GameStop (GME): What's Really Happening

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In this video, I discuss the GME melt-up and its drivers. What we are seeing is a simultaneous short squeeze (where shorts need to cover their positions as the price rises), and a convexity squeeze (where options dealers and market makers also need to buy more stock as the price rises, as part of their delta hedging).

We have entered a very bubbly market regime, where Fed money printing and the entrance of a huge crowd of new retail options traders have worked together to create massive melt-ups in a series of stocks like GME, TSLA, SPCE, AMC, CCIV, etc.

Not investment advice! Consult a financial advisor.

Chewy co-founder joins GameStop:

GME shares outstanding, float, short interest:

GME options chain:

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#GameStop
#ShortSqueeze

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[Bitcoin_University]

WARNING: There are a number of scammers who are using my image and channel name to try to connect with my viewers on WhatsApp and other platforms to scam them. Just so you know, I will never refer you to "my personal trader" or try to connect with you personally to sell you something. I am banning these scammers as quickly as they pop up, but if you could report them to YouTube, it would be very helpful. You can always recognize a scammer by clicking on the image and seeing how many videos he has. All of these guys have zero videos, while I have hundreds.

[jiayoulu]

Had 10 shares from 14$ just for the WSB fun. Never imagine it could go this high. Now I only have 3 shares left.

[truthaboveall]

If they didn’t drop the mrkt we would b at 400$ by now😂😂😂

[tonykellar]

Any advice or recommendations on stalks that are in the same position GameStop was the last year or two that would be a good investment now? Or is this just a perfect storm with the extreme volatility of our stock market and uncertainty with coronavirus?

[fropemusic]

Hey Matthew, thanks for this video. Can you recommend any books on options? Thanks

[monster]

I just learned something new right now. Thanks for this

[jaggedxz]

Just curious, what’s your opinion on the wallstreetbets group? Do you think it is smart to follow them and buy the stocks they are promoting?

[muzzy]

GME to $1000 bois strap in and ride the wave

[davidedsall]

How do you find these gaps? It seems to take hours to review just my positions and my watch lists.

[davidkurzhal]

I'm a little confused about the difference between shorted "synthetic" stock and naked shorted stock, can you please explain how the amount of shares that are Short can legally be higher than the shares outstanding?

[yourlocalstudent]

mate I bought at a 92 average and im down by so much rn if you would already be in it would you just take the L or wait for a miracle

[millafn]

Completely new to this, should I buy shares or puts ?!

[sbassett]

Love the commentary .. you have helped me a great deal over the several months.

Question: What do you think about buying short term puts on GME to benefit from the crash down? I bought a few puts at $40 exp 2/12 .. just for fun :)

[stopdrinkingthekoolaid]

I bought a small amount of shares of GME yesterday and only half filled, they couldn't locate shares, the rest came an hour later.

[claudeyaz]

Will ryan Cohen or other major shareholders sell his shares? Just running from the company with a profit?

[rhettenriquez]

How do you feel about $TDOC moving forward as a momo name?

[tarheels]

Great info as always! Could you make a video about the possible risks/rewards of putting BTC on Blockfi or a similar company to collect interest? I’m struggling seeing why I should put all my BTC on a platform like that for residual income. Thanks!!

[soundsgood]

Can't wait to hear what Matthew has to say about GME today 1/27!

[AchillQ]

I entered at opening today and made a solid 1900$ within a hour.
Then i bought even more at 130 - but it crashed and I lost everything

[VinegarPotato]

You explained this very well as someone who is not into stocks and probably wont be for several more years. I learned about this from Louis Rossman