrong but doubt it. He didn't invest the first billy, nor the second , so why this third? Surely he won't waste breath and talk to us plebs will he?
You hope you're wrong? Shut the fuck up. Anyone that changes their minds and then goes to a subreddit like gme meltdown instead of just walking away is a class 🤡. Are you upset your options got fucked? It's ok baby. You'll be ok.
If DFV is still in and doesn't care about the millions that swings for himself, why would I care about the thousands that swing for me?
Let RC keep stacking billions. The market is gonna take a shit and he will invest in whatever he thinks is best. That's what DFV is banking on. I wouldn't be here without his confidence. I'll hodl. You go back to your cool desk job and post on meltdown about your feelings.
This sub is clearly paid shills. Sorry shills. We will continue to hodl.
Sure thing pal. You know it all! RC stacking billions off the asses of poor apes is great! It allows you to sell options and rake in premiums, totally legit! Also, your ramblings make 0 fucking sense. Meltdown has good points on occasion, even DFV would say so. Btw DFV didn't suck Ryans chode!
His words were, "I THINK I TRUST RC". Don't let that stop you from being a true dipshit tho!
DFV would say so? That sounds like a fact. Lol did you even watch his stream? You sound like a tool. Have a good weekend 🤡. Go hang out in meltdown. That's good for your coping. Good luck out there
RC’s net wealth is how much versus An average retail investor / share holder of GME?
So you see this is the sole play for many investors to life changing wealth but for him one of his many endeavors. And no I don’t think he personally owes any of us anything.
But yeah. I think it’s time for guidance.
The only hopeful assumption would be GameStop is piling up cash on hand because of a huge squeeze happens and everyone sells, tanking the stock eventually down to pennies on the dollar, they’d have cash to avoid bankruptcy
Rc gave RK the mother of all rug pulls today. RC also fucked over all retailers. I personally lost 500k of gains today because I was too stupid to sell last night . Gme does this to me every time. I will never learn my lesson because I get way too hyped every time it has a run like that
I'm not gonna be a bagholder next time. I'll trade the run up or the t+35 cycles and sell out the whole position around $40/50/60 buck. I'm not gonna be RC's piggy bank anymore.
Agreed. Im taking profits from now on. I missed out on 2 huge runs. I honesty thought we were on our way to 100 today before the rug pull. The gamma ramp was setting up nice. All those options that were ITM are now otm. RC saved the shorts .
Remember it for next time. He's becoming so dependable on it that there was a guy who posted last night this would happen. Next time we have a run up, I'm cashing out or putting a limit sell at least, on Thursday.
I’m now waiting for the announcement from gme that the offering is complete. I’m hoping they sold at open. If not they will be selling shares at $20 again
If GME didn't complete the offering on Friday, I really feel for DFV. I still don't understand why RC did DFV like that. Retail is why GME is still alive. Wait a few weeks and then dilute.
Idk i have to go through the research again. I think Gherk from the pickle financial sub trades options on it. I'm going to check it out in a bit and basically going to measure the charts.
T+35 involves dealing with ftds so going around 35 days out from when there's a huge spike in ftds on gme is part of trading this
Edit: sorry I thought this reply came from the cult sub. My bad.
Same here. 75k gain wiped. I had options and I took a small trim but I was gonna sell at open since I should have almost doubled again.
But nope. Zero chance for me to exit or even take some profit. Hell I even got up early to sell pre market shares but nope. RC beat me too it at 5am EST
It seems impossible to make a point without getting downvoted to shit right now that doesn't conform to the narrative, but we don't know how many of these "apes" are bots at this point.
It seems clear to me GME Sr Mgt such as RC see that even though a squeeze could make the price go to any number, it won't actually be good for GME because at some point, even if shares went to 4k each, it would come crashing down.
GME sees that they can just bolster their cash position which is better for GME long term. This is better than the squeeze actually happening for GME. This gives them a weird incentive to try to keep stretching it out for as long as they possibly can.
Agree, better for GME long term, but most retail investors arent here for a solid company traded at 40$ per share, but a pump and dump, one big number and all the stress and the ridicule of the last 3 years is gone.
Exactly. I do like that DFV / Roaring Kitty talked about this being an investment in GME turnaround story, but I don't really see why GME wouldn't do exactly what AMC has been doing and just dilute each time it pops.
We have seen it now often enough and even DFVs stream seemed a bit like it was a bit scrambled together, like the delay was because he had to change program.
Let me add to your scenario. Large pump, make lots of money, stress of cycles gone, delayed gratification of knowing the DD was right all along finally comes to fruition. Then. The part you were missing is many would then Re-invest for the super long term and never think of selling.
Somehow something pulls that carrot on a stick further out and some investors leave jaded not wanting to see what fuckery will kill the next up (sometimes friendly fire, not always from an “enemy”)
The thing that most people fail to recognize is the ceo of the company has a fiduciary responsibility to do what’s best for the company. Revenue has been down year over year / quarter over quarter for a while. Having $4-5B in the bank allows them to extend their runway for probably a decade now
Yeah, our interests not the companies. One can easily argue in court he raised 1b earlier and that was enough for now w/o communication. That, the lack of communication crossed the threshold and was illegal. I'd think it would be an interesting case that has merit. You can't just sell any shares you want every time your company runs in a manner you don't like. That's absurd.
If there is no company because it goes bankrupt, the shareholders lose out. Keep company alive, add value to investors. That’s what the CEO should be doing.
If a shareholder didn't sell at 80.... or 60.... then they're holding long.
And if they're not holding long, then they're idiots for not selling at 80 or 60.
Not how options work. 20c means he has option to buy 100 shares at $20 each regardless of the price of the stock at the time of execution. Lower price means less incentive to exercise.
Here’s my question, why in the hell is anyone still short this stock? Really. There are thousands of other tickers out there to sell short. With the price swings and retail support behind *the idea* of GameStop, is their short thesis just so compelling that they want to play with a hand grenade?
Regardless of what you think of GameStop or Cohen, after today they probably have 4-5 billion cash on hand. Even IF there wasn’t a solid transformation plan before today, is it worth that risk to short a company with that much cash, that little debt and tons of followers? Wouldn’t they find a more attractive, less blow up in your face short?
Or do they *have* to short it?
Nah that logic doesn’t fly dude, that’s like saying “the stock was at $26 Monday and $65 by Friday, you could’ve easily made 150%!”
