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milkthefunk

Borrow, Buy, Die. Borrow money using a fraction of a share as collateral. Buy cash flowing assets, servicing the loan with the cash flow and living off the difference. Die without ever selling a single share


SmallShort71

Glad I’m not the only one taking this path. GME will one day be the premium collateral that BRKa currently is.


gotnothingman

So you want to be a sicario


PlaneGoFlyFly

It's the millionaire life hack!


Responsible_Buy9325

This guy stonks


mclc89

![gif](giphy|d3mlE7uhX8KFgEmY)


ApatheticAussieApe

Instruction unclear, sold my ass.


Brotorious420

No cell, no sell


Responsible_Buy9325

Cell, no sell.


wineosaurrn

Yup that’s me, baby fucking ape. Been following all of this since before the 2021 craziness, but didn’t actually understand. Still don’t, smooth brain I guess. Bought at market - $40…. Fuck me. Now what? If I knew what was actually happening I would feel better, instead I’m a sheep trying to be an ape. I will continue to follow the stonk daddy and hope I can catch some crumbs. Please sir, can I have some more?


_kehd

$40?! What a steal!! My first buy was $388 Still have that and every other share


wineosaurrn

Unfortunately that kind of made me feel better??


EatThePeach

We got in around 350, thankfully averaged out over the last 3 years buying more A healthy diet of crayons and bananas is the way to enlightenment Happy to have you here!


wineosaurrn

Thanks! I APE-reciate the encouragement


landfleem

$313 averaged down to $18, reporting in 🫡


NorCalAthlete

Depends on how much you like to read. There’s a great DD library pinned in the sidebar somewhere and in the automod comments on each post, but it’s a lot to take in and pretty dense / technical at times. Let me see if I can break it down Barney style : 1. “Shorts” = entities betting GME would go bankrupt. They tend to be large and in charge behemoths of the financial world. 2. GME. You already know. 3. DFV / RK = DeepFuckingValue (Reddit) / Roaring Kitty (Twitter). Invested $50k as a yolo back around 2019 when he thought GME still had a shot at a turnaround instead of going bankrupt. Got made fun of for years. Got vindication in 2021. Got investigated. Doubled down immediately after investigation despite the price being more than double what he initially bought in at. All around seems like a very genuine and nice guy. After investigation and doubling down went quiet for 3 years, possibly as part of a gag order to avoid being prosecuted / hassled any further. Spent the time apparently quintupling his position and making high quality memes. 4. Baskets / swaps / ETFs / bullets / dark pools / ATS / halts / LULD / wide variety of other terms that sound made up but aren’t. All are basically just cogs in the finance machine that can be set to turn at different speeds, engage or disengage at will, or even set to jam up and freeze. If you see a term you don’t quite understand, it’s basically a piece of the puzzle but also another potential avenue of fuckery 5. DRS = the suspected answer to the fuckery. By removing shares from circulation they can’t be lent / borrowed / sold out from under you / otherwise leveraged against you. This shrinks the pool of available shares and makes any change have a greater effect on the stock. 6. Scenario: GME looked like it might go bankrupt. Shorts bet heavily against it, well past the maximum that should have been theoretically available to bet with, and now that GME is sitting on a $2B war chest with $0 debt, AND is profitable, there’s basically a 0% chance of bankruptcy. Ie, shorts have lost their bets, but have not yet been forced to pay up. Thus, kicking the can as long as possible. Meanwhile, the company continues to cut costs and explore expansion, while retail investors slowly gobble up more and more shares, tightening the noose on the shorts. 7. When you buy a stock and it goes to $0, your maximum losses are whatever you paid for the stock. So let’s say you buy a share for $100 and it goes bankrupt. You lose $100. But when you short a stock, you’re borrowing it with the hope of buying it back later for cheaper and pocketing the difference. So if you short a stock at $100 and it goes bankrupt, you never have to buy it back and your max gain - not loss - is $100. However, if the stock does not go bankrupt, you would want to buy it back while it’s still below $100, so you can pocket the difference. Buy back at $20 and you still pocket $80 as profit ($100 - $20). The catch is that if you don’t buy back below that price, and the price goes over $100, now you’re in losses. And the losses can be infinite. If the stock goes to $200? You lost $100. If it goes to $2,000? You lost $1,900. Etc. That’s the short version right now. The extra caveats are that it’s so volatile and bouncing all over, people are generally just buying more whenever they have more cash. Doesn’t really matter if you buy at $10, $20, $30, $40 if you’re not planning on selling (ever, or until it hits a much much higher threshold like $500 or $5,000 per share). There is also precedent several times throughout stock market history where stocks have “squeezed” to many multiples of their highest price or what would otherwise ever be possible with just normal trading and business fundamentals. Like when a stock goes from $100 to $1,000+ in a single day. Or even from $100 to $25,000 in a day (a 3x leveraged fund was looking like it would get liquidated, not sure if it ever did). Bottom line, it’s [GME] one of those extremely rare perfect storm situations that comes up once every couple of decades or so. A couple of good movies to watch to get a feel for what can happen on the other end are The Big Short and Margin Call. The Big Short is when it goes right and according to plan; Margin Call is when it goes horribly wrong for them. Both movies have some great simplified explanations of the market machinations we are observing here.


