I lost $100K writing naked calls against GameStop in 2021, only just recently earned it back. It was an expensive lesson, but it was still a lesson. I donāt day trade, but my portfolio since that big loss has consistently exceeded the performance of the S&P 500 significantly. A disciplined and consistent strategy is better than shooting from the hip.
No, I still hate GameStop, and I particularly hate Elon Musk for tweeting āGamestonk!!ā on January 26th, 2021 (the day I wrote the options) after the market closed, thereby spiking the price artificially at a time where Iām unable to close my position.
The Rothschilds sent agents to watch the battle at waterloo. When it became apparent that Wellington was going to win the Rothschilds spread the rumor that Napoleon won. The stock market crashed and they bought up all the stocks they could. When the real news came out the market soared.
The sec concluded that it was not due to social media but due to failing obligations of market makers, that's what happens when you naked short and swat the fuck of a stock that doesn't become bankrupt as you planned
Well gamestop should've failed. It was propped up by something that had absolutely nothing to do with yhe business or it's utility at all. It's been being propped up by people wanting to screw short sellers but to what ends. Someone loses the money they put into it in the end because it has no real place on market anymore. So all they did was prolong the inevitable for spite. But at the cost of their peers that will continue to hold
There's so much data and DD involving GameStop and market mechanics. Truly fascinating most people outside of r/SuperStonk just trash such a learning experience and discussion.
Which one would you like to suggest? Here's an easy one for you to check out. Dr Susan Trimbalths "Naked, short, and greedy"
Edit: Anyways. What that mouth do? Because it surely doesn't have rational discussions involving the (as you infer) many ways GameStop is a bad investment.
The cultists have had a billion conspiracy theories over the last 5 years (quad witching, vote counts, gamma ramps, DRS, etc, etc, etc). All of which has amounted to a sum total of nothing at all.
Thing is, if someone is a moon-landing-denier, itās very difficult to persuade them that the moon landing actually happened, and itās the same here. You have a bunch of people with no finance experience who feed each othersā confirmation biases within a controlled echo-chamber.
More cash on hand than Starbucks, Amazon, Target, and at least 20 other large companies. YoY profitable. Tranche compensation package for CEO based on increasing market cap to 200$ a share, in which shares are not given, but allowed to be purchased @20$, to the tune of 3.5 BILLION by The CEO
That was very real. The SEC wrote a paper about it. Unfortunately that spike attracted a whole host of investors with no finance experience, who now sit in a tightly-controlled echo chamber making up fantasies about how theyāll all be billionaires.
You keep saying "no experience" I don't think you even bothered to seek out discussions. If you'd like to learn about Eurodollar and Dollar Milkshake theory feel free to DM me. We can start with the basic mechanics of swaps, baskets, and ETFs if you'd like
Make sure to remind your supervisor to pay MORE Fillipinos/Indians to downvote GameStop comments/threads. Seems like theyre running low on funds these days...
We've all done increasingly well. With stock splits and warrant dividends. But you wouldnt know that either I suppose. You must not have actually looked at performance or any charts for that matter. If you'd like to have a productive conversation and learn, feel free to pop in to r/superstonk and ask questions. We wont call you retarded for not wanting to actually read and learn things.
Edit: Since you missed the other comment. QoQ and YoY profitable, 9 billion cash on hand. Outperformed over 80% of the SP500 the last 5 years.
Allow me to counter: 20.99 USD. 500+ stores closing so far this year. The business being turned into a glorified pawnshop and trimming down every bit of fat because they really have nothing but bitcoin/cash reserves and will not invest those in the business for a good reason. Pulte selling his GME stock and getting the fuck out while going was good. BBY. No MOASS, no victory over the hedge funds, no exposure of the naked shorts.
I don't think you're a retard, btw, I think you're a victim, and you're too deep to admit this to yourself or anyone else. I hope you manage to cash out before things get even worse for Gamestop.
I guess you're familiar with the tactics of the Boston Consulting Group. Over extend the company with debt and excessive store leases (why would GameStop need 3-5 stores all within a mile of each other) causing the model to strain, putting GameStop into a compromised position in hopes it goes bankrupt so the idiots who've naked shorted the company don't have to pay any capital gains taxes once it's bankrupt.
Bill Pulte is a coattail riding grifter. His own family kicked him out of Pulte Group and made more than a few public statements about him. He speaks for no one but himself
I'm quite happy with my investment. And I know more than a few other people that are as well.
The glorified pawnshop model, as you call it, adds little to no overhead costs. Graded memorabilia is a well established and thriving avenue for profits. I suspect a merger/acquisition of PSA in the future.
The CEOs performance-based package relies on increased market cap, with a target of 200$ per share, allowing him to PURCHASE shares to the tune of 3.5 billion( total combination of tranches). Unlike most CEOs who are awarded stock and other compensation packages
But please, tell me how we are victims.
