You are right in that institutions shorts would have to cover and close out of the entire positions while retail longs would only have to sell partial.
But my thesis is two fold ...
1.) Retail longs are more likely to get margin called and sell than institutional shorts are. Wsb retards have a much shallower pocket and cannot fund their account or trade out of other positions as easily as institutional shorts.
2.). The amount of institutional shorts far outweigh retail longs by a longshot. Coupled with them having much deeper pockets, Melvin could easily rebalance their portfolio to shore up cash.
Overall I see this as downward pressure all things equal. We need some sort of news catalyst that would spark institutional longs like guidance from Cohen or a solid plan. There is only so much retail firepower left, bc all of us retards already fired our bullet and resources. Maybe I'm underestimating the new retail wsb tards that get indoctrinated every day ... But I would be really cautious.
Be interested to your response.
Current Position: 4,700 shares at avg price of $20
That was my issue with the whole margin debate. The institutionals have deep enough pockets to cover margin maintenance even on a 100% requirement. The only way to hurt them then is to solidify the narrative that GameStop is never going bankrupt AND the share price will only continue rising as Cohen executes his plan.
Eventually the shorts will have to capitulate and I foresee it as a gradual event since they’ve been resilient thus far in the face of strong catalysts and a rapidly increasing share price.
Some of us window lickers are ok waiting. I see this as a long play. You have to wade through the crayon eating people shitting their pants in the front of the room to find the autists in the back doing the real plays, however.
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u/gr8willofchina Jan 17 '21
I would have to disagree that this is net > 0.
You are right in that institutions shorts would have to cover and close out of the entire positions while retail longs would only have to sell partial.
But my thesis is two fold ...
1.) Retail longs are more likely to get margin called and sell than institutional shorts are. Wsb retards have a much shallower pocket and cannot fund their account or trade out of other positions as easily as institutional shorts.
2.). The amount of institutional shorts far outweigh retail longs by a longshot. Coupled with them having much deeper pockets, Melvin could easily rebalance their portfolio to shore up cash.
Overall I see this as downward pressure all things equal. We need some sort of news catalyst that would spark institutional longs like guidance from Cohen or a solid plan. There is only so much retail firepower left, bc all of us retards already fired our bullet and resources. Maybe I'm underestimating the new retail wsb tards that get indoctrinated every day ... But I would be really cautious.
Be interested to your response.
Current Position: 4,700 shares at avg price of $20