GameStop Just Plunged Another 50% But a Movie is On the Way

Mish

The short squeeze in GameStop is over buy hey, there's a movie coming right up.

Short Squeeze In Reverse

Yesterday I asked GameStop Plunged 30% Today, Is the Short Squeeze Over?

This was my answer:

Squeeze Likely Over

My guess is the squeeze is over. Hedge funds have covered their shorts. And we have a three surge stage that frequently marks tops in short squeezes.

If my thesis is correct, GameStop will go back where it came from. The market makers will pull bids as they did today.

Today offers solid confirmation. People who had huge gains need to preserve them before they are gone.

GameStop fell all the way to $74 from a short squeeze high on January 28  of $483.00. That's a 4-day intraday high to low decline of 84.7%.

The hedge funds who covered at $483 are really smarting. 

Flashback January 30

Let's flash back to my January 30 post Naked Shorting is Illegal: So How the Hell was GameStop 140% Short?

Movie Coming Up

The book on the World's Biggest Casino is already out . I confidently predict the movie is coming up.

Two main characters are ready identified. Vlad Tenev the founder/CEO of Robinhood and DeepF&ckingValue the 30 year old engineer in Boston on the WallStreetBets side.

The CEO and the CIO (the villains) at the Melvin and Citadel hedge funds will be part of the main cast members.

Those who produced “The Big Short” will handle this one the same way.

Movie in the Works

Yesterday, Quartz reported the GameStop Saga is Already Headed to Hollywood.

Following a bidding war, MGM acquired the rights to adapt Ben Mezrich’s GameStop book proposal, The Antisocial Network, Deadline reported. Mezrich previously wrote a book about Facebook’s founding, The Accidental Billionaires, which became the Oscar-winning 2010 film The Social Network. Early Facebook co-founders Cameron and Tyler Winklevoss, who were portrayed in The Social Network by actor Armie Hammer, will executive-produce the film based on Mezrich’s as-yet-unwritten book.

Buying the movie rights to a book proposal—not an actual book—is unusual, but it underscores how ready-made the GameStop saga is for Hollywood. It’s also further evidence of how quickly the film industry needs to move in order to secure potentially lucrative intellectual property nowadays.

That was surprisingly fast. 

Mish

Comments (18)
No. 1-9
Eddie_T
Eddie_T

The term “straight to video” is dated, I suppose....but it sounds like a bit less of a blockbuster than The Big Short....

But if such things are selling well, I have a proposal on the coming take-down of JPM and the Comex....we could call it...hmmmm.....let me think.

Revenge of the Physical?

Ted Butler’s Excellent Adventure?

Hunt Club?

Doug78
Doug78

As long as they don't let facts get in the way of making a good story it will make some money.

frozeninthenorth
frozeninthenorth

well the Vol is still insanely high. Traded as low as $85 went back to $129 (between 10:30 am and 11:30). Funny enough Robinhood just lifted its restrictions on GME. How facinationg to watch th little guy Vs. Wall Street.

Frilton Miedman
Frilton Miedman

No idea how dated public info is for short interest, but I'm seeing short interest still @ 121% on GME.

Doug78
Doug78

Looks like the silver trade is problematic.

Dodge Demon
Dodge Demon

Bezos blows away quarter. Hoocoodanode? Political rats with the right stocks laughing all the way to the bank behind their masks.

Eddie_T
Eddie_T

The Reddit genius needs to learn to take his profits when he can. Imho, failure to take profits on such a huge win shows a real lack of judgment....

Carl_R
Carl_R

If there is a movie, who will be the hero? Will there be any? Looks to me like some shorts took a big loss, and a lot of new investors took a lot of little losses. Is there a moral here?


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