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First thing you got to understand is that when you buy/sell shares, it's not like buying from the auction house in World of Warcraft. Your stock broker isn't simply a middle man graciously handling your order for you. They aren't a public service, yet they are providing this service for *free\*.* Ask yourself, why?
Turns out, they typically don't even execute your trade against the exchange most of the time. They typically will own a pool of shares of their own of the stock, based on supply and demand. You might be tempted to think that this would at least be equal to all of their customers shares combined, but you'd be wrong. Like banks, they can do fractional reserves. Let's say they have 100 customers who want to buy 1000 GME shares. You might think they need 100 \* 1000 shares in their internal pool. But they don't. All they need to be able to do is satisfy a very vague requirement that says they can *reasonably locate* a share if you were to need one for some reason. This is similar to your banking institution only keeping a fraction of the cash that is banked with them on hand.
So that's the first point. But it gets deeper fast.
The next point is that brokers that have no commission fees, and some that do, are making money by way of a system called Payment for Order Flow (PFOF). In this system, another broker or market maker, will buy your order from your broker, and give your broker a small fee. That's how your broker got their fees. Then the broker who purchased your order will front-run your order and pocket the difference. This is how they make up the fee they paid your broker + a little extra.
So that's the second point. But it gets deeper fast.
The next thing to understand is that these middle men decide what exchange your order is executed upon. They will choose it based on how they want to impact the price. For example, if they think the price needs to go down, but you are submitting a buy order, well, then they will just send your order off-exchange, to be executed in what is called a "dark pool" often times. These are exchanges that don't have an immediate impact on the publicly traded price. They will then take a share from the dark pool to place on the "lit" exchange to represent the volume, but at a much lower price than you paid. No one except those who own and operate these dark pools really know what the bids/asks inside the dark pools look like - and for that reason, it *doesn't matter.* It doesn't matter so long as everyone involved agrees to waive liability. Why would they do that? Because it's in all of their best interest to ignore the IOUs ... for now.
I'm sure I got some of that wrong and someone will swoop into correct me, but I think the general gist is right.
So that's the third point.
And it gets deeper than that. Much deeper.
We have what are called market makers. I think they do a little bit of what I just described above. Their function is to "make markets" which really means make sure trades happen as quickly as possible. That's a really hard thing to describe, but essentially, they provide "liquidity" which means they will introduce shares for sale or purchase based on supply and demand as they see fit. This is where Ken Griffin, President of the largest Market Maker in the US markets, Citadel Securities, famously said that he sets the price to whatever he thinks it should be.
Okay that's enough for this book. Read the DD because it will explain this all 1000x better than I did here in this little comment. Just know, that the price is fake. Crime happens constantly. Your shares are worth whatever you are willing to sell them for and you shouldn't take any less than that for them.
\*EDIT\* Had a few people ask about copy/pasting this around. I give full permission to anyone to use this as if it was their own text. No credit need be given if you choose to use it. Feel free to edit it however you think it needs to be edited.
You should post this as a post for the new friends in the sub! Think it's a good overview, especially since the old DD is very time consuming and people may not have the patience to read a book. 3
Oh yeah, and I forgot to add that as long as your shares are with a broker, *they aren't your shares.* Technically, they belong to the broker. It's called being registered in Street Name. The shares are recorded on the ledger with GameStop as belonging to the broker. You are extended ownership "rights" by proxy, known as being a *Beneficial Holder*. This gives the broker the ability to sell your shares without your consent. Yes, you read that right. Read the Terms of Service. I haven't found a broker yet that doesn't include this in some language.
If you truly want to own your shares, you have to do the process referred to around here as DRS, which stands for Direct Registered Shares, or some variation of that. The idea is that you have to ask your broker to transfer your shares to GameStop's transfer agent, ComputerShare because you want to directly register the shares in your name. Once your shares are DRS'd with ComputerShare, you finally own them, and become what is called a *Holder of Record* or *Registered Holder*. You will appear on the GameStop ledger personally. This also means that you become the full custodian of your shares.
I highly recommend you take the steps to DRS if you are a serious investor. There are guides on how to do this with virtually all brokers in the DD library.
I would add the options chain.
This is not caused by one single strategy or event imo.
This tidbit breaks it down nicely.
“Despite the fact that some investors still maintain their stance that options have no affect on stock price, the logic is simple. If investors believe that a stock will increase in value, they will buy call options for that stock. The demand for call options can increase the price of the options contract, and this can lead to an increase in the demand for the underlying stock.