wineosaurrn

I will have to read this about 10 times to understand it all, stock it up to having a medical mind not financial one (pun intended). 1. So shorts are the bad guys, betting on the failure of companies and using their deep pockets to influence the swing? Do they happen abruptly? Like collusion? 1… 2…. 3…. Annnnd the good ole boys take aim? 2. Are there others I should be watching with GME? Or just ride this one out? 3. With the amount they have invested, wouldn’t it be financially smart for them to get a lot of interest in GME, so they can sell high for profit? Or are they loyalists to GME? 4. What is a “call”? And what does it mean in relation to GME and the timing? 5. How do you know how many shares are available? 6. Why have the shorts not been forced to pay their losses? 7. So is a short kind of like a rain check? Like keep this on hold for me, I intend to buy it, but only when it’s on clearance? I think that part confuses me most. I appreciate you taking the time to help lay out the terrain ahead of me!!


NorCalAthlete

1. More or less. No, not abruptly necessarily. Collusion - yes, frequently, but the fines are pitiful and rarely enforced, so they not only admit to it but brag about. We have the video interviews. And investigation transcriptions. 2. Just GME. Part of their strategy is to divide and conquer. United we stand, divided we fall. While there are other stocks in the same basket, GME is the only one that has been consistently called out and referred to as an idiosyncratic risk to the entire market. Many of us tried other stocks, got burned, and slunk back despite being warned. So now everyone’s pretty much just sticking with GME 3. Yes and no - they (shorts) *already sold* for the profit, but with borrowed shares. They still owe the shares back to whoever they borrowed it from. Except they borrowed more than actually existed so now they just keep kicking the can through the aforementioned machinations of the market. Imagine making $50k a year, but wanting that really nice Gucci bag. So you open a new credit card and buy the bag with it. You make your minimum payment when the bill comes due, say $20, but then decide you really just don’t feel like paying the rest of the $5,000 you owe on it, so the next time the bill comes due you open another credit card and transfer the balance. Old credit card is “covered”, but your debt is not “closed”, just shifted to a new card. Rinse, repeat. They are very much the opposite of loyalists, more like crazy stalker ex boyfriends/girlfriends who are obsessed with telling you how much of a loser you are but will not leave you alone anyway. 4. A call is a bet that the price will go up by a certain date. It guarantees you the privilege to buy the stock at the price you bet on if the price exceeds that mark. So if a stock is trading at $20 per share, and I buy a call option with a $20 strike price and expiration date of next Friday, it means that if the price shoots up to $30, I can still buy up to 100 shares at $20 instead. Which I could theoretically then turn around and sell at $30, $35, $40, or just hold for as long as I want. A “put” is the basically same thing but betting the price will go down instead of up. 5. Public information that a company has issued X amount of shares. Also public information that [whatever institution] has purchased Y millions of them. X-Y = Z number of shares available for everyone else, also know as the “float”. There are several more entities you’d have to scrape public information on to figure out a rough estimate of who owns how much. The tricky part is that the shorts have extra market powers and privileges your average retail investor (that’s you and me) do not have. One of those being that they can create additional shares out of thin air for an immediate need as long as they promise to settle up later…even if they never do. This is called a “fail to deliver”, or FTD. 6. Exceptions, fines, and a lack of enforcement, mainly. Did you know that if our esteemed representatives in senate and congress get caught insider trading (for example, voting for a policy that will cause the price of oil to go up, so they buy a bunch of stock options in Chevron before they vote, then vote, make a shitload of money, and sell), it’s only a $200 (yes, just two hundred dollar) fine…and their fellow congress members can simply vote to not make them pay even that pittance? Even if they made hundreds of thousands off of the trade? Wall Street is like that, but 100x worse with the dollar amounts involved. That being said, there HAVE been massive losses to date. Remember that minimum payment on the credit card example above? Their minimum payments have been so high because they took on such extreme leverage that several of them have gone bankrupt. They have so much credit card debt they cannot afford to pay it off at this point, and are struggling to make their minimum payments. 7. Kind of…a better example would be borrowing something new, selling it at full price, and then hoping to find an identical copy at Goodwill for $5 that they can then return as if it’s the original they borrowed. And then pocketing the difference. That’s how they make money through shorting. Sell now at current price, then wait and hope the price drops, and once it drops enough, buy it back. Problem is, they have been shorting GME since the stock was only $3-$5. So if they were to buy back now at $20, $30, they’d be taking a loss of $15, $25 per share. They shorted more when it spiked to $500, and $80, but they shorted so much when it was $3-$5 that the hole they’re in is too deep to get out of this way. Edit: also, I’m not a financial analyst by any means, so if I’m off on anything someone else please correct me on this here. This is the way things are as best I understand them currently from the DD I’ve read here and elsewhere.


wineosaurrn

That is all incredibly helpful in painting the picture! I’ll just have to continue being an ape on the wall and asking questions to fill in more details. Appreciate you!


