Anyone else watching what is going on with GameStop?

gimruis wrote:

It appears to be on the down swing today. It briefly hit almost $470/share earlier. AMC has also settled down.

AMC issued 44 million more shares over night which is why its dropped I’ve read. Not sure if true though.

hnd wrote:

If you are blinking at the screen at 117% of available shares, you are reading right. They own/borrow shares that don’t even exist.

That’s precisely what the group of wallstreetbets had observed and they devised a plan to punish the hedge funds for their practices. It was working, it may still.
HND, since own/borrow shares thing is so how, those “borrows” have to be paid up by Close on Friday right?

Robin Hood and E*TRADE have stopped people from buying some stocks now, probably be the end of the Robin Hood app, honestly. Protecting the rich from being robbed by the poor doesn’t fit their name very well. I got in and out at decent times but was too chicken to put a lot of money in on it. Still did well but the hindsight hurts!

Funny how the media is making the redditors look like the bad guys in this whole situation… The hedge fund guys are really the ones who tried manipulating the market by short selling ~140% of the number of shares outstanding. The redditor group are just the ones who did the research and brought this to light to the public. Now the hedge funds guys are getting caught with their hand in the cookie jar and crying for help. It is sickening how the media is turning this to make the redditors look like the bad guys. Now the hedge fund guys are pulling strings to try to put the brakes on the whole situation – case in point Robinhood and E-Trade halting trading on those stocks. Plus the hedge fund guys are the only ones that are able to impact after hours price movement – the average joe cannot do that.

People are saying what the redditors have done should be illegal… no, what the hedge fund traders did should be illegal.. The redditors just caught them with their hand in the cookie jar and are essentially holding them hostage. The thing with short selling is your potential losses are infinite where as if you just buy/sell stocks, your loss is limited to your initial investment. The hedge fund traders are the ones who tried to manipulate the market by short selling over 100% of the number of outstanding shares.

CaptainMusky wrote:

<div class=”d4p-bbt-quote-title”>gimruis wrote:</div>
It appears to be on the down swing today. It briefly hit almost $470/share earlier. AMC has also settled down.

AMC issued 44 million more shares over night which is why its dropped I’ve read. Not sure if true though.

<div class=”d4p-bbt-quote-title”>hnd wrote:</div>
If you are blinking at the screen at 117% of available shares, you are reading right. They own/borrow shares that don’t even exist.

That’s precisely what the group of wallstreetbets had observed and they devised a plan to punish the hedge funds for their practices. It was working, it may still.
HND, since own/borrow shares thing is so how, those “borrows” have to be paid up by Close on Friday right?

correct.

some attribute yesterdays drop and the reason why after the most profitable quarter ever apple is hardly moving is that these funds are having to sell to cover.

i mean even if the stock is 40 dollars tomorrow, these hedgefunds are still screwed.

There is essentially no way for any retail investor to buy any of those aforementioned stocks right now. All they can do is sell.
Major conflict of interest with Robinhood shutting down retail sales, while allowing the HedgeFunds to buy in after hours trading. Why is that even allowed BTW?
The one thing is for sure is there are Politicians reaching across both sides of the aisle on this issue, but it likely wont result in any changes. At least they found something in the moment they can agree on. Which in of itself is encouraging.

The last 4 years brought a ton of deregulation to the table. kind of set this up to exist more than it had before.

the problem is that any slap in the wrist these companies get is worth getting out from underneath these losses.

Always nice to have the little guy win one. If Robinhood ever IPO’s, I cannot wait to buy puts. Barstool Sports (Barstool Fund) is owned by Penn Gaming. Great one to watch in the next quarter if anyone needs some LiveScope $$.

i bought into PENN in the spring at $14.

That’s more like Vexus money!

Pretty sketchy news coming out about Citadel reloading their shorts right before Robinhood put a stop on buying GME today. Looks like the class action lawsuits have already started.

I didn’t think I’d ever see the day that Ted Cruz and Alexandria Ocasio-Cortez agreed on something.

Attachments:

1. 

   Screensho.jpg
   

It just keeps getting crazier! New Treasury Secretary has made millions speaking to hedge funds, including $810k from Citadel, and she’s the one “overseeing” it…
https://twitter.com/ColumbiaBugle/status/1354882529107406850?s=20

Robinhood’s name could not be more ironic.

