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/biz/ - Business & Finance

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File: 85 KB, 1396x772, Melvin to zero.png [View same] [iqdb] [saucenao] [google]
26634652 No.26634652 [Reply] [Original]

Melvin Capital is a ~$20 billion hedge fund. They're going bankrupt due to their short position in GME. But, before they do become insolvent, they will be forced to liquidate their portfolio. If you're long any of their long positions, or short any of their short positions, you may not want to be when they do go tits up. But, I'm also a retard, so what do I know?

>> No.26634710
File: 46 KB, 928x732, this goy.jpg [View same] [iqdb] [saucenao] [google]
26634710

>own 1 share of GME
>limit order sell it for $10,000,000
>Melvin Capital is legally required to buy back 130% of GME shares
>they MUST buy your share for $10,000,000
money printer go BRRRRRRRRRRRRRR

>> No.26634834

>>26634710
They don't have to buy your share.
They can buy the same shares multiple times.

>> No.26635008

>>26634710
all 130% short sells do not get liquidated at the same time lol

>> No.26635159

>>26634834
>they can buy the same share multiple times
I call bullshit, theres no way. What's stopping them from buying the same share for $1 over and over again?

>> No.26635250

>>26634652
I was eyeing Thor the other day. Hopefully will get it at a discount.

>> No.26635432

>>26635159
>they cant buy the same share multiple times
>they can short the same share multiple times
i dont understand stocks i just buy when i see green bar go up

>> No.26635582

They own like 8% of all AEO shares? wtf...

>> No.26635597

>>26634652
holy shit anon
Electronic Arts deserves death
can we kill them?

>> No.26635682

>>26634652
Bump for peeps so they can jump ship while they can.

>> No.26635731

>>26634652
They get fucked on Friday, right? I was wondering why there's been no news from them today considering GME mooned 90%

>> No.26635737
File: 211 KB, 1263x578, Screen Shot 2021-01-26 at 11.36.29 PM.png [View same] [iqdb] [saucenao] [google]
26635737

kill it
get madden faggots to boycott next years game
good luck

>> No.26635995
File: 44 KB, 975x481, overextended.png [View same] [iqdb] [saucenao] [google]
26635995

>>26635731
>>26634652
There's no more shares to buy. The higher this goes, the higher the interest is they have to pay back. The longer this goes, the more they lose. Their hands are tied as long as the public holds the shares and trades between themselves.
>pic related

>> No.26636059

>>26634834
No fucking way. That would defeat the entire purpose.

>> No.26636060

>>26635597
>suggesting a coordinated short against EA, akin to the short against GME that will result in several hedge funds to go bankrupt

I'm in

>> No.26636065

>>26634710
/pol/ always makes the most retarded posts

>> No.26636140

>>26635582
Would this make AEO good to short?

>> No.26636163

It's ironic they're in Chewy. IYKYK

>> No.26636173
File: 182 KB, 800x946, Icarus.jpg [View same] [iqdb] [saucenao] [google]
26636173

>>26635159
This is probably bait but I'm worried frens will lose money, I sold near close today.
>What's stopping them from buying the same share for $1 over and over again?
They'd have to find people who are willing to sell the share for $1
It's pretty based that the price has been driven up this much but people will take profits and they will cover their shorts, it's not an infinite money glitch.
Theoretically it could be but an authority would probably intercede and even if they didn't people holding shares will eventually (and have been) selling.
Bleed them by all means, bleed them dry if you can however we've done nothing if we don't take profits. You don't want them to be in the black, you want that for yourself. Fly as close to the sun as you like, I absolutely understand the appeal, just know the risk you're taking.

>> No.26636175

>>26634652
Big brain plays right here.
>>26634710
Good analysis.
>>26634834
Yes, but only if they can sell it to someone else first. If redditors arent selling, then tough luck.

>> No.26636254

>>26636059
It doesn’t dumbass. They can buy a share for $200 to satisfy the short sell and the buy that share once again once it’s on the market. They don’t have to buy someone’s billion dollar share you retard

>> No.26636340
File: 76 KB, 1188x453, lmaooo.png [View same] [iqdb] [saucenao] [google]
26636340

>7 clients
>10,500,000,000 dollars
These guys are gonna get shot by a hundred thousand dollar hitman and it'll be ruled as a suicide by a million dollar coroner.
https://whalewisdom.com/filer/melvin-capital-management-lp

>> No.26636355

>>26634652
What a shitty portfolio my god

>> No.26636390

>>26634652
EXPE, one of Melvin's largest holds, appears to have been liquidated today

>> No.26636406

>>26634834
I must not understand economics because your post didn't make any sense to me at all. How can they buy the same shares multiples times and why would that be allowed?

