Almost 2 Years Ago
3 Min Read
Morning low-down on /r/Wallstreetbets featuring SPY, GME, and WFC
SPY is overshadowing the conversation on /r/Wallstreetbets this morning.
On /r/investing, GME and COIN are the focus of the morning while /r/valueinvesting is about GME, COIN.
Overall, WSB sentiment is bearish compared to bearish yesterday and bearish the previous week. WFC, COIN, JPM were the most bullish while traders are less optimistic about AMD, SPY, TLRY.
In other news, the top ranked comments today are:
Congo_King - 6255 upvotes - source
COKE is amongst many other blue chip stocks within Vanguard and Blackrock ETFs that are used as long positions when shorting tickers via ETF. To short a stock via ETF you must 1. Identify an ETF containing the stock you want to short without shorting the stock directly 2. Short ETF 3. Go long on the tickers within the ETF that you don't want to be shorting. Leaving you with large holding of shares in companies you deem "long" worthy. 4. Profit = short volume on targeted ticker via the NYSE ARCA exchange primarily This in effect leaves the tickers not wanting to be shorted in a neutral state whereas the stock meant to be short *cough* GME *cough* is left with a negative short sentiment from the ETF's creation shares. Once collateral starts snapping, like coke or any of the other blue chips in recent months then the stock that was shorted with this method will start being bought back as the long positions can't hold the pressure. Edit: My attempt at breaking down how this price action and shorting scheme works: 1. They short 10 ETF. Net exposure = -10 ETF, -10 GME, -10 COKE 2. They buy 10 COKE to remain neutral on COKE during the shorting play. Net exposure= -10 ETF, -10 GME, 0 COKE 3. Price in ETF rises and forces a margin call on the ETF short. 4. Forced to close ETF short, which buys both 10 COKE and 10 GME. You still hold the 10 COKE you purchased separately however. Net exposure: +10 COKE 5. Price rises in both COKE and GME 6. You give a couple days of talking heads pushing COKE and pushing a relief rally off the price action you just caused by getting margin called. 7. You sell off the last of your COKE for as much profit to try and pad the losses from getting margin called on the ETF position. Now multiply that process across the whole market and you get a system that you could never lose in. Unless of course someone started buying up and removing from the DTCC a stock you're extremely short on. Final Edit: For those increasingly worried I am uninformed that $COKE is different than $KO rest assured the point of the comment was not to hold $COKE up as the end all be all long position when they short via ETF. The comment was to attempt and simplify the process of shorting via ETF because I have found it to be extremely important and pertinent to the GME short positions. Shorting via ETF is abusing market maker privileges and exemptions to in essence print off more shares than should exist not only for GME but for hundreds of stocks. Rampant Shorting via ETF creates massive disparities in the actual float listed and actual float traded on all tickers involved. Infinitely scaling supply that never crosses demand is not supposed to exist in a fair market. Shorting via ETF has destroyed the transparency and overall operational safety of American financial markets, and will continue to have detrimental effects on publicly traded stocks until something is done about Market Makers and their colluding parties. Thank you for reading the thread and for your nice words as well. Ape together hard or something like that.
Chag20 - 5955 upvotes - source
Oh no….anyway.
SnooKiwis8695 - 3441 upvotes - source
Hey, how did you get in here with us retards?
Takenforganite - 3172 upvotes - source
Man I totally trust the dude from the mummy on this one
G_Wash1776 - 2854 upvotes - source
Gonna go DRS more shares 🤷♂️
MoneyNoob69 - 2740 upvotes - source
I was wondering when that was gonna happen 😂.
Rowinter - 2459 upvotes - source
They need it go to to $0, the problem is that the death zone (\~$20-80) comes before zero. The death zone is where all shares get bought up and DRSed, game over. The area between being margin called and the death zone is shrinking day by day. It's a thin line to walk. Tick tock...
viciousvixen187 - 2279 upvotes - source
Yeh I'm sure people just really want to sell their shares right before a dividend 🙄
Orange-Tractor1972 - 1750 upvotes - source
Good catch! Seems that there's fuckery afoot.
SameShit2piles - 1612 upvotes - source
I took this personally, just got off the phone with Fidelity and DRSed some more shares. Rep was super nice and took less than 5 minutes.
DisgruntledPOG - 1590 upvotes - source
About time someone airs the unedited footage.
swcorwyn - 1546 upvotes - source
So full marketplace launch 4:20pm pacific on the same day as the cutoff for the splividend? Bullish Edit: 7 days after the marketplace beta launch, 4 days before the split is traded. 1 rocket into Uranus Kenny boy. Edit 2: ok one more, I’m admittedly high. July 20th 1969 Moon Landing, right in the middle of the period between the cut off date and the splividend. Perfect time to announce your major partners, seeing as you’ve got a huge astronaut theme. Calling it. June 20th 4:20 pm. LIGMA. Or I donate $100 to a community group in need. Alright fair, I said I was high. I’m donating $100 to a small town sports team that had their equipment stolen. And July 20th etc etc. /I’ll fucking do it again.meme
On /r/investing, GME and COIN are the focus of the morning while /r/valueinvesting is about GME, COIN.
