Well, it looks like my Lamborghini of an education did not prepare me for the past year of the stock market. I mean, I did return 60% last year, but that is not important. What is important is that there are legitimate fucksticks that have 100x’d their wealth over an extremely short time frame.
Me, a capitalist, would never put someone down for making money. This is America, not AOC land. While I like making a mockery of the world of Finance on the Blog, my portfolio is strictly business. In B-School, we learned about investing in FCF generating company’s, managing risk, and identifying growth catalysts. Now, your local drug dealer is laundering money into his freshly created Robinhood account and trading meme stocks with leverage. Robinhood has enabled the, ‘No Ragrets Kid’ to also buy out of the money call options on top of these positions. Any good drug dealer knows that he has to diversify his portfolio. Maybe he sprinkled in a little DOGE and BTC into his AMC and GME portfolio. BOOM. You now have a couple hundred thousand of seemingly worthless securities.
According to CBOE global markets data (I am long $CBOE), traders spent $11.6 billion on options contracts tied to AMC, which was more than the SPDR S&P 500 ETF Trust, Invesco QQQ Trust and Tesla Inc. combined. I went back and forth with Katherine Ross, a contributor to Cramer’s media company, the Street. See thread below:
I do not expect traditional media to not cover these names, but I truly believe it exacerbates the problem. Katherine Ross would not be doing her job if she did not cover these names. But it begs the question, when does this shit show end? Gamestop Execs could not even justify a secondary offering in its first astronomical ascent. These businesses were shorted for a reason. Too much? Probably. That does not take away from the fact that they are failed business models.
The “we must fight the short selling hedge fund” narrative is so fucking lame. Wah, a guy in a Patagonia vest and Gucci loafers is making money when stocks go down. In case you have missed it, this is the chart of the S&P 500 over time:
The stock market will always fucking go up. Death, taxes, Michael Burry being a computer, and the stock market going up are my four certainties in life. These hedge funds shorting the tits off broken companies helps the market sort out what businesses should stick around. I had some crypto geek respond to me saying AMC is the common man’s instrument to fight against the raging criminal hedge funds. News flash my guy, your $100 in call options expiring this Friday is laying in my ashtray. I have spent far too long behind a Bloomberg Terminal and far too much on custom monogrammed socks to care about your mission.
I have never shorted a stock, but these guys have me dangerously close. Or at least close enough to go buy a ticket to a movie and sneak into other ones for an all day affair.
When I look myself in the mirror, I see the common man. The common man of a private business school where the average family income is in the 80th percentile.
Stay Poor People, that should not be too hard if you are long AMC and GME.
Standardly Poor 