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.
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.