MemberJune 11, 2021 at 9:29 pm
Posting here because I don’t have enough karma to post on reddit.
So I’ve been reading a lot of DD and I can’t my head around something.
Apes own 80% if the float. 20-40% of the float is shorted.
So when the squeeze happens, regardless of what price we reach, when apes start selling the hedges start covering. So once they have covered their 40% won’t half of apes still be left holding the bag?
Unless you think the number of naked shorts is much higher than 40%?
I’m not sure if that makes sense but I’d really appreciate if someone could explain this to me!
MemberJune 12, 2021 at 2:44 pm
So, when we have a gamma squeeze and a short squeeze the natural progression is one that will certainly end with bag holders. As the stock starts to squeeze the shorts and force them to cover and close their positions that moons the price of the stock as this surplus of capital is shot into the stock until it reaches its boiling point and the shorts are all finally accounted for. Which could go on for quite some time with GME and AMC because nobody actually knows the true number of how many times the same share may have been shorted. Like Wes Christian’s analogy about the guy selling one car that has one title, except he makes copies of that same title and sells them to 100 other people who then think they just bought that car. What’s gonna happen when those 99 other people try and collect that car they thought they bought? In normal circumstances the hedgies could just buy enough common shares to cover the millions of synthetic and naked shorts and all would be swept under the rug as per usual. But what happens when pesky retail investors come in and buy so much stock that the hedge fund can’t mathematically cover their positions and get out of the trade because there’s not enough shares available. And because the retail investors continue to Hodl these shares, even through countless of manipulative practices hoping to force panic selling. And on top of everything else they have to pay interest on these shares that they borrowed to sell short, and as the stock price has risen, so has the interest rate to hold these shares on lend. Look at Melvin Capital for instance, they lied and claimed they closed out of all shorts back in February, yet they are still hemorrhaging money and reported a net loss of 5 billion in the month of May. One has to wonder why they’re still showing these huge losses even though they’re hey claim they’re out of GME and AMC. And they made profits from their other investments in May. So I think it’s safe to assume that they have not covered these shorts, and they can’t find enough shares to do so, and a lot of that 5 billion in May losses can be attributed to the interest owed on so many shares that they probably purchased when GME was priced in the teens, before it rose over 1000%. And before AMC rose over 2000% this year alone. The article I read last night stated that Melvin has lost 60% of their worth in just the first 6 months of 2021. They won’t survive another quarter at this rate.
I’m sorry lol, I just looked back at your question and realized I was answering your question and then I received a phone call and when I came back I started to answer another question and forgot what thread I was in lol. Sorry. But I can answer yours as well, to the best of my knowledge.
As I was saying, when the actual squeeze occurs and we can tell that the shorts are being covered due to how high the price is rising. Now, you’re gonna have paper hands at the start, and then some more when the money starts getting real towards the middle, finally you’ll have more experienced traders get out right at the top. As the volume tops off and the rocket begins it’s free fall back to earth you’ll see a mad crazy sell off until it reaches its comfortable landing spot.
And that is the basis of a squeeze. These stocks are truly not fundamentally ready to be trading at the prices they are right now. I’m sure they will eventually get there and I will continue to invest after the squeeze when they have a nice fresh start at their true evaluation and they can grow in the fashion that a well run company should grow without the fear of hedge funds short selling them and attempting to curtail growth.
So basically, I bought into AMC when it was $4 in January because I know the stock is worth more than $4. So when the squeeze does happen I own enough shares that I will ride it up to the top, then I’ll sell a portion of my shares to recover my cost basis, taxes, and some profits to pay off my house. Then I’ll keep the rest in as it plummets because I took out what I wanted without being greedy, and I bought at $4 so it’s gotta go down to under that for me to lose money. And that is how it should ideally work; hopefully everyone is smart enough to realize that the prices for GME and AMC are not what they currently should be, these current prices are a direct result of apes in the trenches and fighting hedges. And it’s a good thing when we see these companies using this gift of a lifetime to pay off all their debt now, that would’ve taken them 3 years if they didn’t go bankrupt first. Think of the squeeze being that banana that gets thrown our way for doing a good thing and keeping good companies alive when they needed us most. But they are fully aware that when a company has a squeeze in full effect it’ll rip up +500…+1000…+??? in a matter of hours. And then as quickly as the hedgies sell off it’ll finally reach its peak. If you are an OG ape your job is to take your profits but don’t completely cash out as we need to slow the decent for the younger apes and assure that we all can get our tendies, but also leave enough in that the company lands smoothly and we all come out ahead. This is the ideal situation, what’s probably more likely to happen is a bunch of OG’s will totally cash out at the top as they’ll be exhausted from riding this wave since January and never trade stocks again in their lives lol. And so many people will paper hand and sell too early and bitch that they didn’t get what they should have for the rest of their lives. and you’ll have your stubborn diamond handers that broke the sell button and were so defiant that they forgot to take profits and will forever call people paper handed pussies while flipping burgers at Wendy’s lol. And last but not least, the coattail riding FOMO fanatics that laughed and made fun of us as we weathered every storm and did all the dirty work for this gift. And they finally have the balls to join us as it’s finally squeezing, and they come around and try to blend in like they’ve been here. They don’t have enough wrinkles on their faces or bags under their eyes to possibly say they’ve been through this thing with us. Posers lol. Oh yeah, we can’t forget the day scalpers who would sell off at 3:45 every day just as we were building good momentum for the close of market and killing our vibe. Thanks for all the help 🙄.
