In the current market environment, offerings are bullish
I wish i was joking
At least with TSLA there is a real bull thesis that could justify the valuation. For GME the thesis is nothing more than bull-and-hold and squeeze the short sellers. No one is even bothering to try to justify that the company itself is worth the current valuation.
If I actually did this my money would have almost doubled.
Why am I so bad at making money?
They don’t even have strikes above $60
Can someone explain to me like I’m 5 years old what Wall Street Bets is/does?
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I said “like I’m 5”, man.
That’s way over my head.
It’s a Reddit investing club. People post ideas and trades. Others then discuss and whether to follow.
Right now they are all-in on GME. You have the original people who had the idea making millions and then you have others that see it and want to do the same. As more people join the short-squeeze, it keeps driving the price up.
Bunch of college students gambling on the stock market with their student loans
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So it is nothing more than if we moved unstuck to reddit and just pimped our favorite STONKs instead of our favorite progressive candidates?
How did they get to be so well known in the first place?
Robinhood makes for pretty screenshots of gains
People make post bragging about massive disgusting gains like turning 7k into 2 million
It goes viral and reaches reddit front page
People browsing see that and think “wow thats insane let me go check it out” and then gamble $500 and then get addicted and throw their student loans at memes
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Also GME down $15 since the halt and now looks like they are pumping AMC and BBBY
I have been on the sidelines watching cheering for you guys but could not resist buying on 50$ putt the expires today. I probably just burned 80$. Felt like gambling!
Thanks. The last time I came across one was several years ago, It was for a group of mobile home parks. The numbers seemed pretty good, but I didn’t have the time to do a deep dive, so I passed. Friend who told me about it invested. He said that everything turned out more or less as it was represented initially, but his STONKs did much better over the same time period (not surprising in retrospect).
Any thoughts on crowdfunded real estate? At first glance, it just seems like the dregs of syndication.
No, I think what’s happening is:
Investors with real money entered a lot of short positions on the share price
Some retail activity propped up the price enough to force the shorts to cover their positions
The large investors in short positions have to buy the stock they shorted to cover their margins calls, driving the price up
The upward movement in price triggers another round of shorts getting margin calls that they have to cover by buying the stock moving the price up more
Vicious cycle ensues
At some point all that is left are profit takers and the price crashes back down to 30$?
You would think so.