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Authors First Principles Investing

7 days 30 days All time Recent Popular
First Principles Investing
First Principles Inves...
@fp_investing
Follow up post on GME answering common questions (e.g. if they short is still >100% of float, wouldn't that cause another short

1/ Official short interest is only posted twice per month. Daily estimates by data firms (e.g. S3 Partners) can be inaccurate, especially if there is high intraday volume and volatility

2/ De-grossing suggests that hedge funds facing existential loss likely to have already covered.

Short positions opened in last 3 days was ~35M shares all above $300 suggesting that the cost basis has been reset. The original shorters have likely covered already.

3/ There is a staggering 1.38m put options open vs. 233k call options. This 1.15m net put exposure means that MM likely owning ~11m shares short for delta hedging. These shares are unlikely to be squeezed

4/ Short squeeze and gamma squeeze likely to have already occurred. Continued share price increases likely driven by new investors joining WSB/RH. Buying of GME has now expanded beyond US to other countries.
FINANCE
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