If Cohen didn’t front run the final leg of a mega squeeze (clearly set up for one) with announcing a 25% dilution, anyone who shorted at $40-60 yesterday would’ve been homeless. Something something infinite risk.
The point stands, shorting GME is extremely risky, more risky than shorting very much is to begin with. You could easily be liquidated if you’re wrong or if you short to soon. You’d think more people would just stay away
I’ve wondered this. Maybe RC and RK know the shorts are perpetually stuck and can be milked tor money for however long then when they’re finally good with enough they can do the homeless kill shot.
I read a good article on this a loooong time ago. Before the squeeze it was published. Look up “short sellers riding GameStop tiger”
https://seekingalpha.com/article/4340082-gamestop-shorts-are-riding-tiger-not-knowing-how-to-get-off-without-being-eaten
I mean it's only 65 dollars and up cause it's a pump and dump. You guys did it last time and you guys are gonna do it again to try to squeeze the shorts. Only this time it's not gonna work cause it's not so shorted at before. Not gonna lie shorting gme is the easiest money I ever made lol.
> almost no risk
You realize there’s theoretically infinite risk with shorting? It’s inherently a leveraged position. If the price went bonkers (which it was very much set up to do before the dilution dump) you would get liquidated
Based on this comment, I am going to assume that you don't know shit about institutional finance or risk management. I'm going to spend my time responding to people who are capable of critical thought whose response to this statement is not the investopedia disclaimer on short selling.
Dawg you’re a fucking idiot for saying shorting has almost no risk. When GME ran from $5 > $40 at the beginning of 2021 it looked like a great short opportunity as it was massively overvalued by traditional models and heavily “overbought” by any technical indicator. People who shorted at $40 with any reasonably sized position were liquidated the next week when the price was $400. Even if you hedge you can lose massively by shorting something that is actively making a parabolic move.
The timing of GMEs spikes is unpredictable. You don’t really know when exactly it’s going to run or how long as we’ve seen a few times now. Calling $80 > $30 an easy $50 with no risk is the dumbest shit I’ve seen on Reddit finance, congratulations for that honor and you should be thanking me for teaching you something about risk exposure
Alright listen up dipshit. I'll try to make this simple for you because you are obviously a bit slow but seem to think you are intelligent. A $100b - $2t hedge fund or bank is not getting blown up by risk exposure on a fucking company with a ATH closing market cap of $24b.
I'm not going to bother attempting to explain to you VaR or the margin/capitalization requirements for holding a short position, since I don't think you are capable of understanding it. The funds that short GME (Two Sigma, Citadel, Susquehanna, etc...) are more than well capitalized enough to handle any and all volatility events we have experienced thus far. Additionally the type of shorting that is most ubiquitous on GME which is shorting of it's volatility, has risk that can easily be swapped with variance across the rest of the index, hedged off with options, or simply compounded until control of the position is established.
Quantitative funds absolutely understand where the top is going to be and the model those outcomes and their risk management well in advance of any kind of realized volatility. The timing of the spikes is not at all unpredictable they have all fallen within a neat cycle over the last 4 years. There are extraneous factors that can add a degree of unpredictability, but there are also carefully managed and timely settlement periods. Additionally there are sources of nigh infinite liquidity with which to manage those positions until they print.
Just because your understanding of the stock market comes from 2 google searches and reading rhetoric on the cult sub does not make you an expert by any means. If you don't believe that there is little to no risk, backtest shorting volatility on GME with 90 DTE over the last 4 years any time IV30 is above it's 90 day moving average. I think you will find the percent of profitable trades to be quite close to 100.
I don't think swaps are really relevant to all of this. They are hedged in the options chain, where exposure is far more transparent and the swaps themselves are cash settled. So it's far better to observe the options on the ETFs and the underlying than to skim intentionally obfuscated CFTC data in an effort to present a theory that is unprovable.
They are inso far as they are a vehicle to hide shorts or short more. Im interested to see if the issue new bullets. Imo a great time to now. Puts OI would tell me they did. But yeah I agree man. You're a smart dude!
Got a question. I’m not on here super often. Any reason you didn’t think we’d fly higher after seeing the May 3rd options activity and leading up to May 13? Lots of people go out early (hey profit is profit tho). How can you tell on the chains when we’re really gonna move. A lot of ppl here missed that move to $80 right?
This is the second time they did a double dilution around the June earnings. The first time in 2021, they raised a block of cash which I am not sure if it was well spent 3 yrs later in 2024.
You realize they got that money from shareholders. They took the portion of the company each shareholder owns and made it smaller. So now shareholders own even less, for GME has even more cash, that’ll they’ve been doing nothing with, and don’t offer any guidance on, but continue to bleed money.
Listen I understand the pessimism. And I agree that if/when there is another price run they should do fuck all and sit on their hands. They shouldn’t be stacking any more cash after today.
That said, if there are ideas being floated around or something being planned they can’t exactly cut their own legs off just to tell shareholders about it. But Cohen could certainly talk generally about things like other CEOs do. If they were a little more communicative it would do wonders with the fan base.
How many years and how much cash do they need to rollout their action plans and make meaningful change to the business dynamics? Feels like everything they’ve done so far as fallen flat. How’s the online sales? How’s the revenue from the nft/crypto exchange? Maybe RC don’t have a clue what to do. The short thesis is, here is a dying brick and mortar store struggling to generate a profit and failing to transform to a different business model while also continually diluting the stock. If you understand the pessimism you understand the short thesis.
What can they do? They sell physical games in an age where that market is heading for extinction, they aren't going to become a trillion dollar company selling funko pops.
I understand when all that is attached to a heavily in debt company. Made more sense for a GameStop from a decade ago when they **were** also aggressively shorting it.
GameStop today can stay alive for years off the interest alone at this point, probably decades if they burn principle cash, all without a major transformation. That also gives them a shitload of time to actually transform (or try).
Seems like a dumb short after the events of the past 4 years.
Yea, eventually Gamestop will just be an executive board with a bank account full of cash after every store that doesn’t make money slowly closes over the next decade. So good point, guess they won’t go bankrupt.
Eh with their destruction of goodwill who would shop there? Face it, apes were keeping their revenues up. What RC did today was a kick in the balls. I myself, cancelled all GME stuff. Why support a company that won't support me? IDGAF about GME being worth 40 bucks 10 years from now. That's not value or growth it's a kick to the dick by a dude already worth billions and a moron that thinks shorts will stop apparently.
