Robinhood explained in a blog post that the decision was based on its "many financial requirements, including SEC net capital obligations and clearinghouse deposits." . At the beginning of the GameStop squeeze, S3 Partners estimated the short position in GME as 140% of the float. What happened around GameStop can be explained only by massive counterfeiting of shares. Well, one analyst had a very good analogy for explaining how the GME short squeeze worked - using the Nintendo Switch games console as an example. (this shit is not advice btw) My Other GME Short Squeeze Videos: GME full playlist: Ultimate GME MOASS Guide (pt 1): LINKS TO KNOW. Answer (1 of 7): A good question! Maybe you didn't ask. The GME Stock Trading Frenzy, Explained. What Is A Short Squeeze? The market researcher said he anticipates more . GameStop stock's current short interest is 18.5%, according to Yahoo Finance, as 8.6 million shares are currently used by bears to express their pessimistic views. When you sell a stock, you profit when the stock goes down in value. In January 2021, a short squeeze of the stock took place, causing major financial disrupt and huge losses for hedge funds and short sellers. WallStreetBets members pounced on the opportunity and went on a buying spree. Wall Street has been watching GameStop in awe as a band of Reddit-obsessed retail investors managed to push the stock up 1,500% in two weeks, squeezing out short selling hedge funds. GameStop's short interest as a percentage of the float . On 28 January, several brokerages began restricting trading of Gamestop, causing a crash in buying volume. ET on Monday, the price dropped and was at around $82 per share. The stock appeared overvalued making it a good candidate for short selling. The short squeeze is usually something . With GME in 2021as with TSLA the previous yearthere were all the classic signs of a short squeeze. Jan. 22, 2021: GameStop surges 50%. Summary. AMC Entertainment is set up for a short squeeze. The short squeeze was nearly a disaster for the hedge funds. The case for a squeeze: The entire argument for a short squeeze hinges on the possibility that either the management agrees with Ryan Cohen's plan and addresses it or he decides to pursue a hostile takeover. The "diamond hands" or the "HODLers" wouldn't simply sell their shares and as a. The GME Stock Trading Frenzy, Explained There are several factors that can contribute to major moves in a stock's price and one of them is the classic short squeeze. Intro to Trading (Beginner Course) The Most Underrated Chart Indicator. GameStop has had an incredible run from $20 to $325 in the past 2 weeks, fueled by a combination of short squeeze and gamma squeeze. Earnings call happened. Since there was a 130% short interest, the forum started loading up on call options which did two things. Short selling a stock is where you temporarily borrow a company's stock and immediately sell it (say for 1). Detailed Answer Currently, one of the biggest fights between Wall Street experts and a group of traders on Reddit is going on. As of near 3 p.m. A short squeeze is when all the 'real' shares of a company are recalled, so that all the counterfeit shares produced by naked shorting need to be paid back immediately to those they were borrowed from, and often several times over, and in this case, only 'real' shares will work. We saw GameStop stock price skyrocketed by about 144% on Monday 25 Jan 2021. It is worth every god damn second of your time not only because it will help you understand EXACTLY what is going on with GME but also because it will deepen your understanding of all the frequently asked questions. Box Swing Trading Strategy. And that can . Definition: Short Squeeze The Short Traders betting that a stock will go down in price borrow stock and sell it into the market. You can follow me on Twitter for updates and thoughts on GME: http://twitter.com/daniel_inskeepIn this video, I break down what exactly a short squeeze is an. In simple words, GME had a short squeeze when the institutional investors (hedge funds) who initially had a short position of GME, but then later were forced to back at a much higher price to stop the loss of the short position. Due to some shares being borrowed more than once, short interest can be bigger than the float or even the shares outstanding. This occurs . The fun part i. But by the end of the month, it regained momentum, with many believing a second short-squeeze was underway. Price started to increase which caused people who were short GME to have to BUY to cover their positions. He was a pioneer in modern applications of probability theory, including the harnessing of very small correlations for reliable financial gain. A short squeeze can end up driving stock prices up, sometimes significantly . Today, S3 estimates short interest has fallen by half over the last week, taking pressure off the price . The GME Stock Trading Frenzy, Explained. The votes were counted. However, this does not appear to be true. They know that there is tomfoolery afoot . 