If my math is correct a 1000 share purchase a little over a week ago would have cost 17,080 ( 17.08 a share ) if sold a day or so ago at the high ( 347.51 ) would have netted 347,510 ( 347.51 a share ) that sure is one hell of a Great 1 week investment return !!!!

keep i mind that Citadel and Robinhood are regularly being caught and paying fines for illegal shenanigans.

I’m still holding the other half of my position.

I know guys at our office who bought in at 20-30. probably 3 or 4k in investments. as far as i can tell the 2 i know of are still holding.

hnd wrote:

I’m still holding the other half of my position.

I know guys at our office who bought in at 20-30. probably 3 or 4k in investments. as far as i can tell the 2 i know of are still holding.

Good work. Keep holding. Bleed them out!

hnd wrote:

keep i mind that Citadel and Robinhood are regularly being caught and paying fines for illegal shenanigans.

I’m still holding the other half of my position.

I know guys at our office who bought in at 20-30. probably 3 or 4k in investments. as far as i can tell the 2 i know of are still holding.

I don’t have a dog in this fight and understand you do this for a living but if you were to advise someone who got in earlier this week before it jumped, would you suggest getting out? The reddit group is telling everyone to hold but I just wonder what might happen. If robinhood goes down they will lose everything. Robinhood probably can’t fund the retail trades they allowed.
There was rumors on twitter that robinhood was selling people’s stock on their behalf. Not sure if true. They’ve recently said they were going to allow limited trading tomorrow. To who? What a crock.

CaptainMusky wrote:

There was rumors on twitter that robinhood was selling people’s stock on their behalf. Not sure if true.

I heard the same and heard it was limited to people who bought their holding on margin

For those that don’t know or understand how you make money by hoping a stock goes down, this is the simplest explanation of what a “short” position on a stock is that I’ve seen.

Oh no! didn’t load! My bad, I’ll work on that.

A “short” is when you borrow a stock from a broker and sell it immediately at it’s current price. Then you hope the stock’s price falls such that you can buy the stock back at a lower price and return the shares you borrowed to your broker, but keeping the difference.

Example: Let’s say I want to short XYZ which has a current price of $10. I borrow 1 share and sell it immediately at $10. I have $10 now but I owe my broker the 1 share I borrowed. Then let’s say the price of XYZ drops to $7. I now decide to “cover” (buy it back) my short position and buy 1 share at $7 and return the 1 borrowed share to my broker. I made $10 when I sold and only had to pay $7 to buy it back lower, so my profit is the $3 difference.

But now let’s say that instead of the XYZ price dropping to $7, it goes to $15. I still need to return the 1 borrowed share to my broker, except now it’s going to cost me alot more to buy it back. If I buy it back at $15 so I can return the borrowed shares, my losses will be the $5 difference between selling at $10 and rebuying at $15. Since the price can rise indefinately, my potential losses as a short seller are unlimited. At some point I have to buy it back to return the shares I borrowed. The more the price rises, the bigger my losses.

hdog3385 wrote:

But now let’s say that instead of the XYZ price dropping to $7, it goes to $15. I still need to return the 1 borrowed share to my broker, except now it’s going to cost me alot more to buy it back. If I buy it back at $15 so I can return the borrowed shares, my losses will be the $5 difference between selling at $10 and rebuying at $15. Since the price can rise indefinately, my potential losses as a short seller are unlimited. At some point I have to buy it back to return the shares I borrowed. The more the price rises, the bigger my losses.

Hdog, forgive my naivety, but are shorts purchased for a certain tenor and therefore must be paid back before or upon expiration on a date predetermined? Or, can shorts be purchased with an indefinite tenor, like holding a share of stock? Just wondering if these hedge funds will have a day of reckoning soon.

I don’t know if there is a duration for the hedge fund to pay back the share, but I read that there are several hedge funds that had to buy at 100% or greater loss, losing million$. Not sure if that was by choice, or if they had to, but some are expected to go bankrupt.

Isn’t it interesting that one of Biden’s staff members made $500k off the GameStop deal?!?!

