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GameStop Short Squeeze by the Reddit Wall Street Bets Traders Explained

Release Date: 01/31/2021

Fed Inflation Task Force | Free Cash Flow Hyperscalers vs Semiconductors | Head and Shoulders Crude Oil | Earnings Season Kicks Off | Anthropic S-1 Wait

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Derek Moore is joined by Mike Snyder and Shane Skinner, looking at the Fed Task force and what that means for how the Fed evaluates inflation data. Plus, Anthropic is the S-1 everyone is waiting for. Later, they talk through a classic head and shoulders pattern than played out in WTI Oil charts, Fed probability of interest rate changes, Fed Minutes, and the generational exchange of free cash flow from hyperscalers to Semiconductor companies. All this and more this week. The Fed's new Inflation Task Force and what it means for how the Fed evaluates inflation data Anthropic: the S-1...

Memory Stocks Pause | Fed May Do What No One Thinks | US Dollar Strength | Crude Oil Prices Done? | Bitcoin Recession

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Derek Moore is joined by Mike Snyder and Shane Skinner to get into markets including whether the memory stock run (including Micron) is over or just taking a pause. Then, they look at the strength of the US Dollar and whether that is a major headwind while oil prices seem like they are done worrying about the Strait of Hormuz. Later, the case for and against the Fed LOWERING rates this year vs the consensus view that they need to tighten. Oh yeah, and they get Derek talking again about Bitcoin and Strategy, the resilient employment numbers, ISM prices paid are dropping, and market seasonality....

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Derek Moore is joined by Mike Snyder and Shane Skinner this week where they’ll discuss Micron’s earnings announcement and subsequent stock price changes and free cash flow. Is that where all the hyperscalers cash is heading? Plus, the latest geo-political goings on including tracking the number of tankers in the Strait of Hormuz. Are the Fed dot plot predictions (expectations) really as useless as they same? Don’t forget the guys got Derek talking about Bitcoin and Strategy again. Finally, looking at some bull and bear cases for the equity markets. What are the Hyperscalers? Strait of...

Kevin Warsh Fed | Economy Better than Thought? | SpaceX Option Volatility | Strategy STRC Preferred Dips

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Derek Moore is joined by Mike Snyder and Shane Skinner this week to get into the post Kevin Warsh Fed Presser reaction. Plus, leading economic indicators (LEI) are turning bullish? Then, they talk about the options action in SpaceX including how high is the implied volatility. Odds and ends this week include discussion on MicroStrategy’s preferred STRC has dropped below its par value. SpaceX implied volatility in its options Kevin Warsh FED press conference Kevin Warsh says no dot for you! LEI leading economic indicator MicroStrategy (Strategy) preferred issue #STRC Difference between...

SpaceX Day 1 Trading | Oil Going Lower? | SpaceX Expected Options Volatility | Inflation Hype | 2 Day Correction?

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Derek Moore is joined by Mike Snyder to discuss some wild SpaceX price predictions and review day 1 of trading. Then, they discuss what the implied volatility and options pricing will be like once SpaceX options are available. Then they make the case that oil has seen its peak and the bull and bear case going forward. Later, they look at the 2-day correction before the markets decided none of the things that mattered matter anymore. SpaceX day one price and predictions going forward SpaceX options coming next week Implied volatility expectations for SpaceX options Is the correction...

Friday Selloff | SpaceX IPO Price | Strong Jobs Number Revisions | MicroStrategy Sells Bitcoin | Fed Rate Hikes?

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Derek Moore is joined by Shane Skinner to react to the market Friday selloff including many of the chip and memory stocks. What is driving this and has the oil trade decoupled from equities? Then they discuss SpaceX IPO pricing at $135, the strong jobs numbers that exceeded estimates including April being revised from negative to healthy positive number, and Michael Saylor sells some Bitcoin for Strategy. All this and more this week. SpaceX IPO price Saylor sells Bitcoin for Strategy Crypto out of favor judging by the ETF fund flows S&P 500 Index Friday selloff of -2.6% after...

IPO Performance First 30 Days | Google vs Tesla IPO Performance | SpaceX ETFs Are Coming | Don’t Sell in May | 8000 S&P 500 Index Target

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Derek Moore is joined by Shane Skinner this week to talk about the typical IPO performance within the first 30 days of trading. Then, they compare how Google vs Tesla performed after their IPOs. Later, Goldman Sachs calls for 8000 by year in in the S&P 500 Index, how May has seen stellar returns last couple years, a bunch of ETF filings for SpaceX adjacent products, and surprising forward EPS valuations. Nvidia forward PE vs Costco and Walmart Google vs Tesla IPO performance Surprising Google State Post IPO SpaceX adjacent ETFs see a lot of filings How does this IPO issuance...