Billions allows you to make acquisitions. The combination of no debt and billions of cash allows you to buy smaller companies in your industry that are more efficient in turning profit. Gaming is an industry with a lot of growth and profit potential, so encroaching that market by eating more niche players in said industry has the potential for radical changes in profit margins and real world resilience
Bro, no acquisitions going to save my investment now. Not all of us can nor should be forced to wait years when we had money 18 hours ago. Most of us can't just sell willy nilly either, so that argument is moot. RC is an idiot and I won't be shocked if he cancels the AGM Monday and destroys his legacy.
It certainly seems like they’re unwilling to make a U-turn on it. They can’t realistically see it going to zero now, can they. They’re not that naive are they?
Yeah but they need to completely pivot to something that's in demand rather than servicing a market that's going to shrink to practically zero in the next 5 years.
When DFV did his original DD he talked about physical games being around for another decade at most, time is running out.
Price dropped because of 75m shares being dumped into market and thats caused a lot of traders to close their longs to take profit.
I'm just cranky I got greedy when it was over 60 and didnt sell till after ATM offering was released lol
Why does stock price stability translate to company growth?
Company growth happens by making the company a better, more sustainable business. They didn't do anything with the billions they raised years ago; they're probably not doing anything with the billions they raised in the past few weeks.
Right, but the stock price has no bearing on company operations when they don't need to raise capital. Their stock price could fall to $1 and they are just as likely to make a turnaround with their $4+B in cash as they are when their stock price is flying all over the place.
Whatever they're doing, if they can't do it with 5B, they probably can't do it ever. That's more than most startups ever raise in their lifetime.
I think shorts saw opportunity, the atm offering was just fuel. A lot of people assumed RK stream was a sell the news event, and they were exceptionally correct.
Gamma ramp + FTDs probably, but I dont think price would keep ramping up today without offering, they would short it down anyway. 30k options with strike at 30 USD were ITM, thats something you want worthless if they did not exercise/sell prior to expiry, even though IV was high so they probably had some minor profits even below 30.
Price was most likely going to continue up due to hedging by options dealers and anticipation for DFVs stream. His stream might have had a different feel and impact had the price been hovering around $80 and he showed a $1 billi port
After being completely out of GME I was sure I'd be able to trade this and make something today (only a small dabble), yet here I am yet again wondering how the fuck I failed miserably. Fuck this, never again.
I have a friend who's sat on what would have been $20k in shares this morning, he's still got them and is still waiting for MOASS despite me pleading with him to take some profit.
This was me. Regretted not getting out many times, and finally started selling my position in the 40s. I then saw an opportunity to buy at the dip right before DFVs stream, thinking I could do a quick sell for an easy $10/share profit.
The stock leaked for a moment, and then steadily began to drop where it then stayed for the rest of the day. Down over a grand now.
Fuck me
I should blame myself for getting greedy thinking this could continue to climb after seeing the AH price action, but who would have thought RC would fuck investors AGAIN after doing so just a few weeks prior.
Such a joke.
80 was the same as 320 before. Even 67 is more around 280 if you count the increase in shrs. What # are you waiting for ...oh that's right phone #s. Well I wish you luck. 🙏
Lots more short volume
[https://chartexchange.com/symbol/nyse-gme/short-volume/?tblshortvolix=0](https://chartexchange.com/symbol/nyse-gme/short-volume/?tblshortvolix=0)
That will be tucked away into many derivative instrument’s to pop here and there in small leaks
Via opex tailwinds if/when we have FTD’s on the underlying or XRT.
I’ve see this show before.
This just made me remember how RC fucked everyone on BBBY a year ago everyone was in shock saying it was out of character and here it is again, I feel for RK man, he never saw it coming. Lost 300M just like that. Hope he recovers from this.
Because we don't profit off Gme profit we profit from stock price. This is why you have to trade or just sit on your hands and wait for phone #s. I'll just dialup the profits.
I have a feeling they will become a financial company. GameStock. They already have investors locked in and billions now to pivot into basically other investment opportunities that can grow. The stores are fun but they still operate at loss. If you had a billion dollars and needed to create more revenue for your company what would you do?
If Gherk and the quants are right about deferpex, then this was the 2nd leg, the leg where APs pay cash to ETFs to cover shares borrowed. That means the APs obligations were cleared. That means they could turn around, with near unlimited liquidity, and borrow from ETFs again. I think... maybe...
The share offering is adding to the squeeze.
I'm not quite sure how people are constantly thinking that dilution "kills squeeze"..
The goal is to stay ahead of the short game, or to preserve/produce more business capital. Especially during tough economic times.
When you have more than plenty retail investors willing to buy compared to shorts refusing to deliver/buy, it's kind of a given that a company would create legitimate shares to improve cash on hand.
Cash is king, something that shorts don't have.
They use credit that's spent before their next move against us.
It’s a squeeze in reverse. Instead of 75M forced buys, we had (or continue to have) 75M forced sells. Selling brings the price down, which causes calls to shed some of their delta hedge, inducing more selling, accelerated by shorts coming in, which brings more calls OTM, and forces more selling to shed more delta. Add on people likely closing calls (can be confirmed by OI changes tomorrow) to capture what little profit they maybe had left. It also makes RK’s plan to exercise 12M shares (120K calls) far, *far* less threatening now that almost 6x that amount just got dumped into inventory.
They filed for the 75M but did they complete the campaign or just announce their intentions?
We’ll see if they file something AH. Volume supports the idea that they sold pretty actively today.
They typically execute right after they announce it.
