gme short positions

Almost any post related to stocks is welcome on /r/stocks. This is a very interesting, but the more important fact is that the number of shares sold short is roughly 3x the entire float. One thing led to another … and then, BOOM! Cheers. They’d have to scramble to find the cash to cover the $140 per share deficit. All rights reserved. Don’t Get Trapped in a Short Selling Squeeze Like GME, Canadian Solar (CSIQ) Is the Best Value Buy Now, Nova Measuring Stock: A Precise Semiconductor Play, Chevron Stock: Don’t Bet on “Old Energy” Giant for Oil & Gas Gains, Up in the Cloud: MongoDB and Cloudera Earnings Face-Off, Surging Inflation Is a Real Threat to Fixed-Income Investors. 🍻, GME: 66 at ~80/share. Because the volume has been increasing higher for GME this makes it seem like the "days to cover" - 2.81 may seem like the short position is declining but it actually indicates the opposite. This is very important, as to cover short positions, MM’s will have to buy from the float. No broker is going to invest in servers rated for a squeeze or volume of this magnitude when 99.8% of those days they don’t need the capacity. The price surge led Melvin Capital and other big institutional players to take short positions on GME. Thank you so much for explaining this so even a moron like myself could understand. Chris Lange. When an investor makes a short sale, they do so with the belief that a security will decline in price. Wondering if I should just cancel it in case it takes forever and I end up missing the squeeze. Don't get overwhelmed by the daily ups and downs of the stock market. It may sound cliché, but when everyone is on one side of the trade, it’s better to take the other side. 1. There were too many short sellers borrowing far too many shares. This is because shares can be shorted more than once. GME has for quite some time been a favorite of short sellers that have been expecting it to go bankrupt due to it being a brick and mortar retailer. Any fake news that say all shorts have exited is completely and 100% false. No broker is going to invest in servers rated for a short squeeze or volume of this magnitude when 99.8% of these days they don't need this capacity. January 25, 2021 10:17 am ... Read more: Retail, GME, Active Trader, video games. At this point, the shorts think this is a fad and it will just fade away and so just keep re-entering to not only cover their loss but to earn profit off it's rise. Someone selling GameStop shares around $20 per share earlier this month would have likely been getting margin calls when the shares hit close to $160 per share on Monday. I'm here to learn. The most recent report was short interest as of Jan 15 which is 226.42% of shares float increased from Dec-31 of 140%. who, we are trying to screw them? Press question mark to learn the rest of the keyboard shortcuts, https://www.reddit.com/r/wallstreetbets/comments/l6o7ed/since_it_got_removed_when_do_we_sell_a_quick/, https://aws.amazon.com/solutions/case-studies/robinhood/, https://finance.yahoo.com/quote/GME/key-statistics?p=GME, https://www.investopedia.com/terms/d/daystocover.asp. You can dynamically scale up and scale down to fit your need and I'm willing to bet that the brokers who did experience these issues this week will have invested in some increased auto scaling measures to handle the larger loads this time. Short-sellers are sitting on estimated losses of $70.87 billion from their short positions in U.S. companies so far this year, data from financial data analytics firm Ortex showed on Thursday. The bad news for the short-sellers is that most of the WSB gang are not looking for a profit. He is also a frequent guest on CNBC, Bloomberg and Fox Business. The second half of the short will be totally and utterly fucked. It's not completely evident how many were covered but some paid services provide live estimates/data of current short interest. All of this was true before the COVID-19 pandemic. They’d have to scramble to find the cash to cover the $140 per share deficit. You can sell used games for cash or trade-in value. Copyright © 2021 Money & Markets. like AMC and GMC), someone has to pony up that money to ensure the short position can actually be covered and if the people who borrowed the margin can't, the clearing firms members (the brokers) have to (hence why RH and WeBull had to halt trading because it became so expensive to the shorts that they, the brokers, were becoming liable). Wall Street has deep pockets and when the stock rises 100% - 300% in 1 day (e.g. as i understand its not about the possibility, its more about the arrogance and greed of em. I … from the brokes we purchase from, to short the market, and then return the stock to us? They most certainly will when there is a 1000% raise over night. Short Volume is a data set that can be used to understand investor sentiment. Home » Investor News » Don’t Get Trapped in a Short Selling Squeeze Like GME, Posted by Charles Sizemore | Jan 26, 2021 | Investing. Sign up for FREE access to our Money and Markets daily emails and take control of the markets! A position to close takes 2 days. You pocket the difference. GME shares exploded by a factor of eight in less than two weeks. If little was known about 💎✋and more of the same shorting has not only continued but will continue to continue until they say no more shorting because perpetual shorting vs perpetual 💎✋= 10k+? For those of you who’ve been living under a rock, GME’s short is currently more the entire number of outstanding