Current Events > Stock Market General #4

(+) Yeah! (+)

Sniffindraws posted...

Michael Burry also banked on GME lol

https://markets.businessinsider.com/news/stocks/big-short-michael-burry-1500-percent-gain-gamestop-stake-2021-1-1030004676

Most people, including reddit, were making fun of him for investing in GME, lol. He just tweeted recently about the GME run and said that the SEC should investigate or something though...

edit: he said If I put $GME on your radar, and you did well, Im genuinely happy for you. However, what is going on now there should be legal and regulatory repercussions. This is unnatural, insane, and dangerous."

https://www.barrons.com/articles/big-short-investor-who-once-touted-gamestop-calls-rally-unnatural-insane-and-dangerous-51611707398?siteid=yhoof2

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BBBY thoughts? GME like potential?

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Im watching HYLN and have a few calls out on them.

Good alternative for folks who have $100 or whatever to drop in now and want to gamble a bit on something other than GME.

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The Trent posted...

BBBY thoughts? GME like potential?

WSB is pulling out of BB, BBBY, NOK, and others and going all in on GME so I don't expect these gains to get very high.

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Nu_Titan posted...

He said If I put $GME on your radar, and you did well, Im genuinely happy for you. However, what is going on now there should be legal and regulatory repercussions. This is unnatural, insane, and dangerous."

Dude is pretty much 100% spot on with everything, so Im sure he is not wrong at all here.

To think if there were to be some sort of massive market crash caused by this, to look back years from now and be able to say fucking GameStop caused it would be just insane.

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Future_Trunks posted...

AMC, bro

I did ten shares. It's nonsense to think that someone isn't going to come and reinvest in them in five years and get theaters back up and running.

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Nu_Titan posted...

If I put $GME on your radar, and you did well, Im genuinely happy for you. However, what is going on now there should be legal and regulatory repercussions. This is unnatural, insane, and dangerous."

I mean, even if he's profiting, in a way he's right. It was stupid of hedge funds to short GME this much. But you can't really tell me that the price of the stock now is at all what the company is worth. If this skyrockets past 1000$ like some people are wanting, it is going to cause a lot of issues, especially if this becomes a norm on stocks.

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Flaming_Fire619 posted...

I mean, even if he's profiting, in a way he's right. It was stupid of hedge funds to short GME this much. But you can't really tell me that the price of the stock now is at all what the company is worth. If this skyrockets past 1000$ like some people are wanting, it is going to cause a lot of issues, especially if this becomes a norm on stocks.

Can you narrow that down for me?

Bob buys ten shares tonight at $210. What happens to Bob on Friday? Can he literally just hit the "sell" button if there's a profit/increase and call it a night? Or is the stock going to collapse and be weeded in legal trouble and he's going to be out $210 x 10 no matter what he does?

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GME, gamma squeeze...

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Flaming_Fire619 posted...

I mean, even if he's profiting, in a way he's right. It was stupid of hedge funds to short GME this much. But you can't really tell me that the price of the stock now is at all what the company is worth. If this skyrockets past 1000$ like some people are wanting, it is going to cause a lot of issues, especially if this becomes a norm on stocks.

Spot on.

Its always about the ripple effects. There already are a ton of overvalued stocks out there. Once this crashes, and it will, other inflated normal non-meme stocks will come down fast and hard as well.

And it will all be blamed on GameSpot, lol.

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Sniffindraws posted...

GME, gamma squeeze...

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CE_gonna_CE posted...

Spot on.

Its always about the ripple effects. There already are a ton of overvalued stocks out there. Once this crashes, and it will, other inflated normal non-meme stocks will come down fast and hard as well.

And it will all be blamed on GameSpot, lol.

So you're saying to short those stocks

CommunismFTW posted...

Can you narrow that down for me?

Bob buys ten shares tonight at $210. What happens to Bob on Friday? Can he literally just hit the "sell" button if there's a profit/increase and call it a night? Or is the stock going to collapse and be weeded in legal trouble and he's going to be out $210 x 10 no matter what he does?