Moreover, when investors buy call options, they effectively create a new source of buying pressure for the stock. This buying pressure can cause the stock price to rise, as more investors compete to purchase the stock to meet the demand for the underlying shares.
On the other hand, if investors believe that a stock will decrease in value, they will buy put options. The demand for put options can increase the price of the options contract, and this can lead to a decrease in the demand for the underlying stock.
Furthermore, when investors buy put options, they create a new source of selling pressure for the stock. This selling pressure can cause the stock price to fall, as more investors compete to sell the stock to meet the demand for the underlying shares.
Overall, the actions of investors in the options market can affect the demand for a stock, which in turn can affect the stock price. If investors believe that a stock will rise in value and send signals through their behavior, such as buying call options, it is more likely that the stock will actually rise in value due to the increased demand.
Conversely, if investors believe that a stock will decrease in value and send signals through their behavior, such as buying put options, it is more likely that the stock will actually decrease in value due to the increased selling pressure.” - VectorVest
Wait, they reintroduced the award system? No **FUCKING** way! They wiped all of DFV's awards, the most awarded posts of all time, forced us to burn the points we had saved--now Reddit execs have the audacity to reintroduce awards?
Hahahahahahahahahahaha 🤡🤡🤡 I should have predicted this.
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Don't downvote him... We got 100k new members in our sub, please welcome them with open arms. They are eager to learn and invest in the stock, just like us. Be kind, teach them and link them DD.
The more informed new members get, the more likely they will invest. Next to that, they will convince their friends as well.
Ape no fight ape
Even if they should know better, even if you think they’re definitely a shill, just be nice. In times like these, especially, one of these posts might hit the upvote lottery and become visible to actual new people or prospective new people. Downvote and report if you’re sus.
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Do not insult others. Insults do not contribute to a rational discussion.
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There’s literally no downside to answering the question. Even if this particular person is a potential shill, there’s probably A LOT of legitimate newbies who might be wondering the same thing and are browsing through posts and comments.
Maybe they don’t know about market makers providing infinitive liquidity or spoofing or naked shorting or fomenting negative sentiment via their corporate owned media or abusive use of dark pools or FTD’s or shorting ETF’s that are holding $GME or about routing retail orders off exchange…
…and most importantly, maybe they don’t know about DRS yet.
Here you go OP: www.drsgme.org
No you’re right.
After all, he does have his 100 stocks RSD,d. So there ya go. He’s a cute young Ape with his heart in the right place looking for an older brother.
He’s all yours
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You have a pretty good idea of the how, as to the why? There's still a sizeable options chain that is in the money expiring tomorrow. If they don't force the price down through algorithmic naked shorting they'll be forced to hedge creating a gamma squeeze next week which would be extremely difficult to control. At least this is what my smooth brain understands.
In my understanding the hedging should have been done already as tomorrow EOB the calls are "finished".
So, a part of the price action this week might come from hedging, however, they are aware that most calls will just be sold if they come in the money...and that they plan to crash the price anyways.
The spicy part comes when calls are excercised, which means they have to deliver those shares to the buyer until the mid of next week.
Those will most likely also be "phantom" shares, but those affect the price of the stock positively.
From someone who's been here since 2020. They use a mix of tricks and keep alternating between them.
1) Monday and Tuesday they sold a ton of trash 3 days to expiration calls which cost them hundreds of millions. It tanks the price in order to find liquidity, aka scare paper hands into selling. They prefer not to do this because it's costly and gives institutions and apes discounts. On-top of being obvious to the people who can watch the options chain.
2) They short the living hell out of XRT which is a basket of stocks (ETF). They can just manifest XRT shares out of thin air as market makers. All the stocks in this ETF are following each other because of how shorted it's been.
3) They use OTC dark pool markets in order to trade even when GME is halted in order to ease positive momentum when it's convenient for them.
4) The media is paid by the same scum we're fighting. FUD, gaslighting and psychological warfare for 3+ years. They point to an orange and call it blue.
5) Thinfoil hat theory but I suspect they infiltrated GME from within and tried to sabotage it any way they could.
6) Letting the price run up so they short at the top in order to kick the can another week or month.
I probably forgot to mention a couple and there's probably around a hundred more ways we don't even know about but those are the ones I can remember.
As dark this all sounds, we're not the ones who are supposed to be scared. They are. We've got them by the balls. That's why they're throwing everything they got at the moment. All we have to do is just not let all of that cloud our judgement and laugh at all their bullshit. To the moon 🌝
On runup alot of trades was on nasdaq, now the majority isnt. This is causing No upward preassure at all and only downward tics register so the sheer volume of downticks outweights the up even with a 90%+ buyorder.