shares. Is this not enough volume to allow the covering of the entire short position (~100m shares or whatever it exactly is right now) over a daily trading session? Most will miss the very peak. Disclaimer: numbers may be slightly off as things seem to change by the minute. And faced with a suddenly soaring share price, those short sellers were forced to buy — at any price — to stop the bleeding. So the shorts that were entered < $250 are now really screwed and either have to keep putting up more and more margin or cover their position. its only a loss if they cover now. Or would the cheat mode/manipulation stop it and actually break rules in doing so be SEC, etc (like make gme issue shares or some bs)? wallstreetbets silver short squeeze Press J to jump to the feed. Remember, when you sell a stock short, you eventually have to buy the shares back if you sold the shares at $20 and buy them back at $10, fantastic! A group of do-it-yourself value investors began to pile into the stock. To safe profits, Charles Sizemore is the editor of Green Zone Fortunes and specializes in income and retirement topics. You should be very careful short selling. The days to cover is really just an estimate of how quickly all the shorts could cover their positions by taking the short interest (number of shares shorted) by the average daily volume. JP Morgan reportedly holds largest short position in Silver and clearly the short squeeze will affect them severely. Fear will make the losers in the GME event think twice or use market tools to protect future short positions. And here’s where it gets fun. You sound like someone I’d enjoy grabbing a beer with. This high number represents that the short squeeze is ready to hit at any moment but we are far from there. Robinhood is hosted on AWS https://aws.amazon.com/solutions/case-studies/robinhood/ https://aws.amazon.com/autoscaling/. From my viewpoint as a person in IT that has worked with AWS/Cloud in general, servers don't need to work like this nowadays. This momentum took off way faster and higher than anyone could have imagined going up over 10x in 5 days (from last Friday to today's high). Charles is a regular on The Bull & The Bear podcast. So at most, only half of the short positions could be submitted for close in a given day and then it would require 2 days for those shares to be returned to their rightful owners at which point the 100% of the 120% would be able to exit requiring another 2 days to settle leaving 20% short interest. This forces short sellers to cover their short interest positions by buying actual shares of GME, which in turn drives the price of the stock up even further. I think the subsequent trading halts were a way to prevent this illegal activity from coming into the light. But it’s possible it was caught in a number of positions – which would, on the other hand, indicate Melvin as a selected targed (or again, Melvin just being even more stoopid, and momentum following favoured shorts w/o having any clue what it meant). Sorry, the full article you are trying to view is no longer available. Editor/authors are masked to the peer review process and editorial decision-making of their own work and are not able to access this work in the online manuscript submission system. which is basically a liquidation for them. https://status.aws.amazon.com/. GameStop Stock Continues Destroying Short Positions. While I'm sure many tried to exit today at the drop of $125 if they shorted yesterday and many probably entered at today's high, it's clear that more has been entered via a ladder strategy - 100 shares @ $250, 100 shares @ $240, etc. While plenty of gamers still like owning the physical media because it uses less on-board storage and gives them something to eventually resell later, the path of least resistance is simply to download the game and be done. JP Morgan is clearly the next target of the group after Melvin capital suffered a huge setback recently with GME stock. At the same time, its used game business faces the risk of irrelevance in the age of downloadable games, such as my kids’ favorite (and the bane of my existence) Fortnite. This is as true of the stock market as it is of sports betting. Our experts do the work to make investing safe and profitable for you. That one-two punch makes GameStop a popular target for short sellers. Money & Markets is America’s premier source for financial news, commentary and actionable research advice. A position to close takes 2 days. Obviously trading apps servers were overloaded on 100% raise in stock price over night. So at most, only half of the short positions could be submitted for close in a given day and then it would require 2 days for those shares to be returned to their rightful owners at which point the 100% of the 120% would be able to exit requiring another 2 days to settle leaving 20% short interest. I think for this to continue, it will have to have more modest consistent gains, 20-30% per day, because 100%+ jumps creates massive margin calls that the shorts can't fund quickly and so the trades at are risk of settling meaning the brokers have to be deep pocketed enough to cover the greedy suits. Short Volume. The hedge firm’s moves were identified by a group of Reddit users on the subreddit /r/wallstreetbets, who colluded to organize a short squeeze by pumping the price of GME. They sell shares they don’t actually own with the obligation to buy them back and repay the owner whose shares they borrowed. But the top will be there for a few days. You can’t short GME because unlike futures you have to actually have the stock to short it. 