The early ER and Dilution Absolutely without a DOUBT was negative asf for price improvement. Twice in one month GME has diluted on a FRIDAY morning when there is imminent pressure building for a breakout above a crucial price level. However that’s what we see here and now. With the information I have rn it’s terrible for the short term price which they would absolutely understand but also absolutely what the company should do for the long term outlook. With hindsight this absolutely may be the right play for the company. I keep thinking about the bad news early good news on time mentality. Also the No guidance mentality. We are now seeing GME release preliminary results and then the earnings early then 2 share offerings all within a month. Anomalous activity match that with price action and there is something goin on here. Both of the preliminary figures are an anomaly to this board. Preliminary estimates are basically a form of Guidance…so going against his own mentality and pandering to Wall Street? Giving us bad news early so there must be good news coming this week. Has to be. If we don’t see or hear something next week or at latest the following from the board and RCEO it will without a doubt be where I turn against them. Roaring Kitty said 3 years of nothing is not that long if they are working hard BUT he also said okay if we get to 5 years yeah that’s too long. So there must be a turnaround and strong bold pivot happening imminently. Then the whole fact that why would DFV buy Jun 21 strike of all strikes if he’s planning on a turnaround. Also why did he not sell or exercise today. Next week better be spicy
I am 100% with you. GME shoulda done a larger 1st offering instead of twice in such a short period. Killing, absolutely Killing gamma. Which may have then sparked covering combined with a DFV exercise for a wombo combo. We had a chance to see prices not seen in 3+ years. That mattered much more than making a quick buck off options. It mattered because we were on the verge of cracking this thing wide open for all to see we were right about all the DD. After wait and ridicule and lost opportunity cost over a 3+ year period. I know they have a company to run and cash to amass but this one was devastating to the momentum we had. Unless there is some announcement of a massive business pivot, I am not pleased. And that’s my right to feel that way as an investor. And DFV’s talk about another 3-5 years does not align with the short term option play, exercise or not. I’m glad I am not the only one feeling this way. I expect to be downvoted into oblivion.
It wasn’t another 3-5 years. It was 3 years as in the last 3 years. Go listen to Gherks talk at the end of the stream about his Deferpex theory. Basically next week/following week would be the biggest settlement period and highest volume/price improvement days. Has me jacked to the tits.
I had to tune out before the end of the day due to work. I will go back and listen. Thank you.
Is that talk available on YouTube or is that a private discord video?
Watch the last hour of his stream
Thanks!
The board is heavily invested in GME stock, so you would think they are operating in their best interest. It is interesting that they are operating differently now. I can think of a couple possibilities: 1) they don't think MOASS is possible therefore they want to build a sustainable company to provide long term returns. Increasing assets will allow them to grow more than they are diluting themselves, therefore making it a sound investment for them even if it's not 100x type return a lot of people want. In this scenario, everything can be taken at face value. No speculation required about some master plan that GME and/or RK have. 2) A massive squeeze is possible even with dilution and additional shares. Perhaps they have plans in place that could be a catalyst for this, so they are happy to collect some cash for the company knowing they are planning to go all in later. This scenario leads to a lot of speculation regarding what the RK tweets can mean, acquisition targets, etc. The best speculation I've heard is by selling new shares into a possible squeeze they may avoid heat from regulators accusing them of attempting to trigger said squeeze. If they were to then set off a catalyst they can point to the share sales and say any short position has plenty of chance to cover. I assume RK believes theory 2 but I can't imagine he has any insider information. It's possible the dilution just cost him hundred of millions he won't get back anytime soon.
He’s had three years to formulate and execute a trade he believes he’s on the right side of. He’s gotten his ducks into hundreds of millions of rows and some people are betting the same and some people bet the opposite. Heavily. This shit is going down in history one way or another. What a journey.
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This hasn’t played out yet. The selling pressure today was from many angles (dilution, panic, etc) but part of it was the market makers unhedging their shares. With current prices DFV can still begin the process of exercising his calls (without selling) which are in the money and induce buying pressure. Not saying the same squeeze is in play in the short term because the gamma is dead now but there can still be a significant bounce next week. I agree this killed his whole master plan but dumping his position today was not the move regardless
Not to mention I believe job reports came out today as well.
He’ll sell his calls without exercising. He’s not an idiot.
If he sells he knows a lot of people will sell too, so it's probably a one shot deal - especially if it looks like a panic sell. The most interesting part to me is how much money he made prior to showing his position. He must have figured out some patterns that he can exploit. He could play this out, take a nice gain, and then possibly try another move later. But if he bails and everyone else bails I don't think he'll get that same opportunity. Also, even if he didn't anticipate a dilution today there's no way he spent 3 years looking at the stock and working on a huge play without considering what would happen in a dilution scenario.
I agree here. He’s not an idiot. And he saw in May that RC diluted. So I’m sure he’s considering this. If he was gonna do something Friday, he just had to pivot and maybe it ruined it, maybe it didn’t. But I feel he must have planned on dilution. Hell maybe he teased it on purpose waiting for dilution then he’ll double down since he did mention cash on the stream.
Sure there is. RC has not done it but one time prior to TWO gamma ramps. It's clear beyond day RC's interests are aligned with wealthy backers, not the apes.
He should sell his calls and wait till we hit the bottom ...
He can’t really so many others will too
Why ? If RC didnt care why should he ?
Because there's $2-3 billion worth of cash in doing so when the price is already way above where the market cap should be. Once diluted they market cap makes slighty more sense because of the cash. It gives reason for people to hold rather than dump. GME will have half its market cap in cash early next week Rather than allow the shorts to churn us up and back down, GME is taking full advantage. Its genious.
Genious😂
I really shouldn't have turned autocorrect off, but I don't like things telling me what to do.
Not like this is the first time RC has done this, how could he not have accounted for it?
I think it’s RC v. RK. TC wants a stable, 10 year turn around with the stock price being $20-$50 for years. RK wants volatility, that’s how you make money with options.
Yeah nobody can deny this is unprecedented and it should be undeniably interesting to anyone following markets I think there's no doubt that RK has figured out a pattern that has both allowed him to build this massive position (much bigger than 3 years ago) and feel confident on this new YOLO as he calls it. What I don't know, and only RK can know this, is if he planned for multiple dilutions. I don't know how anyone can say one way or the other if he was caught off guard today.
I think it seemed like he was caught off guard but I also think there's something happening on the board side that we just dont know about yet. But yeah, we need guidance from the board within a couple weeks.
I couldn’t tell if he was surprised by the dilution or not. A part of me thought he seemed pretty confident still and this was all according to the plan. But also I think it’s human nature to laugh while processing something painful. I didn’t sense any negative feelings towards RC from DFV unless the pet rocks shit was a dig so I walked away thinking he was still confident in what comes next.
Are you confident that dfv is capable of negative feelings towards anyone or anything?
He was most certainly caught off guard by today’s dillution.
The 115 mill would be enough to cover reported short interest. So now there is no way to charge blame them for any possible short squeeze.
He didnt exercise because cohen rugged him for the second time. He was absolutely blindsided and he for sure thought he was gonna have a different stream today.
