Investment & Investing

What's the strategy for this?
Find the price of one share? Buy one share wait 3 days? Sell. Get kazillions back?

Isthesqueezesquoze.com

That idiot Left at Citron had a hand in this mess by repeatedly being a condescending prick towards the perceived Everyman online. Now Peterffy, the damn chairman of IB the brokerage that most brokers use, has gone on CNBC and fucking laughed while admitting IB and robinhood fucked over the Everyman for their own gain by illegally not letting them buy stocks.

They don’t get it, or they feel so untouchable that they don’t care. It’s too big now, too grievously cynical. Those short sellers are so truly fucked that I wouldn’t be surprised if they’re actually trying to break the market so the feds will intervene.

I have an account but have never actually used it. Email from Robinhood to customers:

Hi Jake,
It’s been a tough day, and we’re grateful to you for being a Robinhood customer. In light of the extraordinary market conditions this week, we temporarily limited buying for certain securities this morning. Starting tomorrow, we plan to allow limited buys of these securities. We’ll continue to monitor the situation and may make adjustments as needed.
This was a temporary decision made to best continue serving you, and was not an easy one to make. We know it’s led to frustration and confusion, and wanted to provide some clarity.
As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including through the measures we have taken today.
To be clear, this decision was not made on the direction of any market maker we route to or other market participants.
The past year in particular has shown us that the financial markets are for everyone—not just institutional investors and hedge funds. We’ve seen a new generation enter the market, and they’re sparking conversations about what it means to be an investor. We stand in support of you, our customers. Democratizing finance for all means giving more people access, not less.
We’ll keep monitoring market conditions and will update this Help Center article with the latest changes. We also published a blog post regarding today’s events.
Thank you again for being a Robinhood customer. We’re so grateful for your support.

Peterftfy

ftfy.

How’s your mood, investor?

Meh, it's just a paper loss and a distraction from the $18mm green figure in the Total Gain column. And the tiny violin is out for his $13mm cash balance (which isn't exactly an example of him holding...)

But, more importantly, he is actually holding from a couple of days ago (if he hasn't just faked the eTrade image). I'd have thought he would have started to shed some of those calls, slowly but surely, ...

GameStop just opened up at >60% on the Frankfurt stock exchange.

https://www.google.co.uk/search?q=FRA%3A%20GS2C&cad=h

Popcorn at the ready for today.

My pharma stock from 2 years ago is still doing better than Gamestop

Hmmmm my BB stock crashed yesterday... Maybe I bought early. Time to double under (whatever that means).

My father always says, some people are great at making small fortunes...
... from larger ones.

I wonder if he knew he was going to be cursing me.

Oh boy.

Will be waiting for 230pm with bags and bags of popcorn ready.

Also pre market trade data will be available from ~0900-0915 GMT

https://www.nasdaq.com/market-activity/stocks/gme/pre-market

Losses on short positions is now at £70 billion

And here I am, a complete novice, looking at Vanguard S&S ISAs

You do you.
I kinda feel like if Robinhood’s goal had been to foster wealth creation and shift capital gains to the hands of everyday people, they would have designed an experience where the big dopamine hits were from regular contributions to index funds.

Jordan Belfort yer actual Wolf of Wall Street was interviewed on CNN yesterday and said the reason he thought the trading platforms were bailing was to try to protect themselves from lawsuits when inevitably everybody who fucked up starts suing everyone else.

Also thought SEC rules on share price manipulation/collusion were so grey that posting "hold the line" messages on message boards could be on dicy ground.

all the cases against wall street for price manipulation of the bond, currency, gold, silver, credit and commodities markets over the last decade have taken evidence from their chat rooms where they discuss manipulating prices, and only a couple got banged up

they just don't like it up 'em

Has this one been posted in here yet about Melvin Capital being owned by Citadel, and Citadel sponsoring Robinhood significantly; perhaps a couple of calls between the respective chairmen caused the shares to no longer be available on the app yesterday?

https://twitter.com/shane_riordan/status/1354786445668610049

I don't quite understand how Citadel would have allowed this situation given they'd have MI from both Melvin and Robinhood.

C. $400 a share.

Goodness me today's going to be exciting

Wow.

Are we likely to see a huge rise today when they expire, or will that be next week?

Are these losses guaranteed/actual losses or can they be turned around if the price tanks again?

I think while everyone is pulling funds from other stocks for the shark feeding frenzy, now is the time to find some good but depressed long term stocks.

Yeah you've got to be a real asshole that the public hates and even probably get locked away for something else - see Martin Shkreli

Are we likely to see a huge rise today when they expire, or will that be next week?

Shorts don't have any expiry.

The person shorting has to pay a borrowing cost to the owner of the share. This is variable (based on lots of things) but it's around 30% per annum for GME right now (and that's against the current stock price, not the price the share was when it was borrowed). This is paid until the share is returned to the original owner.

So, if there are 60mm shares being shorted and the share price is $300 then that's $6.3bn per year in borrowing costs, or about $17mm a day across all 60mm shares. So that's roughly $0.25 per share per day for the shorters.

Options (calls/puts) DO have expiry dates. New options become available each week on a Friday and will cover a range of time spans. But it means that each Friday a bunch of options will be expiring. There are about 100,000 options that expire today, mostly on the buy side, so that's definitely going to be more petrol on the fire.

So today there will be a bunch of people who bought call options who might want to exercise them today or lose that option forever. Lots of these will have been bought when the price was way down ($50 or below) and so it would be stupid not to exercise them as it means you buy a number of shares for a pre-determined price (I think the highest call options for GME expiring today are for $110 or so, no idea for puts) and then you can immediately sell them for instant profit (finding a buyer on the open market does not seem tricky given everyone wanting to pile in).

On the other side whoever sold that call option is in deep deep shit. Either they have covered their position earlier (before the price rocketed) and bought shares that they can hand over, or they now have to buy on the open market (~$300+) in order to sell to someone at $110 (or lower in many cases).

DFV bought a call option to buy 500 blocks of 100 shares (so 50,000 shares in total) at $12 at any point before April 16th. Doesn't take much to work out the profit on that. Whoever sold those calls is properly fucked (unless they can short it on the way back down to make the money back, hence the feedback loop GME is stuck in).

And that is super sensible and what you would find being recommended and discussed in this thread 95% of the time

And that is super sensible and what you would find being recommended and discussed in this thread 95% of the time

But today, we wear our cowboy hats!