πŸ’² G M E πŸ’΅ Drawn is my ‘Gamma Snake’ – Today resembles January 21st, 2021 via /r/wallstreetbets


πŸ’² G M E πŸ’΅ Drawn is my β€˜Gamma Snake’ – Today resembles January 21st, 2021

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The πŸ’² G M E Gamma ‘Snake’ – Note: πŸ’² A M C too is following this trend

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Today’s price action resembles January 21st, 2021

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Note Regarding the Stock Split via a Stock Dividend: Before short-sellers come to a position where they have to provide the dividend that they owe on their borrowed shares (via buyback), there would likely be a share recall to account for actual share ownership (DRS, etc). This implies that short-sellers would be incentivized to buy-in to cover and return shares prior to the record date of the stock dividend. Shorting-Hedge-Funds who are considering waiting until after the record date would have to pay back the split-factor on what they owe (in this case, it could a requirement for them to pay back 7x more shares). If there are 72 Million more shares lent than returned (as of today via Ortex historical data), then they would have to account for 504 Million post-split shares. Additionally, with any run-up in share price due to the cheaper cost for investors to buy new shares off the open market, short-sellers would have to pay back higher premiums on the 7x shares that they do owe – leading to acute and outsized risk for any client who invests with Hedge Funds(s) who have sold these stocks short – risk caused by an increase in margin/collateral requirements that they, if they wait any longer to cover, would not be able to afford.

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Note Regarding the Split Vote at the Shareholder Meeting: Shareholders are normally financially incentivized to vote ‘yes’ in favor of splits. This means they must exercise their right to vote (in person or remotely). All GameStop shareholders would want to pay attention to GameStop company news of when that shareholder meeting and vote takes place. If shorting-hedge funds want to vote against the share split, they would have to recall lent shares! Even though Chairman Ryan Cohen did wait until the DRS numbers and insider shares were high enough to be able to secure the vote, votes would still have to be cast by retail investors in order to earn the split approval by majority vote.

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Unironically, the stocks’ price action in this gamma ramp scenario can be described as that of a Green Tree Python Snake, which waits for the right moment before snapping – readily jumping up at its prey – in most cases by a distance of several body lengths

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TLDR: Shown in this technical analysis is the Gamma ‘Snake’, which shows that the gamma ramps are met with expected weekly consolidation (in part due to SHF attempts to falsely-attenuate the market price). As we discovered with January 21st-28th, 2021, the effect of that hedge fund strategy was met with an outsized price runup. In this case, GameStop has announced a shareholder split as a dividend, which will continue to add demand for the stock, as shareholders race to collect the increased shares from the split, via a dividend. This only serves to exacerbate the right-side of the Gamma ‘Snake,’ in which, similar to end-of-month January 2021, the πŸ’² G M E and πŸ’² A M C stock prices both become power curves with exponential growth, since they have become hyperconnected through all of the baskets of ‘meme-stock’ ETFs.

Although tomorrow is April ‘Fools’ Day, GameStop and AMC Theatres shareholders are clearly not the ‘fools’ with their investments. As today is March 31st, 2022 -this is not a joke-. GameStop’s stock split via dividend, and AMC’s expansion, indicate ‘a massive position of strength’ for the companies. gg

Edit: I am long in these stocks with play monies. I moved GameStop holdings for this account over to computershare (DRS). I did invest my tax return. I now stand in rightful compliance to a “position or ban” challenge, as I hereby ‘yield’ by displaying my position in lieu of facing a permanent ban.

Submitted March 31, 2022 at 11:08PM by Thump4
via reddit