I know there is another thread on GameStop but this is AMC. Tomorrow I think contracts come due on GameStop and will be a wild day. At some point, this crazy trend will be looking for the next heavily shorted stock and it seems to be AMC based upon yesterday’s indications. I’m not a market expert and this seems more like gambling then investing as it’s inevitable GME will topple over in a dramatic swift way, but it’s a crazy phenomenon and have to imagine there will be a new GameStop stock very quickly.
Any thoughts? It appears it has to be a heavily shorted stock to qualify.
There are others too - look for volatile stocks with a high short float
At this point, it's GME is crazy overvalued and is really just a speculative trade in hopes of joining the squeeze. It's a perfect storm. There are still a lot of folks with short positions or who sold call options at lower prices who will need to buy stock for those positions. There's a herd of whackos at Reddit who are acting like a ruthless hedge fund. I don't think the exposure on those positions at other companies is nearly as deep as it was for GME. Also, the hedge funds know that reddit is looking for the next GME and I'm sure they're quietly clearing those positions now. GME made things worse for the hedge funds, because as they were being shorted and their stock went down, they bought it back - like 34M shares. That's really how they got to 140% short. These other companies haven't done that (AFAIK)
The Reddit bros can probably pump those stocks up a bit but not to the crazy levels they have with GME. Youu can probably ride their coattails for a bit for some nice returns. But the problems for AMC are still there, I don't see any turnaround coming like you could have argued for GME so you could also be the guy who buys it at 18 and sells it for 3. (just my opinion obv)
The Reddit bros can probably pump those stocks up a bit but not to the crazy levels they have with GME. Youu can probably ride their coattails for a bit for some nice returns. But the problems for AMC are still there, I don't see any turnaround coming like you could have argued for GME so you could also be the guy who buys it at 18 and sells it for 3. (just my opinion obv)
That’s the crazy part Re now hope for a turnaround via AMC. GameStop has zero chance of survival as its analogy is Blockbuster. No one goes to a via store to buy gaming discs. It’s all down streamed now even the next gen gaming consoles are designed for streaming. There will also be a place for movies at a theatre as a “night out” once the pandemic ends. Albeit, streaming is big at home now too but it’s a different experience from going to a luxury movie theatre which has big Hollywood dollars behind it.
The conviction of this grassroots stock trading is incredible. Eventually GameStop will fall in a straight line and the mania it has created will force the next stock to follow a similar linear trajectory up, and then down in a straight line. It’s scary stuff
Hedge funds shorting 140% of GME was one of the catalysts that kicked this off. AMC is maybe what... 20% shorted?
No idea their reasoning.
@Breaking911
· 11m
BREAKING: Robinhood removes GameStop, AMC; Puts notice on pages saying 'You can close out your position on this stock, but you can not purchase additional shares' $AMC - @benzinga
I did get in with AMC yesterday at 13.00 for 700 so obviously hoping we can see something along the lines?
If not live an learn. I am fully prepared to loss money but would love to make a lot. lol
@Breaking911
· 11m
BREAKING: Robinhood removes GameStop, AMC; Puts notice on pages saying 'You can close out your position on this stock, but you can not purchase additional shares' $AMC - @benzinga
I'm clearly no expert - but is there a way this can be considered market manipulation, not allowing people to purchase a stock?
On another note, it's crazy how divided the media is. Some people are claiming WS is getting a taste of their own medicine while others are trying to run a smear campaign against Reddit.. Financial Times tried linking them to the alt-right, NY Times claiming they're just bored and greedy (haha), one guy on CNBC even thought there was a chance it would be a foreign influencer trying to ruin the market (even funnier)
As the saying goes - bulls make money, bears make money, pigs get slaughtered.
People claiming the "elites" are getting their asses handed to them by the "nerds".
but two of the primary flame stokers are Elon Musk and Chamath Palihapitiya even Mark Cuban is piling on (saying his 11 year old is making money on it trading on his own). Aren't they the elites?
It almost reminds me of the story behind bringing down the house and the reaction to it.
Sure, the elites have chimed in but this was happening well before them. I think they are just flexing their muscles at this point, part of it is just their own marketing.
RH should be done after this. What’s the point of a brokerage if they won’t let you buy the stock you want? It’s clearly not being done for the retail investors’ benefit here.
He posted a meme of DOGE and it doubled in price, a fun, jokey crypto (still can make money on it) but people like Musk have sway.
Agree they didn't initiate it, it was already happening via reddit, but Musk and Palihapitiya blew it up IMO.
Sure, the elites have chimed in but this was happening well before them. I think they are just flexing their muscles at this point, part of it is just their own marketing.
It's not broken. It's deliberate
ah, sorry. It's loading fine on my phone and I can purchase most stocks except for a certain few...
Rude awakening. Btw, RH is trash and you should find a new broker.
People claiming the "elites" are getting their asses handed to them by the "nerds".
but two of the primary flame stokers are Elon Musk and Chamath Palihapitiya even Mark Cuban is piling on (saying his 11 year old is making money on it trading on his own). Aren't they the elites?
It almost reminds me of the story behind bringing down the house and the reaction to it.
Hard to even claim the initial(?) or at least prominent Redditor that helped start the frenzy with his >$50K position wasn't an "elite". How many everyday Joes are willing to bet $50k on a single stock (with debatable future prospects)?
Now his position is somewhere around 60-70mm if he’s still holding right now. From 50k.
Elon Musk
Jeff Bezos
Bill Gates
Warren Buffet
u/DeepFuckingValue
It’s a real good idea to shut out their access. Not like that won’t motivate them even more. A Streisand effect on Reddit steroids.
And anyone who thinks this is some amateur common joe who started this is naive..
Sure love the level playing field
Sure, but not if it comes at the expense of absolutely alienating their core market, retail investors. I can't imagine anyone is going to want to go with them.
The optimist in me says this is a new day. The realist in me says they are just going to make it illegal to retail trade and now need to be licensed or go through a licensed broker. In fact, if something similar happened even 20 years ago, you could almost bank on that happening. Too much information and outcry for that to happen now.
No expert, but from the outside in, the move right now would seem to be to short the stock today and wait for it's tumble Friday/Monday. I'd imagine thats what some big players are doing now, no?
