Yet another GME thought

Discussion in 'Stocks' started by qlai, Feb 4, 2021.

  1. Overnight

    Overnight

    Remember the fundamentals of the company you are longing.
     
    #11     Feb 4, 2021
    zghorner likes this.
  2. qlai

    qlai

    Funnymentals?!
     
    #12     Feb 4, 2021
  3. This dude made $9 million with GameStop stocks!

     
    #13     Feb 4, 2021
  4. schizo

    schizo

    WTF you still believe the small-time wankers were the impetus that drove up GME? Yeah, at the frothy top, maybe.
     
    #14     Feb 5, 2021
    comagnum likes this.
  5. kmiklas

    kmiklas

    In my opinion, you should stay out of this game. It's even more irrational than the market normally is, and has the potential to explode in your face no matter which side you take. Emotions are running high here, and anything can happen. Just imagine one of these scenarios:

    - You go short, and join the crowd selling GME thinking that the party's over, and that it's easy money. Then, the float percentage goes way up (again), the Ritalin-crazed squeezers take note, get another stimulus check, send it to $1k, and you get the classic 3am margin call.

    - GME decides to leverage this windfall of ca$h, and decide to make their valuation make sense by buying and consolidating all gaming distribution channels, like steam Origin, Epic, etc. Then the shares hold their value for valid reasons!

    - FINRA/SEC clamp down on the whole fiasco, call it market manipulation, and freeze all trades until some litigation finishes. Then you're stuck with a big pot of dead money for a long long time, and/or, you lose every penny to some judge's decision.

    - Elon Musk decides to buy GME, just to be a dick.

    - Uncle Jerome steps in and bails them out.

    There will be more volatility freezes, uptick rules, and who knows what other craziness?

    By the way, I was checking out the premiums on both calls and puts today. HOLY 5#!7 they are through the roof!!! Anyone buying options on GME et alia is going to PAY for the privilege!
     
    Last edited: Feb 5, 2021
    #15     Feb 5, 2021
  6. terr

    terr

    This. Or they buy some game software co. I can't believe they didn't make any moves at all. They were thrown a huge lifeline and ignored it.

    You probably need a lot more than a few days of hyper-inflated-pricing of stock to do that.
    Well, yeah. But the premiums are huge both buying and selling you know. So it works out somewhat in the end.
     
    #16     Feb 5, 2021
    kmiklas likes this.
  7. #17     Feb 5, 2021
  8. qlai

    qlai

    Damn my paper hands! Couldn’t keep the promise. Sold at break even after seeing it almost double. Lol. Something I need to work on for sure.
     
    #18     Feb 6, 2021
    zghorner likes this.
  9. zghorner

    zghorner

    cant tell if you trolling or being serious, but if serious - selling at breakeven...IMO...takes discipline.

    Letting a big winner evaporate is bad...but letting it all evaporate before your eyes and continue to hold until it becomes a big loser is worse.
     
    #19     Feb 6, 2021
    kmiklas and qlai like this.
  10. qlai

    qlai

    I agree with you 100% and I am not trolling. This was supposed to be an experiment, a test with small position. I just couldn’t do it. I thought I could re-enter at better price but I didn’t. I did the right thing trading wise, but I broke my own promise. Maybe the lesson is - don’t make promises you can’t keep?
     
    #20     Feb 6, 2021
    zghorner likes this.