The Stock Market, Investments, and Investing Thread
(03-11-2021, 02:52 AM)churros Wrote: Question about the mechanics of this hypothetical squeeze. Somebody has to be around to buy your stock right? So who is going to keep buying after it has already mooned? Let's say it hits $1000 – do you still need liquidity to make the sale and if so who's going to buy the top?

Yeah unfortunately the short interest in GME is much lower than it was, if you believe the people reporting that number. I personally think the vast majority of short positions have been closed and we're seeing renewed interest in GME due to the hype. I really doubt it's going to 1k.

To answer your question though yeah. When you short a stock you're betting on it going down, you're essentially borrowing shares. When that borrow time is up you can either pay interest to extend it or sell at market value. 

If nobody is shorting the stock there is nothing to squeeze. The only reason someone buy a meme stop at the top like this would be

1. They're an idiot (checking in here)
2. They have to because of a short contract

No way anybody with any brains would buy an OBVIOUS overvalued stock.

Messages In This Thread
RE: The Stock Market, Investments, and Investing Thread - by Pavlov's dog - 03-11-2021, 06:14 AM

Forum Jump:

Users browsing this thread: 3 Guest(s)