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Post by 3catcircus on Jan 29, 2021 13:15:42 GMT
So long as those who bought up $GME refuse to sell until after Friday, multiple hedgies are going down the shitter. Robinhood* has been selling on investors without permission, so far I haven't seen any proof they weren't margin sales, so perfectly legal... but... there are enough claiming they weren't on the margin that this could close a few trading platforms when this all shakes out. * Not the only one, just the most numerous and egregious one. And notice that it's Webull and Apex that went against the group pressure and reopened free day trading? Yeah, not sure how I feel about China and Singapore being a source of 'free' trading on US stocks when US trading houses are denying trades... but it's damned sure something wild. Some investigating amongst the autists seems to indicate that Robinhood couldn't cover the trades - because one of the hedges is actually making the retail trades for them - and it couldn't cover because it infused Melvin Capital earlier in the week. Some type of investigation is coming - whether it leads to outlawing of shorts, regulation of hedge funds, or (most likely) preventing the serfs from swimming in the billionaires' pool, it'll be a fucked up response. In any case, the WSB subreddit's autist army are like a whole group of T-800s - they can't be reasoned with, they can't be bargained with... they don't feel pity or remorse or fear... and they absolutely will not stop. Ever. Until the hedgies are dead... |
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Post by evileeyore on Jan 29, 2021 21:21:33 GMT
In any case, the WSB subreddit's autist army are like a whole group of T-800s - they can't be reasoned with, they can't be bargained with... they don't feel pity or remorse or fear... and they absolutely will not stop. Ever. Until the hedgies are dead... I love them so much. They're scary as fuck, and I'm glad they're on my side in this fight. I would not want to be a billionaire hedgie right now, the slogan of the day is "Eat The Rich" and /r/wsb autists have shown up with bibs and a deep appetite. Note though, before we canonize these guys, they were originally discussing short stonking $GME right along with the hedgies. But a few brave souls argued against the pack and went through with the 'crazy' plan to pump and HOLD, which is fucking nuts. I mean the leader of the pack* is down 15 million dollars! Granted his options went from 15k to 35b† through this pump and hold, so being down a "measly" 15m is nothing for him as long as the trading houses don't keep fucking with these guys ability to buy. * I'm not sure what his plan was all along, but he was buying up stocks way back in Sep 2019 and holding them, and continued buying, so either he was planing to slowly pump and hold against the hedge funds, or he had some other crazy plan, but basically him and a few others were keeping GameStop alive against the hedge funds all through the start of 2020. †I really fucking wish I'd known about this last year when they kicked the plan off in april-may. I'd have gotten a few hundred together and gone in. I wouldn't be a billionaire today, but a few hundred thousandaire would be fucking sweet. |
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Post by Devoid on Jan 30, 2021 3:55:01 GMT
I can't find a good reason why short selling should be allowed to continue.
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Post by evileeyore on Jan 30, 2021 8:52:51 GMT
I can't find a good reason why short selling should be allowed to continue. Apparently, it's good when done in moderation to deflate overvalued stocks. This comes from some of the people who are right now trying to burn down as many hedge funds as possible. It's bad when it's used the way hedge funds have been using it, when they short a company into insolvency and just rake in piles of filthy lucre from the death throws of a company. From the way I understand it, it's a tool, like any other, just it's really, really easy to use this one irresponsibly and apparently rich assholes are really, really irresponsible with other people's money. |
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Post by Devoid on Jan 30, 2021 15:39:15 GMT
I can't find a good reason why short selling should be allowed to continue. Apparently, it's good when done in moderation to deflate overvalued stocks. This comes from some of the people who are right now trying to burn down as many hedge funds as possible. It's bad when it's used the way hedge funds have been using it, when they short a company into insolvency and just rake in piles of filthy lucre from the death throws of a company. From the way I understand it, it's a tool, like any other, just it's really, really easy to use this one irresponsibly and apparently rich assholes are really, really irresponsible with other people's money. So is this more of an issue with in theory vs in practice? |
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Post by evileeyore on Jan 30, 2021 23:36:16 GMT
