Tag: shorts

How GameStop exposed the market

Mary Pat Campbell

Link: https://www.axios.com/stock-market-gamestop-reddit-exposed-d7eb06e2-f6c7-4aa8-99d7-24a51df27fa9.html

Excerpt:

Despite looking like a run-of-the-mill short squeeze, what’s happening in GameStop is anything but that, Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, tells Axios. Short sellers overall are not being squeezed out of the trade, despite having lost more than $6 billion since Jan. 1.

“I’ve talked to several brokers, they’ve got a line of guys looking to short the stock if there’s any stock available to borrow,” even though shorting GameStop now costs a fee of 150%.

“The value shorts are getting squeezed out and being replaced by momentum shorts looking to ride the stock price down the back end of the roller coaster.”

Author: Dion Rabouin

Publication Date: 28 January 2021

Publication Site: Axios

Opinion: Stop laughing about GameStop’s stock mania — no, really

Mary Pat Campbell

Link: https://www.marketwatch.com/story/stop-laughing-about-gamestops-stock-mania-no-really-11611760785

Excerpt:

“I get that people think it’s funny when bad things happen to Wall Street types, but this GameStop GME, -44.29% thing is not a joke,” I tweeted. “These are stock traders conspiring to manipulate the markets in open view of us all and using the ‘nah, its for the lulz, and the other side sucks’ as an excuse.”

…..

You may think it’s funny to value GameStop like it’s 2007 again and hurt some hedge funds in the process, but you might not think the next target is funny, nor the next, nor the next. You won’t laugh when you read the eventual feature about a teenager misplaying GameStop options on his dad’s account and costing them the house, or a first-time investor putting their savings into GameStop just before it all fell apart.

Author: Jeremy C. Owens

Publication Date: 27 January 2021

Publication Site: MarketWatch

GameStop and AMC gyrate wildly overnight after explosive rally

Mary Pat Campbell

Link: https://www.cnbc.com/2021/01/27/gamestop-and-amc-are-dropping-in-overnight-trading-after-explosive-rally.html?mc_cid=ea45e1fced&mc_eid=983bcf5922

Excerpt:

GameStop and AMC Entertainment tumbled in overnight trading, then rebounded sharply in the premarket Thursday following a meteoric rally amid a retail buying frenzy.

Shares of the brick-and-mortar video game retailer dropped 15.97% in extended trading, following a more-than 130% gain during regular hours. In premarket trading early Thursday, its shares bounced 30% higher.

The movie theater chain sank 26.58% in overnight trading, after shares soared 300% in extremely heavy trading. Its shares were little changed in premarket trading.

The pair have been popular targets in the “Wallstreetbets” Reddit chat room where a wave of at-home traders focus on heavily shorted stocks, pushing share higher and squeezing out short-selling hedge funds.

Author: Yun Li

Publication Date: 27 January 2021

Publication Site: CNBC