Realistically, I don't think anyone that's actually buying in right now is going to face legal action for buying in on GME. You can't really charge someone for something that wasn't illegal at the time.

What this might end up doing is making the SEC look long and hard about both short selling and about potential coordinated efforts to screw over short selling. This sort of scenario is not viable in the long run, and could very easily hurt way more people than just the heavy hedge fund investors if enough common folk buy in and then are left holding the bill when the stock plummets (Because it will plummet, whenever WSB just decides it'll be fun to sell off)

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CommunismFTW posted...

Can you narrow that down for me?

Bob buys ten shares tonight at $210. What happens to Bob on Friday? Can he literally just hit the "sell" button if there's a profit/increase and call it a night? Or is the stock going to collapse and be weeded in legal trouble and he's going to be out $210 x 10 no matter what he does?

Well it all depends. If Bob sells then he makes his profit, but if Bob plus a million people sell, then the value of the stock will crash and basically become worthless. I highly doubt the SEC will get involved so really it's just a game of chicken at this point.

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emblem boy posted...

I'm buying more, with stop loss lol Chamath will win

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NinjaWarrior455 posted...

Well it all depends. If Bob sells then he makes his profit, but if Bob plus a million people sell, then the value of the stock will crash and basically become worthless. I highly doubt the SEC will get involved so really it's just a game of chicken at this point.

This is also the issue, and why even if it seems nice if I had money, I would never invest in a stock like this.

If you are not around at the exact moment the massive sell off happens (And it's going to happen) and you don't have someone to sell it off for you, you are going to lose money. It might not hit 4$ a share lows again, but there is no way that GME stock stays at 200$ once the sell starts. And it's only going to get worse if WSB gets their way and pushes the hold on these stocks all the way to something like 4000 dollars (the meme is 4200.69$).

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CommunismFTW posted...

Can you narrow that down for me?

Bob buys ten shares tonight at $210. What happens to Bob on Friday? Can he literally just hit the "sell" button if there's a profit/increase and call it a night? Or is the stock going to collapse and be weeded in legal trouble and he's going to be out $210 x 10 no matter what he does?

There have to be buyers willing to pay the price that Bob wants in order for Bob to sell.

The market closes to normal traders at 3pm EST. Lets say Bob buys at $210 Thursday afternoon before market close. Bob wakes up and hits the sell button on Friday morning. What Bob might not know is that due to limited after-hours trading and news that came out the night before, the value of the shares dropped to $180 overnight. Hed sell the shares, but only get back $180 of the $210 he paid.

Thats just one scenario. Another would be he sells for more money than he paid if the value went up overnight, and a 3rd would be that he gets nothing because the value fell and he would only accept $210 since no one was willing to pay more than $180.

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CE_gonna_CE posted...

Thats just one scenario. Another would be he sells for more money than he paid if the value went up overnight, and a 3rd would be that he gets nothing because the value fell and he would only accept $210 since no one was willing to pay more than $180.

So Bob wants to sell on Thursday Morning. Those Bobs will make money. But if I thought of it, everyone else will too.

I can see the problem already.

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ToPoPO posted...

So you're saying to short those stocks

The puts I purchased on Friday when GME was trading @ $60-$75 are still up 20% overall for me. They are $1 puts, exp Jan 2022. At worst Im out $30. At best, Ill get some of that back or more.

I definitely feel like a long-term bet on shorting is a reasonable call considering where we are at today.



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CommunismFTW posted...

So Bob wants to sell on Thursday Morning. Those Bobs will make money. But if I thought of it, everyone else will too.

I can see the problem already.

As was probably said, this whole thing is going to come down to when the first massive sell happens. If there's a coordinated effort like WSB to push the stock higher and higher, it could work. But it really only takes a decent sized group to begin to sell and I think most people are going to start panic selling once they see a consistent decrease in value. So it comes down to how long you're willing to wait and hope the sell doesn't happen.

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CE_gonna_CE posted...

Dude is pretty much 100% spot on with everything, so Im sure he is not wrong at all here.

