Re:GameStop Is Rage Against the Financial Machine
by nostrademons on Wednesday January 27, 2021 @07:02PM
(#25935998)
80% annualized is tiny on a daily basis - it's like 0.25%. They can afford to wait until next week when WSB has moved on to AMC and BB. Sustaining these high prices requires a continuous influx of new money; once the folks who believe GME is going to $1000 have already bought, what's left are the folks who believe it's worth $10.
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Re:GameStop Is Rage Against the Financial Machine
by conanbatt on Wednesday January 27, 2021 @10:28PM
(#25937783)
It's a huge tax. You cant hold that more than a few weeks and you need a huge upside.
Re:GameStop Is Rage Against the Financial Machine
by dcolkitt on Thursday January 28, 2021 @12:17AM
(#25938494)
> you need a huge upside.
Shorting a stock at $300, when it was trading at $16 last month is pretty much the definition of huge upside.
Re:GameStop Is Rage Against the Financial Machine
by conanbatt on Thursday January 28, 2021 @02:30AM
(#25939181)
True, but 80% a year means that you might have to inmobilize a multiple of the capital and by 6 months lose half the investment.
Note that if you short at 300 and it flash jumps to 1000 you are toast.