Weekly reads: Wallstreetbets and GameStop edition

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2021 is off to an exciting start. Some parts of the world are getting back to "normal" (Biden Presidency) but something unprecedented is happening in the more obscure parts of the internet and financial world that jumped to the headlines in recent weeks.

You may have heard of how a band of plucky retail traders on the wallstreetbets (wsb) Reddit are taking on billion dollar hedge funds, waging an epic battle over GameStop (GME). 

The weird thing is that... they are actually winning the battle... so far. It's a developing story and here are a few articles to help you get up to speed.

1) Here is a good summary of the events so far from Bloomberg

2) Here is another from Matt Levine of Bloomberg but in greater technical detail

3) Institutional Investor wrote about one of the casualties of the battle, Melvin Capital

4) Andrew Left of Citron, another casualty of the battle, courtesy of Business Insider

As of today, a few social media personalities have perhaps a little irresponsibly, jumped onto the bandwagon

7) A word of wise warning from Michael Burry, the OG himself

At this point, it is worth pointing out the extreme dangers of trading derivatives and the use of leverage.
It has been suggested that this is taking place on Robinhood, which Institutional Investor has pointed out, may lead users to take undue risks on their trades. It actually drove a young user to suicide in 2020

Reddit is a particularly murky part of the internet and financial world, you never know who the players are in this saga. Institutional traders could be muddying the waters and as Mr Burry pointed out, this may attract regulatory attention from the SEC.

With the warning above, if you are still interested in taking a stroll down this path... (TRIGGER WARNING. BE PREPARED FOR VULGARITIES, COARSE LANGUAGE... ITS REDDIT!!)

1) the wsb reddit
2) the trading results so far of the closest to a Living God to the members of wsb...
3) .... and his Youtube channel

#GME

Stay safe folks.

None of the above should be construed as investment advice. Do your own due diligence as I will not be responsible for any loss/risk.





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