Investing Thread

[The Hippie Satan of Hyperbole]

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.

[StillAWarrior]

I am aware that correlation =/= causation, but I do note that at the time Robinhood made the change GME was at $450ish (I checked) and it dropped significantly right after.  It opened at $266 just an hour later. It's be interesting to see what happens when all the "retail" traders can start buying again.

[jesmu84]

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

[Hards Alumni]

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

Trouble is that they think they're in a class that they aren't.

[JWags85]

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

[MUBurrow]

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.

+1,000. I would consider it a pretty meaningful win if looking back this holds up as a cautionary tale against the most ludicrous of concentrated short positions.  As tends to be the case with this stuff, it only stands on a check against the most preposterous extremes - like a stock with 140% of its outstanding shares shorted. But hey, take a win where you can get it.

[Hards Alumni]

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

Correct, and it is exactly why I stay away from 'free' online apps and services. 

[Hards Alumni]

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.

[StillAWarrior]

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.

[Skatastrophy]

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

[JWags85]

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

[buckchuckler]

She's a good girl
Loves her mama,
Loves Jesus and America too,
She's a good girl,
Crazy about Elvis,
Loves horses and her boyfriend too.

*** Ok not anymore, bouncing back.

[Hards Alumni]

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?

[DegenerateDish]

Class action suit filed with Southern District of NY against RobinHood.

Bi-partisan support among congressional members to investigate.

[CreightonWarrior]

More than half of all RH accounts own GME.

[JWags85]

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)

[Hards Alumni]

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.

[Skatastrophy]

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.

+1

I wouldn't be terribly surprised if GME hit $1k before next Wednesday

Edit: Fidelity was having uptime issues this AM because of the number of people creating accounts to move their cash over from Robinhood (and others). If nothing else comes from this, it'll be good that these risk takers end up at reputable brokerages. Hopefully they realize how long it takes to deposit/move their $

[JWags85]

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.

FWIW, neither do I, either long or short. But again, don’t confuse a couple ring leaders for the masses. The people that know what they are doing know that plan. But the vast majority of people screaming are just pissed cause this is preventing them from “getting rich” in their minds. As mentioned, some of the main drivers of this move are already out with profits.  And from what I read, a couple of the bigger shorts had already covered.  Even without this intervention, we were getting close to a point where late arrivers were lining up to get torched.

I just want this to be over so we don’t get a bunch of people terrible market takes every day from people in media that don’t know a call from a put. And so we don’t need to listen to that smug douchebag Chamath crow his hypocritical crap any longer.

[MU82]

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.

[Juan Anderson's Mixtape]

People are upset that the other targets, like AMC, NOK, etc., were also froze on Robinhood and other apps.  Those were the buy-low positions set for a big run up.

I don't have a financial stake in this short squeeze bubble, but it's interesting to watch.

[JWags85]

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”

[jesmu84]

If I hear any more regarding the moral hazard of allowing retail investors to risk money and how they need protecting, I'll get physically ill.

[jesmu84]

Privatize gains, socialize losses

https://twitter.com/RBReich/status/1354600757660585984?s=19

[MU82]

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”

I've never done an options trade, so I wouldn't know and I'll take your word for it. I'm a K.I.S.S. kinda guy!