On wsb u/deepfuckingvalue showed he still holds 50,000 shares and 500 deep ITM call options. He has secured a profit of $13.8 million dollars, and his remaining open position is valued at $45 million.<p>I would caution people to not quickly fall into the "if he's still in, I'm still in" meme. He has secured a $14 million bag, regardless if the stock goes to zero he's already secured a life changing amount of money, he can afford to weather the storm. If you're holding because he's still in and you haven't taken any profits you are nowhere near in the same position as him.<p>A hodling mania has overtaken the subreddit that would make btc blush. Know that we don't know what kind of deals are happening behind closed doors in these two last days of manipulated activity. A sustained short interest does not necessarily mean that the shorts are holding their initial position, they could have closed and reopened at these elevated levels.<p>The narrative has changed so quickly from this being a value play, to a short squeeze, to now militant activism via buying stock as a means to sticking it to the man. The rhetoric is as volatile as the price. The overall market is stressed, things are getting weird and I would not be surprised if this is the beginning of another stock market crash.
Looking back at (u/deepfuckingvalue) Keith Gill's comments on r/wsb, it looks like they had a solid theory to cash out by Jan 2021 for $8+ a share (most of their calls starting June 2019 were 80 cents a share or less [0]). This was by no means a strategy to make money by squeezing the short, though one user, conspicuously named u/burrym, speculated that it ought to be [1].<p>[0] <a href="https://archive.is/Y953e" rel="nofollow">https://archive.is/Y953e</a>, <a href="https://archive.is/w98tn" rel="nofollow">https://archive.is/w98tn</a><p>[1] <a href="https://archive.is/Pnuxg" rel="nofollow">https://archive.is/Pnuxg</a>
Compared to the general air I've been seeing about articles hating on a bunch of Redditors, this one is decidedly more neutral and seems to speak more about what is actually happening than "redditors bad, mess with stock, they evil".<p>I appreciate that. Not enough to give WSJ $20 (!!!) a month, but I do appreciate it.
He posted his daily update today, he has not sold his shares through all of this chaos.<p>Talk about "diamond hands".<p><a href="https://www.reddit.com/r/wallstreetbets/comments/l846a1/gme_yolo_monthend_update_jan_2021/" rel="nofollow">https://www.reddit.com/r/wallstreetbets/comments/l846a1/gme_...</a>
I'm honestly confused by the press around this event.<p>I get it, /DFV started a short squeeze and got rich, that is great for him. I don't support naked shorting, it should probably be illegal (if it is not already) and it looks that was part of the reason this happened. Everyone has been suspecting for a while (especially here) that a lot of volatility in stocks like TSLA etc was due to Robinhood.<p>As of 5:33 EST, I'm on CNN right now and the main headline "Inside the Reddit army that's crushing Wall Street" (And the reddit army isnt crushing Wall Street, it's crushing a few hedge funds that happened to hold short positions in a few stocks.
) , so now a lot portion of America (and the world) is paying attention.<p>Hedge funds blow up all the time. Enron blew up, basically all of the Investment Banks blew up in 2008, LTCM blew up. Why is this such a big deal?
What can GME do with the situation?<p>Can they cash out at $500 or $1000?<p>Can they offer additional shares in the market, after clearing it with the SEC?<p>Then, can they take that windfall money, and actually reinvest it into R&D, and build their own GameStation 1 video game system? In order to justify their new lofty valuation.
Does anyone know if it's illegal to lie about your holdings as an individual retail investor? I've seen a handful of screenshots on /r/wallstreetbets showing large holdings, but it would be trivial to modify the page source before taking a screenshot.
I like Matt Levine's comment " The guy behind one of the greatest trades of our time was giving out financial advice for MassMutual, and somehow they let him go."<p>edit I missed the best part of the quote "I hope he showed up at client meetings in a headband and sunglasses with a glass of champagne in one hand and a chicken tender in the other. I hope he was like “never mind life insurance, man, you gotta buy GameStop calls! Get those tendies!” And then I hope the clients were like “what” and MassMutual fired him and he just went and did the thing. "<p><a href="https://www.bloomberg.com/opinion/articles/2021-01-29/reddit-traders-on-robinhood-are-on-both-sides-of-gamestop" rel="nofollow">https://www.bloomberg.com/opinion/articles/2021-01-29/reddit...</a>
If GameStop issues some million shares on Monday morning to raise capital isn't it game over for every retail player? Shorts will close their positions, RH users will suffer great losses from dilution.
Am I missing something?
Some big boys are invested too <a href="https://www.investors.com/etfs-and-funds/sectors/gme-stock-gamestop-investors-instantly-make-16-billion-gamestop-stock-squeeze/" rel="nofollow">https://www.investors.com/etfs-and-funds/sectors/gme-stock-g...</a>. They will deal with the Hedge Funds. The people will suffer.
I'm not sure the HN crowd appreciates his style on this picture. I love me a bandana and am known to use some ironic wolf tee once in a while. I felt so inspired when I saw the photo and am not even joking.
not really an interview. It wasn't clear they even talked to him at all?<p>[EDIT: ok, they did talk to him, but this still isn't what most publications would call "an interview" ]
I know this forum is capitalist to the core, but there is a lack of appreciation for this moment and an undue air of cynicism.<p>This whole situation breaks a ton of fundamental assumptions about how markets work and will change hedging strategies for a lot of investors moving forward. Yes, we know there are hedge funds on both sides of this equation (Blackrock owns 12% of Gamestop, Burry made a ton and smartly got out earlier in the week), it doesn't change anything. The internet is already searching for more securities to manipulate. This will accelerate adoption of the DeFi space. Scaramucci called it "the French Revolution of Finance."<p>Instead of being negative, look to see how you can learn and profit from this.
What makes WSB legal vs emails about imminent pump on an unspectacular stock?<p>What stops somebody from purchasing aged reddit accounts and then pumping up, upvoting their own threads?
So when he posted back in June, his GME holding was $121k. According to his YouTube video from then, that represented ~2% of his portfolio. That puts his portfolio at ~$6M.<p>So much for "poor people fighting back" LOL.