arch_8ngel

I mean more along the lines of -- considering the mania do YOU have an exit in mind?

Yeah, had another small slug fill at $18. Had to move my market-hours limits up so they don't fill immediately at open. How high are you expecting AMC to run? Because current prices are way beyond "hopeful recovery story"...

I don't know -- but that is a question that is definitely going to be answered because this thing is global news now.

Yeah, I saw that. There was technically enough volume yesterday for them to have covered -- but since we know retail was still piling in, it makes me very skeptical they could have unwound. I think it is much more likely that at least one of those two major short holders is now completely bankrupt and is going to be forcibly liquidated today. And if not today -- by the end of Friday when all monthly calls AND all weekly calls end ITM coupled with quite a few of those positions being able to afford to exercise and get the actual shares rather than needing to resell the option.

I'm not willing to buy more at these levels -- but I am willing to space out my remaining sell orders Definitely trying not to be the pig that gets slaughtered...

Do you have real trading access in your Roth? Personally, that is where I am trying to bank any trading gains, since it completely eliminates the tax consideration of short vs long term.

Just sold half of my AMC pre-market for $17.25 after buying yesterday at $4.80... wild. Could accelerate today, who knows...but I'd feel like an idiot for not banking that gain. And went ahead and re-laddered my remaining GME limit sell orders, since the majority of the influence of Elon's tweet probably hasn't happened yet and I don't want to have everything sell on open. (willing to let a couple of shares run the risk of missing the squeeze to see how high it really goes)

So 3 call contracts = option for 300 shares with the $600 representing a call price of $2/share? (so your break even is a little less than $7 share price if you held to expiration?) Am I understanding that correctly? I don't really understand the "theta decay" (haven't read much on it) and definitely don't have a sense of what "reasonable" options premiums look like (in terms of thinking about what leverage you're actually taking versus your break-even price) EDIT: and what kind of account are you trading in? I gather from some of the WSB maniacs that it is possible to do this in a Roth.

Missed the latter part of this comment, earlier. What calls did you buy? And what was the process like? I have enough stocks where I have round lots of 100 that I might consider writing covered calls -- or using options to buy round lots of 100 (is selling puts the one that pays you a premium while you wait to see if the price reaches your buy target? ) I haven't looked into activating options trading, but I would be surprised if I don't meet whatever their requirements are. (not going to mess with apps like the wsb guys -- I'll stick with a real brokerage)

I figure some of the guys that are in the process of making a shitload of money of GME right now are going to shift gears in the next couple of weeks (or some are already in the process). I have no current plans to hold AMC for the recovery unless it's meme falls flat (in which case my bet is small enough that I'll probably ride it out).

Yeah, it shot up to that level after hours and held steady pretty much the entire extended session.

I wouldn't put faith in after hours carrying from day to day, but I suspect most of us are trading in lot sizes that will probably fill successfully if you attempt to snag a price in the range of after hours activity while that trading is happening. It is all limit-price trading, so unless you fat finger your selling price, it is harmless to try and take advantage of it.

Part of what is so insane about the current price and the level of shorting -- that $3B loan that the hedge fund took yesterday to stay alive? BURNED THROUGH IT IN ONE DAY of staying short while the price kept going up.

And Jonas -- good call so far on AMC, as well -- I don't think it has long term legs, but it clearly is swept up in the short term meme-mania (+66% after hours today) EDIT: and Jonas, the other thing I have to thank you for in all of this is giving me an excuse to figure out limit selling after hours. To see people talk about post and pre-market activity, you'd think it was something that isn't readily accessible. But it was no harder than setting a limit sell during normal market hours (you just have explicitly set it as "extended hours" as a no-expiration market-hours limit sell won't carry over to extended hours trading).

There are hedge funds that are about to blow up over this -- as in multiple hedge funds that may not survive the week. Going short right now is a terrible idea. The interest has nothing to do with it (and "short interest" is not your borrowing cost -- I think the borrowing costs are around 60% interest rate, right now, depending on the broker -- "short interest" is what percentage of the available shares in a company are shorted -- i.e. > 100% means that more shares are shorted THAN EXIST)

1. I don't think it works that way. There are automatic circuit breakers that trigger due to specific criteria and provide time to work out discontinuities. But those are relatively brief. 2. Unknown. The short sellers SEEM to be coordinating their attacks AND pumping negative media messaging. The longs are similarly spreading their own hype but are not doing so at an institutional level. Elon is going to almost certainly get a slap on the wrist for his tweet this afternoon, but he hates the SEC so he doesn't care. 3. This isn't really practically possible. 4. Short interest has been above 100% for awhile -- "shares to short" are all made up out of thin air at this point, which is why it has the potential to blow us so badly when they have to cover at any price during a squeeze. 4b. What are you asking about with "buy price"? When will the shorts be compelled to buy? Or when would somebody buy back in?

