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The Profit Path Of A Short Squeeze Ends With A Gotcha.
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Joined: Jan 01, 1970
|Post subject: The Profit Path Of A Short Squeeze Ends With A Gotcha.
Posted: Fri Jan 29, 2021 7:15 am
1. The short seller(SS) borrows stock from someone for x dollars and then sells it immediately.
The $x the SS receives are held as collateral for the stock shares borrowed.
SS repays borrowed stock by BUYING BACK shares in the market.
SS WINS when he can buy stock back for less than the x amount and pocket the profit.
2.SS LOSES when stock goes over x in price causing a loss.
3. The squeeze starts when SS is forced to put up more money
to cover the amount over x that SS must pay out to buy back the stock.
4 PANIC SSs frantically buy stocks to cover margin call losses.
5 TOP of Squeeze, no more Short Sellers left to buy back stocks at insanely high price.
6.Who Owns The Stocks???? at these insanely high prices?
7. The Squeezers who bought them on margin.
OOPS, the down move is faster and much deeper because there are no buyers left.
8. CONCLUSION: SS have already sold when they shorted the stock.
Now having been squeezed out, they NO LONGERare the contractual buyers.
In short, SS are a big shock absorber under a market guaranteeing buyers which stops PANICS unless squeezed out.
A selling panic ensues when the buy on margin longs realize the one great truism in all markets.
UNTIL YOU SELL AND GET THE CASH, YOUR STOCK CERTIFICATE IS JUST A NUMBER IN THE FINANCIAL SECTION
Thank God it is legal for Robin Hooders to politically band together to demand the right to massively
overpay for a corporation that has always operated and will operate in the future at a loss.
GOTCHA Someones sold this worthless stock at an incredible profit to some live ones.
They have the cash, I wonder who?
ANSWER: The lenders of the stocks to the short sellers. Certainly some of them are very clever
insiders at GME with lots of printed up stock certificates to sell.
Who are the pigeons now? Looks like some "very greedy and ignorant of how short selling works"
millennials comprise the majority of them.
"I swear to speak honestly and seek the truth when I use the No 1st Cost List public record."
Last edited by Dan on Sun Jan 31, 2021 12:56 pm; edited 4 times in total
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