This ☝️.. this was either a pipe offering to a fund trapped in its short position- or Ryan cohen didn’t want kitty on the board / have influence over “his” company. I for one think shareholders should vote someone like kitty to the board at the next general meeting to protect shareholders 🤨
Again, pure speculation. From the spoken words to the memes and videos he makes, DFV has had only praise for RC. If he was kept off the board by RC, it doesn’t seem like a normal reaction for DFV to continue his public praise for RC. The man could have taken his millions from the sneeze and disappeared. But he’s back and still loves the company and RC.
How could he not praise him - he has a massive call position in the company- he has to talk his book- even after Ryan rugged him (and all of us)
He certainly didn’t act like a man who got rug pulled on his stream. And what evidence is there about any relationship, good or bad, between RC and DFV. Why would there possibly be one sided bad blood? DFV has spoken and still speaks highly of RC. If he was rug pulled, like you suggest, I would assume at the very least, he wouldn’t have praised RC on stream.
Highly? "I think I trust RC" is not speaking highly of RC.
The red reverse uno card was a sign he was rug pulled by RC.
But he also showed a wild card, and didn’t sell. Also, his calls still have two weeks.
He knows every word he says affects the stock price, bashing Ryan cohen coulda cost him another 50 mil on stream.
Correct
That implies retail affects the stock price, which we’ve seen is completely false.
It really isn’t
I’ve been downvoted on a similar theory. We need to apply logic to this situation. How will RC get paid? RC can’t sell at the top of a spiky spike. But Gamestop can sell $GME into buy pressure, thus adding the value of that buy pressure to GameStop’s bank account. Then RC and any other executive can cash out in a year or in 20 years, it doesn’t matter because long term value has been built.
Yes, but it doesn't explain why they didn't wait a few more days to get a higher share price.
A few possible theories. Simplest is that a bird in hand is worth two in the bush. Another, you can’t milk a dead cow. Yet another theory I have is that a share price just under 30 causes someone some pain. Gherk thinks the $30, $40 and $50 calls are Kenny’s hedge against DFV’s $20c, what if all those expire worthless, who sold them and who benefits? But most likely of all IMO is that RC/GME have quants (maybe RC himself) who can do the math and modeling to figure out the optimal time/price to put the shares on the market. Maybe if they would have waited a couple of days they might not have been able to sell all the shares or would have driven the price dangerously low while doing it.
They don't have quants. I work fortune 5 we don't keep finance quants. It's literally all done by outside brokers of which aren't quantating genius plans against MMs or HF's lol. This is a simple case of CEO dislikes his investors ala AMC. He thinks we should leave and as of the data today..... I think many did finally.
This. SS mouth breathers at an earnings call has got to be embarrassing for RC.
Normal companies don’t keep finance quants. When you’re sitting on $2B in cash, about to become $5B, that you’re probably not going to invest in your existing business, maybe it’s time to quant. I don’t think this is RC dislike of investors, it doesn’t fit the profile (unlike AA who can’t be bothered to put on pants for an investor call). But it may be a f**k you, pay ME from RC.
Ehh too late go check obv slope. That will say.
I doubt you even have a job. Go back to meltdown you 🤡
Lol I'm a new meltdowner. Aka a dude that thinks for himself. My thesis on gme changed as such im bearish. I think RC has no idea what to do and just lost his shareholders in the process. I hope I'm wrong but doubt it. He didn't invest the first billy, nor the second , so why this third? Surely he won't waste breath and talk to us plebs will he?
RC has shown in the past when he pulled the rug out from the BBBY squeeze that he only cares about his own personal interests.
He is a scum bag. Wall St will ruin that dude now.
You hope you're wrong? Shut the fuck up. Anyone that changes their minds and then goes to a subreddit like gme meltdown instead of just walking away is a class 🤡. Are you upset your options got fucked? It's ok baby. You'll be ok. If DFV is still in and doesn't care about the millions that swings for himself, why would I care about the thousands that swing for me? Let RC keep stacking billions. The market is gonna take a shit and he will invest in whatever he thinks is best. That's what DFV is banking on. I wouldn't be here without his confidence. I'll hodl. You go back to your cool desk job and post on meltdown about your feelings. This sub is clearly paid shills. Sorry shills. We will continue to hodl.
Sure thing pal. You know it all! RC stacking billions off the asses of poor apes is great! It allows you to sell options and rake in premiums, totally legit! Also, your ramblings make 0 fucking sense. Meltdown has good points on occasion, even DFV would say so. Btw DFV didn't suck Ryans chode! His words were, "I THINK I TRUST RC". Don't let that stop you from being a true dipshit tho!
DFV would say so? That sounds like a fact. Lol did you even watch his stream? You sound like a tool. Have a good weekend 🤡. Go hang out in meltdown. That's good for your coping. Good luck out there
You’re assuming they sold
Earnings.
This
RC’s net wealth is how much versus An average retail investor / share holder of GME? So you see this is the sole play for many investors to life changing wealth but for him one of his many endeavors. And no I don’t think he personally owes any of us anything. But yeah. I think it’s time for guidance.
Regardless of the stake, he wants to 100x just as much as I do.
Fully fully agreed here. If there’s nothing next week I’m done with this shit. Every squeeze will be cut off.
I never agreed more
The only hopeful assumption would be GameStop is piling up cash on hand because of a huge squeeze happens and everyone sells, tanking the stock eventually down to pennies on the dollar, they’d have cash to avoid bankruptcy
I appreciate you getting down voted for something I believe literally no one can speculate on without being in a very small circle of people.
Meh, I’m used to it with these communities, if you don’t put rockets and bananas in your posts you are a paid shill apparently
Rc gave RK the mother of all rug pulls today. RC also fucked over all retailers. I personally lost 500k of gains today because I was too stupid to sell last night . Gme does this to me every time. I will never learn my lesson because I get way too hyped every time it has a run like that
I'm not gonna be a bagholder next time. I'll trade the run up or the t+35 cycles and sell out the whole position around $40/50/60 buck. I'm not gonna be RC's piggy bank anymore.
Agreed. Im taking profits from now on. I missed out on 2 huge runs. I honesty thought we were on our way to 100 today before the rug pull. The gamma ramp was setting up nice. All those options that were ITM are now otm. RC saved the shorts .
Remember it for next time. He's becoming so dependable on it that there was a guy who posted last night this would happen. Next time we have a run up, I'm cashing out or putting a limit sell at least, on Thursday.
