Hey everyone, Ross Cameron here! It was 4:18 a.m. this morning by the time I had already made $13,000 on GameStop today! (Remember, my results aren’t typical. See full disclaimer here) There’s nothing better then being almost 3 times your daily goal before the market is even open. Let me give you the lowdown on what happened and why I barely slept last night.
DFV Appears!
Last night, a post went up on Reddit under the username Deep F***ing Value (DFV), who we all remember from the 2021 GameStop saga. DFV revealed that he holds 5 million GameStop shares and 120,000 call options at a $20 strike price. This setup puts him in control of around 17 million shares, with a total stock-and-options value of about $177 million. This news is massive, and the market reaction has been incredibly volatile.
Initial Reactions
When I first saw the post, I was skeptical. Was DFV’s account hacked? Is this even real? Before accepting it at face value, I dug deeper. DFV had been posting memes, and an account named Unusual Whales reported trades on GameStop calls a week ago. Turns out, DFV was the whale buying those calls.
The Big Picture
With DFV controlling this massive position, the market is reacting strongly. Market makers sold him 120,000 call contracts, which effectively puts them in a short position. This means they might need to hedge by buying more shares, pushing the price higher. As of now, GameStop is up 87%, bringing DFV’s paper gains to around $300 million. Incredible stuff!
Understanding GameStop’s Current Situation
GameStop has about 21% of its float shorted, or around 6.8 million shares. Compared to the 2021 frenzy when short interest was over 100%, today’s figure isn’t astronomical but still significant. The stock has been holding at around $20 post-split, which is $80 pre-split. There’s no obvious discount in the price, making it unclear what DFV’s exact thesis is this time around.
Trading Strategy and Managing Risk
I trade differently from the WallStreetBets crowd. I started the year with $116,000 in my day trading account and now have about $350,000. I made $13,000 in my first morning trade today by buying at $33 and selling as it climbed to $43. I’ve learned over the years to manage my risk and not let emotions dictate my trades. Unlike the “diamond hands” of Reddit, I have what I call “paper hands.” I sell when I’m up, ensuring I lock in profits.
Possible Scenarios Ahead
DFV hasn’t posted an updated thesis, so we’re all in the dark about his current motivations. If he stays silent or confirms his position, it could lead to another surge. However, if he starts selling, the market could see a massive drop. Traders need to be cautious and set their stops to manage risk.
Final Thoughts
Today is shaping up to be another memorable day for GameStop and day trading in general. I hope DFV holds his position to see what happens next. Remember to trade smart and manage your risk. If you’re interested in watching my trades live, check out the Warrior Trading trial here: https://warrior.app/pro-preview. Stay tuned for more updates and trade wisely!
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Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross.
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Disclaimer: The results shared are based on my personal trading experiences and are not typical. Trading involves significant risk, and past performance is not indicative of future results. Always practice in a simulator before trading with real money.