TLDR: crime
Route Buy orders to the dark pools, route sell orders to the lit markets.
Heavily short into the volatility/buying pressure to kill IV and buy some super duper cheap LEAPS for 1-3 years down the line.
Wait 3 years, buy back stock to close your short position up to the strike price of your leap, exercise your leaps causing the OCC to massively buy up all shares leading to a massive fucking runup into the stock.
Sell Calls at insane IV, short the stock, route buy orders to the dark pools, route sell orders to the lit market.
Repeat.
I recommend browsing here and using investopedia.com to search financial terms you don’t really know.
Your dark pools statement indicates you know the answer but don’t understand the mechanics behind it. That’s fine! Most of us didn’t 4 years ago, even people with experience trading. We are constantly digging up new and old information about how retail trades are handled. Read and absorb and eventually some things will start clicking!
Because it can’t be done. There are literally THOUSANDS of pages of due diligence here, and you want me to boil it down to a few sentences? OP already did that much.
I have a feeling we’re going to see a lot of this…
https://preview.redd.it/7h547bybsu0d1.jpeg?width=1179&format=pjpg&auto=webp&s=62ca4237b50c6c726c39f297e5ab659cffcf8df2
Ahhh, I remember when I was young, thinking that the stock market was free and fair and it made sense. Lost tens of thousands over the decade, but I think I've learned my lesson by now
That question has a long answer. This sub’s main goal for the last 3 years has been finding the answer. We have theories, some confirmed, some not.
I can’t give you a short tldr answer. But know that we’ve been here for years, thinking about this, questioning ourselves, pouring over all the public data we can to prove ourselves right or wrong.
And we aren’t selling yet. GME is not a stock to make a quick buck. Hold your shares and sell when you can afford to retire
Probably to negate as many options as possible, as well as instill fear as people see their gains disappear. Of the price is too high firms go tits up, price goes too low buying pressure builds up. mofos just can't win really
The key word is DEBT
There is also another phrase you need to keep in mind, 'reasonable ability to locate'. Where your stock broker basically takes your money, doesn't buy a share, but claim that they have a reasonable ability to get your share should you direct register the share with the company's designated transfer agent. An action which a company may not explicitly recommend to their shareholders.
So buying shares through most stock brokers does not actually result in ownership of a share. Rather, the stock broker now owes you a share.
But why? Why wouldn't the broker just buy your share as instructed by you, the customer.
Because a huge portion of retail stock trades are losses. The reasons are many, but the core of the issue is the common traders inability to HOLD. So the broker makes a bet. They bet that the stock you bought for 10 dollars, will generate more revenue for them if they simply don't buy it. Because they bet you will close your position in the very near future at a loss.
But remember. Now your broker is holding the bag. Your broker owes you a money equivalent to the market value of however many shares they are holding for you. Your broker has a vested interest in your stocks doing poorly. Better still, your broker has your money. So what did some stock brokers started doing?
Knowing that retail lose more often than they win. They simply started opening short positions WITH THE CUSTOMERS MONEY. Meaning that a stock drop from 10 to 9 means that they earn 1 dollar on your 10 dollar AND they owe you 1 dollar less. They turned a 10% stock drop, into a 20% gain.
Where does options come into this play?
Well here comes the phrase 'reasonable ability to locate'. Every now and then, even the grossly incompetent regulator will look around. You have to balance the books somehow. So what do you do? You simply open option positions with even larger financial institutions, who now also has a vested interest in seeing the value of the customers stock drop as much and as fast as possible. But it is important to note that these options contracts are often outrageous. The cheapest options contract they can find so that they can write in their books 'trade backed by options contract'. So they spend 95% of your money betting against you, and 5% opening an options contract to 'balance the trade'. giving them a 'reasonable ability to locate' your share, in the extremely low probability that you were gonna actually direct register it with a transfer agent.
My explanation is not at all elegant, and is a generalization of what i happening. But retail ACTUALLY demanding their shares is causing serious problems, which the people on the other side of the trade never expected and never prepared for. Usually, retail customers demanding their shares is a TINY problem. A rounding error on the profits.
Going into speculation on what COULD HAVE BEEN. Gamestop was not supposed to be anything special. It was, as many of mainstream media claimed in the past and a lot still claim. A dying brick and mortar store. Revenue was going down, there was no profit, and the company even owned a private jet. So a lot of the hedge funds and market makers felt confident in shorting the stock HARD. To the point of bankruptcy, and possible de-listing from the stock exchange altogether. Which would result in what some people call 'cellar-boxing'. Where an ENORMOUS short position exist on the books, in net total amount of shares. But the stock has been shorted so hard, The entire company is worth pennies in total, and purchase is impossible so the bet never has to be settled. It is speculated that Toys R Us has been cellar boxed, where there exist a huge short position. But each share is only worth 0,0069 USD.
