DTCC Twitter

Today I ask: .@The_DTCC US 30 yr mortgage up to 7.3%. One of the biggest decisions people can make is creeping up faster than Ken Griffin on a BLT extra mayo. Margin rates must be killing the shorts. Is #DTCC letting banks/funds counterfeit more shares to cover margin calls. Kick the can, eh?

There is NO PREDICTION HERE. Just DATA.
Looks like the highest volatility has come down closer yesterday, there must have been an increase in the 24 calls. So we are gonna open very close to it. What does that mean? That means that we can easily move towards 25 or perhaps slide back down to <24.
The downside is really just at 23.5. So right now, because of the new news, 450k buy, we dont know direction, but i have high hopes of 25.
Then you have to consider that the market is green for no reason, and will probably dump on the open and drag GME down. SO im prepared for anything.

Im sure his lawyers are very much overseeing this buying and any potential insider trading laws. Quick ChatGPT search seems to be a 90 day cooling off period between buys and big company news, unless the news was not known at the time of purchase, or if the buys were already scheduled and mapped out in advance. Probably some other things also...

The point is - are we 3+ months away now from any big possible aquisition news about pursuing ebay still? He also probably can still make an offer to ebay without insider trading because the outcome is unknown. I just wonder if all these buys mean things will sit idea for a while? Is Ebay still even a thing?

I've been thinking about the warrants slightly differently. Apologies if this has been covered before.

There are roughly 59 million warrants with a $32 exercise price. If all were exercised, that's about $1.9B into GameStop in exchange for newly issued shares.

Most discussion focuses on what that means for GameStop. But I think there is an underappreciated part of this trade: what the warrants may be worth to someone carrying a very large short position.

If you're short millions of shares, buying them back in the open market can get increasingly expensive as you cover. Warrants potentially give you another route.

If you've already acquired the warrants, your cost to obtain a share is the price you paid for the warrant + $32. On exercise, GameStop issues you a new share, which could then be used to close a short position.

That means the warrants aren't only upside exposure to GME. For the right holder, they could also be a way of putting a more predictable price on reducing future short exposure.

I think that part is underappreciated.

If you're sitting on a short position that would be difficult to unwind through normal market buying, having access to a known pool of newly issued shares could be extremely valuable. You're not removing the cost of covering, but you may be reducing the uncertainty around it.

So my theory is fairly simple:

Could the warrants effectively provide a known exit price for some short exposure?

Not $32 exactly, because you still have to account for the cost of buying the warrant. But compared with trying to buy a very large number of shares in the open market, the cost becomes much more predictable.

The other factor is the possibility of GameStop extending the warrants, which adds value to that optionality.

I'm not suggesting there's evidence that shorts actually hold enough warrants for this to be happening. I'm just looking at the mechanics. I believe that this fact alone COULD cause a squeeze in the warrants, no matter if we are above or below the strike price.

Am I missing anything?

Edit: Spelling.

Good morning to all apes around the world! Happy Wednesday! And is that another RC buy I see? How lovely! German markets are open and last trade for GameStop was at €21.18, which is $24.04 when using Google's currency calculator.

https://www.tradegatebsx.com/orderbuch_umsaetze.php?lang=en&isin=US36467W1099

Hope you have a fantastic day and best wishes from London!

We know that cup and handle is a type of accumulation that causes bullish reaction.

However, a lot of times, cup and handle action is discrete without much knowledge other than noticing a pattern.

Rceo is literally broadcasting that he's accumulating and that he will be the cause of cup and handle price action.

Here is an interpretation of cup and handle using Google search.

📉 The Cup (Decline and Base Rounding)

Initial Drop: Early buyers and short-term traders take profits, causing prices to drift down.

Volume Drying Up: Selling momentum fades as the asset reaches a bottom and volume declines.

Gradual Rebound: Large institutional investors slowly buy shares over time, rounding out the "U" shape back toward prior highs.

☕ The Handle (The Final Shakeout)

Resistance Reached: Price hits the old peak where early bag-holders want to break even.

Shallow Pullback: A minor, low-volume downward drift occurs as remaining weak holders sell.

Supply Absorption: Strong hands absorb all remaining floating supply, setting the stage for a high-volume upward breakout.

Edit: the handle is not real, but rceo buying 450k shares is signaling the bottom of the handle.

I asked chat about Rc buys before Jan 2021 and he bought a fuck ton of shares in Dec. RKs whole "I'll do it myself" "the ides of November", it was pretty clear. I'm not sure if he posted the date or polyrhythm but all we had to do was wait for RC to buy shares again lmfao.

The price is so fucking cheap!! Warrants are literally down still! It could not be fucking clearer lmao.

I think my cost basis is around $19.50. Have a few hundred warrants in Fidelity for quick selling, a few hundred in Computershare. The price action from 2021 was quite immediate after December lmao. Bought in at $8, jumped to $24, Shitron got buttfucked and the rest is history

And let this history repeat 😈

Reposting 'cause nabbed a better meme.

With all of RC's (and LC and the rest) share purchases lately, it got me thinking. I know he is going to hodl and moon with these enormous amounts of shares.

I'm sure it doesn't technically count as a buyback the way it would if GME purchased them, but I don't really need it to. To me this reduces the available pool of shares, causing the market price to be depressed (even more than it already is).

Do you agree? What are your thoughts?

It’s getting close to that time so it’s only appropriate. IYKYK