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Trying to time bottoms is very hard. If you believe in the company long term I feel this price is a very strong entry point long term. Set it and forget for a while. When it doubles....take your

I will make a wager. If this stock hits $420.69 before this earnings call on March 31st, I will pass out 100 FBG subscriptions to the gents in the stock thread.

sponks

4 hours ago, Navin Johnson said:

This question makes me wonder if you have ever traded options before.

 

I don’t trade options but I’ve gotten some lessons in here and understand them. My question still remains. You can short stocks or you could buy the same stock on margin. In both cases, I can see where wild swings in a stock could put your account negative. In that case, I assume the broker has to cover it as even if they liquidate everything you have less than you owe. Is that then a valid reason for brokers to limit buys (so many people are using margin now) on stocks that they think could drop wildly? GME at one point yesterday was down 80% from the high.

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15 minutes ago, Leeroy Jenkins said:

With these companies clearly overvalued, shouldn’t people be shorting them NOW?  Or is that also not being allowed at the moment for some reason?

You're not wrong. Their short interest has not decreased very much, so it's assumed there have been new shorts coming in.

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16 minutes ago, Leeroy Jenkins said:

With these companies clearly overvalued, shouldn’t people be shorting them NOW?  Or is that also not being allowed at the moment for some reason?

I'm gonna go with "It would not be advisable at this time..."

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16 minutes ago, stbugs said:

I don’t trade options but I’ve gotten some lessons in here and understand them. My question still remains. You can short stocks or you could buy the same stock on margin. In both cases, I can see where wild swings in a stock could put your account negative. In that case, I assume the broker has to cover it as even if they liquidate everything you have less than you owe. Is that then a valid reason for brokers to limit buys (so many people are using margin now) on stocks that they think could drop wildly? GME at one point yesterday was down 80% from the high.

It's really unusual for a broker to give you enough rrope to hang yourself.  They will give you ability to borrow against some x% of your holdings.  If your holding falls below some x% they call you. 

They may not have infrastructure to handle this situation.  Or maybe they don't want to be left in some feedback loop where liquidity dries up.  

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15 minutes ago, Leeroy Jenkins said:

With these companies clearly overvalued, shouldn’t people be shorting them NOW?  Or is that also not being allowed at the moment for some reason?

Options are due today and all of the puts on GME and AMC could very well end in the red. That means it's buying day regardless to the currently extorted prices we autists will be charging them.

Buy High, Hold, and force a gamma squeeze. It's the new MBA

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If you want to short these companies, I am guessing next week would make a ton more sense as they run hot before options expiration today.

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15 hours ago, Getzlaf15 said:

:lmao:

 

Jake Offenhartz@jangelooff

·

4h

Listening to irate New York hedge fund billionaire Leon Cooperman on CNBC right now lamenting people "sitting at home getting their checks from the government, trading their stocks." “This fair share is a bull#### concept," he shouts. "It’s a way of attacking wealthy people."

I can’t stand that putz. 

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22 minutes ago, stbugs said:

I don’t trade options but I’ve gotten some lessons in here and understand them. My question still remains. You can short stocks or you could buy the same stock on margin. In both cases, I can see where wild swings in a stock could put your account negative. In that case, I assume the broker has to cover it as even if they liquidate everything you have less than you owe. Is that then a valid reason for brokers to limit buys (so many people are using margin now) on stocks that they think could drop wildly? GME at one point yesterday was down 80% from the high.

You are supposed to have liquidity to back up any covers but, as we know from 2007-8, they have different rules for their big institutional players than they have for Joe Blow. As options move into/more into the money the seller has to put up capital in escrow to cover. 

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I just get this feeling that we are going to see a similar day to yesterday.  Rise PM, slump in the morning, flat the rest of the day...

I'm wrong all the time, and could very well be wrong here.  My $ is in NOK and it bothers me that it has basically been flat since morning yesterday.

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RH also limiting crypto purchases to funds already in an account.  No new fund transfers to buy crypto now.  And those transfers take 5 days to clear? 

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27 minutes ago, Leeroy Jenkins said:

With these companies clearly overvalued, shouldn’t people be shorting them NOW?  Or is that also not being allowed at the moment for some reason?

You can buy OTM puts but you still have to have an investor on the other side taking the other position. Think of it as a ML play. The price goes up as the outcome becomes pretty obvious. 

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4 minutes ago, David Dodds said:

If you want to short these companies, I am guessing next week would make a ton more sense as they run hot before options expiration today.

 

I've been wondering if/when people can short these things.  Not interested in trying it myself, just a curiosity I guess.  As much as I chuckle about the hedge funds who bet on disaster (then run around and publicly trash the company they just shorted) getting completely hosed, I think a bunch of retail investors are going to end up real sad they bought into gamestop etc. too. 