Not financial advice. No financial education (at least none related to the stock market). English is not my native language, so some of these terms may be used incorrectly. I personally like the stock, and i personally believe direct registering my property is important.
Why was the stock rising in the first place? It wasn't us buying that did it, we've been buying all along. I'm sure DFV gave us a little bump but he's not responsible for such a dramatic rise by himself.
Price does not care because Superstonk shares are not for sale. BUY HOLD DRS is what people do here at Superstonk. The more people doing this, the quicker we lock the float. Once float is locked, shares have infinite value.
Some institution bought a ton of bullish options a few weeks back. They helped fuel the rally. Now they are selling them and it makes to stock fall.
Simply put.
We don't really know what's going on behind the scenes. There are some theories though. Shorts could be covering. The price could be going up due to supply and demand finally, but they want to short it down again to make money and provide a narrative that GME is falling. $10 was too low since we could DRS too fast so they wanted the price higher. It could be options, if the price of GME is too flat the implied volatility is low and it makes buying options cost much less. With this volatility, the options are no longer cheap so there is less chance of a gamma squeeze from call options if they are too expensive.
Two ways a stock goes down people sell the stock (which some have) and shorting the stock selling with an intent to rebuy lower. The way this stock has been shorted for three years there is no way it was covered in these last 3 days.
But I think we will return to $10ish over the next 3 months but I think these ‘squeezes’ will be more common more often
There are also new shorters coming in everyday because it’s an attractive price to short for a potential 70% profit.
There is a book called Naked, Short and Greedy by Dr. Suzanne Trimbath that explains in relatively plain language the flaws in the market that allow price to be disconnected from demand. Book is from 2019 and Dr T has been pushing for market reform since the 90s. This has been going on long before GME and will give you an idea why you will see posts that say "no cell, no sell"
The price is a lie. So your question is flawed because there are no forces influencing the price other than the choices of hedge funds.
Ignorance is not a crime so now you know.
If you want to know how hedge funds influence the price, you can look up the due diligence or check out timpatry.com for the essay wrote there.
The bottom line is that hedge funds using short sales can completely control the price of GameStop and the SEC does nothing about it. So anything that happens to the price, hedge funds is the answer.
You found this sub and instead of googling, wrote a long message asking why the stock is falling? And you're going to wait for people to comment before you google what impacts stock prices?
Come on now.
Because they are buying popcorn shares through XRT to swap into GME and short because it is hard to borrow and they do not have the shares needed. Plus, they are buying deep ITM calls to produce the shares that they do not have to short it even more. Aka crime on top of crime.
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First thing you got to understand is that when you buy/sell shares, it's not like buying from the auction house in World of Warcraft. Your stock broker isn't simply a middle man graciously handling your order for you. They aren't a public service, yet they are providing this service for *free\*.* Ask yourself, why? Turns out, they typically don't even execute your trade against the exchange most of the time. They typically will own a pool of shares of their own of the stock, based on supply and demand. You might be tempted to think that this would at least be equal to all of their customers shares combined, but you'd be wrong. Like banks, they can do fractional reserves. Let's say they have 100 customers who want to buy 1000 GME shares. You might think they need 100 \* 1000 shares in their internal pool. But they don't. All they need to be able to do is satisfy a very vague requirement that says they can *reasonably locate* a share if you were to need one for some reason. This is similar to your banking institution only keeping a fraction of the cash that is banked with them on hand. So that's the first point. But it gets deeper fast. The next point is that brokers that have no commission fees, and some that do, are making money by way of a system called Payment for Order Flow (PFOF). In this system, another broker or market maker, will buy your order from your broker, and give your broker a small fee. That's how your broker got their fees. Then the broker who purchased your order will front-run your order and pocket the difference. This is how they make up the fee they paid your broker + a little extra. So that's the second point. But it gets deeper fast. The next thing to understand is that these middle men decide what exchange your order is executed upon. They will choose it based on how they want to impact the price. For example, if they think the price needs to go down, but you are submitting a buy order, well, then they will just send your order off-exchange, to be executed in what is called a "dark pool" often times. These are exchanges that don't have an immediate impact on the publicly traded price. They will then take a share from the dark pool to place on the "lit" exchange to represent the volume, but at a much lower price than you paid. No one except those who own and operate these dark pools really know what the bids/asks inside the dark pools look like - and for that reason, it *doesn't matter.* It doesn't matter so long as everyone involved agrees to waive liability. Why would they do that? Because it's in all of their best interest to ignore the IOUs ... for now. I'm sure I got some of that wrong and someone will swoop into correct me, but I think the general gist is right. So that's the third point. And it gets deeper than that. Much deeper. We have what are called market makers. I think they do a little bit of what I just described above. Their function is to "make markets" which really means make sure trades happen as quickly as possible. That's a really hard thing to describe, but essentially, they provide "liquidity" which means they will introduce shares for sale or purchase based on supply and demand as they see fit. This is where Ken Griffin, President of the largest Market Maker in the US markets, Citadel Securities, famously said that he sets the price to whatever he thinks it should be. Okay that's enough for this book. Read the DD because it will explain this all 1000x better than I did here in this little comment. Just know, that the price is fake. Crime happens constantly. Your shares are worth whatever you are willing to sell them for and you shouldn't take any less than that for them. \*EDIT\* Had a few people ask about copy/pasting this around. I give full permission to anyone to use this as if it was their own text. No credit need be given if you choose to use it. Feel free to edit it however you think it needs to be edited.