💎✋🏼👊🏼. We then had months of sporadic lockdowns and social distancing requirements that hit brick and mortar retail hard. GME / GameStop Corp. short volume is shown in the following chart. When buying a put option, you can lose the entirety of your investment. - https://finance.yahoo.com/quote/GME/key-statistics?p=GME. I think the bottom line is we're completely in the dark on the current short interest. as i understand its not about the possibility, its more about the arrogance and greed of em. Track the performance of up to 50 stocks. There are a few, actually. Sign up for FREE access to our Money & Markets daily emails and take control of the Markets! Short squeezes and high-risk trades have been all the rage in the media with stocks like Game Stop (GME) and Bed Bath & Beyond (BBBY) flying up to unthinkable daily prices. AJOG's Editors have active research programs and, on occasion, publish work in the Journal. GameStop’s core business is under attack on multiple fronts. This makes the stock”hard to borrow ” and prevents Professionals from using strategies that need stock sales to hedge ie selling puts and buying calls. A guy on reddit, for the past year has been trying to highlight to people on r/Wallstreebets that the short interest was so high that the company was susceptible to a short … But when the price goes the wrong way on you, it gets nasty. if that happens they must pay the ask and therefor even fufteher raise the price and we can sell em our shares for what ever we want. In the case of GME, it appears brokers for hedge fund traders lent shares they didn’t have. So, if you ignore lesson number one, at least heed lesson number two and keep your short positions modest. I don't want Robinhood to possibly fuck with me somehow and sell my shares without my permission or something, but I didn't realize ACAT transfers could take so long. Short Squeeze Volatility With GME, AMC: O'Neil Portfolio Manager On Navigating Risk In 'Crazy' Market ... which can offer possible entry points for investors to buy or add to their positions. Or at least I hope they will as it would be silly not to, Short Interest is reported by the exchanges on semi-monthly basis for stocks that trade with the NYSE. There are some hints here and there but we just don't know how many shorts have been covered. They view that they haven't lost anything that can't be re-earned and aren't afraid of WSB army. ShortSqueeze® tracks short selling in 16,000 stocks and provides market professionals with exclusive short interest data and services not available anywhere else, so you may gain from this valuable information and identify powerful stock opportunities happening - now! This indicates an increasing short interest not decreasing. First, a little background, GameStop runs a chain of small-format retail stores that sell video games, consoles and assorted merchandise or accessories. they need to sell everything to pay for this one trade. This is further exaggerating price movements. Some people were selling calls with an $80 strike price others upwards of $400. You want to be on the side with greater potential return and less potential risk. The retail participants watched the value of their accounts swell. When a trade is lopsided, the risk and return trade-off is also likely lopsided. Their panic buying acts like gasoline on the fire, adding massive amounts of buying pressure to a stock that suddenly has no sellers. Just login or create an account to get started. If they see a losing position on the horizon, they're not going to wait until the last minute, they're going to cut their loss and move on. I feel like that's a very bold assumption to make. Short Interest plays a powerful impact on the order flows that can surge into the stock market. Check out our wiki and Discord! If you were in Robinhood right now, would you risk moving to another app or just stay put? Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. they will stick as long as possible to their trade so they can get out cheap. One question, I'm off the grid for a few days next week, is there a possibility of everything going to hell before next Wednesday? This is a classic short squeeze; GME became a lopsided bet. The 3-month average volume of 24m was used to calculate the short ratio, whereas the 5-day average is 141m. Learn more. 3. The hedge funds short GME watched their assets evaporate. There were too many short sellers borrowing far too many shares. Just brokers who margin called hedge funds running up the sell limit order lists as markets are halted every 10 minutes and 1 second as instantly as they open up higher and higher and higher. If large jumps continue, trading will halt again. Your losses could be unlimited. And faced with a suddenly soaring share price, those short sellers were forced to buy — at any price — to stop the bleeding. But if your position size was modest enough, you at least won’t be in bankruptcy court. 