$GameStop (GME.US)$ I just watched a video from a pretty sha...
$GameStop (GME.US)$ I just watched a video from a pretty sharp guy on Twitter and he gives a explanation of the whole GameStop let's call it the fallen rise. and everything made sense to me and I have experience in the business for decades and decades so I understand Short selling and naked shorting and I get it and I understand how everything is highly leveraged. what no one is saying or maybe understands is the following. when you open up a brokerage account part of your agreements permit that brokerage firm to lend out security to somebody else that's shorting them this happens it's completely undisclosed to you and there's only a few firms that actually will pay you interest but that's a second agreement when they loan out these securities so Fidelity is one for example if you sign an agreement you can get paid interest when they loan out a security because somebody else is selling it short. it does prohibit you from doing certain things for example you can't sell covered calls against it you need to contact stock loan within Fidelity have them reclaim the security and then you can sell a call against it you could sell the stock out right if you so chose to but you just can't sell a call against it. virtually every other brokerage firm where you have a margin agreement even though you buy stock for cash because your transacting in a type 2 account which is a margin account they can loan out that security. so you have three accounts you have a type one which is a cash account you have a type 2 which is a margin account you have a type 3 which is a short account. 99% of the world buys and sell stock in a margin account.
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36 yrs in the trenches, raised 100mil for start ups, syndicate ipo's, yrs on trading desk mkt maker.
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10baggerbamm OP : pt 2
so you buy stock The brokerage from loans it out you don't get paid interest you don't know anything is happening but what happened was the attack on GameStop where massive sellers keep selling the stock short never delivering
so everybody keeps talking about gamma squeeze we're going to make them cover well how you make them cover is real simple you email you call your brokerage firm and you have them move your GameStop stock from a type 2 margin account to a type 1 cash account and if everybody did that the broker terms have to comply they can't say no we're not going to do it because it's your security you own it so they journal it they now contact the stock loan department say look notify whoever borrowed and let them know it's no longer available. and they've got to try to borrow that security from somebody else to keep that short open but if everybody moves their stock from a type 2 margin to a type 1 cache there is nothing available to borrow and nobody has said this as smart as all these people are online nobody has said this not once what they keep saying is hold for dear life don't sell but you have to understand how your brokerage account is set up and how the stock loan process works from inside.
10baggerbamm OP : pt 3 so I assure you 100% with 36 years in the business that if everybody colluded meaning everybody work together and went on Twitter and went on every single forum of social media roaring kitties page and Wall Street bets and every other venue and copy and paste what I just said you've got your gamma squeeze on a silver platter today because to journal the securities is a click of the mouse internally from an operation standpoint and the brokerage firm must comply they can't say we'll get around to it whenever it gets done and it's probably within a half hour 45 minutes it's done. and immediately it sends the individual the hedge fund whomever that is short the stock scampering to find someone that will loan it to them but there's not available because it's all been moved from a type 2 to a type 1 so they have to close out their position by buying it in the open market
Airbags 10baggerbamm OP : very interesting thanks for sharing
J Bradley 10baggerbamm OP : I understand the intention of this post, however if this is what’s explained in the video, just post the link. Nobody understands what you’re saying.
Tony Stark : You are 100% right that’s why if you follow superstonks on Reddit (GME) dedicated page WE ALL SPAM THE IMPORTANCE OF DRS our shares . If you look at GME latest shareholder meeting was hosted by computer share registering your shares to computer share or DRA is the equivalent GETTING A “stock certificate” and your share is now counted for bc they make sure your actual share gets transferred over . So much so alort had problems with our brokers bc we found out our shares weren’t really there..
This is another reason why GME is the catalysts 80% of its float is registered already and can’t be lent out the only shares being lent out to short are the “hedgefunds” shares the remaining 20% IF you look at CMKX diamond they had a similar situation were they were getting shorted over its total float so the CEO told all its shareholders to get their stock certificate and it got the stocks counted for a short squeeze happened but they said it was market manipulation bc it came from the CEO …
Anyway the community has already done its DD, the research is done the information is out there we know we are right and they are wrong . We just have to wait .. if you look at Deepfuckingvalue he has been on this play since 2019 and turned 56k into 500M + …
Get your shares DRS if you haven’t already …
Tony Stark : Sorry no where near 80% is registered .. 80% is what retail owns , we need to all register it , also prevent us from losing our accounts when our brokers go under of a MOAS does happen …
Here’s an update on the DRS reddit.com/r/Su...
Tony Stark :
Blue Jets : not in Moomoo. Moomoo asks for our approval first
10baggerbamm OP Tony Stark : getting a certificate just so that you understand used to be cheap it used to be 50 bucks and then it went to 100 now it's over $500 and now it can be much higher than $500 depending upon the price of the shares the amount of shares that you have number one number two once you start getting a stock certificate issued you can't sell the stock you're locked out of the market so I've got a wall of stock certificates in my office one share Microsoft one share Apple I can go down the list one share Walmart stocks that I traded and I kept one share in cuz it was a goof for me way back went and I would just buy a certificate and a lot of them are really pretty McCormick that he had a scented stock certificate things like that and I would just have a wall of stocks on clients would walk in they would see all these different stock certificates on the wall well it's completely cost and effective nowadays to get stock certificates because DTC does not want you to get them so the price is very prohibitive and again if news happens and the stock has a movement up or down dramatically you can't do nothing till you're in possession number one number two even when you're in possession and you want to sell it you cannot sell it because you have to turn in the stock certificate and it has to go through what's called reorder reorganization they have to see a that you own it be it's never been sold see whatever stock splits or dividends that you're legally entitled to get factored into the total position and that can take two weeks 3 weeks before it becomes free trading stock in your account
102885989 10baggerbamm OP : punctuation marks on your keyboard are all spoilt?
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