So, in closing. Once these companies squeeze it’ll be fast, violent, and massive. But it’ll drop as fast as it rips. The whole thing could potentially happen over one single day. Once the squeeze is over and these companies land where they’re supposed to be at without the hedge shenanigans they will be primed for a good healthy growth as a sound investment and no debt. We all like the stocks, so this will become a long term investment rather than simply just another trade. There will be bag holders this is inevitable. But if you are disciplined and know when you’re at the amount that you’re comfortable with, don’t be greedy, don’t look the gift horse in the mouth. Thank God for what he has given us, and take a little bit extra out to make a donation to your favorite charity. When I took some profits In January for GME I made a donation to my local SPCA and made sure at least 10 doggos would have enough to be taken care of for a full year if they didn’t get adopted.
This is the way
MemberJune 13, 2021 at 5:02 pm
What a great piece. My pictures may say AMC ape but I cannot say I deserve to be called an ape. I support the cause, but certainly after reading this and knowing the work, dedication and hell plain ol stress this whole thing really has been for you OGs man. I can only say that I truly appreciate it. I’ve been watching Review Dork and man I can dig how Gabe has broke things down Everytime. Then of course we got Trey Trades and he has truly broke a lot down to me as well. But this right here, your piece here it just it just does it. Thank you OGs. We really don’t thank y’all enough!
MemberJune 14, 2021 at 1:28 am
I appreciate the love my guys! So many times I’ve doubted myself for remaining in these stocks over the past six months, wondering if we’ll ever see this thing play out and finally shut down these scumbags for good and expose them for all the harm they do. But every time I’ve been frustrated watching their blatantly dirty tactics as they would manipulate the price to stay under a certain number every week to stave off momentum, I have also seen so many new and enthused apes come into the game and help break through those barriers little by little, week by week. The fact is, without the steady influx of young apes constantly growing and spreading this movement, there is no way we would have made it this far. After the Robinhood event in January and the subsequent sell off of these two stocks, I’m quite certain that shitadel and melvin toasted each other and thought they beat down the common folk and we’d piss off and bow to defeat. The smartest thing they could’ve done when GME tanked to the low 40’s would’ve been to get out right there and wash their hands with this mess they created. Instead they doubled up on their mission to stomp GME in the ground out of pure arrogance and ego. It wasn’t good enough that they had to cheat to halt the squeeze and it would have taken them for everything if we were still allowed to buy, but now they wanted to prove a point and try to show us who the real professionals are. That very same ego is the reason why we licked our wounds, pulled our boot straps tighter, and made the decision fight on with everything we had left. We knew the DD was still sound, only now it showed that they dug themselves an even bigger grave if we took the float and just held our positions under any circumstances. We all had our own reasons to stay in this fight, for me it was just remembering having graduated college in 2008 and hoping to land a great job as an architect or the graphic design field. But of course I had to graduate just as the housing market collapsed and the recession started. For two and a half years I worked minimum wage jobs and was $80,000 in debt with school loans. Two years applying to firms every week with no call backs, all the while watching these scumbag banks and hedge funds and billion dollar corporations getting bailed out one by one because they were somehow too big to fail, even though they caused this to happen in the first place. So this is why I stay in this fight and this is why I also appreciate every new ape that joins this movement. Whether you’ve been here since last year or last week, whether you have 10 shares or 1000 shares, we are all in this together. And I don’t know about you guys, but I fucking love these stocks and they’ll have to rip them from my cold dead hands if they think they’re getting them back! Big big week ahead my dudes! It’s gonna be crazy if these options numbers are correct. There’s something massive brewing, I can feel that nervous excitement and energy coming on like crazy. It feels like January 27th again, only this time we’re ready for these bastards and now they are being watched with so many more eyes so they won’t be pulling those shenanigans this time without the whole world taking notice. My palms are starting to itch lol. Lessssgoooo booooyzz! And girls too! 🙂
MemberJune 13, 2021 at 6:34 pm
Thanks BLVCKH3VRT for a great write up…
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