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it's in their best interests to have the hedgefunds on their side.....
Sure, but not if it comes at the expense of absolutely alienating their core market, retail investors. I can't imagine anyone is going to want to go with them.
The optimist in me says this is a new day. The realist in me says they are just going to make it illegal to retail trade and now need to be licensed or go through a licensed broker. In fact, if something similar happened even 20 years ago, you could almost bank on that happening. Too much information and outcry for that to happen now.
My point is...they need the billions from wallstreet over the $$ from retail investors.
And again, the fine they'll pay might be in the millions. The loss they would take if they allowed those stocks to be bought would've been in the billions. The games rigged but they saved $$$$$$$$.
And anyone who thinks this is some amateur common joe who started this is naive..
It wasn't, and the movement was started by a guy who frequents the WSB reddit with this in mind. He's posted there that this shorting didn't make sense from a perspective of who joined the board and where they thought they company was heading and evolving into long term. Brilliant play honestly, just needed the proper marketing for it to take off. Fucking over hedgefunds is like Reddit gold.
My point is...they need the billions from wallstreet over the $$ from retail investors.
And again, the fine they'll pay might be in the millions. The loss they would take if they allowed those stocks to be bought would've been in the billions. The games rigged but they saved $$$$$$$$.
Yeah, but why would retail investors touch Robinhood after these shenanigans? There are other options out there.
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with the common traders being used as pawns
No expert, but from the outside in, the move right now would seem to be to short the stock today and wait for it's tumble Friday/Monday. I'd imagine thats what some big players are doing now, no?
Yup it will go back up because people are shorting it then buying back in at a lower price to cover themselves, it wont be new buyers
Just like the system was designed to work. What a farce.
resticting Retail traders from buying a stock so these hedge funds can unwind their shorts
these hedge funders SHOULD go to jail for this but we know that won't happen
They halted buying with margins
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with buying abilities halted.
They halted buying with margins
From a risk management perspective, that makes a ton of sense.
hedgefunds jist have a lot more money to ckntrol stocks..
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with buying abilities halted.
They halted buying with margins
Is buying 2 shares of stock at the current price buying with margin (I don't know much about terminology etc)? They're not letting any purchases right now
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In comment 15136907 UConn4523 said:
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with buying abilities halted.
They halted buying with margins
Is buying 2 shares of stock at the current price buying with margin (I don't know much about terminology etc)? They're not letting any purchases right now
No new buyers now, the only people buying the stock are the people who already had it, so they sold probably when it got over 400 and bought bakc in ag 126 thatz why you see it going back up...
it is completely legal.
It doesnt happen all the time, it happens on a much small scale, hedgefunds normally do this they buy a stock, short it and then buy it at a really low price and watch it grown..
They did it to Tesla and that is why Musk hates hedgefunds...
The reason this pissed off the hedgefunds, they shorted this stock when it was at 20 bucks i believe and it got down to 1, before they could buy it back, people jumped on it and the price skyrocketed costing the hedgefunds a ton of money...and they dont buy just 1,000 shares they are biying 20 million shares...
Now you will see it drop back down because they will restrict new buyers, hedgefunda will biy it up and short it until it goes back down...
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In comment 15136915 nygiants16 said:
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In comment 15136907 UConn4523 said:
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with buying abilities halted.
They halted buying with margins
Is buying 2 shares of stock at the current price buying with margin (I don't know much about terminology etc)? They're not letting any purchases right now
No new buyers now, the only people buying the stock are the people who already had it, so they sold probably when it got over 400 and bought bakc in ag 126 thatz why you see it going back up...
So, I had bought some on Monday. It's only letting me sell and not letting me buy even though I have stock. Am I missing something obvious?
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In comment 15137010 JayBinQueens said:
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In comment 15136915 nygiants16 said:
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In comment 15136907 UConn4523 said:
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with buying abilities halted.
They halted buying with margins
Is buying 2 shares of stock at the current price buying with margin (I don't know much about terminology etc)? They're not letting any purchases right now
No new buyers now, the only people buying the stock are the people who already had it, so they sold probably when it got over 400 and bought bakc in ag 126 thatz why you see it going back up...
So, I had bought some on Monday. It's only letting me sell and not letting me buy even though I have stock. Am I missing something obvious?
I dunno i lnow people sold it when it got over 400 and then bought back in when it got down to 126
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I really don’t know anything about trading or any of this but I have followed the story and all along have seen articles and people claiming that this is illegal, but those seemed to have stopped now. While I don’t fully understand how this all came to be, if people are making millions why doesn’t this happen more often, or does it? And is it illegal, questionable, or totally fine?
It doesnt happen all the time, it happens on a much small scale, hedgefunds normally do this they buy a stock, short it and then buy it at a really low price and watch it grown..
They did it to Tesla and that is why Musk hates hedgefunds...
The reason this pissed off the hedgefunds, they shorted this stock when it was at 20 bucks i believe and it got down to 1, before they could buy it back, people jumped on it and the price skyrocketed costing the hedgefunds a ton of money...and they dont buy just 1,000 shares they are biying 20 million shares...
Now you will see it drop back down because they will restrict new buyers, hedgefunda will biy it up and short it until it goes back down...
Thank you
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In comment 15137010 JayBinQueens said:
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In comment 15136915 nygiants16 said:
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In comment 15136907 UConn4523 said:
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with buying abilities halted.
They halted buying with margins
Is buying 2 shares of stock at the current price buying with margin (I don't know much about terminology etc)? They're not letting any purchases right now
No new buyers now, the only people buying the stock are the people who already had it, so they sold probably when it got over 400 and bought bakc in ag 126 thatz why you see it going back up...
So, I had bought some on Monday. It's only letting me sell and not letting me buy even though I have stock. Am I missing something obvious?
Yeah, they stopped people from buying a slew of stocks across a few trading platforms, including RH. Totally normal.
that is one form of it, but the more risky from of it often done by hedge funds is naked shorting. Meaning you sell shares of stock without "borrowing" them. Technically it's illegal, but it still happens and when/if a short squeeze happens much bigger losses.
Link - ( New Window )
and so many people are trying to read it, the SDNY PACER function has crashed, which is a pain in the butt for lawyers who are trying to get some actual work done...
