WHAT IS ACTUALLY GOING TO HAPPEN TO GME

[Anonymous No.12643307]

Short Interest is reported by the exchanges on semi-monthly basis for stocks that trade with the NYSE. The most recent report was short interest as of Jan 15 which is 226.42% of shares float increased from Dec-31 of 140%. This is because shares can be shorted more than once. - https://finance.yahoo.com/quote/GME/key-statistics?p=GME

Today, 9,606,123 new shorts were entered. It's not completely evident how many were covered but some paid services provide live estimates/data of current short interest. The short volume was in line with Tuesday's percentage of 16.89%. That is out of 58,494,600 shares exchanged today, 16.89% were shares that were shorted (sold on margin). This indicates an increasing short interest not decreasing. - https://fintel.io/ss/us/gme..

The days to cover is really just an estimate of how quickly all the shorts could cover their positions by taking the short interest (number of shares shorted) by the average daily volume. Because the volume has been increasing higher for GME this makes it seem like the "days to cover" - 2.81 may seem like the short position is declining but it actually indicates the opposite. I would expect this to be less than 1 when the short squeeze is underway (e.g. less short interest / average volume). - https://www.investopedia.com/terms/d/daystocover.asp.. This number is extremely high vs TSLA with a ratio of 1.09 or AAPL 0.88. This high number represents that the short squeeze is ready to hit at any moment but we are far from there.

At this point, the shorts think this is a fad and it will just fade away and so just keep re-entering to not only cover their loss but to earn profit off it's rise. They view that they haven't lost anything that can't be re-earned and aren't afraid of WSB army. Any fake news that say all shorts have exited is completely and 100% false.

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[Anonymous No.12643312]

In reality, the days to cover will actually be much more because shares have been shorted more than twice. A position to close takes 2 days. So at most, only half of the short positions could be submitted for close in a given day and then it would require 2 days for those shares to be returned to their rightful owners at which point the 100% of the 120% would be able to exit requiring another 2 days to settle leaving 20% short interest. The second half of the short will be totally and utterly fucked.

While I'm sure many tried to exit today at the drop of $125 if they shorted yesterday and many probably entered at today's high, it's clear that more has been entered via a ladder strategy - 100 shares @ $250, 100 shares @ $240, etc. dropping the price instantaneously but while this is intended to create fear it just exposed risk even more. So the shorts that were entered < $250 are now really screwed and either have to keep putting up more and more margin or cover their position.

I wouldn't be surprised if this continues well into next week or the week after. Wall Street has deep pockets and when the stock rises 100% - 300% in 1 day (e.g. like AMC and GMC), someone has to pony up that money to ensure the short position can actually be covered and if the people who borrowed the margin can't, the clearing firms members (the brokers) have to (hence why RH and WeBull had to halt trading because it became so expensive to the shorts that they, the brokers, were becoming liable).

This momentum took off way faster and higher than anyone could have imagined going up over 10x in 5 days (from last Friday to today's high).

I think for this to continue, it will have to have more modest consistent gains, 20-30% per day, because 100%+ jumps creates massive margin calls that the shorts can't fund quickly and so the trades at are risk of settling meaning the brokers have to be deep pocketed enough to cover the greedy suits.

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[Anonymous No.12643316]

basically, HODL. and dont let them kike you.