1) a low-market-cap, heavily shorted stock with a dollar price low enough to make leverage dirt cheap (the dollars that must be put up to buy call options); 2) a rabid group of retail traders that . Consequently, the GameStop share price fell to as low as $40.59 by 19 February. Trading and . It turned to Steven Cohen of Point72 Capital and Chicago-based Citadel to bail it out. February 1, 2021, 12:03 PM. On 28 January, several brokerages began restricting trading of Gamestop, causing a crash in buying volume. GameStop Is Proof That 'The Market' Is a Casino. Has the "squeeze been squoze" meaning. On the last day of 2020, GME shares closed at $17.25. Gamestop stock . GameStop stock price still hitting records as Redditors squeeze short sellers Hedge funds, supposedly the professionals, have been betting against GameStop's stock using a trading technique . GME short squeeze explained. Who holds short position? The stock continues to be heavily shorted. A wave of at . WallStreetBets GameStop Short Squeeze refers to the massive surge in the price of GameStop shares in the stock market in January 2021, when it rose from $17 to over $500, in a significant degree due to a campaign by users in the /r/WallStreetBets subreddit.The hype resulted in GameStop (GME) becoming of the most traded stocks on Wall Street that month, with a massive number of retail . . The fun part i. Almost the entire float has been shorted for months. I will HODL no matter what may come. AMC's short interest data shows us the stock has the perfect setup for a short squeeze. Maybe you need a pep talk. GameStop Surges Another 135% Amid Epic Short Squeeze . original sound. It reached a high of $158, before retreating back. Detailed Answer Currently, one of the biggest fights between Wall Street experts and a group of traders on Reddit is going on. Consequently, the GameStop share price fell to as low as $40.59 by 19 February. One of the more common types of squeezes is known as a short squeeze-- when a rising stock price forces people who had sold the stock short to buy back those shares, driving stock prices higher . This creates a kind of . Robinhood is a trading app that enables free stock trading. GME stock was an epic short squeeze. #wallstreetbets #gme #stockmarket". GameStop's stock closed out at $65.01, up 51 percent since Thursday's close. On the WallStreetBets subreddit, one of the most popular posts declares, "GME!! You will learn, What is a short position? South Dakotan TRUST: Montana and Buying Cars 1: In the case of GME where so much of the stock was shorted, if a bit of good news came out and the stock price started to rise, short sellers would try to buy stocks to cover their positions and minimize losses. Answer (1 of 7): A good question! This chain reaction is known as a short squeeze and the biggest loser was the capital management company named Melvin Capital. 15.9K views |. The driving force behind GameStop's meteoric rise can be explained by what is known as a classic "short squeeze". People were covering because they had to. "GME Squeeze and the demise of Melvin Capital," wrote the user, Stonksflyingup, referring to stock ticker of GameStop Corp. and Plotkin's $12.5 billion firm. Short Squeeze: A short squeeze is a situation in which a heavily shorted stock or commodity moves sharply higher, forcing more short sellers to close out their short positions and adding to the . GME Short Squeeze Explained. Investors piled into GameStop's stock in January 2021, sending its shares skyrocketing 400% week on week on Jan. 29, 2021, to an all-time high of $325. But the good long-term bet is to expect shares to fall to GameStop's intrinsic value. This can happen for normal risk management purposes. Since the stock was so heavily shorted, this could cause a massive price surge. Before long, veryforestgreen . u/rainforest11 explained, "Assuming the [share price] rocketed to $1,000 or beyond hedge funds would likely go bankrupt as financially speaking there would be no way they would be able to cover all their shorts, and presumably entities that lent the short side hedge fund the shares to short would be holding the bag." As the tug-of-war between the everyday investors and hedge funds heated up and support grew for GameStop on r/wallstreetbets, the stock skyrocketed more than 50 . You can buy stocks, bonds, funds, SPACs lots of stuff. This is a substantial increase . A short squeeze is when a stock sharply jumps as short sellers scramble to cover their positions. Maybe I don't care. In this scenario, a rich kid finds a coupon that offers $5 off Nintendo Switches, with no limit on how many can be . Shares really started rising on January 13th when the stock rose from $20.42 to $31.40. GME Stock Killer Short-Squeeze: Hits $225+ in After Market/Pre Market Trading [Jan 26 2021] 5 Stocks Under $10 I Bought: SDC, Wish, NLY, HNST, MRIN [August 2021] Home Shareholders meeting was held. Still no squeeze. Options Gamma Squeeze Adds Fuel To The Fire. GME share price explained: Why GameStop stock value has increased again a month after Reddit 'short squeeze' The stock closed at $265 on Wednesday after a chaotic day that saw it almost hit . Watch popular content from the following creators: Money Motivation (@businessmotivate), Your Rich BFF(@yourrichbff), ear4music - Music Promotion(@ear4music), evan(@___evan_____), Brianna Parkins(@briannaparkins), Main Street Wolf(@mainstreetwolf), Irv Official(@irv.official), Jonathan Sorunke(@jonathansorunke . Discover short videos related to short squeezing explained on TikTok. TikTok video from Hawk III (@hawk_fps): "TheStockGuy on twitch explains what's happening to GameStop stock. There are several factors that can contribute to major moves in a stock's price and one of them is the classic short squeeze. This caused a short squeeze in GameStop . There's no way to know the share price won't go even higher than that in the short term.