They are doing you a favor with gamestop right now, AMC once it opens it may not hurt to buy
I did get in with AMC yesterday at 13.00 for 700 so obviously hoping we can see something along the lines?
If not live an learn. I am fully prepared to loss money but would love to make a lot. lol
For a $700 position, you're probably safe. And probably won't make a lot - your initial footprint just isn't big enough.
Oh yeah I haven't put money into anything since around September. I don't even have a lot in there, just for fun.
Not available for purchasing on RobinHood, of course.
Right, but the sketchy part is where they go all over and announce that they are shorting it or trash the stock on tv. Then your average investor is like shit if they are doing/saying this, there must be something to it. They then sell and tank the stocks making profits for the shorters
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Just got one on my M1 app saying they're not allowing purchases of Gamestop, AMC, KOSS and those trades will be cancelled.
They are doing you a favor with gamestop right now, AMC once it opens it may not hurt to buy
Not sure most people want these kind of favors.
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I was going to buy GME at 88.00 but pulled back figuring it would not last :( If I could kick myself in the balls I would.
I did get in with AMC yesterday at 13.00 for 700 so obviously hoping we can see something along the lines?
If not live an learn. I am fully prepared to loss money but would love to make a lot. lol
For a $700 position, you're probably safe. And probably won't make a lot - your initial footprint just isn't big enough.
I may not have been clear in my post, I bought 700 shares for 13 so yeah today has sucked.
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In comment 15136707 bigblue1124 said:
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I was going to buy GME at 88.00 but pulled back figuring it would not last :( If I could kick myself in the balls I would.
I did get in with AMC yesterday at 13.00 for 700 so obviously hoping we can see something along the lines?
If not live an learn. I am fully prepared to loss money but would love to make a lot. lol
For a $700 position, you're probably safe. And probably won't make a lot - your initial footprint just isn't big enough.
I may not have been clear in my post, I bought 700 shares for 13 so yeah today has sucked.
Ooof, yeah, that's a big difference. Sorry for misunderstanding.
Link - ( New Window )
I work for Robinhood. Don't kill me.
Low-level, technical shit, comp sciences major, not finance side.
Guess what we overhead today?
Vladimir, yes founder Vladimir, and the C-Suite, received calls from Sequoia Capital and the White House that pressured into closing trading on GME etc. I guarantee you the same took place at E-Trade and the others who closed trading.
File reports on the SEC page. If I wasn't scared to be out of work in a pandemic I'd quit. I'm disgusted. We all need to rise up, this is as bad as it gets when we talk about how the rich get one set of rules, and the rest of us get screwed 🪛 over, and over, and over again left to bail them out and pick up the tab for their trillion dollar tax breaks. We need to pile pressure on every government and financial institution involved in this travesty of justice.
I'm taking a massive career risk even posting here but fuck these motherfuckers.
link - ( New Window )
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Robinhood Insider Information
I work for Robinhood. Don't kill me.
Low-level, technical shit, comp sciences major, not finance side.
Guess what we overhead today?
Vladimir, yes founder Vladimir, and the C-Suite, received calls from Sequoia Capital and the White House that pressured into closing trading on GME etc. I guarantee you the same took place at E-Trade and the others who closed trading.
File reports on the SEC page. If I wasn't scared to be out of work in a pandemic I'd quit. I'm disgusted. We all need to rise up, this is as bad as it gets when we talk about how the rich get one set of rules, and the rest of us get screwed 🪛 over, and over, and over again left to bail them out and pick up the tab for their trillion dollar tax breaks. We need to pile pressure on every government and financial institution involved in this travesty of justice.
I'm taking a massive career risk even posting here but fuck these motherfuckers.
link - ( New Window )
Saw that like 5 mins ago. Seems a little fishy. How would a work from home low level IT guy be privy to that?
Very Holy shit it true
It all sounds 100% plausible anyway.
It all sounds 100% plausible anyway.
True.
Let's say it's true... what are potential fall outs from this
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word travels fast especially when your company is public enemy #1 in the internet age.
It all sounds 100% plausible anyway.
True.
Let's say it's true... what are potential fall outs from this
Nothing. And the geezers wonder why all these kids are communists these days.
Link - ( New Window )
What crime is violated if Robinhood does something if it something agreed upon in their TOS?
I do agree that they are toast as a company.
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Robinhood selling people's stocks. Apparently, it's in their TOS they can do that. They are toast as a company for sure. Link - ( New Window )
What crime is violated if Robinhood does something if it something agreed upon in their TOS?
I do agree that they are toast as a company.
I'm not a lawyer, but it seems like that's in there in case they need to liquidate as a company, which is understandable. Instead, they are selling people's stocks to protect their investors.
It is most likely big companies and investors with big portfolios, they are jjst bjying and selling, letting it drop then buyign it for cheap, let it rise and sell again...rinse and repeat..
and i think if you currently have stock you can sell and buy back in
Bull Investments has 482 followers.
You're circling the drain lately dude.
I can’t believe how this is unfolding. Will be interesting to see what forces coerced Robinhood to take this action as a private company.
I can’t believe how this is unfolding. Will be interesting to see what forces coerced Robinhood to take this action as a private company.
If this indeed tanks Robinhood as a company, I wonder if they'd remotely have a case that they were intimidated/coerced into making this decision.
I can’t believe how this is unfolding. Will be interesting to see what forces coerced Robinhood to take this action as a private company.
ot happens alot just not to this scale...Whenever a stock fluctuates up or down 10 points they halt the stock for certain period of time, its called a circuit breaker to try and stop momentum of a stock
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I can’t see how they do their planned IPO now with the class actions already rolling in and announced congressional inquiries being demanded by dems and republicans alike. Tbh, I don’t even know how their action today to forbid buying of shares and only allow selling of them is legal? That’s a classic squeeze/trap to hold investors hostage and force selling out of fear.
I can’t believe how this is unfolding. Will be interesting to see what forces coerced Robinhood to take this action as a private company.
ot happens alot just not to this scale...Whenever a stock fluctuates up or down 10 points they halt the stock for certain period of time, its called a circuit breaker to try and stop momentum of a stock
Circuit breakers aren't the same as brokerages preventing you from buying stock.
