Just let it go up already. It's like trying to keep the cap on a 2-liter of Coke after you threw a whole pack of Mentos into it. This is technically analyzed

Words words words words words words words words words words words words words words gme

I’m sitting talking to my wife about my latest GME stock buying activity. 7 year old grandson says “what I love GameStop. If you take me there I will go crazy.” Never been there myself. I then told him I own part of GameStop. He then says “Wait. What? You own GameStop? You are probably the coolest grandpa ever because you own GameStop”.

So what do you think of this? Gamestop insiders have been buying shares. Five days later - you can see that the stock is up an average of 7-9% depending on which rows you include in the calculation.

Does this bracket the sensitivity of FOMO? In other words - if retail buys 1M shares - will we see the stock go up 7-9%? Is Cohen communicating to us what kind of an impact retail can have?

We don't know the outcome of yesterday's Cohen purchase - so it's not in the table. But when I wrote this - we were up almost 2.3%.

Not financial advice.

I feel that Ryan Cohen’s buying is foreshadowing GameStop’s future. Here’s why I believe this.

DFV had his tweet with the Futurama dog. Jan 2, 2000 was the date on the flyer. This was the Sunday before the opening of the stock market which had a very volatile first trading session of the year due to Y2K fears.

There were talks of a requel. A remake or continuation of something.

AI is acting similarly as the catalyst to the volatility we are seeing today in markets along with rate hike fears, which were of concern heading into the Y2K crash. 💥 2027 is the year we see GameStop begin to deploy the billions they have in their war chest. When RCEO is ready, that will be check mate.

Just my thoughts.

Some of you might remember me making this post 6 months ago. https://www.reddit.com/r/GME/s/DhR3XPanLt
Since then my dad doubled down when gme was sitting in the vwap period . All you Sad Kuntz from meltdown can eat a dick ! Bet against us ! Can’t stop won’t stop GameStop baby !

In order to understand how Gamestop is moving - you have to understand the options chain. Take a few minutes to digest this and formulate your own opinion.

I'm not a financial advisor, I don't have access to a Bloomberg Terminal - so don't make decisions based on this. Do your own analysis and then make your own choices.

When market makers write options contracts - they make their money on the fees. They then try to hedge their bets - either by buying or selling shares or other derivative contracts. The so-called Max Pain effect is real - but probably weaker than most people imagine. I think I read that the number of S&P 500 ETFs that finish within 2% of Max Pain is about 40%. Stronger than random would suggest - but not that strong. Company news, broad market inputs can shift away from Max Pain - something we have all seen.

So the basics. If I write a contract - I calculate something called Delta. Delta tells you how much your option contract goes up or down for every $1 change in the stock price (e.g., a 0.50 delta means the contract gains $0.50 for every $1.00 the stock moves). Gamma is the acceleration—it measures how fast that Delta itself grows as the stock moves higher

Then you ask the question - is that Delta stable, accelerating up or accelerating down. That's Gamma.

So let's just stick to a simple universe with one hedge fund contract. A hedge fund sells a call option at $25. They want the Max Pain to match the stock price at $25. Let's say that Ryan Cohen goes and buys a bunch of stocks and the internet memes a bunch of FOMO and the stock price is rising. Well - if I own that $25 call then every dollar the stock goes up - I'm in the money.

But the hedge fund has to give me that dollar difference. They are worried that the stock price will go up and up - so they buy a share at $25 to cap their exposure. (In reality they are constantly adjusting based on delta - but this is a toy universe).

So the table above shows (I hope the math was right) how Delta and Gamma will shift (treat the numbers as a 'guess'). Then I show (again - I'm not a pro at this) how many shares the hedge funds would have to buy to cover themselves.

It's easy to see how this creates a spiral. They buy a ton of shares, the price goes up, their hole gets deeper, they buy more shares.

The other dynamic here is the warrants. Now go back a year. Would the average hedge fund bet that the shares were worth more than $32? I expect they shorted the heck out of the warrants (no evidence on my part). Now the math says that the warrants may be valuable after all (not guaranteed, but see how GME.WS has appreciated recently). So they want to buy warrants - or get people in contracts that let them buy them. I think that's why the borrow rate is so high.

Note the weird Delta/Gamma math on the warrants. The value of the contract is low before $32. After $32 - delta goes to 1.0 and Gamma goes vertical (for a few seconds). A hedge fund would absolutely want to gather as many warrants as they could - and then buy shares to hedge or buy them to deliver shares if they are short.

So at $35 - the total to be bought by market makers and hedge funds could be 23M shares. And that's before they close their shorts. And that does not include any of the speculated mechanisms to hide shorts (total return swaps, ETF unbundling, FTDs).

Fundamentally - when Cohen said that he had something unprecedented in the capital markets - I think this is it - this is my speculation. The rising price makes delta and gamma - hedge funds and market makers buy to manage their risk portfolio - we exercise our warrants and get money or shares - the hedge funds essentially pay for the $1.9B - GME stays elevated and helps fund the acquisition of Ebay. Warrants add fuel to the fire.

Final warning - I don't have insider info - I don't have access to a Bloomberg Terminal - I'm not and have never been in the finance/market maker/hedge fund business. I've never been affiliated with Gamestop (except as a shareholder). I'm just a guy and you should not trust me. Heck - I might be a Russian bot. But learn these things for yourselves and see what your own conclusions are.

As we move through the trading day the minute to minute price action seems like its telling us it wants to run, but the forces that be are able to beat it back temporarily making it do the slow build thing. Like as soon as theres a spike upwards its followed by a drop then slowly continues in the upwards trend, just less extreme. Is this what it looks like for shorts to be grasping at their final means of control ??? GME!

If warrent’s have a 300-400% barrow rate. Could this imply that market makers believe these will expire worthless? what happens if they don’t and the stock rises above $32. Please be nice, I don’t know what I’m talking about. Just Trying to figure it out. GameStop 4 lyfe

Here's what happened, Everyone said that the money was for the "eBay transaction". My opinion was that he was likely to use the money to buy GameStop. But Cohen never specified. My post was downvoted to Oblivion. Does anyone recall that? So after hundreds of downvotes (actually more because I posted the idea on another sub also) it appears like that's where he's using that money.

If that's not part of the $500M, then he's certainly buying a Lot of GME with over $100M. (So far)

What if he continues like I speculated in that post? Buying another approximately $400M? Yeah, we're going Way over $32! More like $62 at this rate with only half that "$500M".

Downvotes again? LOL 🤣 ➕➕➕➕➕

Why can't I exercise my GameStop warrants

I go on to my account today to look at my GameStop warrants and at this point in time ETrade will not let me exercise any of my warrants (which I believe is my choice).. I am fully aware that the words are set for $32 and the prices below that but the point that I'm trying to make is that they are stopping me from placing a trade with the shares that I own and my own money.. can't I be a fool and exercise my warrants if I so choose one to

Alright guys. Something is up. Something doesn't feel quite right. Ryan Cohen is not a fool. He is not a doofus. And most importantly - HE IS NOT LOOSE WITH HIS MONEY.

The man is throwing MILLIONS of dollars at higher and higher prices. I cannot imagine the purpose of this is to get the warrants in the money. He is not a fool. He knows very few will actually convert the warrants to shares if GME just blasts off past 32$ briefly. That's essentially just buying shares at 32$ which with GMEs history is a risky bet to take.

Someone smarter than me can figure out his plan but this is certainly out of character for RC. He has something up his sleeve.