Game Stop Share

[HalfBreed]

Originally Posted by Fisherdan

(On the other hand, the retail investors might be wise to listen to Harrison Ford... you don’t bring a sword to a gunfight!)

That didn't work out for Han Solo.

[fishnguy]

Originally Posted by bdub

Well it looks like the GME et al bubble has popped. Hopefully anyone on here who was in got out with some profits.

Indeed.

These all have been played by the crew to some degree:

[fishnguy]

[fishtank]

Round 2 ?

[KGB]

It’s up another 100% in after hours trading.... Thatis a really stupid game of musical chair!

[Sundancefisher]

Originally Posted by KGB

It’s up another 100% in after hours trading.... Thatis a really stupid game of musical chair!

X2

Someone is losing a lot of money.

[fishnguy]

Originally Posted by fishtank

Round 2 ?

It appears so. Whoever started the pump, they started right before close. I mean that’s when the significant numbers came in. I know because when I noticed it starting to fly, I tried to buy some calls , but wasn’t able to do so because the market closed 2 minutes later. GME was about 10-15% up all day (when I looked, at least). AMC was up ~10% in the morning, then fell back to about even and stayed flat for the remainder of the day. Doubt too many who can only trade market hours got in, which makes me wonder if they are going to dump it to the fomo crew first thing in the morning and that’s that.

What sucks for me is that I have AMC puts, some of which are expiring on Friday ($8-strike), lol. So their timing couldn’t be worse as far as I am concerned. I think it’s earning call tomorrow though, unless they reschedule, so that might work to settle it back down, maybe not).

Finished for the day at:

[KGB]

Originally Posted by Sundancefisher

X2

Someone is losing a lot of money.

And somebody is going to make a lot too...

[urban rednek]

The original pump was targeted at a specific closing date in early February. I read in one of the articles there are several more GME contracts closing into early March. Could be a few gamblers taking a run at another Hedge Fund.

[fishnguy]

^ Can’t be. Some options will expire on Friday, but that isn’t that big of a deal (in comparison). Naked call sellers will suffer bigly if this run extends into late Friday. There is nothing to be squeezed this time around. Short interest is too low to make anything of that. In other words, there are more than enough shares in circulation now for a dump at any time to bring the price back down. Take into account that Gamestop was the only one that has that real squeeze potential to begin with.

Also, those puts that are expiring will be compensated for and then some with puts expiring next week and the week after and the week after and so on. These prices are not sustainable and they will come down. The higher they go, the more money to be had for those who understand how things work (I am not one of them and I don’t have the funds to really make bank, lol). Those who are buying and waiting for “the moon” will be the losers... again.

Interestingly, like I mentioned earlier, the run-up started pretty close to closing. Also interesting, the run up started simultaneously (almost to the minute) on the previously most messed with tickers:









In my amateur opinion, someone is going to make bank off the people rushing in to buy tomorrow. For example:





Funny enough, those telling people to take caution and think, play it safe, etc, get downvoted or laughed at. Probably part of the new normal.

Even funnier, I bet you it’s the same people will be loosing money who lost money just a couple/few weeks ago.

[Austin]

Curious to see how this plays out today until next week

[fishnguy]

^ To no surprise, GME is the only one that held up. For now. Weirdly, KOSS managed to end in the green, but crapped pants shortly after hours (still high though and will retreat more tomorrow).









AMC is back to below yesterday’s average (before the pump). So my puts may still pay though I am not counting on it and it isn’t that big of a deal (I was in the green by day’s end). I break even at current price tomorrow, but they might pump it again. Doubt it will last all day. Didn’t sell today because I still think it will sink some before they expire. AMC hasn’t released Q4 earnings either; hopefully, tomorrow. My guess is they are garbage.

I looked into buying some GME puts expiring next week and a couple consecutive weeks. Way too expensive because of volatility, but there isn’t much doubt in my mind they will pay and pay bigly. I don’t have that kind of cash to gamble with, unfortunately.

[fishtank]

Friends in high places

U.S. SEC suspends trading in 15 securities due to 'questionable' social media activity

[fishnguy]

^ I didn’t see that, but probably because of this:



My AMC puts got screwed. However, I bought some for next week, some of which I have already sold to cover the loss from the puts that expired today and made a little more on top. Then bought more puts. Currently holding $8 and $9 puts expiring next Friday. I actually had two chances to break even today, but didn’t take them because I believed in common sense, lol. Also, not that it mattered, earnings came in positive.

[fishnguy]

Lol:




Serious question: is anyone here holding any AMC shares in serious quantities? Need at least 100 to make free money with this idea.

[Glion]

Originally Posted by fishnguy

Lol:




Serious question: is anyone here holding any AMC shares in serious quantities? Need at least 100 to make free money with this idea.

Not currently, I have stood by and watched for the most part. Did a little in that silver run but nothing major. What were your thoughts?

[fishnguy]

Sell weekly covered calls when the price climbs up. It’s a money printer. Take a look at the following.

These are call options expiring next Friday, March 5 with strikes of $12, $15, $20, and $25, respectively (current price is irrelevant because it will change significantly at open on Monday, but the charts matter):









Here is the AMC price chart during the period of time, more or less:



The highest it climbed was before open on Thursday, Feb 25 to about $10.9 or something like that before the dump.

Simply select the strike you are comfortable with and sell a call for every 100 shares you own. The risk is minimal. The worst case is you will miss out on some gains, which is also highly unlikely.

For example, you own 100 shares of AMC and it is currently trading at $10.35. You sell your $15-strike calls for a premium of $1.28 each (these numbers will obviously vary depending on how close you are to the expiration date; I took these from the charts above). For those not familiar with how options work, what happens in this scenario is you collect $128 from the buyer and now you are obligated to sell your 100 shares for $15 per if the buyer decides to exercise the call. If the buyer doesn’t exercise and the price is below the strike price, the call expires and you get to keep the premium of $128. Let’s say the share price climbs to $15.5 before the expiration and you get assigned (have to sell the 100 shares). Well, you sell 100 shares for $1,500 and keep the premium of $128; the market value at that moment is $1,550. What if the price climbs to $25? Well, you will have to sell your 100 shares for $1,500 and keep the $128 premium; the market value at that moment is $2,500 though, so you are missing on about $872 worth of gains. Note that in this scenario, the share price needs to climb to $16.28 for you to start “missing out”.

You decide how far you think it is going to climb. During the previous pump, the highest it climbed was something like $19.70. With stimulus checks coming soon, I would guess there will be another run up.

This is a pretty basic explanation and the assumption is you are planning to keep the stock instead of selling it at this point. The latter is not reasonable, in my opinion, but to each their own. There are many people holding for whatever reason. If you are one of them, sell the covered calls. The calls are covered because you own the stock. One can also sell calls without owning the stock. At that point you are gambling because you can be out of a lot money if you get assigned. On the other hand, what are chances anyone will ever exercise a $20 strike call expiring next Friday?

That’s the very basics of it. If your buy-in was low and you are planning to keep anyway, you can make a lot of money while holding.