GME and AMC up BIG TIME TODAY - Roaring Kitty has returned to Twitter

[FranklinRoosevelt_FTW]

Most retail brokerages don’t even allow trading to retail then. The hours most of retail had the ability to trade, the price went down.

that’s anti American …

no brokerage firms allow retail trading at that time as far as I know… some of them do allow early trading starting at 7 AM …and from 4-8pm but that’s it

 

[CrazyTrader55]

The short is 555% of float with a huge amount dumped yesterday. (Despite GME watering down the stock) Today would be a buying opportunity....because Gill's options expire on the 21st. And that leaves just over two weeks for him to exercise them since they are in the money (no one would not loan him the money) Gill also owns stock and not just options.

So I see this getting crazy. He is going to have to file ownership if(when) he does exercise them. So....looking at even $65/share (conservative estimate) at least a tripling of 250 million investment.

Well, so far it looks like you are right, especially on GME, less so on AMC.

 

[JohnDB]

Well, so far it looks like you are right, especially on GME, less so on AMC.

This is especially going to be difficult for MorganStanley....they own E*Trade.

And coughing up the 120 million shares is impossible....even with tapping ALL the top holders of the stock. (Registered shareholders) So in order to make good on the contracts it might just bankrupt E*Trade and cause an automatic liquidation by the intermediary company that all trades go through.

MorganStanley might believe they are above the law....but they aren't. They are trying literally EVERYTHING to fix this by false accusations and using every media outlet they own to stop the inevitable. The manipulation is obvious and blatant at this point....and completely unfair to small traders. A complete ethics violation.

They either take their lumps or destroy the market....what do you think they will choose?

 

[JohnDB]

June 11 GME has earnings reporting....
(Re-issuance of stock will do things to their P/E ratio)
June 21st is the day that Kieth Gill's options expire. (He can exercise them at any point he is "in the money") And absolutely make bank. E*Trade and MorganStanley will be scrambling for those shares

 

[JohnDB]

And NOW the gamma squeeze is spreading and requests are being made about irregularities in stock price manipulation.

 

[JohnDB]

 

[JohnDB]

Now...
This is going to get crazy before it's over.
The ramp is set....
Keith Gill is known for waiting and exercising his options he purchased.

So...people ask how he can afford the 210 million dollars needed to exercise his options?
Easy peasey....if he shorts 20 million shares using his contracts as collateral he can instantly afford it. O&D.

Conservative estimates put the stock shooting to $120-$200/share before this is over. Making Mr. Gill a billionaire by the time all is said and done.

 

[JohnDB]

 

[CrazyTrader55]

Now...
This is going to get crazy before it's over.
The ramp is set....
Keith Gill is known for waiting and exercising his options he purchased.

So...people ask how he can afford the 210 million dollars needed to exercise his options?
Easy peasey....if he shorts 20 million shares using his contracts as collateral he can instantly afford it. O&D.

Conservative estimates put the stock shooting to $120-$200/share before this is over. Making Mr. Gill a billionaire by the time all is said and done.

I don't understand options as well as I thought I did. Roaring Kitty has in-the-money options. If he exercises them, he now owns the stock, right? Why wouldn't he be able to afford it? He's in the money, the stock will transfer to his ownership, won't it?

He made a good trade, his options are not going to expire worthless. Why does he have anything to worry about, and why would he need to short the stock?

 

[JohnDB]

I don't understand options as well as I thought I did. Roaring Kitty has in-the-money options. If he exercises them, he now owns the stock, right? Why wouldn't he be able to afford it? He's in the money, the stock will transfer to his ownership, won't it?

He made a good trade, his options are not going to expire worthless. Why does he have anything to worry about, and why would he need to short the stock?

Shorting gives you instant access to cash money because you borrowed shares and sold them. So you get cash for selling what you really don't own.

But the truth is that options are a contract to purchase 100 shares at a specific price. Each contract costs a little bit....but you get the right to purchase shares for a specific price.

The float of a stock is the number of shares the company has issued. Currently because of selling contracts for stocks that they do not own these brokerages and hedge funds have issued 555% of the float of GME stock. Now...Gill has bought enough contracts (at a low price) to purchase roughly 2 million shares of stock of GME which E*Trade or its parent company Morgan Stanley do not own. The top 7 holders of GME stocks combined do not have enough shares to fill Gill's options. They are short by half a million shares. (Retail investors are holding them....some of which have also bought options)

Around the 21st of this month Gill is going to exercise those options and watch the stock climb excessively due to demand for a stock.