BrianF wrote:

Hdog, forgive my naivety, but are shorts purchased for a certain tenor and therefore must be paid back before or upon expiration on a date predetermined? Or, can shorts be purchased with an indefinite tenor, like holding a share of stock? Just wondering if these hedge funds will have a day of reckoning soon.

Hdog will probably have a better explanation, but my understanding is most of these shorts are set to be called today. I’m not sure what the rules are on a short, or if it’s a free contract that you can set the call date one, but it’s definitely not open ended.

toddrun wrote:

Isn’t it interesting that one of Biden’s staff members made $500k off the GameStop deal?!?!

Is that a different person than Janet Yellen who was paid $810k by Citadel within the last two years (and $7M total the last two years from Hedge Funds)?

CaptainMusky wrote:

<div class=”d4p-bbt-quote-title”>hnd wrote:</div>
keep i mind that Citadel and Robinhood are regularly being caught and paying fines for illegal shenanigans.

I’m still holding the other half of my position.

I know guys at our office who bought in at 20-30. probably 3 or 4k in investments. as far as i can tell the 2 i know of are still holding.

I don’t have a dog in this fight and understand you do this for a living but if you were to advise someone who got in earlier this week before it jumped, would you suggest getting out? The reddit group is telling everyone to hold but I just wonder what might happen. If robinhood goes down they will lose everything. Robinhood probably can’t fund the retail trades they allowed.
There was rumors on twitter that robinhood was selling people’s stock on their behalf. Not sure if true. They’ve recently said they were going to allow limited trading tomorrow. To who? What a crock.

I do not do this for a living. I would definitely advise in taking profits. I guarantee most people in this have no philanthropic aspirations here. they want to make $$. Take the profit you are comfortable taking (factoring in taxes) and leave the rest in if you’d like.

I took enough that if the rest goes to 0, i feel like i made a good speculation (not investment)

The big problem RH has is basically allowing tons of people to trade on their dime. on margin if you will. you are basically using your credit and saying…i’m good for it! well some of these calls its almost certain people are not “good for it” and RH could be left holding that bag. I get the Margin restrictions, but restrictions on cash trades are bogus (all i’ve made are cash trades)

BigWerm wrote:

Is that a different person than Janet Yellen who was paid $810k by Citadel within the last two years (and $7M total the last two years from Hedge Funds)?

You know that Janet Yellen is a female.

BrianF wrote:

<div class=”d4p-bbt-quote-title”>hdog3385 wrote:</div>
But now let’s say that instead of the XYZ price dropping to $7, it goes to $15. I still need to return the 1 borrowed share to my broker, except now it’s going to cost me alot more to buy it back. If I buy it back at $15 so I can return the borrowed shares, my losses will be the $5 difference between selling at $10 and rebuying at $15. Since the price can rise indefinately, my potential losses as a short seller are unlimited. At some point I have to buy it back to return the shares I borrowed. The more the price rises, the bigger my losses.

Hdog, forgive my naivety, but are shorts purchased for a certain tenor and therefore must be paid back before or upon expiration on a date predetermined? Or, can shorts be purchased with an indefinite tenor, like holding a share of stock? Just wondering if these hedge funds will have a day of reckoning soon.

There is a daily interest charge. its a % of the stock value, calculated daily. This is to entice the lender to lend the shares. And in some instances, that % grows as time goes on. sometimes not. There is typically no set date. But one can do math as to how much someone is losing before they decide to close all positions and take their loss.

I believe some of the HF’s have set some of their own buy parameters and for one of them its today.

gizmoguy wrote:

You know that Janet Yellen is a female.

yes, and a Keynsian, but I still only judge based off of her actions.

gizmoguy wrote:

<div class=”d4p-bbt-quote-title”>BigWerm wrote:</div>
Is that a different person than Janet Yellen who was paid $810k by Citadel within the last two years (and $7M total the last two years from Hedge Funds)?

You know that Janet Yellen is a female.

I heard that somewhere….

hnd is right with his explanation. When the redditor group got together and joined forces to buy as much Gamestop as possible it made the price of the stock rise. Now since the borrower is paying a percentage of the stock price those short positions started to lose billions. Eventually the losses exceeded the value of the entire fund, so with a bailout from friends they closed their positions and bought the stock back at much higher prices. That sent the price even higher!