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I can’t see how they do their planned IPO now with the class actions already rolling in and announced congressional inquiries being demanded by dems and republicans alike. Tbh, I don’t even know how their action today to forbid buying of shares and only allow selling of them is legal? That’s a classic squeeze/trap to hold investors hostage and force selling out of fear.
I can’t believe how this is unfolding. Will be interesting to see what forces coerced Robinhood to take this action as a private company.
ot happens alot just not to this scale...Whenever a stock fluctuates up or down 10 points they halt the stock for certain period of time, its called a circuit breaker to try and stop momentum of a stock
What? They shut buying down all day but only allowed you to sell on fear. Look up the company and see who has down all their pre-IPO financing.
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In comment 15137283 NJBlueTuna said:
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I can’t see how they do their planned IPO now with the class actions already rolling in and announced congressional inquiries being demanded by dems and republicans alike. Tbh, I don’t even know how their action today to forbid buying of shares and only allow selling of them is legal? That’s a classic squeeze/trap to hold investors hostage and force selling out of fear.
I can’t believe how this is unfolding. Will be interesting to see what forces coerced Robinhood to take this action as a private company.
ot happens alot just not to this scale...Whenever a stock fluctuates up or down 10 points they halt the stock for certain period of time, its called a circuit breaker to try and stop momentum of a stock
What? They shut buying down all day but only allowed you to sell on fear. Look up the company and see who has down all their pre-IPO financing.
I am saying it doesn happen where they stop buying and selling, obviously not all day this is extremem
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In comment 15137296 nygiants16 said:
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In comment 15137283 NJBlueTuna said:
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I can’t see how they do their planned IPO now with the class actions already rolling in and announced congressional inquiries being demanded by dems and republicans alike. Tbh, I don’t even know how their action today to forbid buying of shares and only allow selling of them is legal? That’s a classic squeeze/trap to hold investors hostage and force selling out of fear.
I can’t believe how this is unfolding. Will be interesting to see what forces coerced Robinhood to take this action as a private company.
ot happens alot just not to this scale...Whenever a stock fluctuates up or down 10 points they halt the stock for certain period of time, its called a circuit breaker to try and stop momentum of a stock
What? They shut buying down all day but only allowed you to sell on fear. Look up the company and see who has down all their pre-IPO financing.
I am saying it doesn happen where they stop buying and selling, obviously not all day this is extremem
Halting trading and not allowing a certain segment of the market from buying are very different
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In comment 15137306 NJBlueTuna said:
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In comment 15137296 nygiants16 said:
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In comment 15137283 NJBlueTuna said:
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I can’t see how they do their planned IPO now with the class actions already rolling in and announced congressional inquiries being demanded by dems and republicans alike. Tbh, I don’t even know how their action today to forbid buying of shares and only allow selling of them is legal? That’s a classic squeeze/trap to hold investors hostage and force selling out of fear.
I can’t believe how this is unfolding. Will be interesting to see what forces coerced Robinhood to take this action as a private company.
ot happens alot just not to this scale...Whenever a stock fluctuates up or down 10 points they halt the stock for certain period of time, its called a circuit breaker to try and stop momentum of a stock
What? They shut buying down all day but only allowed you to sell on fear. Look up the company and see who has down all their pre-IPO financing.
I am saying it doesn happen where they stop buying and selling, obviously not all day this is extremem
Halting trading and not allowing a certain segment of the market from buying are very different
true bad example on my part
Totally. I mean, aside from the inherent risk of trading stock, now Robinhood customers have to consider the risk that the platform will suddenly prevent buying and cause a massive shift in that stock??
No thanks.
GMAFB. Reddit got the death penalty for daring to make a hedge fund pay for its bad trades. Nobody stopped to assist Melvin’s risk management people in ensuring they knew what they were doing. If they didn’t expose their flank, this never happens. But they did, and we had to shut down the free market to help them and the other billionaires unwind their positions before resuming, “limited trading.”
Why should we think anything running on silicon will not be manipulated if it is in the interest of those at the controls? And in this case the ostensible loser on the GME trade has a ton of control over the literal instrumentality used by the kids.
Class action filed in New York. Get a fat payout of $3.28 from the settlement.
that's how it started, it snowballed beyond what they imagined I think, but absolutely how it started - but it's not college kids on a reddit board using their weed money (initially), it was 50k from the guy who runs wallstreetbets forum, but eventually caught the attention of Elon Musk, Chamath Palihapitiya, and Mark Cuban.
Heck, my 18 year old college freshman called me and asked if she should buy it.
Then the vehicle that enabled it was robinhood, which is a mobile/web based equity trading tool that is much more in accessible and up the "Gen Z' alley.
Think of Robinhood like Draft Kings or Fan Duel, but for stocks - it's that easy to trade (usually).
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that "retail traders" from reddit boosted the market cap of GME 15 billion dollars? Am I wrong to be a skeptic of everything as it's being portrayed in the media? It seems to me like there's some big money involved here, and it's not just from redditors.
that's how it started, it snowballed beyond what they imagined I think, but absolutely how it started - but it's not college kids on a reddit board using their weed money (initially), it was 50k from the guy who runs wallstreetbets forum, but eventually caught the attention of Elon Musk, Chamath Palihapitiya, and Mark Cuban.
Heck, my 18 year old college freshman called me and asked if she should buy it.
Then the vehicle that enabled it was robinhood, which is a mobile/web based equity trading tool that is much more in accessible and up the "Gen Z' alley.
Think of Robinhood like Draft Kings or Fan Duel, but for stocks - it's that easy to trade (usually).
Yes, but how much of the actual trading was from Wall St., and how much of it was from the “retail traders”? $20B is a huge amount of money, and I don’t think that the majority of that volume was from the average joe.
The average joe just rode the wave, the heavy hitters were the ones to make it go
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In comment 15137402 giantBCP said:
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that "retail traders" from reddit boosted the market cap of GME 15 billion dollars? Am I wrong to be a skeptic of everything as it's being portrayed in the media? It seems to me like there's some big money involved here, and it's not just from redditors.
that's how it started, it snowballed beyond what they imagined I think, but absolutely how it started - but it's not college kids on a reddit board using their weed money (initially), it was 50k from the guy who runs wallstreetbets forum, but eventually caught the attention of Elon Musk, Chamath Palihapitiya, and Mark Cuban.
