This is probably going to get taken down so I'm going to put fuck all effort into it. Anyway.
GameStop is the easiest trade in the market today. It's got a band of rabid holders, a board who have all made but in the past weeks, a fat stack of cash, and a CEO who is on a massive buying spree hell bent on owning eBay.
I wanna focus on the last one for a sec. Cohen's initial eBay offer was dragged. Dude looked like a fucking fruitcake in his first interview after the announcement. But he has repeatedly doubled down. He wants eBay and has openly committed to spending $500M of his own money to make it happen. Sure, that's only \~1% of the total offer on it's own, but think about what that means. That this determined mother-fucker is just like all you degenerates here. He's gonna need some fuckin leverage.
Enter the warrants. For the terminally slow here GameStop has issued warrants to shareholders. $32 strike expiring end of month. So what does Cohen do? First sap the air out of the goddamn room last month 'cleaning up the balance sheet' and buying out a different set of warrants. The stock dips to \~$18, systematically shorted down to maximize the shares awarded. But the upside is that when that deal unexpectedly closes early the stock immediately has upward pressure. Cohen buys. And buys again. And again. Something like 2-3 million shares so far. Too fuckin lazy to get you all an exact number but the stock keeps it's momentum and now the goal is clear: push GME past $32. Get warrants ITM. Raise a cash pile for GME. The unspoken method to the madness? Leverage the $500m to increase the GME cash pile with a cleaned up balance sheet and inflated stock price to make another run at eBay.
TL;DR GME will be above 32 by end of month. Trade accordingly.
Positions: 1,000 calls of varying strikes 18 to 31 and expiries between October and January plus \~25,000(?) shares and a fair chunk of warrants between full sent 401k and IRAs and my wife's brokerage. And I sold like 30 covered calls because I'm a responsibly hedged investor 😎