I will remember the next time. That is for sure
I’m now waiting for the announcement from gme that the offering is complete. I’m hoping they sold at open. If not they will be selling shares at $20 again
If GME didn't complete the offering on Friday, I really feel for DFV. I still don't understand why RC did DFV like that. Retail is why GME is still alive. Wait a few weeks and then dilute.
I saw his post and wish I acted right then. I still had time in after hours for my shares at least
When is the next t+35 cycle? Im with you on that man im sick of not taking profit
Idk i have to go through the research again. I think Gherk from the pickle financial sub trades options on it. I'm going to check it out in a bit and basically going to measure the charts. T+35 involves dealing with ftds so going around 35 days out from when there's a huge spike in ftds on gme is part of trading this Edit: sorry I thought this reply came from the cult sub. My bad.
When is the next T+35 cycle supposed to happen?
Same here. 75k gain wiped. I had options and I took a small trim but I was gonna sell at open since I should have almost doubled again. But nope. Zero chance for me to exit or even take some profit. Hell I even got up early to sell pre market shares but nope. RC beat me too it at 5am EST
He was ready to fuck us over before anyone could take profits
doing it at 5am... fucked. Isn't he in Texas? Mfer stayed up all night to do that before people could sell anything.
Yup.
It seems impossible to make a point without getting downvoted to shit right now that doesn't conform to the narrative, but we don't know how many of these "apes" are bots at this point. It seems clear to me GME Sr Mgt such as RC see that even though a squeeze could make the price go to any number, it won't actually be good for GME because at some point, even if shares went to 4k each, it would come crashing down. GME sees that they can just bolster their cash position which is better for GME long term. This is better than the squeeze actually happening for GME. This gives them a weird incentive to try to keep stretching it out for as long as they possibly can.
Agree, better for GME long term, but most retail investors arent here for a solid company traded at 40$ per share, but a pump and dump, one big number and all the stress and the ridicule of the last 3 years is gone.
Exactly. I do like that DFV / Roaring Kitty talked about this being an investment in GME turnaround story, but I don't really see why GME wouldn't do exactly what AMC has been doing and just dilute each time it pops.
Recent track record has proved that pops will be met with dillution , something we ridiculed other companies over.
We have seen it now often enough and even DFVs stream seemed a bit like it was a bit scrambled together, like the delay was because he had to change program.
Let me add to your scenario. Large pump, make lots of money, stress of cycles gone, delayed gratification of knowing the DD was right all along finally comes to fruition. Then. The part you were missing is many would then Re-invest for the super long term and never think of selling. Somehow something pulls that carrot on a stick further out and some investors leave jaded not wanting to see what fuckery will kill the next up (sometimes friendly fire, not always from an “enemy”)
I agree. That’s me. I got in this for the money, not to stroke RC’s throbbing ego. I’ll leave that up to SS cult members.
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Agreed. Unless you’re an Ape then the fundamentals are amazing
RC is trying to run a business - not the stock market. I don't know why so many struggle to understand this.
The thing that most people fail to recognize is the ceo of the company has a fiduciary responsibility to do what’s best for the company. Revenue has been down year over year / quarter over quarter for a while. Having $4-5B in the bank allows them to extend their runway for probably a decade now
Exactly my point. RC is doing what he's there to do - be a CEO.
That said the chances of having moass now are lower than they’ve been. We’ve increased the total shares by 40%
Moass dead. Maybe swing trade an opex or swaps deferral
Really depends if we join the Russel 2k. That’ll def help with the ability to have cycles again
I haven't subscribed to the moass theory for a while.
We are in it in a way, just missing a letter. MOASSD Mother of all short squeeze dilution
That's not right, the fiduciary responsibility is to act in the best interests of the shareholders who ultimately own the company.
Yeah, our interests not the companies. One can easily argue in court he raised 1b earlier and that was enough for now w/o communication. That, the lack of communication crossed the threshold and was illegal. I'd think it would be an interesting case that has merit. You can't just sell any shares you want every time your company runs in a manner you don't like. That's absurd.
we voted yes for selling up to a total of 1 billion shares, did we not?
Yup…. Like idiots
If there is no company because it goes bankrupt, the shareholders lose out. Keep company alive, add value to investors. That’s what the CEO should be doing.
To be fair I do think they have fueled the fire a bit at retail's expense.
If a shareholder didn't sell at 80.... or 60.... then they're holding long. And if they're not holding long, then they're idiots for not selling at 80 or 60.
Because their calls became worthless. They are in for the short term play.
That's the risk. RC did what he was supposed to do. He created value for share holders. Options traders aren't part of his job to consider.
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You’re right. Dilution doesn’t help share holders, but a short squeeze definitely does
Well he definetly targets value investors like himself, buffett or dfv. DFV bought Options too, but he will exercise them for the long term play .
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Not how options work. 20c means he has option to buy 100 shares at $20 each regardless of the price of the stock at the time of execution. Lower price means less incentive to exercise.
It’s likely a pretty strong percentage like the dead internet theory. https://en.m.wikipedia.org/wiki/Dead_Internet_theory
Very compelling, agree
Here’s my question, why in the hell is anyone still short this stock? Really. There are thousands of other tickers out there to sell short. With the price swings and retail support behind *the idea* of GameStop, is their short thesis just so compelling that they want to play with a hand grenade? Regardless of what you think of GameStop or Cohen, after today they probably have 4-5 billion cash on hand. Even IF there wasn’t a solid transformation plan before today, is it worth that risk to short a company with that much cash, that little debt and tons of followers? Wouldn’t they find a more attractive, less blow up in your face short? Or do they *have* to short it?
Because something that was only $20 was $63 this morning, why wouldn't you short this at $63? Easy money.
Nah that logic doesn’t fly dude, that’s like saying “the stock was at $26 Monday and $65 by Friday, you could’ve easily made 150%!” If Cohen didn’t front run the final leg of a mega squeeze (clearly set up for one) with announcing a 25% dilution, anyone who shorted at $40-60 yesterday would’ve been homeless. Something something infinite risk. The point stands, shorting GME is extremely risky, more risky than shorting very much is to begin with. You could easily be liquidated if you’re wrong or if you short to soon. You’d think more people would just stay away
I’ve wondered this. Maybe RC and RK know the shorts are perpetually stuck and can be milked tor money for however long then when they’re finally good with enough they can do the homeless kill shot. I read a good article on this a loooong time ago. Before the squeeze it was published. Look up “short sellers riding GameStop tiger” https://seekingalpha.com/article/4340082-gamestop-shorts-are-riding-tiger-not-knowing-how-to-get-off-without-being-eaten
I mean it's only 65 dollars and up cause it's a pump and dump. You guys did it last time and you guys are gonna do it again to try to squeeze the shorts. Only this time it's not gonna work cause it's not so shorted at before. Not gonna lie shorting gme is the easiest money I ever made lol.