Heck, my 18 year old college freshman called me and asked if she should buy it.
Then the vehicle that enabled it was robinhood, which is a mobile/web based equity trading tool that is much more in accessible and up the "Gen Z' alley.
Think of Robinhood like Draft Kings or Fan Duel, but for stocks - it's that easy to trade (usually).
Yes, but how much of the actual trading was from Wall St., and how much of it was from the “retail traders”? $20B is a huge amount of money, and I don’t think that the majority of that volume was from the average joe.
Wallstreetbets subreddit gained 2.5 million users in the last week. Some people claimed to have put thousands in (if not more). There's power in numbers...
But, to be fair - there are definitely some big players involved as well
The one guy lost 14 million in value today. This is nuts
The one guy lost 14 million in value today. This is nuts
He's still holding too.
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Robinhood has started selling users' stock without their permission and has been hit with a class-action lawsuit accusing the stock trading app of siding with Wall Street hedge funds by blocking investors' ability to buy shares of GameStop following a Reddit-fueled rally.
Even if not true - do you see a way for them to survive this?
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Robinhood has started selling users' stock without their permission and has been hit with a class-action lawsuit accusing the stock trading app of siding with Wall Street hedge funds by blocking investors' ability to buy shares of GameStop following a Reddit-fueled rally.
Even if not true - do you see a way for them to survive this?
No way, their rep is ruined. But I think this really would open them up badly for lawsuits
Its going to be like this for awhile, fluctuate, people selling high then buying back in when it drops..
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I had a little play money and thanks to my FOMO I bought a couple shares this morning. Within 10 minutes I was up a lot. 30 minutes later I looked and was down and dropping. Got out with a loss but managed to stop the bleeding. Lesson learned. Maybe I should have kept holding until tomorrow but oh well.
Its going to be like this for awhile, fluctuate, people selling high then buying back in when it drops..
I do my trading through Schwab. Is it permissible to buy/sell a stock in the same day more than once and not be labeled a day trader?
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Robinhood has started selling users' stock without their permission and has been hit with a class-action lawsuit accusing the stock trading app of siding with Wall Street hedge funds by blocking investors' ability to buy shares of GameStop following a Reddit-fueled rally.
Those forced sells might be for margin calls.
video of interview - ( New Window )
BBI closed at 437.00 a share
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Robinhood has started selling users' stock without their permission and has been hit with a class-action lawsuit accusing the stock trading app of siding with Wall Street hedge funds by blocking investors' ability to buy shares of GameStop following a Reddit-fueled rally.
This screenshot is floating around twitter, supposedly from one or more RobinHood users. I'd take it with a grain of salt until it's confirmed. The lawsuit is real, though:
We were seconds away from a virtual black hole of liquidity in GME.
RH had no choice. But wow are they screwed. and this isn't close to being over yet.
There literally aren't enough shares to sell any more. Get your popcorn ready for tomorrow.
Nevertheless...
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Hedge fund shorted over 120% of gamestop stock
Reddit found out and started raising the price
Wall st found out and Melvin Capital (the hedgefund) took an almost $3bil loan out to help stop the bleeding. Didn't work.
Robin Hood and other trading platforms stopped allowing regular people to purchase the stock this morning after crazy overnight movement.
Rumors have it the hedgefunds took out more shorts right before RH etc did this. Stock plummetted from almost 500 to low 100s.. It's been going up since but has been blatant market manipulation in favor of the hedgefunds
We were seconds away from a virtual black hole of liquidity in GME.
RH had no choice. But wow are they screwed. and this isn't close to being over yet.
There literally aren't enough shares to sell any more. Get your popcorn ready for tomorrow.
Anyone who buys GME at $2600 is making an
Incredibly risky
Purchase. They deserve what they get. Plus I doubt this is true. It was some OTK trade
Manipulate its price is securities fraud.
I did not read the Reddit thread. So I don’t know how it was
Phrased . Maybe they avoided illegal sction but they are definitely skating close to the line
Manipulate its price is securities fraud.
I did not read the Reddit thread. So I don’t know how it was
Phrased . Maybe they avoided illegal sction but they are definitely skating close to the line
You don't have to be a blameless hero in this scenario to see the deeper point. Institutional investors manipulate stock prices routinely, and rarely, if ever get slapped down for it. But action gets taken when Reddit upsets the applecart.
Manipulate its price is securities fraud.
I did not read the Reddit thread. So I don’t know how it was
Phrased . Maybe they avoided illegal sction but they are definitely skating close to the line
Wow.
The billionaire cheaters who game the system on a daily basis got burned by the peasants and you cry outrage!
No need to worry, the full weight of the system will bury those upstart peasants. And your faith in the "system" will be restored.
I'll paste the whole twitter story (?) and then a link to it.
Josh Gross
@endtwist
So many folks (esp. the media) are missing the complete backstory on $GME and how we got here.
This has been simmering for over a year and the story behind it is great. I’ve been tracking this since September and devoured all of the details from the origin through today.
4:51 PM · Jan 27, 2021·Twitter Web App
Josh Gross
@endtwist
·
Jan 27
Replying to
@endtwist
So back in September 2019 (!) some guy named DeepFuckingValue posted this on r/wallstreetbets:
Josh Gross
@endtwist
·
Jan 27
It was just a post about his LEAPS (aka,
Long-Term Equity Anticipation Securities — tl;dr long-dated calls) on GME.
At the time, nobody understood his position at all. The top comment on that post?
"Bid-ask spread on these are ridiculous, good luck getting rid of them" lol.
Josh Gross
@endtwist
·
Jan 27
For the next year, every month about once a month, he posted his "YOLO GME" position. Every month for a year he got made fun of.
I caught wind of this trade back in September 2020, a FULL YEAR after this guy was already holding. I also thought it was weird—the dying retailer?
Josh Gross
@endtwist
·
Jan 27
So I dug into the public quarterly reports of GameStop. Every quarter, public companies are required to release what's called a "10-Q" which is a quarterly report of their financials. You can find them here:
Josh Gross
@endtwist
·
Jan 27
And what did I find? GameStop was actually in a great financial position; they weren't going broke! In fact, they had a lot of cash-in-hand, enough to pay off all their debts.
