The REAL Greatest Short Burn of the Century Pt 2: The Two Towers ($GME)

"Another $GME post?" Sounds like you've made up your mind. Just downvote me and buy puts. Cya later.

As for the rest of the open-minded. Let me be clear: IT HAS BEGUN.

As always, not financial advice. Just entertainment and bragging rights. Here goes:

Did you pay attention last time? If so, I hope you traded without emotion and made money.

Or did you ignore that wall of text and think you missed the $GME train? Fear not. The best is yet to come.

They say the original is always better than the sequel, but not in the case of $GME. This second leg is going to go better I than expected. And I didn't take any adderall today, so this post will be short and sweet.

To recap:

One thing to clarify from my previous post: Turns out Kenny G (Citadel) isn't going to work with us right now. Unfortunate, but not a big deal. They will join us in part 3.

Reason: Although the MM delta hedging math is correct, short % of float is NOT A TRIGGER NUMBER. There is no significance to the 100%+ short float. It just means it is high. Shorts are willing to pay insane borrowing fees to continue to short $GME on the thesis that they'll go bankrupt. So WSB monkey YOLO FD strategy will NOT cause a short squeeze. This much is obvious now.

Current day:

Ok we're done with the flashbacks. We'll cover 3 main topics very quickly. Short float, trendline, and news.

It's always hard to get this data. But as discussed on the @TheRoaringKitty stream, ORTEX is quoting 73M SHARES SHORT of $GME. ShortSqueeze is quoting 68M, but their data always lags and isn't very accurate. Either way, SHORTS ARE DOUBLING DOWN ON THEIR POSITION.

This puts longs in a better position because of the inherent pent-up demand w/ regard to the short covering in the future. However, this reeks of $TSLA bankwupcy news cycles pre-Q3'19 earnings. So expect a lot of hate coming our way from many news outlets. Don't lose your conviction. We'll be here to reassure you. For example, CNBC just put out a massive 12 minute hit piece on GME. Expect much more of this to come. This is the mother of all HODLs. Being contrarian is never popular, but it is lucrative.

Stand strong against the Two Towers (BlackRock and Fidelity).

Look at this console cycle graph here.

I believe there is credence to this trendline. But expect it to be rocky. Buy every dip. And if you're unemployed and want to watch markets all day, sell every spike.

If you're a mid-term gambler/investor like myself, buy and hold shares and Jan'21 $30Cs. I would not recommend you set limit orders if you have a fascist broker like Fidelity (which caps at +50%). $GME can easily pop 50% in a day. Also, according to S3 research, who I support, shorts and brokers are proven to be manufacturing synthetic shares in order to short more, meaning our limit sells does nothing except limit our own potential gains.

To go on the record: the MSFT partnership is a nothing-burger. Even if you include the implied revenue-sharing agreement, the news content is very lukewarm. HOWEVER, the fact that this stupid piece of news moved $GME 50% in one day shows how primed for launch this stonk is. Imagine a real partnership with Sony and Nintendo (Reggie Fils Aime with the lay-up). Or imagine $GME launches a digital gaming platform (Steam competitor). Kaboom.

There will be a massive battle of bulls and bears on the news cycle. Ignore everything except for SEC filings from GME and tweets from @GameStop itself. Everything else is a shill for a position (I suppose even this post).

Watch especially close for Ryan Cohen news. My spidey senses say he will be the final match to light up the shorts (tender offer, board position, executive position, or outright purchase).

Positions: $GME shares and Jan'21 $30C. If there is a -10%+ dip and cheap OTM weeklies, I'll buy those as well. $100 can easily turn to $10K as seen on Thursday.

Feel free to ask any questions or dispute any fact. I love talking $GME and will do my best to answer your question.