Oso planning to go pro
It's really too bad that the rich don't want to play by the rules of the game that they've written. But it isn't surprising. Usually this sort of thing happens when the big boys gang up on each other... but now that little guys organize its a problem. It's almost as if the super rich don't want anyone to organize. Hmmmm...We're truly living in the second gilded age.
Yep. And absolutely bought off, ineffectual political class, and a business class that largely sets the rules to benefit themselves.
It still baffles me that any "little guys" side with the rich/business class despite it being against their own self-interest.We have many on this board
This is all crazy and it will certainly be talked about in finance classes in the future, but don’t reach to make this something bigger than it is. Things will return to normal and by spring it will be a memory. Markets have been chaotic and prone to black swans for all of their history, this is nowhere near big enough to even broach the topic of regulations or bailouts.
Reason #184748 why nobody should be using RobinHood. Nothing is ever free. They’ve been selling trade data to funds for them front-run forever, that’s how they make their money. No shock that they cater to whatever the funds want them to do. The fact that people still use it, after it was blacked out for WHOLE TRADING DAYS during market chaos last year, baffles me. Especially since all brokers are commission free more or less now
Haircut time for a lot of folks. Guess we see who can manipulate more now.I'd put my money on the billion dollar hedge funds.
If information at WSB is to be believed (I'm on the fence on that one), the guy who seems to be given the credit for starting the entire thing cashed out somewhere in the neighborhood of $10-$12 million on Monday and Wednesday. As of yesterday afternoon he still had holdings valued at about $50 million, but he apparently did lock in some of his gains.
He sold 200x 4/16 12c two days ago, and sold 300x more yesterday.He still holds 500 4/16 12c, as well as 50k of the underlying at $14.something basis.I would have sold a long time ago, not gonna lie
And that’s why these fools aren’t anything to fear long term. Beyond the fact that they should have been selling on the way up, or sold at euphoria levels, the anger today is that they can’t buy MORE. Not realizing that it’s a flashing sign that the jig is up. Also, beyond RobinHood, decent side theory from a friend who used to run a fund. A lot of margin buying is being done in these names, by people who have no clue what or how to use margin, just that there is “MOAR BUYING POWER”, so when the musical chairs stop, and the stocks plummet, they won’t be able to cover the margin calls. So it’s a hedge against that. It’s probably a combination of all of the above
I've read that there isn't much volume movement, and that this is just HF adding more shorts....anything to that?
That and the waves of retail can’t buy more GME and keep it high. So any sell or short pressure will move it.2 things are true for me. 1) it’s crappy that brokers and the people who control them, cause Robinhood and others sold out, change the rules on people.2) HOWEVER, I have very little pity for anyone holding GME that’s complaining today. If you bought ANYTIME in the last 3 days, you had substantial profit this morning at the open, even with restrictions. You could have liquidated for profit yesterday, at the open, through the morning. People acting like they are being bled of their money are only complaining that they can’t buy more and keep it skyrocketing, like this was NEVER going to end and GME would be AMZN level prices. It’s like people finding a flaw in a casino game, making money off it, then the casino finds out and eliminates the flaw, doesn’t take away the money you won or still have in play, just won’t let you exploit the flaw anymore and you risk any money still in play with the game like normal. (I’m not siding with the brokers, especially not the scumbags at RH, just annoyed by people who know next to nothing about markets through a fuss about stuff they truly don’t understand)
The entire point of what WSB is doing is to destroy the HF shorts and force them to buy their shares at a crazy price. They want to buy more because they think they've got them over a barrel.fwiw, I have nothing invested in this madness.
Reason #184748 why nobody should be using RobinHood. Nothing is ever free.
The second sentence is true ... but nowadays RH is not the only free trading platform. Indeed, just about all of them are now: Vanguard, Fidelity, Schwab, ETrade, etc, etc, etc.Schwab was the first big one to eliminate commissions back in 2019 and, within a month or two, they all fell in line.As for the stuff going on this week ... I watch it with bemusement and amusement. It is so foreign to how I invest that I'm but a spectator.
Right, but they still charge exchange fees or other things. An option trade may only .35 cents per contract as opposed to $9.99 plus .35 or whatnot like it used to be. RH has always been zero, period. Other brokerages are likely selling flow like RH now, but they also have other revenue streams. RH never has, their MO has always been selling flow and data. Which the majority of novices never understood and why they are shocked by this. I don’t know a single person using Robinhood, beyond the punter with $250 in their account, who hasn’t had some sort of issues. My buddy transferred money in awhile ago...they held it for 23 days. And their customer service routinely just went “IDK, be patient”