Jan. 26, 2021
Read time: 1 minutes and 38 seconds.
tags:I am not a financial professional and this is not financial advice
For the stock, there has been extensive due diligence provided as far back as…
12/ That’s all for now cuz I’m out of breath. FYI here’s a quick 4min video I put together to summarize the $GME bull case... it’s followed by some other deeper dive $GME videos: https://t.co/gV2i7QiyYB
— Roaring Kitty (@TheRoaringKitty) August 30, 2020
And the confidence of this investor never diminshed in the process given his most recent testimony…
It wouldn’t be fair without equal representation from Melvin Capital’s testimony who nearly went bust…
In case you’re not excited, Elon sure is…
Gamestonk!! https://t.co/RZtkDzAewJ
— Elon Musk (@elonmusk) January 26, 2021
Well, the short interest figures vary based on what others might report online as exaggerated numbers. However, in this report you can see that the outstanding shares (100 mil) had a peak short interest around 70mil whih is pretty substantial. Needless to say, some sides of a zero-sum trade like this one will always have losers. Plotkin, Melvin Capital CEO (trade loser), says that redditors “exploited” an opportunity around short interest. However, it’s the same degree of exploitation in which the firm took part. In simple terms, think about this way. If you can’t:
How is it that you can have the broker borrow a stock on your behalf as you sell a stock short to expect to buy it back at a lower price at a later date? This trivializes the issue, but highlights why exactly something like this is wreckless behaviour for those who wish to take on this side of a trade.
Be warned, the highest reward one can get on a short trade is 100%, but if the selected asset increases you can lose a sum larger than that which you staked originally.