SpaceX IPO | SpaceX S-1 | Nvidia Earnings | IPO Fever Like 1999? | Market Returns vs Expected Returns

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Derek Moore is joined by Shane Skinner to get into the SpaceX S-1 including their revenues and earnings revealed. Plus, comparing the fever for SpaceX IPO to the dotcom era in the late nineties. Then, looking at Nvidia earnings and looking at its price to sales vs SpaceX. Later, what people thought the market would return over the last 10 years vs what it actually has returned. All this and more this week. Nvidia price to sales vs SpaceX price to sales based on reported initial IPO market cap Will SpaceX get into the S&P 500 Index and the Nasdaq 100 Index? Requirements for a stock...

NVidia Earnings | Inflation Sticky | Earnings & GDP Still Strong | Warsh in Charge Now | Oil Price Curve

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Derek Moore is joined by Shane Skinner to discuss the upcoming Nvidia earnings through the prism of the option volatility levels. Then, they look at inflation, GDP, and markets vs expectations. Later, looking at the interest rate predictions and the likelihood of cuts vs raises with Kevin Warsh now at the helm. Finally, looking at the oil futures curve and what the back end says about where people think oil will price to eventually. Nvidia earnings predictions Nvidia option implied volatility and expected moves around earnings Pricing the Nvidia straddle Future interest rate...

GameStop Buying eBay Math | Micron Does it Again | 1995 All Over Again? | Crude Oil Head and Shoulders Pattern?

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Derek Moore is joined by Mike Snyder and Shane Skinner to discuss markets and the economy including Ryan Cohen’s awkward CNBC interview with Andrew Ross Sorkin where he was pressed on the math behind the financing in GameStop’s bid for EBAY. Plus, Micron again reaches an all-time high and still is trading at forward multiples below many other stocks. Later, is this year shaping up to be 1995 or something else? Finally, whether oil prices are reaching a pivot point looking at some technical analysis. Ryan Cohen CNBC interview with Andrew Ross Sorkin and Becky Quick GameStop trying to...

More Episodes

The Wall Street Bets community executed a short squeeze through Reddit on stocks like GameStop and AMC Theatres this week. But what is a short squeeze? How did they and others buying stocks and options cause the stock to go up at least in the short term? Is short selling bad? Why potentially some brokers had to halt trading in certain names? A look back to the late nineties when internet chat rooms were pushing stocks. Examples of the little investor turning thousands into millions, and vice versa. How short sellers can root out fraud in companies with examples. Jay Pestrichelli and Derek Moore get into this and more in this very timely and fascinating episode.

What is a short squeeze?

What is the GameStop short squeeze?

How did Reddit group Wall Street Bets execute a short squeeze?

How some people have made a lot of money

How other people may lose a lot of money?

What is short interest ratio?

What is short interest as percent of float?

What is a delta or gamma squeeze in options on stocks?

Large in the money option open interest in GameStop at expiration

How short selling adds liquidity.

What are short days to cover metric?

Short sellers uncovering fraud in Amazon Prime documentary the China Hustle.

Short sellers with Enron, Nikola, Wirecard

Trading halts and liquidity requirements on brokerages

Congressional hearings coming on Robin Hood and Wall Street Bets GameStop activity

Examples of pump and dump in 2000 by Michael Lewis in New York Times

Short selling was found useful even in 1918.

How short selling in itself does not bankrupt companies.

How short selling that drives price lower can impact ability for secondary equity offering.

Mentioned in this Episode:

Explaining Delta and Gamma Options Squeeze Robinhood vs Softbank Whale https://brokenpiechart.libsyn.com/robinhood-option-traders-vs-the-softbank-whale

Derek Moore’s Book Broken Pie Chart https://amzn.to/2YoxRaF

Documentary “The China Hustle” on Amazon Prime Video https://amzn.to/39uBJgm

Michael Lewis article on 16-year-old penny stock trader 2001 https://www.nytimes.com/2001/02/25/magazine/jonathan-lebed-s-extracurricular-activities.html

ZEGA Financial www.zegafinancial.com

Jay Pestrichelli’s Buy and Hedge Book on Amazon https://amzn.to/2YoJDSg

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