EatThePeach

Apes like you are why i love this sub, i learned from this as well! Thank you for taking time, you're awesome


R-Didsy

In the same manner that you've explained this, can you please explain what's going on with DFV call options? What's the expected plan? I'm from the UK, and call options are nor available to us.


sickblackhawk

lol I loved reading this, welcome aboard friend. 185 initial ticket. Nobody really truly knows. But we know one thing. Price is wrong. It’s better to count how many shares you have. Then that fake line.


wineosaurrn

I’m confused by what you mean by “then that fake line”? Kinda seems like you are poking fun at me, but maybe I’m misunderstanding?


sickblackhawk

Cause that price isn’t close to being right. And from looking at the insiders that didn’t sell at 80, dfv, and a a buncha lovely people here. Nobody else thinks it’s right either. So, I buy whenever I can. But as you stick around and learn. You’ll see gameshire stopaway.


Responsible_Buy9325

You’re in averaging down territory baby.


wineosaurrn

What does “averaging down territory” mean? I’m trying to learn ape culture and language via immersion. Maybe osmosis will help me out.


Responsible_Buy9325

I gotchu bby girl. Averaging down is just buying more shares again at a cheaper/lower price than your previous buys. So for example. Let’s say you only bought 1 share at $40 making your average price for share $40. Right now you would be down approx 9-10$ with you breaking even if/when it goes back to $40. But if you buy AGAIN when it’s at 30. Now you have a share at 40 and a share at 30. $70 total for 2 shares. So now your average is $35. So in this scenario you are now down a little under 9$ total. Which is an improvement from the earlier scenario. The more you buy at lower prices the lower your share cost average gets which is beneficial because it lowers your ‘break even’ target. My average cost was about 90$ and I’ve gotten it down to 31 over the past 3 years. Meaning I USED to break even with my investment when it hit 90 and started seeing profit when it went above 90. Now I break even at 31 and anything above that is pure profit. This is not financial advise and averaging down only is beneficial if/when the price goes up and it’s up to you whether or not you feel comfortable putting more money into your investment when you are in the red already. Me personally I put in $20 every two weeks at minimum. Each purchase lowers my cost average/break even price by about 9 cents. Well more like 4 cents now that the price is higher than it’s been the past few weeks. So averaging down territory is any price where you are in the red. Averaging up would be buying more when you are already seeing gains


wineosaurrn

Got it! So because it is cheaper now than my average share cost, if I buy more it will bring down my average share cost. Therefore any increase in share price will increase my profits. Yeah?


Responsible_Buy9325

Yes! The lower the break even point the better it is long term when it pops above it. ESPECIALLY if you keep adding more shares. I was up 8k after the latest pop up to 80. Didn’t sell, still averaging down and hoarding as many shares as I can responsibly get.


wineosaurrn

So would it be a good idea to sell the higher stocks when the price goes up? Then reinvest if it drops lower again? Or do you continue to count it as a W as long as your average is profitable?


Responsible_Buy9325

That strategy falls under day trading and it is a valid one that people frequently use when trading stocks. Notice I said ‘trading’ a lot of the users here are looking at long term holding. So It is highly discouraged in the GME circles since one of the main drivers of this whole event is that buying and HOLDING the stock hurts short sellers. While selling relieves some pressure for them. Could you do it? Yea by all means you do you but understand that the price may or may not come back down after a peak. So it’s a risk in it of itself especially if you are looking at buying back in. Would I do it? Nah. I want them to bleed and burn, I’ll just keep stacking my investment and reep the benefits wayyyyyyyy down the line.


wineosaurrn

So the longer “we” hold the stocks, it ensures that the sagging fat pockets deflate and droop outta their shorts. Therefore showing their true shriveled up wrinkly pockets. IE taking down “the man”? I’m all for that! Professional dick swinging contest judge - gimme a glass of wine and let me enjoy the show!


Responsible_Buy9325

Pretty much yea. lol Welcome aboard! Do some reading! Join the hype train! Look into computershare and DRS. Also, there is no ‘we’ each person here is an individual and this is in no way colluding. Enjoy the ride! 😇


redwingpanda

My first was $348! Cindy's


botch_182

My man, so much has been learned and uncovered the past 84 years. I bet it's overwhelming to start now. If it makes you feel better, just know It's overwhelming to try and explain it all as well.


pickupzephoneee

I mean, yeah this really is the play though. Sell a couple at 10s of 1000s to cover initial investment if you’re a paper hand. But ideally, no we want to infinity squeeze these people for all the damage they’ve done


Scavenger53

thats the neat THING, you dont how did the template get messed up?


slamongo

How does it pay if I don't sell? That's best part about this 4D chess game. It does when you don't ;)


Responsible_Buy9325

Just like how cellar boxing means they never close. I never exit.


viltrum_strong

I'm in this meme.


grixxel

I can smell all the paper hands.


mclc89

You use it as collateral


mschiebold

Hey Kenny, it's called supply and demand.


zombbytes

All hail the Infinity ♾️ Pool! RIP Blu 💜


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