So why was it trading at like … $2-4/share?
Josh Gross
@endtwist
·
Jan 27
Next, I looked at their short interest. "Shorting", for those who don’t know, is when you borrow a stock (from someone) and sell it on the market expecting the price to go down. You eventually buy back the stock at a lower price, return the borrowed shares, and pocket the diff.
Josh Gross
@endtwist
·
Jan 27
So, the short interest was over 100% of total shares. In fact, it was 140%. Which makes no sense—how can you sell more shares than there are shares?
Keep in mind, not all shares are actively traded. In fact, over 75% of $GME is locked up in passive funds and GME board & C-suite.
Josh Gross
@endtwist
Replying to
@endtwist
So really, short interest was like 300-500% of *float* (float is how many shares are actively traded, basically).
Which is insane. Basically, the shorts (which are hedge funds like Melvin) were expecting $GME to go bankrupt and they'd never have to cover (return their shares).
5:17 PM · Jan 27, 2021·Twitter Web App
Josh Gross
@endtwist
·
Jan 27
u/DeepFuckingValue had figured this out long before anyone. Even Michael Burry (yes, The Big Short guy) who bought in AFTER u/DeepFuckingValue.
And he bought in, with conviction in his trade, ignoring the haters.
Josh Gross
@endtwist
Replying to
@endtwist
A year later and people start to take notice on reddit. The price has started to inch up, from $4 to $8 to $12 over September and October.
And more people on r/WallStreetBets started buying in.
And then more people.
And then more people.
5:17 PM · Jan 27, 2021·Twitter Web App
Josh Gross
@endtwist
·
Jan 27
Replying to
@endtwist
Which, of course, makes the price go up. So the price keeps going up and more people keep taking notice and so on.
Eventually, the shorts are supposed to cover. But how? They need to purchase more shares than there are in the company. Well, that means purchasing at any price.
Josh Gross
@endtwist
·
Jan 27
So they start to cover, which means buying hundreds of thousands of shares, which pushes the price up more.
And then last Friday, thanks to momentum and growing interest from retail traders, we had what is called a "gamma squeeze." Which isn’t the short squeeze!
Josh Gross
@endtwist
·
Jan 27
So, quick aside to explain this: Market Makers (the big banks and funds, like GS, Citadel, etc) write options. When they do, they have to remain "market neutral" by law. So there are what's called "the greeks" on options: theta, gamma, etc. Look 'em up if you'r curious.
Anyway…
Josh Gross
@endtwist
·
Jan 27
"Gamma" is a number between 0-1 that changes on a call as the price of a stock gets closer to the call price. Lets say you buy a $300 call and the stock is $290. Gamma would be ~0.98.
Meaning for every call purchased (which rep. 100 shares), MMs buy 98 shares to be neutral.
Josh Gross
@endtwist
·
Jan 27
As gamma changes, they have to buy more or sell more shares.
On Friday, the price was over every available call strike, which meant that MMs had to buy millions of shares—if a call is "in the money" (stock price > call price) they have to deliver the shares.
Josh Gross
@endtwist
·
Jan 27
So on Friday and Monday, the price ran up very quickly as MMs hustled to cover the calls and settle them.
Then the news took notice and everything went wild. More people piled in, larger firms are piling in on the buy side, Elon, Chamath… and the price exploded.
Josh Gross
@endtwist
·
Jan 27
So that’s how we're where we are now. Supposedly, a number of shorts have covered. That being said, last I checked, the short interest was still ~138% so either:
(a) the shorts haven’t covered or,
(b) more people are shorting to replace the shorts that covered
Josh Gross
@endtwist
·
Jan 27
When you short, you pay a borrow fee which can change from day to day. Right now that fee on $GME is between 20-80%. That’s like… credit card interest rates! To borrow a stock!
So the longer you’re holding your short position, the more it costs.
Josh Gross
@endtwist
·
Jan 27
Eventually it either costs too much and you have to close your position for a loss, or you go bankrupt. Melvin almost went bankrupt (they got a $2.75B bailout from 2 other hedge funds).
This is where we are now. Where does it go from here? I’m not sure!
Josh Gross
@endtwist
·
Jan 27
Sorry this was so long, I find it really interesting and have been very invested in the story for months :)
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Conspiring to buy a stock solely to
Manipulate its price is securities fraud.
I did not read the Reddit thread. So I don’t know how it was
Phrased . Maybe they avoided illegal sction but they are definitely skating close to the line
Wow.
The billionaire cheaters who game the system on a daily basis got burned by the peasants and you cry outrage!
No need to worry, the full weight of the system will bury those upstart peasants. And your faith in the "system" will be restored.
Ding ding ding!
How is that even possible? Or legal?
How is that even possible? Or legal?
Because brokers can lend out already held shares to short sellers to sell short, which in turn once bought by someone, their broker can lend it out to be sold short again...
So the same share can end up getting borrowed and sold twice. Thus allowing short shares to mathematically exceed 100%
Thanks for posting this
So the same share can end up getting borrowed and sold twice. Thus allowing short shares to mathematically exceed 100%
Noob question of the day (we all get one)...
How can something "borrowed" be sold? If I borrow my parent's car, I have no legal right to sell it.
How exactly does this work in the investing world? If I short a stock, how can I possibly sell a "borrowed" stock?
What are the implications of being labeled as a day trader? I have a cash account with TDA; should I do anything differently if I want to try timing the dips tomorrow?
How can something "borrowed" be sold? If I borrow my parent's car, I have no legal right to sell it.
How exactly does this work in the investing world? If I short a stock, how can I possibly sell a "borrowed" stock?
Well, you can borrow money to buy a house and sell it for a profit if the value appreciates. Of course the value can go down and you would be responsible for the difference if you had to sell it.
Yeah, that makes sense. I get hung up on the idea of stock as an object...which then leads me to ask, how were shorts handled back in the day where owners were issued physical stock certificates?
I can understand the process in today's electronic age. But if I have physical custody of a stock, how can someone "borrow" and then sell it?
if a stock is trading at $10 and you think the company sucks, you short it which means you "borrow" a share(s), sell it at $10 (so you get $10 per share) the stock shits the bed you buy it at $1 (so you buy n shares at $1 per share and return them to the person you borrowed them from - and you make $9 per share profit).
