Who gives a fcuk what is going on...just enjoy the insane volatility! We all know the GameStop train is running on meme steam...but who cares. Wallstreet are crooks who make money by cheating not by trading. Retail is beating them at their own game.
I’ve felt that the equity market has been getting “dumber” for a long time now, driven by automation, passive strategies, hordes of retail traders and other factors. The continued life in these worthless trash stocks is exhibit A.
Oh c'mon, let us not play the naive card. We all know penny stocks are the natural choice for these swindlers because, well, they're easy to finagle--especially if you're the Pied Piper who have millions of stonk followers who know next to nothing about trading. Roaring Kitty claims that he still sees great value in GME, but if that's the case why doesn't he simply buy and hold the stocks outright for the long term like Buffett and not dabble in and out of options? We'll just have to find out if he'll stick to his guns with those newly acquired stocks (I doubt it though).
GME has $4bn cash, 426mn shares, $9/share, now trading at $28, so ex-cash $19 per share. That can earn $200mn ($0.5/share) in treasury bonds. Who knows if they might use the cash for some random AI-related acquisitions which might pop the stock. $20-30 seems more or less "right" given the hype and attention.
The ATM call premiums 1 month out are almost 8 bucks. He could sell CCs on all those shares, the stock goes sideways and he would make around 70 mm. Since he doesn't mind to own the stock, playing the wheel on it for a few months could make him a billionaire....
No doubt the move was huge,but i believe you said he had a huge position and lost 50 K.. Too lazy to look,but if the move was 400 points,that's basically a 1 lot.... Not exactly a huge position
600k viewed the Kitty live stream and they crashed the server for the shareholders meeting. Let's look at the numbers: 10.80% of Shares Held by All Insider 25.44% of Shares Held by Institutions 28.52% of Float Held by Institutions Float is 319.91M That leaves about 71% of the float for retail. (240M shares)