This should be obvious, but to anyone thinking of getting into the AMC/GameStop/BlackBerry/Naked Brands/Nokia push, just understand that you’re playing a high risk speculative game. Just take the after hours from last night as an example. If you went GameStop you made a killing. If you went AMC you made a small profit. If you went with anything else, after hours trading was a disaster for you.
There’s no way to unwind what these Redditors have done without a bunch of regular people losing their investments. If you think you can time the market to be one of the people who exits prior to the crash, by all means go in. But understand that there’s only one way this thing ends: A massive sell off where everyone is trying to get their money out before the other Redditor gets his out.
When does that happen? That’s the big question. I predict that today, at least one of the five companies listed above has a huge correction. But if I were really confident in that, I would short the stock. The truth is, we don’t know what the timing is gonna look like here. This could end today, or it could go on for weeks.
Dear @flexbooth
Surely it's a very trendy topic right now. It seem to me that even people not interested with stock markets heard about current issue with gamestop.
I've been wondering: would it be possible and profitable to open short positions on gamestop right now, while price is so high and assuming that very unlikely it will still grow much?
Could hedge funds make billions by shorting it right now?
Any thoughts on that?
Yours, Piotr
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