>> No.26636450
File: 33 KB, 633x406, EXPE.png [View same] [iqdb] [saucenao] [google]
26636450

>>26636390
Forgot to attach the image fuck

>> No.26636478
File: 1.28 MB, 1620x1620, spartan.jpg [View same] [iqdb] [saucenao] [google]
26636478

>>26636175
> If redditors arent selling, then tough luck.
"You are advised to submit without further delay, for if I bring my army into your land, I will destroy your farms, slay your people, and raze your city."
The Spartan ephors again replied with a single word.
> If.
/biz/ is now letting it's inverstment strategy rely on the supposition that redditors will behave like spartans.

>> No.26636552

>>26636450
>By Thursday Melvin's sole holding will be GME shorts
Only if

>> No.26636588

Can I short Melvin capital?

>> No.26636602

>>26636340
kek

>> No.26636620

>>26634652
this is why you never use options/shorting/stop orders/margins
but what do I know, I dont have a hedge fund accreditation degree

>> No.26636639

>>26636588
yes, checked

>> No.26636884

>>26634652
Wheres Amazon?

>> No.26636902

>>26636340
>as a final discourtesy Gamestop hires a weaboo assassin

>> No.26636910

>>26636884
In south america

>> No.26636958

>>26636173
Fuck that, I can afford to lose 100% of my position and still write it off on my taxes and have 0% actual loss
They can't.

This is free money

>> No.26637119
File: 77 KB, 1452x457, Melvin dun goofd.png [View same] [iqdb] [saucenao] [google]
26637119

Here are some of Melvin's short plays. Notice a pattern?

>> No.26637338

>>26634652
I don't own any of that dogshit. This is the the best a billion dollar hedge fund can do? Thanks for the heads up though.

>> No.26637381

>>26635995
If they're short more shares than shares exist, is it even possible for them to close? How does that work exactly?

>> No.26637515
File: 225 KB, 786x2260, Melvin_fucked.png [View same] [iqdb] [saucenao] [google]
26637515

>>26637119
They're all mooning, I presume. I'll check to see how many liquidations Melvin has done for their puts but in the meantime here's a general collage of some of their (probable) exits.

>> No.26637558
File: 473 KB, 755x465, driving.png [View same] [iqdb] [saucenao] [google]
26637558

>>26637119
>Mfw my portfolio is better than people who get paid millions of dollars

What the fuck?

Am I retarded or are they retarded?

>> No.26637591

>>26637381
they all jump off the top floor and lenders cash in on their life insurance

>> No.26637703

>>26637381
>If they're short more shares than shares exist, is it even possible for them to close?
That's why the price of GME shares are mooning, anon. They (or their insurer or brokerage) MUST cover. Hence the term "infinite squeeze."
>>26637515
Bingo. Melvin managed to get wildly short on some of the highest shorted companies. This shit will be taught at business schools as a case of "don't fucking do this shit right here."

>> No.26637795

>>26636958
When you lose money you only deduct the taxable income, not taxes owed.. you still lose most of your money lol...

>> No.26637811

>>26637558
These are boomers doing what they've done for thirty years, they're also meant to only do real safe investments as far as Hedge Funds go.

>> No.26638000

So I should throw puts on these right? Please help I missed the BTC, ETH, BTC, LINK, TLSA, GME rockets, but if throw a few puts on some of these I should be guranteed to make money correct?

>> No.26638004

>>26637811
But seriously though

Bed Bath and Beyond?

Really?
That shit was like $2 at the start of the year

>> No.26638123

>>26638000
Checked. Yes. But it is easier to just buy the stock tomorrow morning and sell it on monday or later.

