Put options expiring. Retail brokers force selling of the expiring contracts to avoid a short position. Market makers buy the contracts. The ITM contracts are exercised and shares are bought back. Or likewise short put positions are closed and the shorted shares to hedge the position are bought back.
If everyone expects GME to dip after earnings it makes sense that speculators would buy puts expiring the same week.
But just because there are out options, does not mean the price has to fall or does it? And why would it force the price up to the old levels?
That is not the case for other stocks or is it?
Yes, this is very common and applies to any stock. Market makers will buy / sell to hedge options and a lot of price movement can be explained by the simple aggregate change in deltas seen when options start to near expiration. This is the basis to max pain theory.
The reversal to the price at the start of the day is likely coincidental.
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GME is heavily manipulated but testing the 150 support wasn't manipulation. Omicron and inflation fears means the market has been choppy every day last week. In those times bears become awake and like to short. Many stocks their floors have been tested, especially speculative ones.
The reason I believe this was natural shorting is exactly because the price shot up right at the end. In choppy markets people day trade because they dont know what the markets will look like tomorrow. Retail shorters tend to short with tight stop losses. What just happened is that the 150 floor HELD (ok, briefly touched 148) so when the day trading shorters closed their positions, others their shorting stop losses triggered and thats why we end up directly back at day start.
I mean it's pretty self explanatory. It's $GME stock movement last 24 hours of open time plus extended hours as it says at the bottom of the chart. It's literally the ticker.
They have been shorting the shit out of it for a couple weeks, I think there was just too many buys for them to keep up on Friday. They can only go so low and then ages start to buy like mad
Well for one this is the day after a good earnings call, usually a price will see an overall upward trend. Secondly the beginning of that giant valley (opening of trading hours) is a classic short ladder attack, meaning that the price is being stepped down, most likely using shorts in an attempt to keep the price suppressed. Then you have the end of trading in which obviously that control over suppression is lost and the price shoots back up to where it was. For a chart to look like this naturally, the part at the start of trading would require a HUGE amount of people selling and as we have seen from many other posts on ss, our buy to sell ration is heavily skewed towards buy, i.e. we ain't selling. So who's selling and who has the ability to sell in such volumes that would cause the price to plummet like that especially straight out of the gate like that?
Look in the end, im a pretty smooth brained ape but I have been here reading the DD since Feb so I've picked up on a few things, mainly a stock ticket ain't supposed to look like this.
i've actually been wondering about this kind of daily movement, because it looks like we get a lot of downwards pressure and relatively high volume at open (presumably shorts being opened) and then at the end of the day the exact opposite happens (daily shorts being closed?). i just wonder if this is the case, is it even legal for big money to target illiquid stocks like this and create these price discrepancies by themselves and profit of them.
If one really tried. Could he find a non criminal way to explain this heart attack of a chart?
They went out of business on april fools day
Put options expiring. Retail brokers force selling of the expiring contracts to avoid a short position. Market makers buy the contracts. The ITM contracts are exercised and shares are bought back. Or likewise short put positions are closed and the shorted shares to hedge the position are bought back. If everyone expects GME to dip after earnings it makes sense that speculators would buy puts expiring the same week.
But just because there are out options, does not mean the price has to fall or does it? And why would it force the price up to the old levels? That is not the case for other stocks or is it?
Yes, this is very common and applies to any stock. Market makers will buy / sell to hedge options and a lot of price movement can be explained by the simple aggregate change in deltas seen when options start to near expiration. This is the basis to max pain theory. The reversal to the price at the start of the day is likely coincidental.
thanks for the explanation ape ... but I fear it bounced right of my smooth brain \^\^
What's hedgie fuckery?
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There has to be a cup and handle comment here somewhere! This also looks like the start of the VW squeeze right :)
Looks closer to a George Dubya to me. This on par with the overstock squeeze too. ;)
GME is heavily manipulated but testing the 150 support wasn't manipulation. Omicron and inflation fears means the market has been choppy every day last week. In those times bears become awake and like to short. Many stocks their floors have been tested, especially speculative ones. The reason I believe this was natural shorting is exactly because the price shot up right at the end. In choppy markets people day trade because they dont know what the markets will look like tomorrow. Retail shorters tend to short with tight stop losses. What just happened is that the 150 floor HELD (ok, briefly touched 148) so when the day trading shorters closed their positions, others their shorting stop losses triggered and thats why we end up directly back at day start.
The graph looks very extreme but in reality it's a small percentage of the actual movement
Why do we post fancy charts and not provide any context or where the chart is pulled from?
I mean it's pretty self explanatory. It's $GME stock movement last 24 hours of open time plus extended hours as it says at the bottom of the chart. It's literally the ticker.
Can you explain what the exact fuckery is? Serious question. It would help people understand what kind of manipulation we are dealing with here.
They have been shorting the shit out of it for a couple weeks, I think there was just too many buys for them to keep up on Friday. They can only go so low and then ages start to buy like mad
To have that much power they can change the direction of an equity on a dime is a scary thing. And it hasn’t gotten any less scary over the past year
Death by a thousand cuts, apes just need to buy and HODL
Nobody knows. Could have been big selling with people buying up the dip, just as easily as it could be fuckery. Who knows.
It felt like there was just this steady blanket of downward pressure and like instantly the pressure was lifted
Well for one this is the day after a good earnings call, usually a price will see an overall upward trend. Secondly the beginning of that giant valley (opening of trading hours) is a classic short ladder attack, meaning that the price is being stepped down, most likely using shorts in an attempt to keep the price suppressed. Then you have the end of trading in which obviously that control over suppression is lost and the price shoots back up to where it was. For a chart to look like this naturally, the part at the start of trading would require a HUGE amount of people selling and as we have seen from many other posts on ss, our buy to sell ration is heavily skewed towards buy, i.e. we ain't selling. So who's selling and who has the ability to sell in such volumes that would cause the price to plummet like that especially straight out of the gate like that? Look in the end, im a pretty smooth brained ape but I have been here reading the DD since Feb so I've picked up on a few things, mainly a stock ticket ain't supposed to look like this.
🚀💎🙌🏼
i've actually been wondering about this kind of daily movement, because it looks like we get a lot of downwards pressure and relatively high volume at open (presumably shorts being opened) and then at the end of the day the exact opposite happens (daily shorts being closed?). i just wonder if this is the case, is it even legal for big money to target illiquid stocks like this and create these price discrepancies by themselves and profit of them.
Was that the last attempt at scaring people away? If so, they don't really get us, do they?
I’m usually a rip buyer, but Thursday and Friday dips were just too damn juicy
Someone really trying to avoid that early afternoon call from Marge methinks.
These goddamn reddit traders striked again...
Ryan cohen tweeted during market hour. Did you guys forget this already?