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Stock-Age: Stocks, Options and Dividends oh my!
- Thread starter koam
- Start date
SlimySnake
Flashless at the Golden Globes
My name is commander Shepard and this is the worst Citadel on the planet.
porkchopexpress
Member
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StreetsofBeige
Gold Member
It's amazing that the reddit mob picked certain stocks. It wasnt only heavy shorted stocks.
KOSS was $3 and zoomed to $120. Now back down to $35. The company has hardly any shorted stock (about 0.70% of float).
Either its random dogpiling, or other reasons I don't know about.
KOSS was $3 and zoomed to $120. Now back down to $35. The company has hardly any shorted stock (about 0.70% of float).
Either its random dogpiling, or other reasons I don't know about.
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Deleted member 17706
Unconfirmed Member
Loving these Lord of the Rings analogies...
Melvin was isengard but now we've woken up Mordor (Citadel).
We all need to be Gandalf and hold our position until the Riders of Rohan come.
Melvin was isengard but now we've woken up Mordor (Citadel).
We all need to be Gandalf and hold our position until the Riders of Rohan come.
LisaMariaMartin
Banned
This is a complete joke lol. Can't buy can sell. Who the fuck is buying then?
SlimySnake
Flashless at the Golden Globes
My coworker told me that Chase is allowing GME trades so I tried to open an investment account with them, and they have basically shut down any new investment accounts. I have been banking with them for almost 15 years now.
The other apps jumped in because then actually it was a risk. Not before. If Robinhood did not hold and caused panic nothing wouldn have happened.
porkchopexpress
Member
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ManofOne
Plus Member
The companies probably accessed their exposure to options trade and received a warning from the oversight committees.
I pretty sure all of them announced it at the same time so it seems coordinated
StreetsofBeige
Gold Member
Good question.
Not all trading platforms are banning buying. It sounds like Robinhooders (and some other platforms) can only sell, but other ones (probably normal trading accounts through your bank) are still allowing it.
Also, it seems hedge funds can still buy and sell according to AOC tweet.
SirKicksalot
Member
UnravelKatharsis
Member
I don't understand what you keep laughing about.
porkchopexpress
Member
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No they did not.
People went from Robinhood to webull etc adn everytime they bought shortly after they halted it as well. Later on they blocked other countries as well when people found out you can buy from non us countries.
ManofOne
Plus Member
mango drank
Member
General question: why is it that I can buy a Vanguard fund at end-of-day price using a connected bank account, but in order to buy an individual stock, I have to use settled money? Why can't I just buy a stock at end-of-day price using a connected bank account?
Is it the same way with other brokers? I.e., I can buy their own funds using same-day EOD prices and connected bank accounts, but I need settled money to buy individual stock?
Basically, what are the rules governing 1) what money source can be used to 2) buy what investment 3) at what time of day?
Is it the same way with other brokers? I.e., I can buy their own funds using same-day EOD prices and connected bank accounts, but I need settled money to buy individual stock?
Basically, what are the rules governing 1) what money source can be used to 2) buy what investment 3) at what time of day?
depends if you are are so rich that you do not care about 100k and just go to play with it a bit.Humor is relative
Seriously how can you even defend this?
UnravelKatharsis
Member
Humor is relative
I've only got 1000 in the game and ten shares so it's more entertainment than anything for me, but I've been following this thread and you seem to be the only one taking joy in the possibility of others losing. I could be wrong
ManofOne
Plus Member
Check the time stamps on the tweets also IB sent out a message pre market this morning that they were doing this. I have an IB account.
FunkMiller
Gold Member
Fuck off eToro, you absolute roasters
D
Deleted member 17706
Unconfirmed Member
infinitys_7th
Member
That's the smug fuck I was talking about earlier. He was so pissy about people having the ability to band together and do what he can, talking about how stupid they are.
BuddyLaDouche
Neo Member
The hedge funds, to cover their shorts, while the price is still lower than it would be otherwise. Full on collusion.
D
Deleted member 17706
Unconfirmed Member
Nothing we can do if they seriously coordinate a shut down of buying on literally every broker, which it looks like where we're headed. They can tank the price and get out of their short positions at an artificially deflated price.
They are fucking us in the open and there's nothing we can really do (legally).
They are fucking us in the open and there's nothing we can really do (legally).
ManofOne
Plus Member
I've only got 1000 in the game and ten shares so it's more entertainment than anything for me, but I've been following this thread and you seem to be the only one taking joy in the possibility of others losing. I could be wrong
Not taking joy in anyone losing their savings. They knew the risk and ignored the advice. I’m taking joy in the dumb conspiracy theory that this was caused by some Illuminati.
come on the same people who complained always use the “it’s a private company,” argument want Robin Hood to not protect their business?
I be never seen you on this thread for months until this whole nonsense started if you truely been following, I told people to sell yesterday and early this morning. Also highlighted the risk of the investment. Which is the purpose of this thread to help. Conspiracy theories don’t help.
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It still fits.
Ok then IB started a hour later it was robinhood then a later it was webull etc. They closed the position people bought Gamestop stocks.