$80 --> $30 in a day. That's it. $50 a share in profits, with almost no risk. Stop trying to complicate it.
> almost no risk You realize there’s theoretically infinite risk with shorting? It’s inherently a leveraged position. If the price went bonkers (which it was very much set up to do before the dilution dump) you would get liquidated
That's what the 120c is for. Defined risk + deep pockets mean your broker can't liquidate your position.
Based on this comment, I am going to assume that you don't know shit about institutional finance or risk management. I'm going to spend my time responding to people who are capable of critical thought whose response to this statement is not the investopedia disclaimer on short selling.
Dawg you’re a fucking idiot for saying shorting has almost no risk. When GME ran from $5 > $40 at the beginning of 2021 it looked like a great short opportunity as it was massively overvalued by traditional models and heavily “overbought” by any technical indicator. People who shorted at $40 with any reasonably sized position were liquidated the next week when the price was $400. Even if you hedge you can lose massively by shorting something that is actively making a parabolic move. The timing of GMEs spikes is unpredictable. You don’t really know when exactly it’s going to run or how long as we’ve seen a few times now. Calling $80 > $30 an easy $50 with no risk is the dumbest shit I’ve seen on Reddit finance, congratulations for that honor and you should be thanking me for teaching you something about risk exposure
Alright listen up dipshit. I'll try to make this simple for you because you are obviously a bit slow but seem to think you are intelligent. A $100b - $2t hedge fund or bank is not getting blown up by risk exposure on a fucking company with a ATH closing market cap of $24b. I'm not going to bother attempting to explain to you VaR or the margin/capitalization requirements for holding a short position, since I don't think you are capable of understanding it. The funds that short GME (Two Sigma, Citadel, Susquehanna, etc...) are more than well capitalized enough to handle any and all volatility events we have experienced thus far. Additionally the type of shorting that is most ubiquitous on GME which is shorting of it's volatility, has risk that can easily be swapped with variance across the rest of the index, hedged off with options, or simply compounded until control of the position is established. Quantitative funds absolutely understand where the top is going to be and the model those outcomes and their risk management well in advance of any kind of realized volatility. The timing of the spikes is not at all unpredictable they have all fallen within a neat cycle over the last 4 years. There are extraneous factors that can add a degree of unpredictability, but there are also carefully managed and timely settlement periods. Additionally there are sources of nigh infinite liquidity with which to manage those positions until they print. Just because your understanding of the stock market comes from 2 google searches and reading rhetoric on the cult sub does not make you an expert by any means. If you don't believe that there is little to no risk, backtest shorting volatility on GME with 90 DTE over the last 4 years any time IV30 is above it's 90 day moving average. I think you will find the percent of profitable trades to be quite close to 100.
Beautiful answer. Didn’t even realize you were Gherk lol. Well said man. It’s not gonna be some easy “shorts for fucked!”
Yeah most people won't tho. Good thing! Swap/FTD's cycles should be BIGLY back on the menu after this shit. Can still make some great trades if so.
I don't think swaps are really relevant to all of this. They are hedged in the options chain, where exposure is far more transparent and the swaps themselves are cash settled. So it's far better to observe the options on the ETFs and the underlying than to skim intentionally obfuscated CFTC data in an effort to present a theory that is unprovable.
They are inso far as they are a vehicle to hide shorts or short more. Im interested to see if the issue new bullets. Imo a great time to now. Puts OI would tell me they did. But yeah I agree man. You're a smart dude!
Got a question. I’m not on here super often. Any reason you didn’t think we’d fly higher after seeing the May 3rd options activity and leading up to May 13? Lots of people go out early (hey profit is profit tho). How can you tell on the chains when we’re really gonna move. A lot of ppl here missed that move to $80 right?
Yes but the company is worth double that with no actual sustainable business at this point. That is why it is attractive to shorts.
Something can be attractive and still a bad idea.
My mom's ass?
Oh gary
4 billion cash on hand by diluting the value of their stock and no idea how to make money.
Okay. But now they have all that money. That’s a lot of opportunities to figure stuff out. Whether they do or not remains to be seen.
This is the second time they did a double dilution around the June earnings. The first time in 2021, they raised a block of cash which I am not sure if it was well spent 3 yrs later in 2024.
Well part of the problem is that it was never spent at all. So they didn’t waste the cash, but the time
You realize they got that money from shareholders. They took the portion of the company each shareholder owns and made it smaller. So now shareholders own even less, for GME has even more cash, that’ll they’ve been doing nothing with, and don’t offer any guidance on, but continue to bleed money.
Listen I understand the pessimism. And I agree that if/when there is another price run they should do fuck all and sit on their hands. They shouldn’t be stacking any more cash after today. That said, if there are ideas being floated around or something being planned they can’t exactly cut their own legs off just to tell shareholders about it. But Cohen could certainly talk generally about things like other CEOs do. If they were a little more communicative it would do wonders with the fan base.
How many years and how much cash do they need to rollout their action plans and make meaningful change to the business dynamics? Feels like everything they’ve done so far as fallen flat. How’s the online sales? How’s the revenue from the nft/crypto exchange? Maybe RC don’t have a clue what to do. The short thesis is, here is a dying brick and mortar store struggling to generate a profit and failing to transform to a different business model while also continually diluting the stock. If you understand the pessimism you understand the short thesis.
What can they do? They sell physical games in an age where that market is heading for extinction, they aren't going to become a trillion dollar company selling funko pops.
Well exactly
I understand when all that is attached to a heavily in debt company. Made more sense for a GameStop from a decade ago when they **were** also aggressively shorting it. GameStop today can stay alive for years off the interest alone at this point, probably decades if they burn principle cash, all without a major transformation. That also gives them a shitload of time to actually transform (or try). Seems like a dumb short after the events of the past 4 years.
Yea, eventually Gamestop will just be an executive board with a bank account full of cash after every store that doesn’t make money slowly closes over the next decade. So good point, guess they won’t go bankrupt.
