LogFAQs > #949459119

CoolCly posted...

I think you have to have a VERY strong grasp of how shorting and options work to really make money on them, so that you can actually time them correctly and pull them off correctly. You could have a good idea but if you execute it wrong you could lose money quickly and easily. If you don't have a good idea of what you are doing to begin with then making money seems practically impossible. A string of logical events needs to happen for you to make money, so if you can't foresee each of those events it'd be tough to avoid a bad event.

Meanwhile, just buying and holding stocks can either gain or lose regardless of how good your idea is. It's a lot more straightforward. I buy stock, stock go up, I make money!

I think Lopen has had pretty sound logic in his plays so it looks like he might do okay but I think unless you can explain to yourself why you want to make a play on something and how it will work out like he has been doing, you probably aren't ready to try them. That's how I feel about myself anyways. Come to think of it.... that might be why he talks out his strategies here, to say it out loud and confirm it isn't a dumb idea to himself. I'll have to do that when I start trying to do options....

Hmm. I think there's probably gains to be made here on whatever weird shit is happening with GME, though I haven't really flowed through the logic of it all.

But there has to be more to the upward movement of GME than people trying to game the stock against the other people gaming the stock, right? Or is this just purely circular stock manipulation with no basis on actual value of the company and whoever plays this right will make a bunch of money and whoever doesn't will lose a bunch of money when it eventually crashes?

Or is there actual some serious intrinsic value in Gamestop people see? SOMEBODY must think buying at $31 is a good idea. I haven't been able to really uncover any reason why....

I sold my Gamestop shares at $34. I'm seeing that some people think there may be a further short squeeze, but I'm taking my profits here because 122 million shares have already traded today. That is around 100% of the shares in the company, which means that probably a lot of shares have already been exchanged multiple times today. Which means that the short interest could potentially have already gone down a lot as people covered.

GME had some very positive news come out this week, with Ryan Cohen, who has bought up a pretty substantial stake in the company, getting a board seat. He is pushing for Gamestop to aggressively expand its online business. But yeah, hard to see it being worth $34 but for the short squeeze.

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September 1, 2003; November 4, 2007; September 2, 2013
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