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38 minutes ago, Leeroy Jenkins said:

With these companies clearly overvalued, shouldn’t people be shorting them NOW?  Or is that also not being allowed at the moment for some reason?

Shorting now makes tremendous sense. Reddit bros will only be able to hold for so long with the allure of a big payoff. The hedgies are freaked because they shorted at $4!!!!

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14 minutes ago, [icon] said:

Example please 

There's a good chance this is just a short term rise before the "diamond hands" finish the squeeze and move on to other victims, leaving the stock to drop precipitously.  You could buy a put option at a strike $50 or $100 lower than the value of the stock which gives you the right to sell 100 shares of the stock without the infinite downside of shorting the stock.  Since volatility is crazy high, the options will be expensive, but you can pay for that by shorting another put option at a lower strike.  It's difficult for me to draft a firm example since I don't have actual option prices right now, but one idea I'd throw out is buy a Feb 19th $200 put and sell a Feb 19th $50 put against it. 

Edited by Captain Cranks
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15 hours ago, Chaz McNulty said:

That's where we differ.  The whole intent of driving these stocks up wasn't some pyramid scheme where they could make money of the latecomers.  The idea was to drive the stock up and force the Shorts (130%) to cover at an extremely high price.  Which then drives the stock even further up.  Everyone makes out like bandits except for the Hedge Funds which lose billion because they had to cover at 10x plus their principal.

It's a fundamentally solid idea if you can keep the masses from panicking.

Good luck with that. Hence why it will most likely fail ultimately. 

15 hours ago, stbugs said:

There’s a huge difference between Amazon and Tesla growing their businesses by investing and not worrying about profits early and GameStop hemorrhaging revenue to be not profitable, right?

This isn’t a new investment paradigm. It’s day trading and just a case where day traders en masse caused short squeezes. I don’t think it’s a new investment paradigm. Knowing which companies have a lot of short interest has been around a lot longer than two weeks. This is a bit more artificial and that’s why I don’t have much sympathy for either side. I see no difference between shorts releasing BS reports or trying to trigger stop loss trades to drive stocks extra low and looking at short interest and artificially causing a huge squeeze. Short squeezing has been around forever but it was usually more organic like a company exceeding numbers and people flooding to buy so they can own the stock. GameStop isn’t crushing it, there was a coordinated effort to squeeze. It worked so bully for them but don’t act like this is an investment style. It’s no different than a bear raid with BS reports.

Nothing new at all. Just far more advertised because of the internet.

 

Folks......there are far more powerful forces at play here. If you think Reddit users are moving the market.....think again. This is a billionaires playground. What you are seeing is a massive tug of war between massive multi billionaire players....with retail investors hanging on for a ride. It is why if you want to jump into the fray do so with money you are willing to lose a 100% of. It is that dangerous. This is not investing. This is pure casino gambling. This is making horn bets at the crap table. And it is really exciting. And if you hit on a 12 or a 2 in the horn....you are hooked. And you don’t know when to stop until you run out of chips.

In the meantime I will get back to suggesting stocks you can invest in and sleep at night. 

But for those who have scored on GME and AMC.....good job. Great times and great trades.

I simply don’t get involved with all that. Far too risky for my blood. I rather go to Vegas and play craps for a week and eat like a king. And if it is all gone by the end of the week I am good with it. Funs times.

There are people out there who are going to get wiped out from all this. There are people who are that gullible and unknowledgeable that they will gamble their life savings on this highly publicized short squeeze. Like @stbugssaid. This goes on all the time every year. This one is just being really talked about. 

As far as brokerages. They can do whatever they want in terms of risk management mitigation. When you open an account at a brokerage.....they can change the rules at any moment if they see massive risk threatening their potential liquidity. 

@stbugsmade a great point about people probably leveraging their GME to the hilt to buy more stocks. If I owned a shop and saw this I would be halting buys too....knowing the stock will crash. It is totally inevitable it will crash and margins will be wiped out.

There are so many moving parts. This is not just buying and selling. The “Leverage” being created is stunningly dangerous and is a direct threat to a banks ability to operate. 

EG "2008"

Again I have no dog in this fight. I am merely observing pure mad money at work. And it will end badly at some point. Make no mistake. 

When I watch Leo Cooperman whining I get ill. That guy is a total scumbag. There are lot’s of them. I get some pleasure in seeing some of these “short selling dosh’s” getting their clocks cleaned. But I also realize the business end for a lot of these brokerages who are simply taking on far too much risk with these coordinated short squeezes from people who have no idea the danger they are entering into with margin’s and leverage. There is no doubt a ton of leverage being taken on these shares. Otherwise it would be business as usual. 