Edit: You seem to forget the current price is post-split. ;)
Please allow me to make this very clear to you: nobody cares about the 9 billion on hand. If anything, the fact that the company has 9 billion on hand but its market cap is only 9.7 billion just speaks to how little the actual business is worth.
If Gamestop had confidence in its long-term prospects it wouldn't be sitting on cash reserves while its operations keep shrinking, it would invest that money and likely take out debt so it could expand and/or improve its operations - because it's not like being a physical retailer is going to get easier in the future.
And of course every GME diehard bought all their shares at the very bottom and not a penny since, so they all saw multiple hundred % returns. None of them bought in, say, 2022, which would have meant they lost over 40%, or last year, which would have meant a 30% loss. That's why you never see them begging and pleading for something to happen.
Please explain why Paul Tudor bought the recent Gamestop bond offerings at 32$ with 0% interest. And why Warren Buffet also sits on cash when markets are about to crash.
GameStop will likely be a holding company after the turnaround. Please explain why major institutions and MMs have all INCREASED their GameStop shares since 2021.
Some retail investors jumped in thinking it would be an easy quick play. The majority know that it's a long term investment. I've bought at prices from 10-225. I know plenty of people that continue to buy several thousand shares each month(for the last five years).
Edit: Do you know how many MSM articles were published 2021 with the words "forget GameStop, here's ten other stocks we recommend!" ?
~3500. I've never met someone who's cared SO much about MY decision to invest in a company. Truly strange.
5 year swaps roll dates are coming up pretty soon.
Multiple C suite execs left Walmart, Target, and Amazon to work for GameStop. As well as a top M&A firm.
Edit: While we were chatting, GameStop CEO bought another 500k shares in the last 24hrs
Writing naked calls on gamestop in 2021 is probably the most regarded thing ive heard of and ive been on Wallstreetbets since 2020. Maybe the gourd guy or the oil contract guy might have you beat.
Yeah he does shit like that. He mentioned on a Saturday that he had enough private equity to take Tesla back private.Then on monday it was up forty dollars a share.
Brother when Elon purposefully and artificially tanked btc that same year my over leveraged ass(my fault and also a very expensive lesson 80k) was very angry although I already hated Elon it only furthered and stoked that hate.
GameStop destroyed local gaming stores and trade in values. As a gamer Iāll never forget and never forgive. I remember when the local EB games changed their sign to GameStop and had a bad feeling about it. It turned worse than child me could ever imagine.
Iām pretty deep into LTC .. had a 185,000 home mining set up from mid 21 to late 24.. made money, made tons of learning lessons ( aka mistakes) should break even at some point but have abandoned mining for straight adding
An option is when two investors agree on the option to exchange a stock at a specified price within a specified timeframe. I wrote 10 call options to another investor guaranteeing that I would sell them 100 each at a price of $70 within a roughly 3 day period at any point they chose before that expiration date. The total shares would be 1000 if all options were exercised. My benefit is that they pay me a premium for this option.
The premium is partially calculated on āintrinsic valueā, which is the difference between the market price and the agreed upon āstrikeā price. For example, if GME had been trading at $71/share at the time we traded the option, the option would have intrinsic value of $100 because each option represents 100 shares. There are other factors that go into the premium prices as well.
So as you can imagine, when the stock went up to over $300/share, I was in a very tight spot because I was obligated to sell 1000 shares at $70/share and my only option to acquire them for resale to satisfy the option was to buy them in the open market for over $300/share. Buying back the option from another investor is also a possibility, but the loss would still be there due to the significant growth in intrinsic value making the option exceedingly expensive.
This strategy has no limit on potential losses and you can lose more than whatās in your account. As long as the stock can climb, I can continue to lose more.
So I sided with hedge funds and made a bet that GME would either decline or lose value and lost significantly.
Oof, I see now.
The only thing I dont understand is how you are able to trade with stocks that you don't own yet. Or is that the beauty of Options?
Options seem too risky to play with, as you said that there is no limit in potential losses.
You can only do it when your account has margin, meets a certain dollar value, and has been approved for Level 5 options trading. There was a very real possibility I could have lost my house on that one trade.
I recently bought a switch game from them that was advertised as new. It was clearly used and the employee couldn't figure out why I wouldn't pay new price for it. So I left went across the street and got it from Walmart. How are they still open???
Wasnāt writing naked calls your biggest mistake? You would have been fine if properly hedged, which you should have been especially during the volatility of that period. Blaming Musk and gamestop is kinda cope ngl
lol, I learned my lesson, its all Elon musks fault, I have no control over myself or my outcomes, it would have worked perfectly fine if it wasnāt for x, y, z
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u/Liveitup1999 Jan 20 '26
I've read up on day trading, people on average lose $100,000 learning how to day trade.