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Stock Thread (9 Viewers)

BassNBrew said:
Smile ST, I'm just happy I'm not the punch line of the joke for a change.
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Bah - you're making bank these days with this stuff.  I'm jealous of the insight you seem to have with these short trades.  I pay attention to what you're trading, but no way I could replicate your results.

 
OK, so am I making a reasonable assumption here? 

Robinhood et al. block the Average Joes from buying more GME, BB, AMC, etc.

However, they do allow them to sell only.

Now, for every trade, there's a buyer and seller, so, for those normal uses that were selling... who was doing the buying? It has to be the hedge funds that prop up Robinhood, and have super-user access to the platform, right?

So all the shorts got to buy to cover in an artificially compressed market, and therefore at much, much lower prices than they would have been able to in an open and free market, right?

 
shades said:
OK, so am I making a reasonable assumption here? 

Robinhood et al. block the Average Joes from buying more GME, BB, AMC, etc.

However, they do allow them to sell only.

Now, for every trade, there's a buyer and seller, so, for those normal uses that were selling... who was doing the buying? It has to be the hedge funds that prop up Robinhood, and have super-user access to the platform, right?

So all the shorts got to buy to cover in an artificially compressed market, and therefore at much, much lower prices than they would have been able to in an open and free market, right?
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To some extent.  Retail buyers could still buy on other platforms, so there were still transactions where retail seller on RH sold to retail buyer on TD Ameritrade, etc.

 
shades said:
OK, so am I making a reasonable assumption here? 

Robinhood et al. block the Average Joes from buying more GME, BB, AMC, etc.

However, they do allow them to sell only.

Now, for every trade, there's a buyer and seller, so, for those normal uses that were selling... who was doing the buying? It has to be the hedge funds that prop up Robinhood, and have super-user access to the platform, right?

So all the shorts got to buy to cover in an artificially compressed market, and therefore at much, much lower prices than they would have been able to in an open and free market, right?
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Correct.  Though it seems that Schwab and Fidelity were allowing buys.  At least Fidelity was today.

 
shades said:
OK, so am I making a reasonable assumption here? 

Robinhood et al. block the Average Joes from buying more GME, BB, AMC, etc.

However, they do allow them to sell only.

Now, for every trade, there's a buyer and seller, so, for those normal uses that were selling... who was doing the buying? It has to be the hedge funds that prop up Robinhood, and have super-user access to the platform, right?

So all the shorts got to buy to cover in an artificially compressed market, and therefore at much, much lower prices than they would have been able to in an open and free market, right?
Click to expand...
This is it, pretty much.  I believe they estimated that over 50% of the Reddit traders use RH.  I suspect that after hours on AMC, the hedge funds were covering at a much lower price and that's why it was raising the price.  They probably stopped in the last hour to bring it back a little so that there isn't a momentum buy in the morning.

 
shades said:
OK, so am I making a reasonable assumption here? 

Robinhood et al. block the Average Joes from buying more GME, BB, AMC, etc.

However, they do allow them to sell only.

Now, for every trade, there's a buyer and seller, so, for those normal uses that were selling... who was doing the buying? It has to be the hedge funds that prop up Robinhood, and have super-user access to the platform, right?

So all the shorts got to buy to cover in an artificially compressed market, and therefore at much, much lower prices than they would have been able to in an open and free market, right?
Click to expand...
This is it, pretty much.  I believe they estimated that over 50% of the Reddit traders use RH.  I suspect that after hours on AMC, the hedge funds were covering at a much lower price and that's why it was raising the price.  They probably stopped in the last hour to bring it back a little so that there isn't a momentum buy in the morning.

 
Getzlaf15 said:
WallStreetBets@wallstreetbets

·

15m

So it turns out robinhood ran out of collateral and that's why they cut people off
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How verifiable is this?   That could cause a huge run in the morning on them, who is their underwriter?  edit it's all VC stuff, neat.

