A Quick Guide for GME Army (Diamond Hand)
The following content is from Reddit Archives (source: https://old.reddit.com/r/wallstreetbets/comments/l6o7ed/since_it_got_removed_when_do_we_sell_a_quick/ ) IT SHOULD BY NO MEANS BE CONSTRUED AS FINANCIAL ADVICE. IF YOU ARE DUMB ENOUGH TO TAKE IT AS FINANCIAL ADVICE, DO SO AT YOUR OWN PERIL.
When do we sell? A quick guide for GME Army. (SECRET TO DIAMOND HAND 💎🙌 )
Too much disinformation about when to sell. I'm tired of seeing people paper handing GME when it drops by 20%, or saying to sell Friday (BTW DO NOT FUCKING SELL FRIDAY OR I WILL COME OVER THERE AND DO STUFF TO YOU!) so here is the DEFINITIVE guide on how to play the ending.
First, we need to understand what is "Days to Cover" or "Short Ratio" .
Official definition:
Days to cover, also called short ratio, measures the expected number of days to close out a company's issued shares that have been shorted. Days to cover is calculated by taking the number of currently shorted shares and dividing that amount by the average daily trading volume for the company in question. A high 'days to cover' ratio can often signal a potential short squeeze. Dumbed down version:
- imagine you're Melvin Capital and you have 1 million dildos up your ass. How long will it take to get all those dildos out of your ass? If the volume of dildo removing is 1 per day, then it'll take 1 million days to remove 1 million dildos up your ass. If it's 50,000 dildos a day, then it's 20 days.
- Same thing with covering short positions. How long will it take Melvin Capital and other shorters to cover their short positions? You take alllll the shorted shares, divided by the average volume of share movement per day, and you get something called "Days to Cover"
Now you know what day's to cover means, you can check many websites to see what is the days to cover for GME.https://www.marketbeat.com/stocks/NYSE/GME/short-interest/ = 6 days
https://shortsqueeze.com//shortinterest/stock/term2.php?s=GME = 6.3 days
https://finance.yahoo.com/quote/GME/key-statistics?p=GME = 5.78 days
So you can see, even if Melvin Capital wants to cover their shorts, it's gonna take them DAYS, and right now it's gonna take them an entire trading week to cover their position.
So what does that mean for us?
Well, we're just waiting for the day when Melvin Capital starts covering their position. When is that day? VERY FUCKING SOON. They're are bleeding out of their ass with the insane interest rate they're paying for their position, and a lot of puts are expiring on Friday, plus a lot of ITM (in the money) calls expire Friday and can be exercised to get shares.
Friday might be the day where Melvin Capital have no choice BUT to start covering.
Now, IF this happens, then it's not gonna take Melvin Capital 1 hour to cover all their shorts, but DAYS. Meaning if Melvin capital starts covering FRIDAY, it will take them at LEAST 5 DAYS to fully cover, which means ALL of next week, the price will keep increasing and increasing! So realistically I'd say Weds or Thurs next week might be peak sell time, IF the covering starts Friday. No need to panic sell. No need to worry about a top that lasts for minutes. It will LAST FOR DAYS!!!!!
Now, CNBC and all of the MM's and corrupt media will fool you into thinking Melvin Capital has already covered their shorts or some other bullshit, but don't believe it. It takes DAYS to do so!
The only numbers you should be looking at is the short ratio. If it's getting smaller, then the squeeze has begun. If it's still at fucking 138-140% like it is now, NOTHING EVEN HAPPENED YET.
We're at fucking $250 after hours and the shorts still haven't begun to cover yet! Imagine when they do? $1000 is actually a very low estimate, and is no longer a meme number. If we all play it right and hold while shorts cover, we can literally squeeze this to infinity as they try to cover.
TL:DR = ACTUALLY FUCKING READ IT AND HOLD MOTHER FUCKERS HOOOOLLLDDDD. WE'RE ROBBING WALLSTREET TOGETHER!!!!!
Edit: Why trust me? Been a disciple of GME gang and u/deepfuckingvalue since near the beginning
https://www.reddit.com/r/wallstreetbets/comments/k6a3in/why_gme_gonna_moon/
https://www.reddit.com/r/wallstreetbets/comments/l263y6/gme_gang_read_up_ta_analysis_to_help_you_to/
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