So is this more of an issue with in theory vs in practice? Even in practice it's not always bad. It's like the housing crisis, we're in the middle of a short stock bubble that the redditors are happily running around trying to pop as many bubbles as they can. Too many hedge funds all went in over-extending themselves trying to make as much money as possible using this tool and in a very shady manner, going for maximized profits instead of settling for lesser profits*. For instance if the hedge funds had settled for shorting $GME only a few points, even to half it's book value, this wouldn't be happening to them right now. But they went all in, very irresponsibly, and have been caught unable to cover their bets. If this were a Vegas casino, the mob would be quietly breaking kneecaps and sending them on their way, but it's rich wall street assholes who are losing everything and crying "it's not fair". I suspect some of them were counting on "Oh, I guess COVID made that business go under" as an excuse to keep people from noticing how incredibly over-extended they were. In the case of $GME (GameStop), Melvin Capital were in on that since early-mid 2019 slowly driving it down via over-extended short stocking, which is what led to one lone hero noticing and rallying the middle class troops to make lots of money on the squeeze. And no, r/wallstreetbets isn't in it to "lol seize the means of production" or even to "fuck over the hedgies", they were going to hold till the gamma squeeze and then release and make millions or billions*, while hedge funds scrambled to not lose their shirts, but not actually force any bankruptcies. It was some others who've jumped on and fanned the flames of class meme warfare the last two months that have turned this into "COME ON BOYS! What do you have to lose? A hundred dollars from your stimmie? HODL TEH LINE! Take all their tendies!" It's pretty glorious actually. Instead of a market bubble bursting and poor people losing their homes, a market bubble is bursting and billionaires are crying. And they don't even have enough cash to dry their tears on. * That one lone hero? he was in for 15k on $GME in sep 2019. His 15k of stocks were worth 35b a few days ago. Thirty-five billion dollars. That's... that's an inconceivable amount of money. |
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Post by Devoid on Jan 31, 2021 0:57:04 GMT
That one lone hero? he was in for 15k on $GME in sep 2019. His 15k of stocks were worth 35b a few days ago. Thirty-five billion dollars. That's... that's an inconceivable amount of money. Wow! That is a very large return! Mind sharing a link about this individual making legendary bank? Thanks! But I'm a little fuzzy on the math. - From Jan. 1 2019 thru Jan. 28, 2021 the low was $2.57/share (Apr. 3, 2020)
- From Jan. 1 2019 thru Jan. 28, 2021 the high was $483/share (Jan. 28, 2021)
- There was a single dividend of 0.38 on March 14, 2019 and I cannot find another dividend since then
- The ratio of highest:lowest ($483/share : $2.57/share) is 187.9377 : 1 (~190x return is very impressive!)
- Did he purchase $15,000 worth of stock or 15,000 shares?
- Did he purchase any additional stock over time, or did he only maintain this initial number of shares?
- Just to confirm, he had 15 thousand (dollars?) of stocks that at their highest point were worth $35 billion[?]?
- Ratio between 35,000,000,000 : 15,000 is 2,333,333.333 : 1. That doesn't seem anywhere close to 187.9377 : 1
What am I missing here? The math doesn't make sense with the info I have so far... help! |
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Post by evileeyore on Jan 31, 2021 3:37:49 GMT
What am I missing here? The math doesn't make sense with the info I have so far... help! My guess? He went in with 15k and used his earnings to go in deeper buying up shorts all along the way. I'll see if I can't find his postings again. |
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Post by Eldorian on Jan 31, 2021 5:06:19 GMT
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Post by 3catcircus on Jan 31, 2021 13:04:12 GMT
Yep. Nothing like being allowed to buy at price $n when is selling at $1000n... If you think about it , puts, calls, short selling - they're *all* games of chance exactly like in a casino. The difference being the house doesn't allow casino patrons to chest without repercussions. I'm wondering when people will finally realize that casinos are more regulated than wall street... |
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Post by kirinke on Jan 31, 2021 15:22:04 GMT
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Post by evileeyore on Jan 31, 2021 16:37:18 GMT
No, he bought options. Yall are noobs on the market, huh? Absotively. I mean I just spent 2 days learning about short stocks and margin calls so i could vaguely understand the conversation. Do not ask me for stock or crypto tips, at best I'll pass on what someone else was saying and get parts of it right. |
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Post by evileeyore on Feb 3, 2021 19:41:27 GMT
The Dance Dance Coup D'état will be televised...
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Post by evileeyore on Feb 5, 2021 4:49:25 GMT
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Post by 3catcircus on Feb 5, 2021 12:35:44 GMT
Hmm... Let me think. 🤔🤔🧐 Because China pays Beijing Biden to look the other way? |
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