>> No.26638141

>>26637558
start a hedge fund anon

>> No.26638153
File: 1.30 MB, 1284x1463, 71F2A7AE-E493-460A-8749-F6BD48675DC9.jpg [View same] [iqdb] [saucenao] [google]
26638153

>>26634652
Melvin Analysts and Managers Rn

>> No.26638171
File: 179 KB, 370x370, 1469247392712.png [View same] [iqdb] [saucenao] [google]
26638171

>>26634652
>EA

>> No.26638243

>>26636173
fuck off shill

>> No.26638538

>>26637558

They're retarded, but they have backers with lots of money.

>> No.26638578

>>26638000
nice trips
I plan to buy long-dated (min 6 months) At The Money puts on GME if / when it hits $2,000. If it doesn't hit $2k, no big deal. If it does, they should print.

>> No.26638645

>>26634652

why isn't GME on the OP list? how do we know this is even melvis shit

>> No.26638698

>>26634710
GME has plenty of authorized shares they can convert to outstanding shares and give to Melvin.

>> No.26638699

>>26634652
They have a 20% stake in carmax and that stock is hot right and I think based on a quick google decent earnings with even better coming from bidenbux people constantly buying used cars or on credit losing them. Decent dip to buy when their shares get offloaded I think?

>> No.26638719

>>26637119
explain the pattern to this retard, please

>> No.26638747

So reddit got played bc China/TenCent wanted to buy EA Games for cheap? Consider who owns reddit as well.
https://www.fool.com/investing/2021/01/25/tencent-reportedly-could-make-a-multibillion-dolla/
What does gamestop have to do with EA aside from Melvin Capital? Appently theres some history to it.
https://www.fool.com/investing/general/2015/11/26/dont-punish-electronic-arts-inc-for-gamestop-corps.aspx
Im not really sure what I'm looking at here but OPs image makes me more suspect now. Maybe recent events mean the plan was foiled but I think melvin also got played here. Theres always a bigger fish, especially considering one of the other companies on that list and their reputation...

>> No.26638749

>>26638645
>pic source
https://fintel.io/i/melvin-capital-management-lp

>> No.26638835

>>26638719
see
>>26637515 and
>>26637703

>> No.26638845

>>26636588

Ooo that’s an idea. Anyone know the symbol?

>> No.26638905

>>26637558
You're missing the point here anon

These rich jews just get a gigantic pile of money together then use it to make super obvious plays. A company is dying? Short it! They open themselves to *theoretical* infinite risk but that never happens in good goyim land so they cash billions from watching dying companies continue to die. You don't need to take risk when a small % on your Jew gold hoard is worth so much. The hilarious part of course being that the risk was there the whole time they just didn't care because they bought so many mansions.

>> No.26638941
File: 97 KB, 629x548, ogodmahballs.jpg [View same] [iqdb] [saucenao] [google]
26638941

>>26638749
thank you based anon

>> No.26639115

>>26638004
It’s called valuation. Very basic market knowledge
Buy when it’s low sell when it’s high.

People are literally doing the opposite and telling people to buy a stock that has increased almost 1,500% in price in like a week.
The entire valuation is speculation

>> No.26639135

>>26635159
The puts don't all hit at the same time, people they sell shares to will just turn around and sell those shares back to them at a profit
If you set your share at ridiculous levels people will be willing to sell shares before you

That being said, definitely put your limit order above $1k

>> No.26639265

>>26636958
Buy stocks for $100,000 loses half value. Sell, now have $50,000. You can deduct $50,000 ( your losses) from your income. So say you made $70,000 this tax year. You will only be taxed on $20,000. You still lost a shit ton.

>> No.26639347

>>26636588
just take the opposite positions
(ie long GME, BBBY)

>> No.26639398

>>26639265
I'm not talking about buying $100k lol like Chamath, I'm talking about throwing $1000 at it for the keks

>> No.26639679

>>26634652
Good short candidates are ones that have low short interest. Pick a company you hate (like EA) and set up a short position. Shorting 100 and buying a call also helps protect you from downside if you feel uneasy.

>> No.26639789

>>26639679
That works until short interest rises to over 50%. Then all of a sudden I have to long EA and I think I'll eat a bullet before I do that, tbqh

>> No.26639845

>>26639789
The call option allows you to close your position at a set price. You do not need to pay market price.

>> No.26640169

>>26636173
Sell enough of your stake to cover your costs and HODL the rest.

>> No.26640667

>>26639845
ugh, even the idea of holding an EA long call makes me physically ill.