Same goes for the other side. Hedge Funds take on massive risk. But they did not fall under the Investment act of 1940 and investors in these hedge funds must be "qualified investors”. Retail investors blindly trying to short squeeze are lawsuits waiting to happen against these brokerages when the game is over and they are potentially wiped out. It never ends happy. So risk management and their teams of attorneys are pushing the levers of what you may be seeing in terms of trading restrictions. 

Could it be a conspiracy they are in bed with the billionaire hedge funds? Maybe....maybe not. I am not here to claim that.

But one thing is certain. These short squeezes are not being heavily moved by everyday Joes and Janes in internet chat rooms. This is a billionaires chess game taking place and the retail investors are the pawns. 

Edited by Todem
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52 minutes ago, Leeroy Jenkins said:

With these companies clearly overvalued, shouldn’t people be shorting them NOW?  Or is that also not being allowed at the moment for some reason?

Seems they would rather preach market fundaments to us that actually take a short position. Curious.

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31 minutes ago, BigJohn said:

I just get this feeling that we are going to see a similar day to yesterday.  Rise PM, slump in the morning, flat the rest of the day...

I'm wrong all the time, and could very well be wrong here.  My $ is in NOK and it bothers me that it has basically been flat since morning yesterday.

I have some NOK too, but there is a lot less short % here than other stocks.  59 mil short shares vs 5.6 billion shares outstanding.  Seems like there is plenty out there to cover with.  

NOK Short data (assuming this data is accurate)

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I bought shares of $XL in my girlfriend’s SEP as our Biden/EV play a little while back. Been just sort of languishing but that’s fine since this isn’t a trade. I like the fact that they electrify existing vehicles rather than build new ones - niche, and I think fleets will do that more often than just get a whole new fleet, especially at first.

BTIG gave them a $30 price target a week or so ago and Canaccord did the same this morning. But to go with the theme of the day, it also has 73% short interest. I’m seeing this as a long term hold and not a quick flip but the latter might be possible.

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1 minute ago, randall146 said:

I've been disconnected from the market and news for a few days. Do I need to understand this GME squeeze business if I don't own any of the relevant stocks? 

No.  But you should still practice making 💎🙌 with your hands.  

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2 minutes ago, randall146 said:

I've been disconnected from the market and news for a few days. Do I need to understand this GME squeeze business if I don't own any of the relevant stocks? 

The only thing I’d say is if some of your good stocks go down in the near term on no news, that might just be hedge funds selling to cover shorts elsewhere so don’t panic.

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22 minutes ago, Captain Cranks said:

There's a good chance this is just a short term rise before the "diamond hands" finish the squeeze and move on to other victims, leaving the stock to drop precipitously.  You could buy a put option at a strike $50 or $100 lower than the value of the stock which gives you the right to sell 100 shares of the stock without the infinite downside of shorting the stock.  Since volatility is crazy high, the options will be expensive, but you can pay for that by shorting another put option at a lower strike.  It's difficult for me to draft a firm example since I don't have actual option prices right now, but one idea I'd throw out is buy a Feb 19th $200 put and sell a Feb 19th $50 put against it. 

Great effing post.

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Bitcoin up 20% due to Elon. Dude is printing money. Just amazing how a few people can just mention something and move markets billions of dollars just because of social media. @Todem, the thought that this is all being done to help the masses is pretty funny. These insanely rich people and their friends are probably rolling around in gold coins now.

When there is a crash, it is going to be MF epic.

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2 minutes ago, stbugs said:

Bitcoin up 20% due to Elon. Dude is printing money. Just amazing how a few people can just mention something and move markets billions of dollars just because of social media. @Todem, the thought that this is all being done to help the masses is pretty funny. These insanely rich people and their friends are probably rolling around in gold coins now.

When there is a crash, it is going to be MF epic.

Oh yeah....the tables are being set-up for it.

Keep building that cash brother and have that shopping list ready. 

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1 hour ago, David Dodds said:

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.

Thanks. I think it mostly depends to what lengths they will go to get it below $9. Clearly there are almost unlimited buyers ready and willing to fire it back up and keep it above $9. Will they be allowed to buy?

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Is there a twtich stream on this?  Seems ripe to get a bunch of views with people just cycling between twitter, CNBC, tickers, and memes all day and pretending to understand what's going on.

I need someone to explain how afterhours works today.  4pm all the options close, is the most likely situation they halt all AFH trading on the memestocks?  

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Honestly, if you're in a business struggling to make ends meet right now, and most of your big investments have been pushed back, and the landscape is changing, and the value of your stock has significantly increased... You'd be stupid to not sell more stock right now.

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4 minutes ago, beef said:

LMFA +100% premarket.  That was mentioned here before, right?  

I know about LMFAO. Is that the same thing?

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