collegeinvestor Posted January 27, 2021 Share Posted January 27, 2021 What is the best way to short this as this continues to rise? The puts seem very expensive. I see the GME APR 16, 2021 75.0000 PUT GME is at roughly 3100 per contract. Curious how high this could go if the stock tanks in the coming days. We all now this will eventually crater its just a matter of time. All help appreciated! Link to comment Share on other sites More sharing options...
no_free_lunch Posted January 27, 2021 Share Posted January 27, 2021 The puts are expensive. Yet the puts appear to be the best and only way to short this. What I am thinking is to buy short dated puts and hope it blows up in the next few weeks. I feel that at some point investors will see that the price is ridiculous and it will crater back to $30, if not further. Who knows what happens in the interim but it is almost inevitable. The top analyst earning prediction for 2021 is $0.95. So at $30 that is still 30x next year best-case earnings. Link to comment Share on other sites More sharing options...
Jurgis Posted January 27, 2021 Share Posted January 27, 2021 Buy both puts and calls. Both will go up anyway. Not a real advice. Link to comment Share on other sites More sharing options...
BG2008 Posted January 27, 2021 Share Posted January 27, 2021 Is Melvin actually short? I've seen a list of his put positions but is there evidence he's short? I mean, I don't think he was forced to take a $2.75 billion bailout and lose 1/3 of his firm because his losses were knowable and fixed in amount on the front end. If so, that's just terrible risk management to have position sizes that large to begin with. I long I invest, I more I realize that you don't just put up 30% CAGRS for 5-6 years without taking a ton of concentration risk. So it is not surprising that Melvin was concentrated. Link to comment Share on other sites More sharing options...
formthirteen Posted January 27, 2021 Share Posted January 27, 2021 I have seen the future and it might not be the singularity that Ray Kurzweil envisioned: It’s not the strongest or most intelligent of the species that survive but the ones that are the most adaptable to change: Social media is a game-changer and Melvin Capital seems to be a victim of evolution... Anyone here long $BRAWNDO? :P Link to comment Share on other sites More sharing options...
Junto Posted January 27, 2021 Share Posted January 27, 2021 Melvin covered yesterday according to CNBC Link to comment Share on other sites More sharing options...
aws Posted January 27, 2021 Share Posted January 27, 2021 Hit 365 premarket, and within an hour also hit 182. Lots of people going to be hurt badly on both sides before this is over. In another world I might have been short this and been getting blown up. Thankfully I'm just a spectator to the carnage this time. Link to comment Share on other sites More sharing options...
Spekulatius Posted January 27, 2021 Share Posted January 27, 2021 Hit 365 premarket, and within an hour also hit 182. Lots of people going to be hurt badly on both sides before this is over. In another world I might have been short this and been getting blown up. Thankfully I'm just a spectator to the carnage this time. Shorting anything right now is just playing Russian roulette. There is a huge swarm of piranhas out there sniffing for short sellers in the water. What we may be seeing now is that money gets pulled from large cap solid stocks to provide liquidity to participate in this game, because I fully believe that some hedge funds and other institutions participate in this, it’s just that the WSB is the tip of the spear. Link to comment Share on other sites More sharing options...
stahleyp Posted January 27, 2021 Share Posted January 27, 2021 Reddit users believe that CNBC is a pawn of hedge funds and that they'll lie to make the stock go down. I mean, I can't say I disagree. Link to comment Share on other sites More sharing options...
CorpRaider Posted January 27, 2021 Share Posted January 27, 2021 The first time I remember reading about the phenomenon of the position of a levered fund in distress becoming public and a target for lots of other funds/players on wall street was maybe in Confessions of a Street addict. It definitely was discussed for several chapters in When Genius Fails. Link to comment Share on other sites More sharing options...
Ballinvarosig Investors Posted January 27, 2021 Share Posted January 27, 2021 Gamestop opens at $300+ Link to comment Share on other sites More sharing options...
turar Posted January 27, 2021 Share Posted January 27, 2021 with options expensive, has anyone risked just straight shorting this at this point of 300+ price? Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted January 27, 2021 Share Posted January 27, 2021 with options expensive, has anyone risked just straight shorting this at this point of 300+ price? I saw a Bloomberg headline this AM suggesting Citron and Melvin had both covered. So at this point, what is supporting it at $380 instead of the $17 it traded at just 3-weeks ago before this orchestrated manipulation occurred? I would expect now that the thesis has played out - and now the short squeeze forced - people would dump the shares to collect the "tendies"? Why is this still going higher? Link to comment Share on other sites More sharing options...
