Let's talk about redditors making a hedge fund lose billions. I am enjoying wall street people get real upset by this.
I don't know stock trading well, but from what I understand this hedge fund had a ton of Gamestop put options and redditors raised the value of Gamestop so high that they have to pay billions when the deadline comes up.
I am seeing mixed things about what happens to this hedge fund now. Fill me in.
these redditors are only doing what banks do but in a transparent fashion
the hedge fund had $55m of short options down on gamestop, tons of leverage. Reddit decided that they could pump the stock with long calls, making the price of the shares skyrocket out of speculation and turning that hedge fund's $55m (which amounted to a much higher borrowed amount of stock from a creditor) into -$5 billion dollars due to the stock now being worth 10x what they thought was a reasonable strike price for their short. For whatever reason investment idiots who pretty much shared the same (or an even more comfortable) background as these /r/wallstreetbets children still feel the need to bail out this "wunderkind" that decided they'd put huge leverage on dead/dying/restructuring companies with tons of short calls.
Generally companies just set up yellow journalism to get what they want from some sort of put option. Here's a good example of someone who couldn't back out of their AMD short puts so they needed a bombshell to make people sell off their AMD stock: https://www.timesofisrael.com/israeli-firm-claims-to-find-critical-security-flaws-in-amd-chips/
First they came for the Pepe, and I did not speak out—
Because I was not a Pepe.
Then they came for the PogChamp, and I did not speak out—
Because I was not a PogChamp.
Then they came for the short sellers, and I did not speak out—
Because I was not a short seller.
Then they came for me—and there was no one left to speak for me.
watchout lads Chamath consorts with reddit bros now and he might be lurking in your discord server lol
This shit is great I coulda got in at 105 smh
I'm in at 320
Nvm robinhood cancelled everything
gotta admit it's great watching them squirm even if it's underhanded
Damn... Is it too late to try and reap the benefits of this? FOMO hitting me hard.
I got myself some XLM a while back and have just been letting that hangout, but I have no real stocks outside of the stock buy in program at my work place.
Nah it hasn't been squeezed man
You're good if you have the balls to hold
I got $250 that I can gamble from last months bonus, why not.
AMC seem decent?
Yo I have no idea to be honest
Go for the plant based meats. Soy is everywhere
soy is so bad for humans. unless it's fermented, it's barely digestible