It boggles the mind people think hedge funds can't profit off a mad rush like this...
The entire account value of normal RH users in the range of 1-5k
Most people just joining don't have 1k to just throw at a lottery ticket, and remember that until today RH allowed fractional shares of GME
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But you know, that's not even it...
The other day GME did 20 Billion in volume in a single trading day. More than the S&P 500.
I don't understand how people think retail can account for that.
But most other funds, or trading desks, or market makers, or brokerages (etc) are most likely printing money right now.
How exactly would they do it? Shorting it again would involve calling the top for a stock whose price recently has been unpredictable, but very high.
Writing options seems nuts for something this volatile. I guess they could "buy volatility" with a straddle but again what would the numbers have to be on this where they turn a profit? It's not like the rest of the market is underestimating the volatility, it's evident to everyone.
Just look at Citadel... how much money do you think they've made off early access to majority of retail orders for GME as RH exploded?
And how much more money will they make on an ongoing basis after this from all the new users?
The volume has been insane, someone is making money besides retail investors, and they won't be the ones left holding the bag after the musical chairs stop...
The other thing is, the price WILL go down eventually. Even if not today. A fund with billions of dollars can afford to sit on a short of GME at $400 for a long time. Longer than the upward pressure will last. The narrative was that the short squeeze will happen today, and prices will skyrocket. You only had to be in it for a little while. Now the narrative is changing, and it will maybe be next week, or even farther out. Sure the meme is to hold forever, but anyone holding any amount that will maybe make a difference are going to see that life changing number and sell eventually.