Comment by MURDERWIZARD on 27/01/2021 at 00:22 UTC

201 upvotes, 5 direct replies (showing 5)

View submission: /r/wallstreetbets is making international news for counter-investing Wall Street firms that want to see GameStop's stock collapse. The palpable excitement is off the charts.

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Big name investing firms thought gamestop stock was going to fall, so they invested in bets that the stock would fall. (if the price drops; they make money; if it goes up, they lose money).

WSB is full of dumbfucking madlads and they all started buying "calls" of gamestop stock; which is basically the opposite bet. They reserve the right to buy the stock at a certain price within a certain timeframe. So even if the price goes up to like $80/share but they reserved it at $10; they still get to buy it at $10; for a guaranteed $70/share profit.

As you can see from this graph

https://www.google.com/finance/quote/GME:NYSE?sa=X&ved=2ahUKEwjGuNLu67ruAhVJCM0KHdgXB_4Q_AUoAXoECAUQAw

So big investing firms are losing fuckloads of money and a few select lucky madlads on WSB have made *YUGE* gains.

Or as I saw one user aptly put it last night "We can be retarded longer than they can stay solvent"