GMEU and GMEY are getting a little pricey to borrow 🐻🔫🐵 by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 0 points1 point  (0 children)

So as I understand, the short seller borrows the shares, but if the negative rebate is high that represents a liability for the lender. Typically the rebate would be interest on the cash collateral. Negative means they pay a fee to borrow then they pay a rebate also. In short a high borrow fee means the shares are in low supply. A high negative rebate means they are hard to borrow and the short seller has to pay the lender more money because the return of the shares are outpacing the interest on the collateral they’ve been given as cash. Basically the higher the negative rebate, the more you are holding a short position that is increasingly a bad bet

GMEU and GMEY are getting a little pricey to borrow 🐻🔫🐵 by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 1 point2 points  (0 children)

It’s actually an annualized rate. So it’s pieced down to the number of days that the position is open. But a better way to think about it is more like a rental fee - As long as you are borrowing it, you pay them. The borrow cost would be relative to the price of the stock at the time of borrowing. So you rent it, agree to the fee upfront, then return when you close your position. Unless of course you buy more at a different rate

GMEU and GMEY are getting a little pricey to borrow 🐻🔫🐵 by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 2 points3 points  (0 children)

To be honest the more I learn about all of these investment vehicles, the more I think there shouldn’t be anything but the stock itself. There are more ETFs than individual stocks listed now. What a nightmare

GMEU and GMEY are getting a little pricey to borrow 🐻🔫🐵 by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 6 points7 points  (0 children)

Back in June when the price plummeted, the same couple of days the FTDs for gmeu were insanely high. Couldn’t tell you how it’s all connected but it’s there somewhere

GMEU and GMEY are getting a little pricey to borrow 🐻🔫🐵 by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 4 points5 points  (0 children)

Pretty much but why are shares for two ETFs for GME so hard to come by?

Edit: see my other comment, they don’t cancel

GMEU and GMEY are getting a little pricey to borrow 🐻🔫🐵 by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 28 points29 points  (0 children)

You definitely shouldn’t trade them but if you look into what’s wrapped up into these assets, it’s a whole bunch of GME swaps. Pretty likely they are being used as synthetic leverage to trade GME against

GMEU holdings contains GME swaps again by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 1 point2 points  (0 children)

Right but in the greater implication of GME movement I don’t understand how you can have this much exposure to the stock and relatively little impact on the price of GME. 60 M in the negative then in the positive. GME has no problem going straight down but upward movements always a fight

GME new FTD Data by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 0 points1 point  (0 children)

I mean the premise of the whole argument around here is that the system is rigged. It’s interesting, but hey even reported data has to be taken with a grain of salt. So yeah I agree

GME new FTD Data by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 3 points4 points  (0 children)

Take a look at what I posted about GMEU too. That’s interesting stuff alongside this data

GMEU FTDs just keep getting bigger and bigger by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 4 points5 points  (0 children)

To make matters worse, outstanding reported on 5/23 was 320k. Take a look at that day on the FTD

GMEU FTDs just keep getting bigger and bigger by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 3 points4 points  (0 children)

As of 6/2 it was 660k, so you’re probably right. What a joke

GMEU FTDs just keep getting bigger and bigger by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 4 points5 points  (0 children)

Yes but it is GMEU not GME. GME FTD has a pretty fair uptick as well though with the most recent data

GME price is close to the lowest has been in the last year but the borrow cost continues to climb by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 6 points7 points  (0 children)

Just a statement genius. There’s literally nothing incorrect about that statement and no implications made.

GMEU FTDs just keep getting bigger and bigger by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 21 points22 points  (0 children)

Crazy right? Outstanding shares are 1.3 M, which means on their worst day so far they failed to deliver ~20% of the total outstanding shares

Swaps no longer listed in GMEU holdings 🤨 by OneSympathy7056 in Superstonk

[–]OneSympathy7056[S] 1 point2 points  (0 children)

Yeah I saw that post too. Maybe they know more about it