To think if there were to be some sort of massive market crash caused by this, to look back years from now and be able to say fucking GameStop caused it would be just insane.

Hello, I would like to trade in my Economy. What can you give me for it?

Just 50 cents

WingsOfGood posted...

Hello, I would like to trade in my Economy. What can you give me for it?

Just 50 cents

https://youtu.be/5qm8PH4xAss

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CE_gonna_CE posted...

The puts I purchased on Friday when GME was trading @ $60-$75 are still up 20% overall for me. They are $1 puts, exp Jan 2022. At worst Im out $30. At best, Ill get some of that back or more.

I definitely feel like a long-term bet on shorting is a reasonable call considering where we are at today.

At the very least it is a good hedge if you're long.

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theAteam posted...

At the very least it is a good hedge if you're long.

Yup. And I dont have a ton of hedges, so for the sake of diversification, never hurts to have a few more.

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ok so guys help me out

if I want to buy a stock on robinhood, should I wait till 9est tomorrow or place an order tonight?

Does it really matter if I am not intending to sell tomorrow no matter what happens?

Doing some AMC calls in the morning, hope I can some for $9

WingsOfGood posted...

ok so guys help me out

if I want to buy a stock on robinhood, should I wait till 9est tomorrow or place an order tonight?

Does it really matter if I am not intending to sell tomorrow no matter what happens?

Wait till 9 am. Too much stuff could change between now and then, and you could end up with a bad price or an order that never goes through.

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WingsOfGood posted...

ok so guys help me out

if I want to buy a stock on robinhood, should I wait till 9est tomorrow or place an order tonight?

Does it really matter if I am not intending to sell tomorrow no matter what happens?

The only thing that matters is what the market price is at opening tomorrow. Let's say that a stock closed at 10 dollars today, it's not guaranteed to be at 10 dollars tomorrow morning. News and after-hours trading have an impact on this.

You have two choices if you're intent on trying to buy now, you can buy $10 worth of shares at open, or you can buy 1 share at open.

$10 worth may be more or less than one share by a fractional amount.

Or one share may be more or less than the $10 dollar closing cost that you wanted to buy.

Option C is to wait until markets open and make the decision to buy at that time.

Now there are limit orders and trailing orders as well, but I'm not knowledge enough to explain those in a good way. Basically you can set some conditions to buy exactly XX shares at exactly YY price, and your broker (Robinhood) will monitor the stock until such conditions are met. If they're not met, the order will expire at the end of the trading day.

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Do you guys think GME is going to see a dip tomorrow? And what time?

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Nobody knows man and if youre this iffy about it. Youre better off not doing it. If youre not going real money youre arent getting much anyways. Its just gambling

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darkprince45 posted...

Nobody knows man and if youre this iffy about it. Youre better off not doing it. If youre not going real money youre arent getting much anyways. Its just gambling

I'm $600 in (3 shares), however its definitely out of my comfort zone.

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I have a noob question.
say I buy $100 worth of stock A and now that investment is worth $500. I sell all or some of the stock and use that money to buy other stocks. Do I get hit with taxes for selling stock A or does it roll over since in reinvested it?

NatsuSama posted...

Do you guys think GME is going to see a dip tomorrow? And what time?

Yesterday it dipped around 30% but today went up over 100%.

Might very well see more exaggerated dips tomorrow.

So whats the general consensus on when to sell our newly acquired GameStop stocks?

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Returning_CEmen posted...

I have a noob question.
say I buy $100 worth of stock A and now that investment is worth $500. I sell all or some of the stock and use that money to buy other stocks. Do I get hit with taxes for selling stock A or does it roll over since in reinvested it?

If crypto is anything to go by, you need to pay taxes for selling the stocks if you got any wins. You can deduct whatever amount you reinvested until you cash in again. Or in other words, you report both transactions and they pretty much balance out.

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Returning_CEmen posted...

I have a noob question.
say I buy $100 worth of stock A and now that investment is worth $500. I sell all or some of the stock and use that money to buy other stocks. Do I get hit with taxes for selling stock A or does it roll over since in reinvested it?

it all depends on what it's worth at the end of the year.