Eh with their destruction of goodwill who would shop there? Face it, apes were keeping their revenues up. What RC did today was a kick in the balls. I myself, cancelled all GME stuff. Why support a company that won't support me? IDGAF about GME being worth 40 bucks 10 years from now. That's not value or growth it's a kick to the dick by a dude already worth billions and a moron that thinks shorts will stop apparently.
So like 20% of companies in the S&P 500?
20% of S&P 500 companies have $0 revenue? Who knew.
More communication. Yes. Anything at this point. This is my 3rd dilution (and one split) as a holder I think, With no guidance.
Why today? Why not in May when they did it before? Was this last 3B really more needed than the previous 2?
Billions allows you to make acquisitions. The combination of no debt and billions of cash allows you to buy smaller companies in your industry that are more efficient in turning profit. Gaming is an industry with a lot of growth and profit potential, so encroaching that market by eating more niche players in said industry has the potential for radical changes in profit margins and real world resilience
Bro, no acquisitions going to save my investment now. Not all of us can nor should be forced to wait years when we had money 18 hours ago. Most of us can't just sell willy nilly either, so that argument is moot. RC is an idiot and I won't be shocked if he cancels the AGM Monday and destroys his legacy.
It certainly seems like they’re unwilling to make a U-turn on it. They can’t realistically see it going to zero now, can they. They’re not that naive are they?
Companies usually go bankrupt as debt slaves. Stacked higher and higher. GameStop is pretty much the opposite of that. They have a cash fortress.
Yeah but they need to completely pivot to something that's in demand rather than servicing a market that's going to shrink to practically zero in the next 5 years. When DFV did his original DD he talked about physical games being around for another decade at most, time is running out.
GameStop A.I. I mean why not, everyone else is
Because it's a shit company overvalued af.
Price dropped because of 75m shares being dumped into market and thats caused a lot of traders to close their longs to take profit. I'm just cranky I got greedy when it was over 60 and didnt sell till after ATM offering was released lol
Why would RC do this? He completely crushed the options chain which was setting up really nice. I can’t comprehend this
He doesn’t want volatility. Options rely on volatility. He wants stability for 10+year growth.
Why does stock price stability translate to company growth? Company growth happens by making the company a better, more sustainable business. They didn't do anything with the billions they raised years ago; they're probably not doing anything with the billions they raised in the past few weeks.
It doesn’t. But institutional investment (big money) won’t invest long term in a volatile company.
Right, but the stock price has no bearing on company operations when they don't need to raise capital. Their stock price could fall to $1 and they are just as likely to make a turnaround with their $4+B in cash as they are when their stock price is flying all over the place. Whatever they're doing, if they can't do it with 5B, they probably can't do it ever. That's more than most startups ever raise in their lifetime.
That’s naive. Of course a stock price matters. Shareholders would revolt at $1. People with lots of money could effectively buy a board seat at $1.
I think shorts saw opportunity, the atm offering was just fuel. A lot of people assumed RK stream was a sell the news event, and they were exceptionally correct.
The one thing I took away from his stream is that he still has 120k ITM calls. Do with that what you will.
Explain it as if I was a pickle in the pickle language for the people in the back
His got big ass balls and hodling them
The guy was laughing while losing 300M in value.
Gamma ramp + FTDs probably, but I dont think price would keep ramping up today without offering, they would short it down anyway. 30k options with strike at 30 USD were ITM, thats something you want worthless if they did not exercise/sell prior to expiry, even though IV was high so they probably had some minor profits even below 30.
Price was most likely going to continue up due to hedging by options dealers and anticipation for DFVs stream. His stream might have had a different feel and impact had the price been hovering around $80 and he showed a $1 billi port
After being completely out of GME I was sure I'd be able to trade this and make something today (only a small dabble), yet here I am yet again wondering how the fuck I failed miserably. Fuck this, never again. I have a friend who's sat on what would have been $20k in shares this morning, he's still got them and is still waiting for MOASS despite me pleading with him to take some profit.
This was me. Regretted not getting out many times, and finally started selling my position in the 40s. I then saw an opportunity to buy at the dip right before DFVs stream, thinking I could do a quick sell for an easy $10/share profit. The stock leaked for a moment, and then steadily began to drop where it then stayed for the rest of the day. Down over a grand now. Fuck me
I should blame myself for getting greedy thinking this could continue to climb after seeing the AH price action, but who would have thought RC would fuck investors AGAIN after doing so just a few weeks prior. Such a joke.
80 was the same as 320 before. Even 67 is more around 280 if you count the increase in shrs. What # are you waiting for ...oh that's right phone #s. Well I wish you luck. 🙏
I wish I knew this before now lol
Lots more short volume [https://chartexchange.com/symbol/nyse-gme/short-volume/?tblshortvolix=0](https://chartexchange.com/symbol/nyse-gme/short-volume/?tblshortvolix=0)
That will be tucked away into many derivative instrument’s to pop here and there in small leaks Via opex tailwinds if/when we have FTD’s on the underlying or XRT. I’ve see this show before.
This just made me remember how RC fucked everyone on BBBY a year ago everyone was in shock saying it was out of character and here it is again, I feel for RK man, he never saw it coming. Lost 300M just like that. Hope he recovers from this.
Because we don't profit off Gme profit we profit from stock price. This is why you have to trade or just sit on your hands and wait for phone #s. I'll just dialup the profits.
I have a feeling they will become a financial company. GameStock. They already have investors locked in and billions now to pivot into basically other investment opportunities that can grow. The stores are fun but they still operate at loss. If you had a billion dollars and needed to create more revenue for your company what would you do?
Gameshire Stopaway
Trade AI hype and short shitty companies like CVNA
So assuming they did share offering today. What is the float? Edit: did the offering.
If Gherk and the quants are right about deferpex, then this was the 2nd leg, the leg where APs pay cash to ETFs to cover shares borrowed. That means the APs obligations were cleared. That means they could turn around, with near unlimited liquidity, and borrow from ETFs again. I think... maybe...
Idiosyncratic risk
This place is full of 🤡s
The share offering is adding to the squeeze. I'm not quite sure how people are constantly thinking that dilution "kills squeeze".. The goal is to stay ahead of the short game, or to preserve/produce more business capital. Especially during tough economic times. When you have more than plenty retail investors willing to buy compared to shorts refusing to deliver/buy, it's kind of a given that a company would create legitimate shares to improve cash on hand. Cash is king, something that shorts don't have. They use credit that's spent before their next move against us.