So If I understand this correctly the option for Melvin is out tomorrow right? So this is a strange coincidence that this happens right now dont you think?
D
Deleted member 17706
Unconfirmed Member
No offense, but I didn't see you predicting that the various brokers would just shut down buying ability for millions and millions of retail investors.
ManofOne
Plus Member
not the brokers but the sell off on the options. Who buys options when the VIX is around 20.
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Deleted member 17706
Unconfirmed Member
And do you think that we would be seeing the same effect if people could actually buy as they please?
ManofOne
Plus Member
the options are set to expire tomm. I had a whole post on it pre market on why ppl should sell before Friday. They should have sold, that’s my take
D
Deleted member 17706
Unconfirmed Member
And that would have made a lot of sense if we knew that the ability to buy on dips would be simply disabled arbitrarily to favor the hedge funds. Otherwise, it's less convincing of an argument, I would say, but I don't know shit, so it's all good.
edit: oops, wrong tweet.
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UnravelKatharsis
Member
I've been following for a week. Not forever. Enough to see what seems like almost giddyness at the market swings in relation to gme.
I don't care about the conspiracy theories. Of course robin hood has to protect their business.
Who knows if that's what's happening. Trust the corporations I guess?
I just don't understand why gamestop tanking would bring you joy is all, which, in my flawed opinion, it seems like it does.
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ManofOne
Plus Member
Post from this morning. Please read and understand why this is dangerous to play the options game
What Wall Street bets and others are doing isn't illegal. Gamma Squeezes are normal.
Every option contract is worth 100 shares. So delta (which normally gives you a figure between 1 and 0) determines by how much you will gain if the underlying assets increased for every dollar. So for example if delta was 0.6 the position would gain $60.00 if the stock increases by $1.00
What WSB is doing is called a gamma squeeze. So when an investor buys an option from a member firm, they have the opposite position typically to hedge against that position they purchase the underlying stock. So for example if I buy 1 contract with a delta of 0.6 then the member firm is short 1 contract and has a negative delta so they LOSE $60 for every $1 increase. So they hedge against this they buy the underlying share.
So this is where Gamma comes in, the closer delta goes to 1, gamma increases substantially. Gamma as you can see from above measures the sensitivity in delta. So the higher the gamma the more sensitive the delta essentially. So when gamma increases, the delta for member firms becomes more negative and the member firm must buy these positions to hedge.
Now if you have a contract, you don't necessarily need to execute the contracts. You can just let it expire. Member firms also have numerous delta hedging positions.
BTW I WOULD SELL BEFORE FRIDAY. B/C WHAT CAN HAPPEN FOR SHORTS CAN HAPPEN TO RETAIL INVESTORS WHEN THEY TRY TO SELL ON FRIDAY.
Here is a good post on reddit explaining it.
"So what happens next and why is Friday so important?
Since a great deal of call options are well into the money, brokerages are now expecting traders to exercise their options or sell their positions to be exercised else-wise. Since the 29th is a massive day for option expiration, millions of people are looking to cash in and dump shares / exercise to profit.
However, many of these traders do not have the capital required to actually open a position. This causes a huge problem because now all of those traders with options will A) be sold back to the MM who will immediately sell/ adjust their net delta to the downside to protect their risk exposure OR immediately exercise and sell their shares to avoid margin calls/ interest.
Not only does the take away of millions of option contracts and the exercise of such add a massive supply of shares to the market ( to be sold) it also forces dealers to sell shares to reduce their exposure they were forced to originally buy to hedge their delta from the calls. So, in theory the opposite of what happened on the way up can happen on the way down, but this time as dealers unload their shares forcibly to control their delta, shorts will also tack on to add pressure on the way down, also short selling shares to create a massive sell off."
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But people DID not sell and their options did not run out as well. If this was friday you might be right but this is thursday and it makes sense for hedge funds to press the price as much down as they can with this.
All of this did happen in less than an hour after they did hold the stock and did not let people buy anymore. THEY manipulated this
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FunkMiller
Gold Member
ManofOne
Plus Member
did you not read it. Brokerages are EXPECTING a sell off. Check the options history. A large portion of them are set to expire tomm. They had to do this. The VIX is at 27 today I think.
there is no conspiracy theory. Brokerages just don’t want to hold the bill i cases of large scale margin calls
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ManofOne
Plus Member
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Deleted member 17706
Unconfirmed Member
They had to collude to stop retail traders from being able to buy anything? I mean, yeah, if that was the only way to drop the price of the stock, then sure they "had to," but it's completely unprecedented.
UnravelKatharsis
Member
porkchopexpress
Member
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Taxexemption
Member
I still think fundamentally short selling shouldn't be allowed. It's stupidly high risk, and in my opinion manipulative activity. If you think the stock is going down you can buy puts. Why do you need to be able to sell shares you don't have?
ManofOne
Plus Member
I dunno how it works entirely but they prob got a warning from the Options committee and various market makers on exposure. Seeing the more popular platforms with retail investors have been affected the most .
that’s my guess
D
Deleted member 17706
Unconfirmed Member
Nah... there needs to be a way for bears to make money, I think.
porkchopexpress
Member
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