Melvin Capital sells out of GameStop

Discussion in 'Wall St. News' started by guru, Jan 27, 2021.

  1. Pekelo

    Pekelo

    I think what they meant by the 140% that the outstanding short volume was 40% bigger than the existing number of shares. Not the daily volume. That is also physically impossible, unless they used some kind of leverage.
     
    #41     Jan 27, 2021
  2. Pekelo

    Pekelo

    head and shoulder on GME with RSI falling, I am calling a top here at 340...
     
    #42     Jan 27, 2021
    guru likes this.
  3. I am talking about the shares out. That's just how the mechanism works, just like money supply multiplier.
     
    #43     Jan 27, 2021
  4. Pekelo

    Pekelo

    If we keep reselling and rebuying then our overall position doesn't grow, just fluctuates.
     
    #44     Jan 27, 2021
  5. What the hell you are talking about. Just open a spreadsheet and fake a few short trades and see how the short shares vs total shares out. Interests only reverse when shorts cover from real long holders.
     
    #45     Jan 27, 2021
  6. Pekelo

    Pekelo

    OK, I think I finally got it. Took a while.... :)

    Although:

    "Theoretically, the maximum amount of a company's float that could be shorted is equal to the float itself; although, in reality, it's rare for a stock to have a short interest greater than 50%."

    https://www.investopedia.com/ask/answers/05/shortexceed50.asp#:~:text=Theoretically, the maximum amount of,short interest greater than 50%.

    In this list of currently most shorted stocks, only GME is over 100%:

    https://www.barrons.com/articles/an...e-next-10-most-shorted-small-caps-51611688092
     
    Last edited: Jan 27, 2021
    #46     Jan 27, 2021
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    #47     Jan 27, 2021
  8. mlawson71

    mlawson71

    This entire Gamestop situation has been fascinating to me. I can't believe it happened.
     
    #48     Jan 28, 2021
  9. lol, what? why would a firm caught in one of the biggest squeezes ever cover their short? is this a sarcastic response?

    love the title of this thread. someone teach me how to "sell" out of a short.
     
    #49     Jan 30, 2021
  10. Nine_Ender

    Nine_Ender

    Obviously management at Melvin Capital are complete idiots. It's a valid question if operators like that should be allowed to remain in business. Obviously without huge infusions of cash they would be out of business.
     
    Last edited: Jan 31, 2021
    #50     Jan 31, 2021