A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock.::Reddit seems like a likely candidate for a meme stock. But the actual reaction suggests that r/WallStreetBets isn’t going to send the stock to the moon.
Reminder that shorting is a high risk play and you should never make investment decisions out of spite.
The market can remain irrational longer than you can remain solvent.
Holy shit put that on a t-shirt
It’s a Keynes quote and there are already tons of shirts
https://www.redbubble.com/i/t-shirt/Keynes-Quote-Markets-can-remain-irrational-longer-than-you-can-remain-solvent-by-JackCurtis1991/47325053.FB110
Just… perfect
Not likely Keynes according to Quote Investigator.
A reminder that the stock market and any kind of high level money market of any kind including digital money … is a rich man’s game where poor are by design destined to lose.
Yeah, well even some rich people are bored redditors.
Instructions unclear, purchased Lemmy stock using Amazon gift cards
¡Alert! Your Lemmy account may be suspended in 2 days unless you send Google Play gift card codes to me right now!
Ohh dear
Sorry, I only have Steam Gift cards… 😕
DO NOT REDEEM!!
Kitboga, this you?
100%, this is a trap being set for retail investors… not touching this even if I had a 1000ft pole.
What if you had a 1001ft pole?
That’s the whacking pole
If I had a 1001 foot pole I wouldn’t be browsing Lemmy on a Saturday night.
Then it would be called buying puts instead of shorting
Playing the stock market at all is a form of gambling. You should never gamble money you aren’t completely willing to lose.
And with shorting there’s no upper limit to what you can lose.
Not true
It is true.
You buy a stock for $30. At worst it gets to $1 and you lose $29.
You short a stock for $30. There is no upper limit to how high it can go.
Yeah, if there’s a “Superstonk” style event, the shares might jump to $1000 per share.
Say you shorted 100 shares. If you shorted it at $30, the absolute maximum you could make is just under $30 per share, or $3000. But, if it jumps to $1000 per share, you would lose $970 per share, and owe $97,000.
Maybe it’s not technically possible for there to be “no upper limit” to what you could lose, but you could easily lose many multiples of the maximum possible gain.
No. There are lots of ways to short a stock which just means betting that a stock will fall. If you buy Puts you go short, you can only lose the money you spent on the Puts. What you are talking about is unhedged short selling but that is far from the only method to short a stock.
In theory that’s true but you’ll get liquidated at some point.
To quote XKCD’s “Engineer Syllogism”:
I am good with numbers and math.
The stock market is mostly numbers and math.
Therefore, I would be – wait, where did all my money go?
Second premise is false
No shit Sherlock
I think this company is deeply and uniquely incompetent and will never deliver on its objectives.
It will be about a week until options come out. A put option simulates renting 100 shares of a stock over a time period, and collecting the difference between the strike price you pay for and the lower price if there is one. If the price ends higher, you lose the rent you paid.
It would be hard to get that many separate entities to all start shorting a stock all at the same time. Especially on a well known entity that may have quite a bit of action.
No you should make investment decisioms purely for the fun of it.
Also, WSB has been wanting to short reddit for literally years, so this is barely news.
Yeah but I would short just a little, considering it will have hard time going 100x. Tbh 10x would be as difficult, but gotta play safe.
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