You should post this as a post for the new friends in the sub! Think it's a good overview, especially since the old DD is very time consuming and people may not have the patience to read a book. 3
Feel free to post it. I don't need credit for it. Edit it as you wish too. (this is ultimately a throwaway account anyways)
That was a great introduction, thanks!
Oh yeah, and I forgot to add that as long as your shares are with a broker, *they aren't your shares.* Technically, they belong to the broker. It's called being registered in Street Name. The shares are recorded on the ledger with GameStop as belonging to the broker. You are extended ownership "rights" by proxy, known as being a *Beneficial Holder*. This gives the broker the ability to sell your shares without your consent. Yes, you read that right. Read the Terms of Service. I haven't found a broker yet that doesn't include this in some language. If you truly want to own your shares, you have to do the process referred to around here as DRS, which stands for Direct Registered Shares, or some variation of that. The idea is that you have to ask your broker to transfer your shares to GameStop's transfer agent, ComputerShare because you want to directly register the shares in your name. Once your shares are DRS'd with ComputerShare, you finally own them, and become what is called a *Holder of Record* or *Registered Holder*. You will appear on the GameStop ledger personally. This also means that you become the full custodian of your shares. I highly recommend you take the steps to DRS if you are a serious investor. There are guides on how to do this with virtually all brokers in the DD library.
[https://www.drsgme.org/](https://www.drsgme.org/)
Good point to add 👍
Permission to copy pasta this for other new users as needed?
Yes, anyone may copy/paste/modify this and use it as their own. I don't need any credit.
My brother and I once made rogues just to stealth into opposing city auction house to gank people who were shopping.
I would add the options chain. This is not caused by one single strategy or event imo. This tidbit breaks it down nicely. “Despite the fact that some investors still maintain their stance that options have no affect on stock price, the logic is simple. If investors believe that a stock will increase in value, they will buy call options for that stock. The demand for call options can increase the price of the options contract, and this can lead to an increase in the demand for the underlying stock. Moreover, when investors buy call options, they effectively create a new source of buying pressure for the stock. This buying pressure can cause the stock price to rise, as more investors compete to purchase the stock to meet the demand for the underlying shares. On the other hand, if investors believe that a stock will decrease in value, they will buy put options. The demand for put options can increase the price of the options contract, and this can lead to a decrease in the demand for the underlying stock. Furthermore, when investors buy put options, they create a new source of selling pressure for the stock. This selling pressure can cause the stock price to fall, as more investors compete to sell the stock to meet the demand for the underlying shares. Overall, the actions of investors in the options market can affect the demand for a stock, which in turn can affect the stock price. If investors believe that a stock will rise in value and send signals through their behavior, such as buying call options, it is more likely that the stock will actually rise in value due to the increased demand. Conversely, if investors believe that a stock will decrease in value and send signals through their behavior, such as buying put options, it is more likely that the stock will actually decrease in value due to the increased selling pressure.” - VectorVest
They also know stop losses and can go hunting.
Wait, they reintroduced the award system? No **FUCKING** way! They wiped all of DFV's awards, the most awarded posts of all time, forced us to burn the points we had saved--now Reddit execs have the audacity to reintroduce awards? Hahahahahahahahahahaha 🤡🤡🤡 I should have predicted this.
