$GameStop (GME.US)$ gonna be one of the hated guy here. I di...
$GameStop (GME.US)$ gonna be one of the hated guy here. I dislike people posting partial information to mislead other new traders.
You guys might have known or heard of roaring kitty. the guy who was cited as the driving factor for gme short squeeze in 2021.
How did he do it?
He rallied people from reddit, YouTube, Twitter, and even assured others of him holding his 53000 USD investment.
there was also the sentiment of GameStop where people buy their games since young, before the digital age.
The combination of sentiment + roaring kitty + forced to stay at home because of COVID + hatred of short seller defeated them.
now here comes the difference for this year.
Roaring kitty only posted on X.
he only posted cryptic images and videos.
he did not post anything about himself, his assets on gme, or even his face.
there were rumours that somebody bought his X account.
he did not post on YouTube or reddit either.
most people are out working, not staying at home.
now it's purely sentiment of 'they did it in 2011' which drives up the price.
remember, there are also bagholders who bought at the end of the gme rally and lost a ton of money too, I don't think they will buy gme again since it's their trauma.
about short sellers covering, yes they do need to buy back shares they shorted, but it doesn't have to be today or this week as long as they can pay the interest.
unless I read it wrong,
yes there are around 64million shares shorted. but that's only 20%.
But 80% of the reason this price goes down is due to people selling it, not short sellers.
I am not saying the price will definitely only head downwards, but it seems like it to me.
the ways for this to go upward is
roaring kitty(real person) posting his face, assets.
somebody similar who can show others they bought gme shares over $50k, and still holding despite losing huge amount of money.
short seller messed up.
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there's people saying short sellers losing over 5billions. what makes you think they only sell all their shares at <$20?
they could have sold their shares when it was at its peak of $60 to $80 too, which by then they would have already made huge amount of money, since it's only $20 now.
remember Andrew Left who was wrecked by roaring kitty in 2011 and claimed he is shorting this now? what makes you think he won't continue to short this out of spite to $10 or below?
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about options.
there's call and out options, which you buy the premiums to gamble that it will fall below certain price range, please read this up yourself,there's a lot to explain about options.
there's people saying about 'shorties buying 17put, don't let him cash out!'
please, there's also 19put, 18put, 16put, 15put all the way to 1put.
theres also time limit for these options, doesn't have to expire this week, sone can even last until 3 months later.
just click the options tab in this gme page, it's that easy to see.
if the shorties are not dumb, why would they even buy put options for this week since they absolutely know the support strength of these shares.
please do your research on the driving factor in 2011 and now.
to those who are still hoping it will bounce back to 50s or 100s, I wish you luck.
to those thinking whether they should sell now or hold, it's your money, your decision, think hard and decide. playing stock ain't easy. You can't listen to others and lose money, then blame them for it. you only have yourself to blame if you lose money at the end.
good luck to all.
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72638499 : 2021
Daight OP 72638499 : sorry typo. thanks for pointing out.
70195760 : I like your post. This is something people should post and communicate their opinion. Not someone just buy put and keep saying dropping or someone just hold the bag and keep saying jumping.
Fran31 : Well said
103787608 : I'd say it would be a good lesson for new traders not to believe in anything anyone posts on the Internet. Not you. Not me. Not DFV/Roaring Kitty. He was only expressing his opinion in his stream just like anyone else would in a cafe or forum. He invested his money because he believes that the company is undervalued and that there is potential to grow. The squeeze was never the primary reason.
Some people wanted to make a quick buck and jumped in at high prices, turning themselves into bagholders. These are mostly greedy people who never did any research and blindly followed whatever people posted or said. Some wanted to squeeze the hedge funds to make them pay for the shitstorm that they have caused back in 2008 and invested to support the cause. Most of these people never sold because the job isn't done yet.
So please do not push the blame to DFV/Roaring Kitty for the price movements of the stock. If his tweets can really move the price of the stock then it wouldn't be at 20 now and it wouldn't have stopped at 80. People just want somebody to blame for their losses to make themselves feel better I guess.
Do your due diligence. If you believe in the stock, invest your money in it. Otherwise just move on to other stocks.