But I also said its not over until the fat lady sings. If that 285-290 level gives way today... I dunno. It's held pretty well, but there's been a lot of volume. It worked for a couple days. If it spikes today I'd look at the $321 level, that would probably hold for a bit. If there's no problem borrowing shares, why not trade it instead of waiting for $50. Its gonna take a bit to get down there. I will say though, if there is another big drop, there will probably be some follow thru. My opinion, if you ever see $120, cut your losses and move on. Or you could wait. I doubt it'll go below $75 for a long time though.
Jesus fuking christ, the reddit dorks are pushing it higher again. Vanzandt, this time I was to short just a wee bit more as it rises, but very slowly. Let me know like you did last time when its a good time/level to get in if you could please. I'll be watching. Is that the $321 level per your post above? Thanks.
If you survive this thing, you'll likely see $30-$50 again ... ONE DAY. But that could be six months to a year or two down the line. It could easily get to $1000+ first. When oil broke below $0 that triggered a move to -$37 in a few minutes. The same kind of crazy thing could happen if Gamestop gets above $500 ... it will be a one-way market UP. You might see some shorting activity between $350-$450 but who in their right mind would initiate a new short between $500-$600? You'd be crazy, and not in a good way. Wait till it loses momentum at $1200 or whatever, and then dip your toes in. That's the right kind of crazy. Some talk of $2000, but why not $5,000-$10,000? Anything can happen if you've got hordes of Reddit folk or even Russian/NorthKorean-financed agents pushing this thing up, and then a bunch of hedge funds jumping on board closing their shorts. For all we know, Putin may have assigned a few $100m to a few undercover agents with US brokerage accounts? If foreign governments are willing to finance cyber attacks and intervene in US elections, who is say they won't finance something more "creative" in the stock markets, like buying Gamestop. Of course, we don't know this, but something is going on.. You won't know the real reason until it's too late. All you should be thinking about now is SURVIVAL, not being a hero. I would trim the position when you get sharp pullbacks, etc, so you don't even get near the eventual top. Then when it does return to $30-$50, your losses will be relatively minor and you'll have learned an important lesson. I hope you come out of thing relatively unscathed. It could still happen, but you need a plan. Good luck.
FWIW, I don't think it's a given that Gamestop will get above $500. It could stall around $350-$400 and we're done. Probably that will happen. But IF it does break $500, it will move up very fast and who knows where the top is.
I guess Melvin Capital's short position went somewhere. The other side to that trade probably thought they were pretty smart when it dropped to $40. Maybe they closed the short, or maybe they got greedy... I think I read that the short position dropped from 130% to 30% but I don't really know how they calculate those numbers. With options markets and off exchange synthetic derivatives, it's hard to really know the true short position.