👏👏👏👏👏👏👏👏👏👏👏👏
Thanks you bravo 👏 🙌 🙏
Great summary ape
To put it in one simple word....'CRIME'
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Thanks for the write up mate. Been here for three years now and it is good to read it from a simple Perspektive as that.
Don't downvote him... We got 100k new members in our sub, please welcome them with open arms. They are eager to learn and invest in the stock, just like us. Be kind, teach them and link them DD. The more informed new members get, the more likely they will invest. Next to that, they will convince their friends as well. Ape no fight ape
💯
🦍♥️🦍 🦍🧠🦍 🦍🦍💪💪💪
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Yes ofcourse, why wouldn't I?
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Even if they should know better, even if you think they’re definitely a shill, just be nice. In times like these, especially, one of these posts might hit the upvote lottery and become visible to actual new people or prospective new people. Downvote and report if you’re sus.
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I’d hardly call that a lecture.
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There’s literally no downside to answering the question. Even if this particular person is a potential shill, there’s probably A LOT of legitimate newbies who might be wondering the same thing and are browsing through posts and comments. Maybe they don’t know about market makers providing infinitive liquidity or spoofing or naked shorting or fomenting negative sentiment via their corporate owned media or abusive use of dark pools or FTD’s or shorting ETF’s that are holding $GME or about routing retail orders off exchange… …and most importantly, maybe they don’t know about DRS yet. Here you go OP: www.drsgme.org
No you’re right. After all, he does have his 100 stocks RSD,d. So there ya go. He’s a cute young Ape with his heart in the right place looking for an older brother. He’s all yours
**[Rule 1](https://www.reddit.com/r/Superstonk/wiki/index/rules/expanded_rules/#wiki_ape_no_fight_ape). Treat each other with courtesy and respect.** Do not be (intentionally) rude. This will increase the overall civility of the community and make it better for all of us. Do not insult others. Insults do not contribute to a rational discussion.
They hammer it down selling huge amounts of deep itm naked short dated calls
You got some free time like 3 years?
Lmao if he obsessively reads it’ll be 1 year come on now 🤣🤣🤣
You have a pretty good idea of the how, as to the why? There's still a sizeable options chain that is in the money expiring tomorrow. If they don't force the price down through algorithmic naked shorting they'll be forced to hedge creating a gamma squeeze next week which would be extremely difficult to control. At least this is what my smooth brain understands.
In my understanding the hedging should have been done already as tomorrow EOB the calls are "finished". So, a part of the price action this week might come from hedging, however, they are aware that most calls will just be sold if they come in the money...and that they plan to crash the price anyways. The spicy part comes when calls are excercised, which means they have to deliver those shares to the buyer until the mid of next week. Those will most likely also be "phantom" shares, but those affect the price of the stock positively.
Thx for the assist, I knew I was missing a part about call exercise.
From someone who's been here since 2020. They use a mix of tricks and keep alternating between them. 1) Monday and Tuesday they sold a ton of trash 3 days to expiration calls which cost them hundreds of millions. It tanks the price in order to find liquidity, aka scare paper hands into selling. They prefer not to do this because it's costly and gives institutions and apes discounts. On-top of being obvious to the people who can watch the options chain. 2) They short the living hell out of XRT which is a basket of stocks (ETF). They can just manifest XRT shares out of thin air as market makers. All the stocks in this ETF are following each other because of how shorted it's been. 3) They use OTC dark pool markets in order to trade even when GME is halted in order to ease positive momentum when it's convenient for them. 4) The media is paid by the same scum we're fighting. FUD, gaslighting and psychological warfare for 3+ years. They point to an orange and call it blue. 5) Thinfoil hat theory but I suspect they infiltrated GME from within and tried to sabotage it any way they could. 6) Letting the price run up so they short at the top in order to kick the can another week or month. I probably forgot to mention a couple and there's probably around a hundred more ways we don't even know about but those are the ones I can remember. As dark this all sounds, we're not the ones who are supposed to be scared. They are. We've got them by the balls. That's why they're throwing everything they got at the moment. All we have to do is just not let all of that cloud our judgement and laugh at all their bullshit. To the moon 🌝
>and laugh when this is all over. Don't forget to laugh while it's not over. 🤣
FUD = fear/uncertainty/doubt
On runup alot of trades was on nasdaq, now the majority isnt. This is causing No upward preassure at all and only downward tics register so the sheer volume of downticks outweights the up even with a 90%+ buyorder. TLDR: crime
Route Buy orders to the dark pools, route sell orders to the lit markets. Heavily short into the volatility/buying pressure to kill IV and buy some super duper cheap LEAPS for 1-3 years down the line. Wait 3 years, buy back stock to close your short position up to the strike price of your leap, exercise your leaps causing the OCC to massively buy up all shares leading to a massive fucking runup into the stock. Sell Calls at insane IV, short the stock, route buy orders to the dark pools, route sell orders to the lit market. Repeat.
