You will all see my rise to greatness on the back of Blackberry!

Bought my calls back. Currently have 390 shares BB at a basis of $16.92.

Watchout for the option spreads as well, once I thought I was up a lot when the bid/ask spread had a $3 difference. Robinhood displays the average as the option price and showed I gained $1.50 on a dollar contract when in reality no one was buying it at that price, was forced to sell into a low bid since price was tanking. Expensive learning experience.

This post was edited by obisent on Jan 26 2021 10:04am

I've definitely fallen into this trap lol.

Skimmed options on a small startup pharma company that I thought was gonna pop soon. Checked options and was like "wow, calls are trading at 30%". Bought 300 shares. Spread was like 10%-50%. Nope.jpg. Wasted a day trade lol

Anyone have the lore on gamestop? Are gamers finay rising up?

Gamestop got some good news last year when Cohen bought like 10% of the company and started making changes. They basically said they're gonna stop focusing on in-store sales and transition to a new business model. This sent stocks from ~$5 to ~$10. Big firms like Citron Research and Melvin Capital increased their short position.

The guys as reddit.com/r/wallstreetbets caught wind of this, and started buying shares. When you short a stock you borrow it, sell it, and buy it back later. So they will be forced to buy it back. Eventually there were so many shares shorted that it was like 150% of the available shares. (Borrow share from broker, sell share, share is now in a brokerage account to be lent out again).

Seeing that the stock was way up, they kept shorting shares, and wallstreetbets kept buying them and holding. Eventually the number of shorts go so huge that it vastly eclipsed the volume for any given trading day. This meant that shorts were losing a shit load of money and had to cover, which drove up demand. Demand + not enough shares = price spike.

That's what we're seeing. We're currently in the middle of a gamma squeeze (sell a call, call obligates you to sell shares you don't have, buy shares to cover the call), which means the shorts haven't even started buying to cover their position.

So we're in a gamma squeeze which will eventually turn into a short squeeze and potentially send the stock even higher.

thanks for the lore gamer, so it's confirmed meme magic is real?

It's not really meme magic. They're actively punishing shorts. This happens semi-regularly, but this is just a perfect storm. Usually short squeezes don't come up to 150% of available shares and there aren't a million retail investors on the other side to punish them all working in unison. Melvin and Citron were just super greedy and are getting massively punished.

It's possible we're at the cap, but if next month GME hits 1k I wouldn't bat an eye. These huge firms are losing a billion dollars a week right now because they have to pay a % of the share price to maintain their short, and the % they have to pay will have gone way way up since there are so few shares left available to short.

So this is gonna get ugly. There's been backroom dealings, bailouts, etc. with firms trying to prop up the shorts.

From The Big Short to The Big Squeeze.

Indeed.

Sold 3 $20 calls expiring next Friday for $2.45.

Stays below $20 next Friday, basis reduced to 15.33. Goes up past $20, 25% profit.

I'm very comfortable with this position. $15 BB is a great long term position. Ignoring this until next Friday, or major motion.

institutions doubling down on GME shorts gonna learn a lesson the second time? they meme pumped this shit again lmao