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.
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