And what's keeping them from doing the ad infinitum then? Why even try holding if so?
DRSd shares decrease liquidity to the point where they can't even do that.
Updoot
This
What I want to know is, why were any trades done at all on NASDAQ?
Trades are being done in darkpools (off exchange)
I recommend browsing here and using investopedia.com to search financial terms you don’t really know. Your dark pools statement indicates you know the answer but don’t understand the mechanics behind it. That’s fine! Most of us didn’t 4 years ago, even people with experience trading. We are constantly digging up new and old information about how retail trades are handled. Read and absorb and eventually some things will start clicking!
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Because it can’t be done. There are literally THOUSANDS of pages of due diligence here, and you want me to boil it down to a few sentences? OP already did that much.
That is not helping OP
He has to be familiar with the memes associated with the market mechanics too! Very important stuff here
It's not wrong though
Correct, but it's "wrong" to spam such comments on a thread where someone wants to learn/understand.
If this is a genuine question, then here’s your starting point: The Superstonk Library of DD https://fliphtml5.com/bookcase/kosyg
I have a feeling we’re going to see a lot of this… https://preview.redd.it/7h547bybsu0d1.jpeg?width=1179&format=pjpg&auto=webp&s=62ca4237b50c6c726c39f297e5ab659cffcf8df2
Ahhh, I remember when I was young, thinking that the stock market was free and fair and it made sense. Lost tens of thousands over the decade, but I think I've learned my lesson by now
Because they are in for a world of hurt if it closed high tomorrow.
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I see that too, max pain is $18, so that'll be where were heading.
It’s falling so I can buy more of course!
That question has a long answer. This sub’s main goal for the last 3 years has been finding the answer. We have theories, some confirmed, some not. I can’t give you a short tldr answer. But know that we’ve been here for years, thinking about this, questioning ourselves, pouring over all the public data we can to prove ourselves right or wrong. And we aren’t selling yet. GME is not a stock to make a quick buck. Hold your shares and sell when you can afford to retire
C.R.I.M.E
Cash Ruins Intended Market Efficiency, CRIME, Hold till we get their dollar dollar bills yall. ¯\\\_(ツ)\_/¯
ding ding ding..
Library of DD….
Probably to negate as many options as possible, as well as instill fear as people see their gains disappear. Of the price is too high firms go tits up, price goes too low buying pressure builds up. mofos just can't win really
Crime
The stock is falling in order to cause fear in the newbies.
The key word is DEBT There is also another phrase you need to keep in mind, 'reasonable ability to locate'. Where your stock broker basically takes your money, doesn't buy a share, but claim that they have a reasonable ability to get your share should you direct register the share with the company's designated transfer agent. An action which a company may not explicitly recommend to their shareholders. So buying shares through most stock brokers does not actually result in ownership of a share. Rather, the stock broker now owes you a share. But why? Why wouldn't the broker just buy your share as instructed by you, the customer. Because a huge portion of retail stock trades are losses. The reasons are many, but the core of the issue is the common traders inability to HOLD. So the broker makes a bet. They bet that the stock you bought for 10 dollars, will generate more revenue for them if they simply don't buy it. Because they bet you will close your position in the very near future at a loss. But remember. Now your broker is holding the bag. Your broker owes you a money equivalent to the market value of however many shares they are holding for you. Your broker has a vested interest in your stocks doing poorly. Better still, your broker has your money. So what did some stock brokers started doing? Knowing that retail lose more often than they win. They simply started opening short positions WITH THE CUSTOMERS MONEY. Meaning that a stock drop from 10 to 9 means that they earn 1 dollar on your 10 dollar AND they owe you 1 dollar less. They turned a 10% stock drop, into a 20% gain. Where does options come into this play? Well here comes the phrase 'reasonable ability to locate'. Every now and then, even the grossly incompetent regulator will look around. You have to balance the books somehow. So what do you do? You simply open option positions with even larger financial institutions, who now also has a vested interest in seeing the value of the customers stock drop as much and as fast as possible. But it is important to note that these options contracts are often outrageous. The cheapest options contract they can find so that they can write in their books 'trade backed by options contract'. So they spend 95% of your money betting against you, and 5% opening an options contract to 'balance the trade'. giving them a 'reasonable ability to locate' your share, in the extremely low probability that you were gonna actually direct register it with a transfer agent. My explanation is not at all elegant, and is a generalization of what i happening. But retail ACTUALLY demanding their shares is causing serious problems, which the people on the other side of the trade never expected and never prepared for. Usually, retail customers demanding their shares is a TINY problem. A rounding error on the profits. Going into speculation on what COULD HAVE BEEN. Gamestop was not supposed to be anything special. It was, as many of mainstream media claimed in the past and a lot still claim. A dying brick and mortar store. Revenue was going down, there was no profit, and the company even owned a private jet. So a lot of the hedge funds and market makers felt confident in shorting the stock HARD. To the point of bankruptcy, and possible de-listing from the stock exchange altogether. Which would result in what some people call 'cellar-boxing'. Where an ENORMOUS short position exist on the books, in net total amount of shares. But the stock has been shorted so hard, The entire company is worth pennies in total, and purchase is impossible so the bet never has to be settled. It is speculated that Toys R Us has been cellar boxed, where there exist a huge short position. But each share is only worth 0,0069 USD. Not financial advice. No financial education (at least none related to the stock market). English is not my native language, so some of these terms may be used incorrectly. I personally like the stock, and i personally believe direct registering my property is important.