2. This number is extremely high vs TSLA with a ratio of 1.09 or AAPL 0.88. The margin requirements should be increased to 300-400% for any new positions and I think some are doing this but it appears that RH and WeBull's clearing house was exposed to a lot of risk of the suits not being able to cover such quick increases over night literally. Again, using my own family as an example, I used to buy physical copies of all of my kids’ games. You can’t lose more than you started with. This is a classic short squeeze; GME became a lopsided bet. dropping the price instantaneously but while this is intended to create fear it just exposed risk even more. A short squeeze for GameStop occurs when it has a large amount of short interest and its stock increases in price. Amazon.com and other online retailers assault its memorabilia arm. they are manipulating media and market makers every minute right now. GME - Short squeeze stock short interest data and short selling information for shares of Gamestop Corporation Class A. Watch out for crowded trades. Greed will drive the winners to look for other opportunities after experiencing incredible success in GME. Is there a lesson to learn from this? Create and track your own list of stock investments. but with ongoing margin fees and no falling stock price they are just about cornered and squeezed out (the point where they are forced to buy, on which we retail investors wait and bet) because they are running out of money to cover their margin fees etc. Short sellers borrow the shares of companies they believe are overvalued and then sell them. Sure, a few speculators saw GameStop’s 52-week high of $347.51. Today, I would say we download 80%. like the stocks they borrow for short, must be from some one? - https://www.investopedia.com/terms/d/daystocover.asp. less short interest / average volume). If you want to bet against a stock, there are safer ways to do it, such as by buying puts. GME Short sellers have already lost $19bn, however many Are Still holding in Hopes of price going down! I would expect this to be less than 1 when the short squeeze is underway (e.g. It’s probably best not to short at all. If you want to see how truly bad a short sale can go, take a look at the recent trading in GameStop Corp. (NYSE: GME). Or at least it used to be. Short interest stock data available for NASDAQ, NYSE, AMEX, OTCBB and Pink Sheets stocks available from shortsqueeze.com. Melvin is not the only short in the game, in fact many new short positions were opened. Today, 9,606,123 new shorts were entered. Under an actual squeeze there will be no where close to the same volume of trades where bots are trading up and down on trends making loads of cash on this volatility. An unorganized group of investors who frequent the r/WallStreetBets subreddit started buying shares in GME in order to put pressure on the large number of short positions… GameStop is best known for its used game business. When I want to buy my boys Fortnite action figures or a retro Legend of Zelda t-shirt, GameStop is the first place I look. I wouldn't be surprised if this continues well into next week or the week after. In reality, the days to cover will actually be much more because shares have been shorted more than twice. In a short sale, your losses are potentially unlimited, as many a GameStop short was recently reminded. So in a scenario where there is a squeeze and Robinhood/IB/TDA is overloaded I’m assuming retail not being able to place limit sells even temporarily drive prices even higher just as a default error of how their banking system operates. The short volume was in line with Tuesday's percentage of 16.89%. Now I can buy the same stuff online from the comfort of my couch. But that’s it. The data for AWS publicly available. Post that prompted my question: https://www.reddit.com/r/wallstreetbets/comments/l6o7ed/since_it_got_removed_when_do_we_sell_a_quick/. Silver short squeeze. A short squeeze occurs when a heavily shorted stock starts to rise, and those with short positions rush to buy back sold short shares. I initiated an ACAT transfer earlier tonight to move my shares out of Robinhood and into Public. If I'm missing anything conceptually, please enlighten me. Some intentionally, others unintentionally due to lacking the funds required to cover the calls that were sold. they could have already done that @20$ but they thought they will outlast that hype based on no fundamentals (while for me it is all about fundamentals) because gme is only about showing them they cant do whatever they want and get rich on the poor, i dont mind loosing my entire savings on this, i will stand and hold until they have fallen! In this scenario you should not be worrying about missing out and instead focus on enjoying the ride. These people are greedy, yes, but they are also savvy and shrewd. Naked Short Report - track short selling interest on NASDAQ and NYSE STOCKS, check daily short interest, naked short data and short squeeze stock perfomance There is no issue with the Robinhoods compute or bandwidth. Get Our Free Investment Newsletter. In the case of GameStop, the short squeeze appears to have started on a Reddit message board. If those loses were mostly GME related, then Melvin deserved what it got – and more. Every day, Money & Markets gives you the information you need to protect your nest egg, grow your wealth, and safeguard your financial wellbeing. The size of your position is important. And therein lies the problem. i am curious as to, are these people literaly borrowing stocks we own? That is out of 58,494,600 shares exchanged today, 16.89% were shares that were shorted (sold on margin). - https://fintel.io/ss/us/gme. If you shorted GameStop and had to cover at the worst possible price, you lost money. Short sellers face an estimated $19bn in losses due to the short squeeze, though many are still holding out hope that the price will drop before they are forced to close out their short positions.

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