Investment & Investing

Averaged down to 190usd so anything now up is nice. Will probably set a stop loss I reckon in case it comes up against some more broker fuckery.

A mate bought 35 at 50 and sold at 160. He’s trying very hard to intellectualise the lost potential 😬🤷‍♂️

having bought $50 worth at 340, I should probably cash out and take my 50 cent profit

A mate bought 35 at 50

A mate bought 20 at 50 and is currently holding... I keep getting joyous texts from him.

this is me....

LOL!

what a dip

Awesome. That’ll pay for many things! Reading about American tax concerns makes me thankful for isas.

Speaking of which. I need to check when that form that lets me trade US stocks expires...

Anyone want to talk crypto, or should I stick to Twitter.

I bought some BC in the dip.

I'm mostly interested in the highly private currencies because they're actually useful for something.

Any Btc dip is a good one at the moment. Plenty of big growth coins, but so many shit coins at the moment.

I’m hoping for some good numbers from LINK.

Still wish I had bought the proper gme dip 😂

there's a thread for BTC chat

Been a pretty savage few weeks for me in my S&S self managed fund - main culprits ITM power, Pinterest, Fastly, Snap, Snowflake, Shopify, Bigcommerce and Lemonade (basically big tech and renewables)

Didn't pick any of them at peak and have faith that they're all pretty solid long term. For the last month to max out ISA I dumped everything into Alphabet, Facebook and Apple

Been a pretty savage few weeks for me in my S&S self managed fund

Indeed. I've lost half a kitchen, mostly thanks to Baillie Gifford.
(though most of what that was gains from there anyway)

there was always going to be some sort of pullback on those stocks that have seen serious growth; clean energy/hydrogen, electric vehicles, tech.... i am not overly exposed to those but did feel it in my portfolio for sure. i topped up some SMT when it hit below 1000 (at 10% discount to NAV) earlier this week which feels good

china having a bad time as of recent too but csi was up overnight so hopefully see bit of a clawback on some of those funds i hold (BG china fund has done amazingly past couple of months; huge drop past couple weeks - could be a good buying opportunity for some people who want some more exposure there. the fund manager is seriously smart)

GME circus:
Biden signed the stimulus bill yesterday. My day is free from 1pm and I have an additional screen set up to watch GME play-by-play.

What's driving it this time? Another load of options due to expire soon, or have the shorts all tried to pile in again (when it was around ~$50) in order to recoup some of their losses on the way down to ~$10?

Crazy stuff!

Call options and people covering their positions using the same stock the option is for.
Basically buying two shares for every option you sell, one to sell at the agreed price and one to cover your losses (as that asset is appreciating in value at the time). I only have s rudimentary understanding of this tbh but saw this article on it the other day:

https://www.forbes.com/sites/georgecalhoun/2021/03/10/gamestop-the-second-surgeanatomy-of-a-gamma-swarm/amp/

What's driving it this time? Another load of options due to expire soon, or have the shorts all tried to pile in again (when it was around ~$50) in order to recoup some of their losses on the way down to ~$10?

Not overshorted as per this.

I think its the chosen battleground.

That article talks a lot about gamma and options, but doesn't mention volatility once.

The primary pricing factor for options is volatility - And as more people buy volatility / gamma / options (you could use any term in that context), the volatility should rise, making options more expensive.

Sure - as more call options are sold, the more underlying will need to be bought to hedge (by the seller - the buyers are still unhedged.) - not quite in the way you suggest though - the hedge will cover both losses and exercise.

Also not mentioned in the article, it's a moving target - as your stock price rises, your option pricing will change - this time because of the increase in actual volatility driven by the changing underlying price (the corollary of vanna & volga in old school options pricing) - again, upwards.

With a rising price, you might expect demand to fall

I get a sneaking suspicion that the underlying model assumptions aren't holding true any more, or that something else is happening.

Sure - as more call options are sold, the more underlying will need to be bought to hedge (by the seller - the buyers are still unhedged.) - not quite in the way you suggest though - the hedge will cover both losses and exercise.

If this means what I think it means then that's what I was trying to say. The people who are selling the option need to be able to sell shares at that agreed price which will result in a loss when the price hasn't gone the way they were hoping, right? Then they have lost money on that transaction because the price went up so they try to make that money back by buying an appreciating share. Hence buying 2 shares for each option sold, 1 to sell to cover the option position and o e to make some.money from. Or have I just completely misunderstood that article?

Or have I just completely misunderstood that article?

I think it's the concept of hedging options that you're missing.

tl:dr - when you buy / sell buy / put options, you hedge your sensitivity to the underlying stock price moves by buying (if you sell a call or buy a put) the underlying stock (and vice versa - you sell the stock if you buy a call / sell the put)

You do this daily (or more often) as the price moves and you mark your position. This effectively locks in your profit / loss.

By the time the option is exercised, you likely already have the right stock position.

At no point do you need (or want) to have more of the underlying stock than the nominal value of the option, and it's only at exercise that you would expect to have near enough to cover the exercise.

Did something I haven’t done this year which is invest in a listed co early doors - I really like the look of Roblox so decided to go for it. Going long

gme could really go to the moon today after the latest news about robinhood broke last night, it seems all people using robinhood are actually only holding cfd's not real shares, so the 20mn+ shares bought and held by wallstreetbets people were never filled in the market, or most of them weren't
i believe they were saying that robinhood do this for all their positions, people were advised to move shares out of robinhood asap and force them to purchase shares in the market to transfer to other brokers, obviously if this is the case with all shares robinhood could well be fucked so if you are holding positions with robbing hoods might be a good time to start thinking about moving cash and positions out in case they do go tits up and lock your cash and shares up

if people start using other brokers ( non cfd brokers ) then real shares will start trading on the exchanges and the squeeze might happen, previously citadel bought shares in dark pools and sold on the open market so all the upwards pressure didn't really happen

today could see the start of a new part of the gme story

*i'm not invested in gme, just been watching with interest for a couple of weeks now

this is not financial advice, do your own reasearch and have a read about it,

#diamondemoji #diamondemoji #diamondemoji #diamondemoji #diamondemoji
#rocketemoji #rocketemoji #rocketemoji #rocketemoji #rocketemoji #rocketemoji #rocketemoji #rocketemoji #rocketemoji #rocketemoji #rocketemoji #rocketemoji #rocketemoji

interesting update! Cheers dude!

https://www.reddit.com/r/GME/comments/m74e3g/this_is_huge_robinhood_never_owned_your_gme/

reddit article

I’d caution against having too much faith in retail investors who still use robbing hoods after the bs they pulled earlier in the year.

I'm pretty sure that most retail brokers will do this, and always have done this - otherwise the cost per transaction makes retail share trading entirely (even more) pointless.