My GameStop Trading Day


Hey everyone, Ross here! It’s 4:18 a.m. by the time my day had already kicked off in an unbelievable way. I didn’t get much sleep last night, and there’s a good reason for it—I’m up $13,000 on GameStop already, and the trading day hasn’t even officially started. (My results aren’t typical. See full disclaimer here) Let’s break down my trading day!

The GameStop YOLO Update

Last night, a post by DeepFu***ngValue (DFV) on Reddit caught my attention. This guy is a legend in the day trading world, and his updates are always worth a look. He posted about his new positions in GameStop, and wow, they are massive.

  • Shares owned: 5 million (average cost $21.27 per share)
  • Call options: 120,000 contracts of the June 21st $20 strike price
  • Total position value: $177 million, which translates to controlling about 17 million shares

When I first saw this, I thought his account might have been hacked. But after some digging, I saw confirmations on Twitter from the unusual whales account. After reviewing those posts, it seems like DFV is controlling $177 million in GameStop, and the stock is up 87% on this news.

Short Interest and Market Mechanics

One of the critical factors in this scenario is GameStop’s short interest. It sits around 21%, with 6.8 million shares shorted. After a recent stock split, GameStop’s float increased to 269 million shares. Market makers sold 120,000 call contracts, which means they are effectively shorting these calls unless they hedge by buying shares.

Examining the Thesis

What’s intriguing here is we don’t have a clear thesis from DFV this time around. In the 2021 GameStop saga, the thesis was obvious—crazy high short interest and undervalued stock. This time, the short interest is 21%, which isn’t low but not astronomical either. Plus, the current stock price doesn’t scream discount at $20 a share, considering the 4:1 split.

Why Am I Up So Early?

As soon as the news broke, 24-hour trading on Robinhood kicked in. The stock shot up 20% to $27, and then trading was halted. I set my alarm for 3:50 a.m., but I ended up getting up at 2:45 a.m. due to the excitement. Running on about two hours of sleep, I dove right into trading.

Pre-Market Trading Frenzy

When the first quotes rolled in at 4 a.m., they were in the $30s. I immediately bought 250 shares at $33. I kept adding 250 shares at each dollar increment, carefully moving my mental stop up. I finally got stopped out around $43, locking in a $13,000 profit. (Remember, my results aren’t typical. See full disclaimer here)

Future Trades and Risk Management

I’m currently out of my position but actively watching for re-entry points. I might consider a YOLO options trade with a high strike price, maybe $100 calls. The key resistance levels I’m watching are $80 and $87. Breaking these could signal another massive move.

Managing Your Risk

Day trading is exciting but risky. You’ve got to manage your risk. Set those stops and lock in profits when you can. Pay yourself, even if you believe in the stock’s long-term potential. The emotional highs and lows can mess with your judgment, so stay disciplined.

Looking Ahead

I’ll keep tracking the developments with GameStop and DFV’s positions. Whether he holds or sells will influence the market. For now, I’m staying on the sidelines, ready to jump back in when the setup is right.

Stay tuned for more updates! Thanks for joining me today, and good luck with your day trading adventures.

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Warrior Trading was founded by Ross Cameron in 2012, and is now a thriving community of thousands of traders. You can learn more about joining the Warrior Trading community here.

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