In extreme cases if the company goes bankrupt, and you had shorted it, you never need to return the shares, since common stock holders are the last to get paid in a bankruptcy, IOW almost never get paid.
They sell used cell phones, might be able to find a Nokia and support two of these companies at once!
This is what AMC is doing which is really smart.
Gonna be a helluva day.
Gonna be a helluva day.
Has the forced sales thing been confirmed?
I recommended that on the crypto thread and was mercilessly attacked. lol.
It was under a penny and spiked yesterday over .07. BTC at 34,000 or DOGE at half a cent.
I am not greedy, I wanted to unload it.
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And other sales restrictions on the uncouth. Increased margin requirements. Forced sales.
Gonna be a helluva day.
Has the forced sales thing been confirmed?
There are many screenshots of forced market sales, some on margin, others not.
I suppose they all could be photoshopped. I doubt that, though.
I recommended that on the crypto thread and was mercilessly attacked. lol.
It was under a penny and spiked yesterday over .07. BTC at 34,000 or DOGE at half a cent.
I am not greedy, I wanted to unload it.
Build your own stock market they say...
I recommended that on the crypto thread and was mercilessly attacked. lol.
It was under a penny and spiked yesterday over .07. BTC at 34,000 or DOGE at half a cent.
I am not greedy, I wanted to unload it.
Lol i tried to throw a few $$ on it but it said I didn't have the 'buying power needed'
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DOGE too. WTF.
I recommended that on the crypto thread and was mercilessly attacked. lol.
It was under a penny and spiked yesterday over .07. BTC at 34,000 or DOGE at half a cent.
I am not greedy, I wanted to unload it.
Lol i tried to throw a few $$ on it but it said I didn't have the 'buying power needed'
lol, it's .045 you need to be a heavy hitter to absorb that cost.
They will never let the Stock skyrocket, thats why people should of sold high yesterday or the day before...
As soon as it stsrts going up they will stop it
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I do my trading through Schwab. Is it permissible to buy/sell a stock in the same day more than once and not be labeled a day trader?
What are the implications of being labeled as a day trader? I have a cash account with TDA; should I do anything differently if I want to try timing the dips tomorrow?
If you are labeled a pattern day trader at CS, you must maintain 25000 liquidity
Its going to fall alot
LOL
Robinhood's existing investors include venture capital firms Sequoia Capital and Ribbit Capital, who came together on Thursday night to offer the emergency funding, according to a New York Times report.
Reuters could not immediately verify if Sequoia and Ribbit helped with the emergency infusion.
"We're pleased to share that we've raised over $1 billion from existing investors to continue to invest in record growth. This is a strong sign of confidence from investors that will help us continue to further serve our customers," a Robinhood spokeswoman said in an email.
Why would Robinhood need emergency money if all they're doing is being a vehicle for others to use to trade stocks?
A more detailed explanation: Brokerages post money with the D.T.C.C. to cover customers’ transactions while they wait for the trades to settle. With such a big surge in trading, the clearing hub wanted more assurance: “It’s the D.T.C.C. saying ‘This stuff is just too risky,’ ” said the Bloomberg Intelligence analyst Larry Tabb.
Other online brokerages also cited the D.T.C.C. as a factor in decisions to impose trading restrictions.
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The surge in trading forced Robinhood to raise cash. As waves of investors poured into the markets, Wall Street’s central clearing hub, the Depository Trust and Clearing Corporation, demanded billions more in collateral from brokerages to shield it from the volatility. Robinhood, which had already drawn millions from its credit lines to meet margin requirements, turned to existing investors for additional capital so it wouldn’t have to impose further limits on customer trades.
A more detailed explanation: Brokerages post money with the D.T.C.C. to cover customers’ transactions while they wait for the trades to settle. With such a big surge in trading, the clearing hub wanted more assurance: “It’s the D.T.C.C. saying ‘This stuff is just too risky,’ ” said the Bloomberg Intelligence analyst Larry Tabb.
Other online brokerages also cited the D.T.C.C. as a factor in decisions to impose trading restrictions.
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Thank you Tim for the link. That definitely helps me understand all of this.
Blackberry taking a hit now
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The company isn't worth that much and is priced on hype. I wasn't planning on getting involved with this GME game, but I don't think it sustains the current pricing over time. As another poster mentioned, with many current and future systems going to streaming based, what is GME going to sell? Accessories that can be bought via e-commerce?
Blackberry taking a hit now Link - ( New Window )
He is definitely furious and rightly so
Closed yesterday at $193
Closed today at $325.
Right?
Blackberry taking a hit now Link - ( New Window )
It sounds like he should be more upset with his trading platform, not WS. If one doesn't like their rules (robin hood), open an etrade/morgan stanley/TDA brokerage account and buy/sell as one likes. I didn't have any limitations other than NYSE breaker which halted all trading of the stock the other day.
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listen to/watch
Blackberry taking a hit now Link - ( New Window )
It sounds like he should be more upset with his trading platform, not WS. If one doesn't like their rules (robin hood), open an etrade/morgan stanley/TDA brokerage account and buy/sell as one likes. I didn't have any limitations other than NYSE breaker which halted all trading of the stock the other day.
Which rules forced them to halt purchases but not sales? I haven't heard an explanation on this, even with Vlad's terrible interviews.
The company isn't worth that much and is priced on hype. I wasn't planning on getting involved with this GME game, but I don't think it sustains the current pricing over time. As another poster mentioned, with many current and future systems going to streaming based, what is GME going to sell? Accessories that can be bought via e-commerce?
Kev - wouldn’t the stock need to dip below $1.33 sometime before 1/2023 in order for you to make money on that trade? Am I missing something?
Closed today at $325.
Right?
Correct, with little fanfare in between. Most of those gains were from after hours yesterday anyways. Today didn't have any breaking news leading to panic selling. The past two trading days did.
Can you say this again in english for us dumb folks?
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Low risk given the cost of the option contract. Gives you great exposure to the down side with little initial investment. I just bought 20 contracts @ .67.