 

[CrazyTrader55]

Shorting gives you instant access to cash money because you borrowed shares and sold them. So you get cash for selling what you really don't own.

But the truth is that options are a contract to purchase 100 shares at a specific price. Each contract costs a little bit....but you get the right to purchase shares for a specific price.

The float of a stock is the number of shares the company has issued. Currently because of selling contracts for stocks that they do not own these brokerages and hedge funds have issued 555% of the float of GME stock. Now...Gill has bought enough contracts (at a low price) to purchase roughly 2 million shares of stock of GME which E*Trade or its parent company Morgan Stanley do not own. The top 7 holders of GME stocks combined do not have enough shares to fill Gill's options. They are short by half a million shares. (Retail investors are holding them....some of which have also bought options)

Around the 21st of this month Gill is going to exercise those options and watch the stock climb excessively due to demand for a stock.

Good writeup. Shorting stocks I understand well, and have done it often over past few years. Never for big money, but I'll short if something looks badly overvalued - like PLUG, and RUN a few years ago. I'm not an options guy though, I just don't play around in that area. lol

 

[JohnDB]

Good writeup. Shorting stocks I understand well, and have done it often over past few years. Never for big money, but I'll short if something looks badly overvalued - like PLUG, and RUN a few years ago. I'm not an options guy though, I just don't play around in that area. lol

Right....I have never understood all the nuances of options so I've never personally traded them. I learned how to trade stocks and stuck with that. (Don't buy what you don't understand)

So...I actually am cheering Gill and his squeeze. I've been jammed up on stocks that have been heavily manipulated....didn't make anywhere near the money I was supposed to just because brokerages or large traders were manipulating the prices.

You put that on top of your own brokerage whittling at prices (always up when buying and down when selling) and you start getting perturbed at the unfairness of the playing field.
So he is going after market manipulators....I get it. I'd help if I understood it better. I'm tied up into other things ATM and am doing fairly well with those. So....that leaves me out. I got several weeks to go before I can change positions. But if I had any spare cash I'd be more than willing to set the buying and selling parameters on a purchase order and let er rip.(set them conservatively) 20K on this would make a nice return (if all goes according to plan) of about 6 figures. But it is risky....very risky.

$1,000/share? I don't see that. But $400? Certainly

 

[JohnDB]

So today the stock climbed above $40/share....(back down too)

There's a million dollars in options purchased for $40/share price....(bought when it was below $15)

If it climbs above again I forsee those options getting exercised further compounding the squeeze. Making the price become insanely priced.

It's gonna be a horse race to see who can lose more money more quickly even though there's a lot of shares being exchanged off books.

 

[FranklinRoosevelt_FTW]

So today the stock climbed above $40/share....(back down too)

There's a million dollars in options purchased for $40/share price....(bought when it was below $15)

If it climbs above again I forsee those options getting exercised further compounding the squeeze. Making the price become insanely priced.

It's gonna be a horse race to see who can lose more money more quickly even though there's a lot of shares being exchanged off books.

It’s been an interesting day. Are you waiting for your GameStop shares to hit a certain number before selling? I bought more shares today at about $41 per share. But this time around I’m gambling and seeing if I can get at least five times my original investment. I’m not worried about a loss if it tanks

Roaring kitty will have a live stream tomorrow on YouTube for the first time in years. I suspect that overnight the price of GameStop will go up and go up even more tomorrow, but that is simply a guess by me. I certainly am no expert.

Remember the first surge in a while back about three weeks ago. There’s probably a lot of folks out there who bought this stock at anywhere from $50-$70 a share who are still underwater. Or perhaps those who bought it at $50-$70 a share and sold that a loss and haven’t re-bought. Otoh there are those who bought the stock months ago who are doing well now So it’s a very interesting situation all around..