If you made $400 profit on that stock and reinvested it, you still need to claim it on your taxes, even if you lost out on the reinvestment.

So let's say you sell Stock A for $500 and reinvest in Stock B. Stock B does poorly and you pull out at $450, a $50 loss.

You still need to claim $400 on your taxes.

At least that's how I understood it.


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Admiral_Zero posted...

So whats the general consensus on when to sell our newly acquired GameStop stocks?

The short answer (get it?) is that nobody really knows. We're kind of in uncharted territory, so keep a close eye and play at your own risk.

Some speculate this is a bubble ready to pop at any given moment. Remember that you can't trade infinitely. You can only sell if there's a buyer, and if there's no buyer and the stock is tanking then you're stuck with however much you can eventually sell it for (hopefully for a gain). This is why some people pull out and sell early (a short-sell) when they're feeling uneasy about the massive gains.

Others speculate this will continue to rise well beyond its current price because the hedge fund owners are stubborn and think they'll outlast the meme, but will come out at a huge loss in the end (and then the bubble pops soon after anyway because wtf if Gamestop gonna do to maintain that stupidly massive stock value)

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ZMythos posted...

and then the bubble pops soon after anyway because wtf if Gamestop gonna do to maintain that stupidly massive stock value)

POWAH TO THE PLAYERS!

Anyway I shorted my 2 shares today for $100 profit. I might regret that decision but I don't have throwing around money yet so I'm gonna be cautious about it all. If I see a big dip then I'll go back in, otherwise I'm turning my sails in the AMC direction.

So good luck all. Here's to fisting wall st.

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ZMythos posted...

it all depends on what it's worth at the end of the year.

If you made $400 profit on that stock and reinvested it, you still need to claim it on your taxes, even if you lost out on the reinvestment.

So let's say you sell Stock A for $500 and reinvest in Stock B. Stock B does poorly and you pull out at $450, a $50 loss.

You still need to claim $400 on your taxes.

At least that's how I understood it.

I thought you could offset, or at least assumed so because I know people will sell at a loss intentionally for tax purposes at times.

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welp looks like I am gonna do the 3-5 business days bank account link in robinhood.

I am not comfortable giving plaid my login and password to my bank account. That seems to be a massive hacking disaster waiting to happen.

Dat_Cracka_Jax posted...

I thought you could offset, or at least assumed so because I know people will sell at a loss intentionally for tax purposes at times.

You could be right. I sold (and withdrew) $800 from Robinhood recently as part of a car down payment. But i invested more that 800 over the course of the year. And some of that was traded for various gains and losses. I did not have to report the 800 since it's not additional income.

Like if i plant an apple tree and the apples are worth more than the sapling, then i don't need to pay taxes on the apples until i sell them.

...i think that's the opposite of my initial answer now that i think about it more. I am still learning so maybe ask someone else just to be sure

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Thanks for the answers guys

Whenever Ive reported gains on my tax returns, I always get the tax statement from the broker which has the reported NET gains after all calculations and the tax form asks for the lines from it.

You do NOT pay on gains if you lost equal amount in other stocks. Ex: If you start with $1000, invest $500 in a stock that goes up to $900, but also invest $500 in a stock that goes down to $100, you now have $1000 in your account. Which is what is reported on the tax statement the broker sends you for the year. So on the tax form youll enter a line that would be $0 as your net gain would be $0, thus no taxes owed. You dont pay tax on the stock you made $400 on and simply lose money on the stock that went down and lost you $400.

Youre not gonna be itemized for the one profit and not for the loss. So no youre not taxed on that stocks gains if you also have losses that offset. It would be total BS if you had to pay taxes on gross profits but net losses didnt matter.

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When do you think is a good time to buy a put on GME?

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Feel like a moron. No idea what puts and calls are. Have a vague understanding but from what I heard that's how big ballers play.

I just buy shares and ride it out or sell. Only have 5 shares of $GME. Kinda want to buy more but the price it's at now is so much higher than when I first bought it. Though, damn if it's going to the moon I guess it doesn't matter

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