 
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beef said:
Where are people buying Dogecoin?  
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Was buying it on RH.  A lot of redditors including myself had no where to move to their money after being shut out of GME and the like so bought dogecoin there.  I got in when it was up 60% and out 90% around 2pm then got back in for very large around 9pm and have gotten out within the last half hour to have increased my portfolio 20%. Yes it was a gamble, yes I’m a little shaky, but nerds of Reddit and Elon for the well timed dog go tweet I thank you 

 
stbugs said:
I’ve always wondered about that. Lehman Brothers (it was Barings, just looked it up) or some other shop was brought down by a rogue trader. Trades can be net negative so if a broker has tons of people shorting, what happens if their clients can’t pay it back? Are they on the hook and could they fail?
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This question makes me wonder if you have ever traded options before.

 
Very VERY interesting WSB read here:

30 Seconds From Triggering Market Nuclear Bomb

I'm glad this place has quieted down enough for some actual DD written by a monkey with a keyboard and Adderall.  

Disclaimer: I am that monkey.  Let me explain to you what happened, play by play.  I will give you illiterates who hate reading a spoiler up front: 

__We were within approximately 30 seconds of triggering a nuclear bomb that would have blown up the market.__ Do I have your attention?  Here goes:

1.    ⁠Yesterday, new call option strike prices were added all the way up to $570.  Do I have to go over gamma squeezes again?  Really?  We've been over this: when deep out-of-the-money call options start being gobbled up and the price starts moving towards being in-the-money, the call writers have to hedge their risk of having their sold calls exercised, typically by buying stock.  This creates upwards pressure on the market.  We've been seeing these movements all week.
2.    ⁠Yesterday after market, you probably saw that coordinated effort to drive the price down and spook retail investors into a mass sell-off.  It didn't work.
3.    ⁠Last night, Robinhood sent out a message to users: you could no longer enter into new options.  You could exercise them if you had the collateral (money in the account) to do so.  Very interesting and the first sign of pants-####ting fear.
4.    ⁠Today, the market opened very strong.  It opened so strong that we were looking at a self-perpetuating gamma squeeze all the way up way past $570.
5.    ⁠At approximately 9:58 am, the stock had reached $468 in a parabolic move.
6.    ⁠Two minutes earlier, at 9:56 am, Robinhood tweeted that they were not allowing users to buy GME stock, but they would allow selling.
7.    ⁠The trend instantly halted and started a collapse downwards, before picking up a bit, especially after some retail was allowed back in.

Okay, now that you are clear on the facts, understand this: The market ran out of liquidity today, or was threatening to get close enough that they killed it.  What does that mean?  It means they ran out of shares and/or capital. They wouldn't let you buy new shares because we were burning through all the shares on the market.  

__I saw an unsubstantiated post from a user ([u/zshub](https://www.reddit.com/r/wallstreetbets/comments/l7bpf5/30_seconds_from_triggering_market_nuclear_bomb/gl5vgof/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=3)) who said a market sell order executed at $2600 for him.  Also, someone else for over [$5,000](https://www.reddit.com/r/wallstreetbets/comments/l7em07/coworker_had_a_limit_executed_of_a_little_over/?utm_source=share&utm_medium=ios_app&utm_name=iossmf) per share. Do you get the severity of the situation, if that's true?__ It means the buying was getting to the point where it was just about to put INFINITE pressure on the price of the shares.  It means virtually any ask was getting bid.

How do you get infinite upwards pressure?  A gamma squeeze triggering the mother of all short squeezes, just like we predicted.  The call writers need shares to hedge.  Retail is still buying more.  The short sellers need over 100% of the float back.  Add these together.  There were more shares needed than existed on the open market.  That's what a liquidity crisis is.

[Listen to this ](https://youtu.be/7RH4XKP55fM)to this remarkable (if infuriating) interview where the chairman of Interactive Brokers admits that they didn't have the capital to pay out the winners (us), so they took their ball and went home.  DO YOU GRASP HOW INSANE IT IS THAT HE SAID THEY NEEDED TO SHUT DOWN BUY ORDERS TO "PROTECT THE MARKET"? Hello!  He's not talking about the market for GME shares.  He's talking about the entire market!  The New York Stock Exchange.  The NASDAQ.  All that.