The company isn't worth that much and is priced on hype. I wasn't planning on getting involved with this GME game, but I don't think it sustains the current pricing over time. As another poster mentioned, with many current and future systems going to streaming based, what is GME going to sell? Accessories that can be bought via e-commerce?
Kev - wouldn’t the stock need to dip below $1.33 sometime before 1/2023 in order for you to make money on that trade? Am I missing something?
No because as the underlying (GME) price goes down, the value of the options contract goes up. So, if GME goes down to lets say $100, the option could be around $2-3 based on volatility and downward movement . Plus by shorting it long term, you have about 2 years to see how it all pans out. The closer the underlying price of the stock is to the strike price, the value of the option goes up.
In this scenario, one doesn't need to wait the full two years to see results. If it takes a sharp downturn at some point between now and expiration, I'll likely close out the options contracts or sell a portion and take a profit.
The flip side of the PUT option is the CALL option. One can short the stock this way as well but would have to purchase the underlying and then sell a deep in the money CALL. Essentially you want the same outcomes, but the covered call will cost much more to get into.
The SPAC does an IPO itself. Raises a ton of cash with 1 purpose. To take another company public. Once it has the $, it hunts for a company to take public.
They were really popular in 2020. Many more now with celebrities and athletes jumping in (Shaq, Baron Davis)
They trade like stocks. So you buy a share of the SPAC, in this case I bought CCIV, usually based on the management of the SPAC or rumors of a merger.
CCIV is rumored to be merging with Lucid (electric car maker with a great looking product). Typical SPAC stock trades from 10 to start and usually jumps to $12-13. If rumors start it jumps to $18-20.
Google CCIV. The rumors have been all over. Site called StockTwits.com has a reddit type thread with people posting about the rumors.
CCIV stock is now $22-24 range. If the rumor falls through it will probably drop down to 13-14. If the Lucid merger happens? It will jump a lot.
The SPAC does an IPO itself. Raises a ton of cash with 1 purpose. To take another company public. Once it has the $, it hunts for a company to take public.
They were really popular in 2020. Many more now with celebrities and athletes jumping in (Shaq, Baron Davis)
They trade like stocks. So you buy a share of the SPAC, in this case I bought CCIV, usually based on the management of the SPAC or rumors of a merger.
CCIV is rumored to be merging with Lucid (electric car maker with a great looking product). Typical SPAC stock trades from 10 to start and usually jumps to $12-13. If rumors start it jumps to $18-20.
Google CCIV. The rumors have been all over. Site called StockTwits.com has a reddit type thread with people posting about the rumors.
CCIV stock is now $22-24 range. If the rumor falls through it will probably drop down to 13-14. If the Lucid merger happens? It will jump a lot.
Thanks man. That's really interesting and exciting
If the price goes to $59 on Monday than the price of his options would rise and he could sell the option for a profit. People rarely buy options to ride them out to the expiration date, they trade them when they move in a favorable direction.
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Aren't you betting the company goes kaput? If the company goes bankrupt and the stock goes to 0, those contract would be worth a max of $2. Even if Game Stop tanks to 50 on Monday I don't see the value of those puts going up very much.
If the price goes to $59 on Monday than the price of his options would rise and he could sell the option for a profit. People rarely buy options to ride them out to the expiration date, they trade them when they move in a favorable direction.
The strike price of the option is $2. What is the maximum anyone would pay for the right to sell something at $2/share? $2ish bucks if the stock was at $0?
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In comment 15138663 Kevin999 said:
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Aren't you betting the company goes kaput? If the company goes bankrupt and the stock goes to 0, those contract would be worth a max of $2. Even if Game Stop tanks to 50 on Monday I don't see the value of those puts going up very much.
If the price goes to $59 on Monday than the price of his options would rise and he could sell the option for a profit. People rarely buy options to ride them out to the expiration date, they trade them when they move in a favorable direction.
The strike price of the option is $2. What is the maximum anyone would pay for the right to sell something at $2/share? $2ish bucks if the stock was at $0?
Not much. If I had more guts I'd of bought the $80-100 strikes....but I treat this like Vegas/gambling money and it's fun.
I’m long AMC and sold calls against my common yesterday ... the $40 strike selling at $1.85 maturing in 7 days ...that’s an expected $29 increase in 7 days over the $13 the common trades at which is a 223% implied return in one week or 116x on an annualized basis ... I don’t know what Gen ex Rock star bought those calls from me but you have bigger stones than Yosemite.
If the Amc bonds are indeed trading at a deep discount ( can one of you bond guys confirm ?) that is good and bad but mostly bad. The good is the bond holders dont think amc can/will issue a shit ton of equity and buy the bonds back in the market or redeem them. So the risk of a highly dilutive equity raise to allow the shorts to cover is not priced in the bond market. The bad is that if those bonds are trading at a discount the bond market ( which has yet to be infiltrated by lunatic Robin Hood hyenas with stimulus money) also thinks the equity is worth zero. silver lake ( a blood thirsty hard money lending PE shop ) issued them $600m in debt https://www.hollywoodreporter.com/news/amc-theatres-unveils-new-debt-deal-bondholders-1302870 but converted the notes to common at $13 in all this madness and did very well https://twitter.com/mattzeitlin/status/1355282569294729221?s=21
The positive is that silver lake negotiated a $13 conversion price months ago so there MAY appear to be some rational scenario in which the equity is worth $13. https://www.businesswire.com/news/home/20180914005261/en/AMC-Entertainment-Closes-on-600-Million-Strategic-Investment-from-Silver-Lake
The bonds had an jnterest rate of 2.95% but there was a equity PIK ( payment in kind ) component at a discount to current prices .. it was secured debt so it was senior to much of the debt stack. Amc has $5b still in debt, would like to understand how the company is worth more than that let alone how the common equity is worth $13, I’m looking for the exit Monday or Tuesday absent and brilliant contrarian analysis.
I forget the name of the other platform that suspended trading, but they had similar claims, except it was their 3rd party clearing house that could not handle the volume without an infusion of funding.
I forget the name of the other platform that suspended trading, but they had similar claims, except it was their 3rd party clearing house that could not handle the volume without an infusion of funding.
Yes. the big issue people are having is that Vlad (Ceo of Robinhood) claimed there was no liquidity issue and it was in the best benefit of their clients to suspend/limit buying stocks.