 

[FranklinRoosevelt_FTW]

The GameStop stock has been halted a few times today. This is getting ridiculous. Robinhood doing this halting of the stock. I wonder if the government will address this issue

 

[FranklinRoosevelt_FTW]

Nearing 60 a share

I got more shares at around 54… in addition to my earlier purchases at around 41

 

[JohnDB]

Nearing 60 a share

I got more shares at around 54… in addition to my earlier purchases at around 41

It's running at around 65 now in aftermarket.
Told you that there was a million dollars of options @ $40/sh price bought back when it was in the teens. (Basically dirt cheap)

The hedgers are going to go for one last huzzah to keep the price down plus there's going to be profit taking like you have done.
From what I understand there are multi pronged option trades for all this volatility with weird names like iron butterfly and dead baby....where it's bets on both sides of the volatility and with volatility like this stock sees with 40-50% swings on a daily basis....

You could see share prices go as high as $560-$1100 swinging between 190-280 each day or more for a bit....but we only got 2 weeks before the 21st. And since they know who is coming for their shares with exercised options...stocks are gonna be scarce and expensive.

Other retail investors (like you) are grabbing up shares too. (I'm caught up in my investments already (got dividends coming on DRIP) and can't play this time like I did last time.

If I were you....put in an automatic sell order for your shares at $260. So that one day you look and all you have is cash. No more shares. Of course you might grumble if the shares hit $500-800 ea....
But then once they really peak after the 21st (unless something happens) begin shorting them and ride those stocks down....they will bottom for a while around $100 or maybe $50. But you will literally double your fireworks money. (Money you are willing to send up in smoke)
And just ride those stocks down till you are tired of paying interest.
If you look at the last time they did the short squeeze....that will show you the expected path the price will take. You should be able to see in the stock history over the past 5 years the last time the price shot up so high.

 

[JohnDB]

A millionaire to a Billionaire in a month!

 

[FranklinRoosevelt_FTW]

Here’s something for folks to consider. I just found out Robinhood has a 24 hour market for retail investors for certain stocks, including GameStop. This makes a big difference for retail investors. As there is quite a bit of trading after hours.

Also, I called Charles Schwab for them to explain to me What happens when a wash sale occurs. It simply means that you cannot declare losses on that stock if you sell stock at a loss and then buy it back at a lower amount. It’s all for tax purposes. But if you take an initial loss and buy the stock again and the stock takes off in price, you will make a lot of money and frankly the wash sale doesn’t really mean anything.

So when I recently bought GameStop on a wash sale at about $19.50 I turned around and sold it at about $37 of sale. I received $37 a share and made almost double my money.

A broker at Charles Schwab said she has done this many times with Nvidia taking a number of wash sales, but she doesn’t really care about not being able to declare a loss for taxes on said wash sales because she’s made a lot of money on purchasing the sack over and over again.

 

[FranklinRoosevelt_FTW]

The wash sale taxes have been paid....however your capitol gains remain unpaid. You will have to pay taxes on your profits.

With the wash sale you paid $33/share. You sold at $37/share so you made a profit of $4/share that you will have to pay taxes on...which you can do quarterly or in most cases of retail investors of yearly when you pay your normal taxes in April.

I called Charles Schwab about this today. I should’ve been more clearer on what I meant by that $33 number..the 33$ is the average cost I paid on two GameStop purchases one on May 17 The other may be a week or so later.

When a wash sale occurs according to the broker at Charles Schwab that I spoke with yesterday…. It means that a seller cannot declare a loss for tax purposes on a stock that they sold at a loss and then bought within 30 days at a low price lower than what they originally paid for it. So on the second time around of buying the GameStop stock at around 19$ I sold it for $37 a share basically doubling my money. But I cannot declare the losses from my original GameStop sale from the first time that I purchased GameStop around May 17.

I’m not too worried about the wash. Because I believe that GameStop will continue to go higher and I will make enough money on it that it will counter the tax write off in losses I would have from May 17.

Example imagine incurring a loss of $100 that you can now declare for tax purposes. But you buy that same stock at a low price on a wash sale but the second time around you make $1000. So in this example the loss of a $100 tax write off is overcome by the profit on the second time around purchasing the stock.


As I said in my previous post, this is what a broker at Schwab told me about how they have bought and sold and a number of nvidia shares on wash sales. They’re not worried about the wash sales because of how much money they’re making from Nvidia. So they might not get to write off some of their losses on some of their sales incurring a loss on Nvidia, but they’re not worried about it because the stock has obviously done very well in the past year.