Overall, WSB sentiment is bearish compared to bearish yesterday and bearish the previous week. WFC, COIN, JPM were the most bullish while traders are less optimistic about AMD, SPY, TLRY.
In other news, the top ranked comments today are:
Congo_King - 6255 upvotes - source
COKE is amongst many other blue chip stocks within Vanguard and Blackrock ETFs that are used as long positions when shorting tickers via ETF. To short a stock via ETF you must 1. Identify an ETF containing the stock you want to short without shorting the stock directly 2. Short ETF 3. Go long on the tickers within the ETF that you don't want to be shorting. Leaving you with large holding of shares in companies you deem "long" worthy. 4. Profit = short volume on targeted ticker via the NYSE ARCA exchange primarily This in effect leaves the tickers not wanting to be shorted in a neutral state whereas the stock meant to be short *cough* GME *cough* is left with a negative short sentiment from the ETF's creation shares. Once collateral starts snapping, like coke or any of the other blue chips in recent months then the stock that was shorted with this method will start being bought back as the long positions can't hold the pressure. Edit: My attempt at breaking down how this price action and shorting scheme works: 1. They short 10 ETF. Net exposure = -10 ETF, -10 GME, -10 COKE 2. They buy 10 COKE to remain neutral on COKE during the shorting play. Net exposure= -10 ETF, -10 GME, 0 COKE 3. Price in ETF rises and forces a margin call on the ETF short. 4. Forced to close ETF short, which buys both 10 COKE and 10 GME. You still hold the 10 COKE you purchased separately however. Net exposure: +10 COKE 5. Price rises in both COKE and GME 6. You give a couple days of talking heads pushing COKE and pushing a relief rally off the price action you just caused by getting margin called. 7. You sell off the last of your COKE for as much profit to try and pad the losses from getting margin called on the ETF position. Now multiply that process across the whole market and you get a system that you could never lose in. Unless of course someone started buying up and removing from the DTCC a stock you're extremely short on. Final Edit: For those increasingly worried I am uninformed that $COKE is different than $KO rest assured the point of the comment was not to hold $COKE up as the end all be all long position when they short via ETF. The comment was to attempt and simplify the process of shorting via ETF because I have found it to be extremely important and pertinent to the GME short positions. Shorting via ETF is abusing market maker privileges and exemptions to in essence print off more shares than should exist not only for GME but for hundreds of stocks. Rampant Shorting via ETF creates massive disparities in the actual float listed and actual float traded on all tickers involved. Infinitely scaling supply that never crosses demand is not supposed to exist in a fair market. Shorting via ETF has destroyed the transparency and overall operational safety of American financial markets, and will continue to have detrimental effects on publicly traded stocks until something is done about Market Makers and their colluding parties. Thank you for reading the thread and for your nice words as well. Ape together hard or something like that.
Chag20 - 5955 upvotes - source
Oh no….anyway.
SnooKiwis8695 - 3441 upvotes - source
Hey, how did you get in here with us retards?
Takenforganite - 3172 upvotes - source
Man I totally trust the dude from the mummy on this one
G_Wash1776 - 2854 upvotes - source
Gonna go DRS more shares 🤷♂️
MoneyNoob69 - 2740 upvotes - source
I was wondering when that was gonna happen 😂.
Rowinter - 2459 upvotes - source
They need it go to to $0, the problem is that the death zone (\~$20-80) comes before zero. The death zone is where all shares get bought up and DRSed, game over. The area between being margin called and the death zone is shrinking day by day. It's a thin line to walk. Tick tock...
viciousvixen187 - 2279 upvotes - source
Yeh I'm sure people just really want to sell their shares right before a dividend 🙄
Orange-Tractor1972 - 1750 upvotes - source
Good catch! Seems that there's fuckery afoot.
SameShit2piles - 1612 upvotes - source
I took this personally, just got off the phone with Fidelity and DRSed some more shares. Rep was super nice and took less than 5 minutes.
DisgruntledPOG - 1590 upvotes - source
About time someone airs the unedited footage.
swcorwyn - 1546 upvotes - source
So full marketplace launch 4:20pm pacific on the same day as the cutoff for the splividend? Bullish Edit: 7 days after the marketplace beta launch, 4 days before the split is traded. 1 rocket into Uranus Kenny boy. Edit 2: ok one more, I’m admittedly high. July 20th 1969 Moon Landing, right in the middle of the period between the cut off date and the splividend. Perfect time to announce your major partners, seeing as you’ve got a huge astronaut theme. Calling it. June 20th 4:20 pm. LIGMA. Or I donate $100 to a community group in need. Alright fair, I said I was high. I’m donating $100 to a small town sports team that had their equipment stolen. And July 20th etc etc. /I’ll fucking do it again.meme
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