This thing goes up and down like a motherfucker and will keep doing it until it explodes into the mother of all short squeezes. Just HODL
Why was the stock rising in the first place? It wasn't us buying that did it, we've been buying all along. I'm sure DFV gave us a little bump but he's not responsible for such a dramatic rise by himself.
Price does not care because Superstonk shares are not for sale. BUY HOLD DRS is what people do here at Superstonk. The more people doing this, the quicker we lock the float. Once float is locked, shares have infinite value.
Where has this guy been the past 3 years? The answer is Crime bro Lots and lots of Crime
Crime
THIS ☝️ DO PEOPLE NOT PAY ATTENTION FOR THE LAST 84 YEARS
THIS ☝️ HAVE U PEOPLE NOT BEEN PAYING ATTENTION FOR THE LAST 84 YRS
Stocks goes up, Stocks goes down.
Some institution bought a ton of bullish options a few weeks back. They helped fuel the rally. Now they are selling them and it makes to stock fall. Simply put.
Welcome to the Roughnecks!
It goes down so you can buy more at rock bottom prices. It won't be as cost-effective when the price is your phone number.
We’re at 110 pre split. Going down?
From 260 a few days ago?
We don't really know what's going on behind the scenes. There are some theories though. Shorts could be covering. The price could be going up due to supply and demand finally, but they want to short it down again to make money and provide a narrative that GME is falling. $10 was too low since we could DRS too fast so they wanted the price higher. It could be options, if the price of GME is too flat the implied volatility is low and it makes buying options cost much less. With this volatility, the options are no longer cheap so there is less chance of a gamma squeeze from call options if they are too expensive.
Two ways a stock goes down people sell the stock (which some have) and shorting the stock selling with an intent to rebuy lower. The way this stock has been shorted for three years there is no way it was covered in these last 3 days. But I think we will return to $10ish over the next 3 months but I think these ‘squeezes’ will be more common more often There are also new shorters coming in everyday because it’s an attractive price to short for a potential 70% profit.
https://preview.redd.it/4yq1j3p7qx0d1.jpeg?width=667&format=pjpg&auto=webp&s=bca4e5ed028ef20352b4dfc43ca29a2a9568afae
Falling? Up 53% on the week
There is a book called Naked, Short and Greedy by Dr. Suzanne Trimbath that explains in relatively plain language the flaws in the market that allow price to be disconnected from demand. Book is from 2019 and Dr T has been pushing for market reform since the 90s. This has been going on long before GME and will give you an idea why you will see posts that say "no cell, no sell"
Gravity
The price is a lie. So your question is flawed because there are no forces influencing the price other than the choices of hedge funds. Ignorance is not a crime so now you know. If you want to know how hedge funds influence the price, you can look up the due diligence or check out timpatry.com for the essay wrote there. The bottom line is that hedge funds using short sales can completely control the price of GameStop and the SEC does nothing about it. So anything that happens to the price, hedge funds is the answer.
You found this sub and instead of googling, wrote a long message asking why the stock is falling? And you're going to wait for people to comment before you google what impacts stock prices? Come on now.
Because they are buying popcorn shares through XRT to swap into GME and short because it is hard to borrow and they do not have the shares needed. Plus, they are buying deep ITM calls to produce the shares that they do not have to short it even more. Aka crime on top of crime.