Castanza Posted January 27, 2021 Share Posted January 27, 2021 with options expensive, has anyone risked just straight shorting this at this point of 300+ price? You can pretty much buy whatever right now and make money due to IV. What’s it 300+% now? I traded around a bit and then ended up using the gains to buy some $20 Jan 2023 puts. Nothing substantial though. I have friend who have no investing experience, piling into this thing with calls and shares. Same with AMC and other stocks.....who’s the idiot? Depends what timeframe you look at and how lucky you get. Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 27, 2021 Share Posted January 27, 2021 with options expensive, has anyone risked just straight shorting this at this point of 300+ price? I saw a Bloomberg headline this AM suggesting Citron and Melvin had both covered. So at this point, what is supporting it at $380 instead of the $17 it traded at just 3-weeks ago before this orchestrated manipulation occurred? I would expect now that the thesis has played out - and now the short squeeze forced - people would dump the shares to collect the "tendies"? Why is this still going higher? I read short interest is still greater than 100% for GME. WSB's still bullish. New blood adding on the daily... Link to comment Share on other sites More sharing options...
doc75 Posted January 27, 2021 Share Posted January 27, 2021 with options expensive, has anyone risked just straight shorting this at this point of 300+ price? I saw a Bloomberg headline this AM suggesting Citron and Melvin had both covered. So at this point, what is supporting it at $380 instead of the $17 it traded at just 3-weeks ago before this orchestrated manipulation occurred? I would expect now that the thesis has played out - and now the short squeeze forced - people would dump the shares to collect the "tendies"? Why is this still going higher? I read somewhere that WSB was targeting $1000. Not sure if that's really a thing. Link to comment Share on other sites More sharing options...
DooDiligence Posted January 27, 2021 Share Posted January 27, 2021 GameStonk Link to comment Share on other sites More sharing options...
Castanza Posted January 27, 2021 Share Posted January 27, 2021 Looks like NOK is next Maybe they will find LUMN next ;D Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 27, 2021 Share Posted January 27, 2021 with options expensive, has anyone risked just straight shorting this at this point of 300+ price? I saw a Bloomberg headline this AM suggesting Citron and Melvin had both covered. So at this point, what is supporting it at $380 instead of the $17 it traded at just 3-weeks ago before this orchestrated manipulation occurred? I would expect now that the thesis has played out - and now the short squeeze forced - people would dump the shares to collect the "tendies"? Why is this still going higher? I read somewhere that WSB was targeting $1000. Not sure if that's really a thing. WSB threads are saying 1,000 is nothing and they are after 10,000, if not more... Link to comment Share on other sites More sharing options...
lessthaniv Posted January 27, 2021 Share Posted January 27, 2021 Note from broker: just an FYI ( I have no positions in this mess but they are adjusting margins) “Effective after market close on January 27th, the margin requirement on long positions of GME (Gamestop) will increase from 30% to 100%. Margin requirement for short positions will increase from 130% to 200%.” Link to comment Share on other sites More sharing options...
stahleyp Posted January 27, 2021 Share Posted January 27, 2021 What happens if Melvin has to file bankruptcy? Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 27, 2021 Share Posted January 27, 2021 What happens if Melvin has to file bankruptcy? Why? They just had a $2.75 billion infusion. Unless all their other shorts are getting blown out too? Link to comment Share on other sites More sharing options...
MattR Posted January 27, 2021 Share Posted January 27, 2021 What happens if Melvin has to file bankruptcy? Why? They just had a $2.75 billion infusion. Unless all their other shorts are getting blown out too? If they didnt close their position they have a problem. Link to comment Share on other sites More sharing options...
Jurgis Posted January 27, 2021 Share Posted January 27, 2021 OK, so GME goes to 100B+ market cap. Then it buys EA, ATVI, SNE for stock. .... Profit ./discuss ? 8) Link to comment Share on other sites More sharing options...
Castanza Posted January 27, 2021 Share Posted January 27, 2021 Note from broker: just an FYI ( I have no positions in this mess but they are adjusting margins) “Effective after market close on January 27th, the margin requirement on long positions of GME (Gamestop) will increase from 30% to 100%. Margin requirement for short positions will increase from 130% to 200%.” Question is, who will this affect more? Link to comment Share on other sites More sharing options...
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