The guy claims to have a long term plan that doesn't involve letting go of the 50,000 GME stocks (and potentially exercising an unknown amount of the remaining calls) And yeah, your comment about the 10 grand is right on, in terms of me realizing my lack of risk tolerance for big asymmetric risk situations. EDIT: Elon Musk has apparently tweeted about it now... guess I should probably adjust my remaining limit-sell targets accordingly For reference, while I doubt Musk gives two shits about GME -- he HATES short sellers with a fiery passion, and is probably giddy with the opportunity to help blow a few up. 2nd EDIT: and that post from DFV is BEFORE the stock went up another 50 - 60% after hours today (actually caught one of my limit sell points in that burst)

Look at the screenshot. That guy has "made" almost $5MM in CASH on top of his 50,000 shares and his remaining 800 calls for April (at $12/share). He has already cashed out nearly 100x his original bet. (though a hefty chunk of that is in reserve for the tax man, I'm sure). EDIT: but yes -- that guys is insane, because along the way he has ridding multi million dollar swings on a near daily basis. I would have had a stroke by now from that level of intensity (and no, he's not a secret billionaire -- he is just some dude on YouTube that goes by RoaringKitty)

No kidding. By comparison of level commitment on GME, I'm not even the dog getting scraps under the table Following that guy's saga, and a number of others that have pulled some big money on GME, has been a very humbling experience of realizing I am a lot more risk averse than I previously thought.

GameStop had already filed that they could do an offering up to $100M -- which right now wouldn't move the needle on stock price. (stock was only $20/share when they floated that) And, ironically, them offering stock to get $100MM "for free" from share buyers could be taken as bullish and savvy on their part. Also -- check out the status of the true believer (deep fucking value): Dude is currently at $22 MILLION. Still has his 50,000 shares -- sold 200 of his April calls for a cool $2.4 Million in cash during the big bump early Monday. Ignore the cost basis on that image -- it reflects options that he's sold and then bought stock with along the way, or otherwise rolled into other options -- his REAL "cost basis" is $55,000 from back in April 2019.

Hedge funds have been saying that since last March and have lost billions of dollars in the process There is at least one that is genuinely at risk of suffering a 100% loss due to their GME short position blowing up in their faces.

If I knew the right answers on GME, I would have made millions on it by now I'm just along for the ride playing with a little bit of "house money" from swing trading it in December before things really got exciting! EDIT: and I'm not going to lie -- this whole even makes me want to find a couple of books to understand how options actually function and are priced. For instance, over the past year, I have seen a lot of discussion about using calls and puts as superior to limit buy and limit sell orders -- assuming you're willing to lots of 100 shares.

As an addendum to the above post -- the steady runup TODAY is NOT a "gamma squeeze". (though it COULD BE shorts capitulating OR it could be market makers trying to gradually hedge in advance of Friday to avoid a second gamma squeeze after last week -- now way at all to know until after the fact on that) The concept of how a "gamma squeeze" comes to pass is evidently the kind of massive spikes that happened on Friday that are practically guaranteed to trigger breakers. EDIT: as another note to my earlier post about who is on the other side of this stuff -- the hedge fund that had to borrow billions -- evidently blows up completely (suffers 100% loss on their fund, in total) due to their GME short once GME crosses $175. There is an immense amount at stake, on this thing.

My (very ill-informed) understanding is this: (1) market makers decide on what calls and puts can be offered on the market in the first place (2) based on how far out of the money or in the money those positions are, the market makers are forced to hedge to be "delta neutral" (i.e. they are a market maker, not a "participant" making a bet to one side or the other) (3) IF you have a situation where calls ALL go "in the money", and it happens fast enough, then the market makers are FORCED to buy to hedge those calls (other circumstances come into this, as to whether they were naked calls in the first place, or fully covered) In this case -- the market maker for GME got behind the curve on the hedging they were obligated to do in order to "make the market" and their hand was forced (on Friday, at least -- MAYBE yesterday, as well). But come friday -- there are monthly calls written back when the stock was only worth $20, or so -- it becomes a matter of how well the MM hedged the highest calls (that will hypothetically all be deep in the money at current prices) But if they're forced to hedge and buy -- that creates an episode like last Friday -- only on a larger scale. AND THIS IS INDEPENDENT OF THE "SHORT SQUEEZE" THAT IS BEING TALKED ABOUT. (which is what makes it all so wild) Unlike the shorts, that can presumably choose to keep paying interest and keeping short positions open (assuming they can negotiate away a margin call) -- the market maker is REQUIRED to "make the market". They can't put it off if the hedging requires them to buy. And hypothetically -- a big enough squeeze of that type can then force margin calls on shorts that otherwise could have avoided it by their size. The whole thing is so much crazier that I ever thought possible -- from a market functionality standpoint -- and is really kind of scary to consider in terms of how badly both hedge funds and the market makers themselves misjudged. (And please don't take any of that above as gospel, because I have a very rudimentary understanding of the concept, and I'm probably saying it wrongly - options are not my game, and I don't have a particularly deep understanding of how, exactly, market makers have to hedge in the process of "making the market") EDIT: and some of this may also have to do with whether the market makers expect call holders to actually exercise their positions, or not, or if they just sell the calls back at a profit when closing their positions. (i.e. the question of whether the derivatives, themselves, ever get used to claim the associated shares -- or whether they just go back into the ether)

The larger short players apparently think they're able to outlast the longs, because they've maintained and actually increased the short positions. Meanwhile some BIG buyers have stepped in as well. It isn't just the little guys versus the hedge fund shorts -- there are big players on both sides. It is wild.