Why did GME drop from 344 to 198 in a few minutes today?

Discussion in 'Stocks' started by GoogTgt, Mar 10, 2021.

  1. Pekelo

    Pekelo

    https://www.forbes.com/sites/george...urgeanatomy-of-a-gamma-swarm/?sh=2149381c4225

    Update: GME traded above $300 on Wed March 10 – spiking as high as $348. A naked March 12 call option with a strike price of $270 would have exposed the seller to a loss of $56 a share. It is highly unlikely that the sellers of such options would have allowed themselves to be exposed to this risk. They would have covered, hedged, by purchasing shares – adding to the surge. Gamma power!]
     
    #31     Mar 11, 2021
  2. SunTrader

    SunTrader

    GME's most recent quarter revenue $6,466,000

    Of course it is losing money., but a POS nah!

    "Back in the day" when I traded equities I didn't give a fuck what they made or whether they made money doing it. If it moves trade it. Long OR short.
     
    #32     Mar 11, 2021
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  3. i thought most traders here on elitetrader forum are technical traders? trade based on charts, trend line, price action, support and resistance etc. but some of ya here are talking about fundamental like balance sheet, revenues etc. so my question is are you trading based on fundamental or technical? as for me. i know what i am. i'm pure technical. i don't give two shit about pe ratio, balance sheet or revenues etc.
     
    Last edited: Mar 11, 2021
    #33     Mar 11, 2021
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  4. Dustin

    Dustin

    I suppose we are arguing semantics now. The bottom line is, are you making money off of your conspiracies? I was long calls from Monday around $17 and sold at the highest $145 right before the collapse, where I bought puts and covered 15 mins later, then bought calls and common for the $50 bounce. It's the same pattern as the last time this happened. Conspiracy or not, everyone should be making money on such a great trading stock.

    [​IMG]
    n picture download
     
    Last edited: Mar 11, 2021
    #34     Mar 11, 2021
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  5. I do not trade stocks. I am a macro guy. But I follow the stories with great amusement. Thanks for admitting that you posted complete nonsense with your "stop theory". Bottom line is, neither of us can prove what is going on. Something about the moves, however, does not smell right. At this point you are just thrown around like an aimless ship in the wind, fully under the power of some large players who move the stock up and down at their own discretion. If that is an acceptable market to you, fine, it's not to me because any second your entire position could be valued at near zero. I do believe we hear from the SEC soon.

     
    #35     Mar 11, 2021
  6. Math_Wiz

    Math_Wiz

    upload_2021-3-13_20-49-35.png

    There were a whole lot more shares traded than 1.45 million during those 40 minutes.
     
    #36     Mar 13, 2021
    DiceAreCast likes this.
  7. Math_Wiz

    Math_Wiz

    upload_2021-3-13_20-53-16.png


    Hardly any volume on the way down??
     
    #37     Mar 13, 2021
    DiceAreCast likes this.
  8. SunTrader

    SunTrader

    Hardly any? Take out that 1 big two minute bar and those 5 prior red bars are more than the 2 green bars on either side of spike.
     
    #38     Mar 14, 2021
  9. SunTrader

    SunTrader

    And looking at the 1 minute level shows even less of a difference, as well looking at (bottom subgraph) the percentage of volume on up/down ticks. Then there is the fact price only made a roughly 61.8% retracement that day:-
    GME.png
     
    #39     Mar 14, 2021
  10. Dustin

    Dustin

    I calculate shares that trade at the bid/offer, you are seeing all the volume in the spread. Volume at the bid/offer is what moves stocks and shows how aggressive buyers and sellers are while volume in the spread tells you very little.

    Think about it logically, we have now seen 3 recent examples of what happens when retail stops get flushed. First it was the GME move from $400 to $100, then CCIVWS from $30 to $10, and now GME again from $340 to $180. This is a new pattern due to WSB/RH with tons of tiny orders creating these vacuum moves because there are literally no bids in place so far away from the normal market.

    Doesn't this make a lot more sense than manipulation/conspiracy theories?
     
    #40     Mar 14, 2021