When did we start trying to do the "logical" thing? Gamestop started because we were all dumb apes and didn't do what was logical. I am making the argument for the dumb approach to break the system.
When did we start trying to do the "logical" thing? Gamestop started because we were all dumb apes and didn't do what was logical. I am making the argument for the dumb approach to break the system.
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The original was posted on /r/Superstonk by /u/TheUltimator5 on 2023-08-05 03:07:14.
In this post, I am going to argue against what is logical and against the common push on this sub. I am going to argue FOR DSPP (plan). I am going to argue why recurring purchases are GOOD and why I am going to continue to with them and possibly increase my $ amount when I can.
Here are the previous two computershare fill events. Today and 20July2023. I could go back farther but all the fills are similar. Run the price up, fill at the top, then drop the price back down to where it was. When GME is on a downtrend, the fills look a little less extreme, but you can still see the bumps.
This is important because the fills happen at the same time on the same dates twice a month. The equation is as follows:
T+3 after the 1st and 15th and at 10:48ish the prime broker (BAML?) starts to gather shares in it's darkpool to make the fill. If GME is already increasing in price, the fill will happen after that run completes, basically continuing the run a bit longer before dumping the price off a cliff as it did today. Because of the possible delay, the fill will happen anywhere between 10:48-11:15 historically on those dates.
..Now here is my argument...
What happens if more people start using recurring buys? Have you truly thought about the consequences? Obviously retail will likely get worse fill prices, but think big picture. People will start to take notice. On fill days there will be predictable runs and people will start to heavily play options around that time. It will result in increasing volatility around fill days and each fill day will exponentially start to increase in volatility.
As more people add to recurring buys, the volatility will increase and thus will options chain, and volume will follow.
If the price swings start to get too massive, people will take notice
Here was a large fill at the end of last year. It was one of the most violent fill swings yet, and nobody at the time noticed that it was computershare related.
The result from the massive swings would be one of the following:
- Nothing changes and the price swings become exponentially violent
- Regulators take notice and are hands are forced because retail can take advantage of the market. As soon as retail can start making an easy buck, the SEC will be forced to act I assure you
- Prime brokers will be forced to break up the orders, thus resulting in retail getting better prices for their fills and a win in my book.
All of these outcomes are bullish for GME.
Simply buying through a broker and moving into DRS to book does 0 in terms of volume, price action and volatility. As a matter of fact, once you purchase a share through your broker, they can simply lend it out. If you transfer to Computershare, there is nothing requiring them to recall the lent shares. That is all at the discretion of the broker. They can keep it lent forever. All it actually does is slowly lock the float, but I am one for volatility and madness since I am a dumb ape.
We got to where we are by doing the illogical thing. We held through -90% price swings and kept on buying when we were supposed to panic sell. We purchased call options en-masse when media was telling us that Gamestop was going back to $20 fast. We got to where we are today by going against what is the correct thing and by breaking the system. I am going to continue to do the wrong thing and advocate for the "wrong" thing by saying that I am PRO Recurring DSPP.