If you have not already heard about the #wallstreetbets @wallstreetbets from Reddit by now, you do not get out much. (Yowch too soon, too soon.)
In the stock market world (and I am not a fricken genius) there are companies who do research on what is purchased in OPTIONS. They send it out like a digital news clipping. On our own brokerages sites (not robinhood because it is literally designed for kittens to use) - On our own brokerage sites we can see what is being being purchased, what has been purchased, we can see actions happening. We can see the charts building to chaos. FOR GME someone spotted a trend- he collected data from these news sources and seen within the brokerage systems charts, which are made for us, that a lot of options, A LOT OF OPTIONS were purchased and these options were called shorts. Whoever bought these options were ...."hopeful" that this company would follow through on bankruptcy, YES GAME STOP supposedly was on the verge of death and these companies decided to pick off its caucus making billions.
What they did was buy shorts- they bought 140% stock options in the company...
the company only has 100% stocks to sell which means they over borrowed stocks that do not exists however had the plan gone through as they thought it would they would have made BANK on those stocks. The option strike price was probably under 5.00 probably under 3.00 or even less. Meaning GME stock price would drop below those numbers and they will make bank on over 140% of a dying companies last breath. But the stock price did not do what these "investestors" wanted it to do.
Wallstreetbets and the reddit user - r/deepfuckingvalue, (the legend)
Look him up on reddit that is his user name.
He mentioned what he saw and wallstreetbets community decided to go all in on GME, since Reddit users bought actual shares of GME they did not borrow them in a short call like the investors did, we bought actual TANGIBLE stock, which 5.00-9.00 GME spiked to 340.00+++ per stock. Where did that put those holding intangible borrowed short call option stocks?
they paid pennies on the dollar to essentially rent the stock, they over bought what exists and they bet the stock would hit "3.00" and then they would sell their rented stock. They rented the right to sell the stock. They borrowed the right to sell the stock at 3.00 betting the stock would drop, depending on when these were purchased will depend how much they paid probably pennies on the dollar.
Like I said I am not a effing genius, I am hoping this makes sense.
The investors who gambled away all of their clients money were discovered to be HEDGE FUNDS. They took a huge risk - it would have been aa huge risk to any of us YOU , ME ect. THEY DO NOT BELIEVE THEY SHOULD BE ALLOWED TO EXPERIENCE THE MARKET LIKE YOU AND ME. THEY ARE ABOVE RISK AND LOSS.
What does that mean?
WELL HERE IS THE SADDEST PART OF WHAT HAPPENED-
Us PEASANTS - you know commoners, no name, no life, we are just data to companies, we are nothing to them, people= Peasants
Us peasants who use ROBINHOOD, WEBULL, Ameritrade, ETRADE etc
went and bought GME, AMC, BB, Nokia, BBY, NAkd, etc BUT MOSTLY GME
which is Gamestop**. WhY- because these people bought the right to sell a stock of which they do not own and over bought and were not really buying it until it dropped to 3.00 ** We went in bought actual stock drove the price to 340+++ those short sellers renters of pretend stock are forced to BUY the stock, it was an agreement to buy it come the expiration date of the Option - meaning the price will go up even more. DO NOT GET ME WRONG IT CAN COLLAPSE AT ANY MOMENT however we have united in holding GME until after the options expire. Putting the system into a squeeze forcing it to possibly make us millions.
Who loses? well if I bought shorts like that I would be losing millions of dollars for renting the option to sell the stock I do not own yet hoping it drops to 3.00 to fulfill my agreement making millions. WHO WOULD BAIL ME OUT?
WELL IN THIS CASE HEDGE FUNDS OF New York LOST.
Melvin something. and some others.
They lost billions. GUESS WHAT HAPPENED TO US?
CENSORSHIP- the reddit community was shut down off of reddit, the discord communication was shut down on discord (which is supposed to be free speech), TWITLER shut Wallstreetbet down and I would have to imagine that FB did too.
ROBINHOOD AMERITRADE ETRADE and many others CENSORED the people- US from being able to BUY stocks in the companies I listed.
THEY SHUT YOU DOWN ON THE STOCK MARKET.
IT IS NOT ILLEGAL to READ DATA, it is not illegal to share PUBLIC data we have read with others. AND SOMEHOW it Is legal to shut the people down for communicating what they know with each other and prevent them from making money of the market like greedy corporations do EVERYDAY.
The hedge fund companies have already requested BAILOUTS, what happens if that was you? where is your bailout?
How about this whole censorship bullshit? How about the double standard that these companies knew the risks they read the same terms and conditions we have to and they get to control if a platform shuts us down, stops us from buying GameStop? Shut you off of social media?
Do you know what caused the crash the stock market crash back in 2008? go look it up.
Is this political, is this just plain old greed, corporate America ..... I don't know.
People vs the system?
They love the manipulation and want to crush down dissent. They're crying on their mainstream television networks and playing the victim after they supported the economic crash back in 2007-2009. They deserve what they got and now want to act as if we all should be penalized for doing what they do every day.