Remember the movie Snowpiercer?  Do you remember that scene where the lower class people realize the soldiers who oppress them have no bullets?  Go to the 1:00 minute mark of this link: https://www.youtube.com/watch?v=EH1EtiOhr6o

It kick starts a full blown rebellion.  They have no bullets.  It's the exact same in this market:  No capital.  No shares.  Infinite losses inbound.

__TL;DR: For all you who will just skip to the bottom to ask, "Do I get my tendies now?" the answer is this: they NEED NEED NEED your shares.  Do you get that?  HOLD.  Like the guy in the movie, scream, "They're out of bullets!" and create a stampede.  That's how we win.__

They needed your shares so badly that they literally risked PRISON TIME to get them.  They tried robbing you, and I'm not even exaggerating.  They were within 30 seconds of all being wiped out today.

Credit: u/PlayFree_Bird
Click to expand...
 

Pros... this sound viable? 

 
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Neat board.... tried to spoiler, then tried to quote.... 

Cliff Notes: sounds like it may have been clearing houses lacking liquidity to guarantee trades and told several brokerages to shut GME down. 
 

That makes sense but why did other meme stocks like AMC / BB get shut down? They did not have near that risk. 

Something doesn't add up, but I'm a smooth brain when it comes to the gears behind the facade of the market 

 
From WSB

"AMC game plan, read!!

Only 12M shares out of 57M aren't shorted. 37M will need to be bought to cover calls expiring tomorrow.

37M > 12M.

If share closes above $10, HUGE Gamma squeeze incoming!! 🚀🚀 🚀🚀

So we need to HOLD!! Do not sell!!

Credit to u/2reeds1instrument

Upvote so people see!!

Ps Im not a financial advisor etc. Im just a simple dude who likes 🎥 and 🍿."

Any way to validate? 

 
I am hearing the hedge funds will be riding with the stonks this morning. They will be buying (and we have already seen that in afterhours and premarket). Don't be the last holding the bag. Because when the dust settles (and the dust will), these are pretty awful companies. If the pros close out their positions during trading hours, you could see another wave of short selling against next week's numbers that crushes a lot still participating.

As I write this, AMC is up 50% in premarket and it's getting extremely close to winning time.

 
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Wells Fargo has now added this message on my trading account:

Important Notice: Due to recent volatility in the trading of GME, AMC, KOSS, NOK, BB, EXPR and BBBY, these securities are not available to Sell Short and now have a 100% margin requirement. These stocks will no longer be available to use as collateral.

So if you want a list of the winners today, here it is. The big boys are buying in pre-market and the open. They can't be having more people shorting these companies and create more buying opportunities. They need people selling so they can exit today and regroup with new puts next week.

 
David Dodds said:
I am hearing the hedge funds will be riding with the stonks this morning. They will be buying (and we have already seen that in afterhours and premarket). Don't be the last holding the bag. Because when the dust settles (and the dust will), these are pretty awful companies. If the pros close out their positions during trading hours, you could see another wave of short selling against next week's numbers that crushes a lot still participating.

As I write this, AMC is up 50% in premarket and it's getting extremely close to winning time.
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So, what's the plan? 

Before reading anything today I had planned to sell ¼ lots throughout the day.  I don't have much, but I'd be content to walk away with $10k total out of these shares. 

 
AMC - I calculated the put contracts in place and they have actually increased from 194,424 on 1/28 to 197,799 on 1/29. That's a huge number as each lot represents 100 shares of stock. These puts are all going to expire in the red if the internet can keep the stock above $9.00 a share at close.

These puts have all shifted further down the scale so it looks like the war is to be fought at $9.00 where 27,193 puts are in play.

I am not smart enough to advise people what to do here, but I will be looking to exit most of this company today while carrying some shares in case this gamma squeeze truly happens.

I sense the war against the hedge funds has just begun and being mostly in cash for these battles has advantages.

 
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