Random thoughts on the GameStop saga:
- Wouldn’t it be funny if GameStop management went to a lender and borrowed $5MM to $10MM in cash? Then, announce to the market that they would be using the money to buy back stock!
- It would not surprise me if yesterday when retail was banned from trading all the speculative stocks that the institutional money on Wall St used what’s known as “washed trades” to paint the tape lower. I have seen it done plenty in the past and while illegal it is very difficult to prove.
- If you hold any stock in your account that you do not want your broker to lend out for the purposes of shorting, send a note to your broker that instructs them under no circumstances is the stock you own available for lending. That decreases the amount of stock outstanding available to be shorted and makes it harder to short. I am not against shorting and think it is a necessary market function. But, as an owner of a stock, it is one way to use an arrow in your quiver.
- Unsubstantiated rumor is that institutions on Wall St piled into the short side of the trade yesterday. If the stock rallies big today, I wonder if the “gamma” in options will take over?
- I was reading the WallStreetBets page at Reddit. These guys are out for blood and after yesterday I don’t blame them. They have put in good till canceled orders at $5000/share. Supposedly during (Read more...)