Gamestop stock (or: David vs Goliath)

[RblDiver]

I'm a bit surprised I've not yet seen anyone comment about this situation going on. Super short version (no pun intended, as you'll see in a sec), hedge fund shorts Gamestop stock. Reddittors on WallStreetBets get upset, decide to all start buying it. Price skyrockets as more and more people get in on it (which means the hedge fund that shorted the stock is about to lose a boatload of money). Hedge fund gets upset, trading companies get upset, start trying to restrict trading on it.

Basically, if a hedge fund tries to manipulate stock prices, they're fine with it, but when a bunch of little guys band together to do the same thing, they get pissy.

This guy sums it up pretty will imo (language warning).

https://www.youtube.com/watch?v=ynhQcu8x1fw

And now they're blocking trades of GME, AMC, NOK, and probably soon others (all targets of WSB). That seems like illegal collusion to me.

[Irving]

Some posts about it here: https://www.ar-15.co/threads/91081-Long-Position-on-Silver-and-Gold?p=2316129&viewfull=1#post2316129

Thanks for posting the video so the rest of us can see what's going on.

[def90]

Yeah, the hedgefund that shorted it had to buy in at something like $90 a share to cover its short, they lost something like $2 billion. Lol

[buffalobo]

The little guys will get investigated and prosecuted while the big guys cry to regulators about manipulation.

Manipulation that the big guys use on a daily basis.

[hollohas]

Robinhood and other brokers put a stop to this and forced the stock to crash, protecting the hedge fund shorts. They put restrictions in place so people could no longer buy these stocks...they could only sell them. Pure market manipulation.

One hedge fund lost 30%...billions of dollars in game stop short bets alone. Citadal Investments injected over $2B into that hedge fund Monday to cover it. Citadal Investments is financially tied to Robinhood. It's all tied together. The hedge funds couldn't lose, so all those assholes worked together to outright fuck normal people. To shut it down and only let people SELL a dozen different stocks? To literally force them to crash. This is bullshit.

[Irving]

So if you didn't sell in time you'd lose money. Think most people who sold made money though?

[hollohas]

Depends on which stock. Game stop, many probably made money if they sold. Game Stop wasn't the only one. They also shutdown buying for American Airlines too. And a dozen others.

But that's the other point. They essentially forced people to sell (why would anyone hold a stock that literally can't be purchased) which is intended to make sure the super risky short bets don't lose.

Fuck the retal investor by not letting them buy "volatile" stocks (to protect the dumb dumb average Joe of course) but protect the hedge fund shorts from lossing on their risky bets.

[colorider]

Pump and dump. Ever see the movie Boiler Room? Same concept except game stop is a legit company w stock.

[MrPrena]

https://www.ar-15.co/threads/91081-Long-Position-on-Silver-and-Gold?p=2316129&viewfull=1#post2316129


Without using complicated equation, you can calculate the past 6 days (whatever they had crazy gains) change in volume relative to 30 day average.
Sum all those up and calculate the previous short interest. That will basically give you an eyeball equation of when large gain is over from short cover.

Then it will oscillate some % afterward but not as big as this week.

There are still many shares not covered on dillards respect to short interest.

[hollohas]

One of the other shorts that was going sky high was Naked (NAKD). It started the week at about $0.45 and was making a run. I bought a bunch of it.

It hit $3.40 early today and then Robinhood shut down buying. It immediately tanked to $1.10. I sold the second Robinhood closed buying and got out before it bottomed out.

I ended up making about 60% on it by the time I sold, but it would have went WAY higher today if they didn't close buying. Some people that bought late and sold late today probably lost a bunch.

PS - I didnt even have any idea NAKD was one of those shorts that the reddit folks targeted. I just got in because it was making a run. Figured I'd make a little day trade and make some $$. Found out this morning when it got shutdown by robinhood that it was one of them.

[.455_Hunter]

The hedge funds and trading houses don't like it when somebody else is wearing the pants.

I applaud the Reddit group for executing such an operation. Imagine if gun owners could be so coordinated.

[hollohas]

Robinhood was considering an IPO this year. I think they pretty much just screwed that plan.

[hollohas]

Now Robinhood is selling users GME stock without their consent.

[MrPrena]

I think I mentioned SIRI and TASR on year 2003. I have another similar example.

AMR after bankruptcy.
My memory is little fuzzy, but AMR (AAMRQ)reached about $.70ish when they filed for bankruptcy. Then all the SHORTS has to cover the shares, and stock was going up steadily. I believe it went upto $10 per share on a worthless bankrupted shares, just because there were so many people covering AMR (AAMRQ).


https://www.dallasnews.com/business/airlines/2014/04/09/amr-shareholders-made-a-killing/

By comparison, a share of AAMRQ was worth $11.39 Dec. 6, the last trading day before American and AMR merged with US Airways Group Inc. to form American Airlines Group.

[hollohas]

It's been mentioned that the reddit folks weren't in it primarily to make money. They wanted to screw the hedge fund shorts. So, a lot of them weren't selling. They were going to stick it out as long as possible to limit how far down the stock went there by limiting the hedge fund shorts.

Couldn't let that happen. So robinhood is selling for them.

This user obviously has money. It wasn't all about poor main street hicks who are losing.

PS - GME bottomed out about $112 today. This guy had his shares sold at $118. It's since recovered to $248. He lost $585k.

https://uploads.tapatalk-cdn.com/20210128/616b088e3483f05886fa5b70cd764cb5.jpg

[BushMasterBoy]

Robinhood under SEC scrutiny. Sounds like class action lawsuit is coming for Robinhood. Securities law is tricky. And risky.

https://www.sec.gov/news/press-release/2020-321

[hollohas]

Webull, Merrill, TD Ameritrade and Interactive Brokers are all also restricting trades on these stocks.

[Little Dutch]

Holy Crap!

I knew the stock buy was coming but didn't buy in (felt stupid the next morning...), but I had NO idea Robinhood was stopping purchases and force selling. Unbelievable.

I use a different discount brokerage firm, I had not heard of RobinHood until a few days ago.

[TEAMRICO]

Anyone seen Ja!?
Where is Ja!!?84807

[.455_Hunter]

This is a legitimate question...

Am I missing something?

It is concerning when I agree with the comments coming from AOC and Talib on a current event.

[Little Dutch]

Webull, Merrill, TD Ameritrade and Interactive Brokers are all also restricting trades on these stocks.

As an aside, it appears TD is allowing purchases on GME.

84808

[Irving]

Could this tactic be used on a stock that is "too big to fail" where the regular market manipulators would be afraid to shut it down, but it'd make an example?

[OldFogey]

https://thenationalpulse.com/news/yellen-made-millions-speaking-to-wall-street/
At least the G is still out to protect the little guy...

[hollohas]

As an aside, it appears TD is allowing purchases on GME.

84808They are again. They were the first to shut it down yesterday. They stopped the bleed and opened it back up.

Rumor has it that Citadel reloaded their GME shorts immediately before they shutdown buys.

[hollohas]

Could this tactic be used on a stock that is "too big to fail" where the regular market manipulators would be afraid to shut it down, but it'd make an example?The market has stops in place when things tank. They are designed to put things on hold and stop panics. But it's circuit breakers in place that do it market wide. It's never brokerage firms themselves that put the stops in place exclusively on retail investors.

[MrPrena]

After MSTR (MicroStrategy) incident on 2000 when one investor got arrested for manipulations. After this incident, I blog important trades/investment and read some cases.
At that time, I knew an elementary school teacher who made some good $ off of MSTR.

https://www.bizjournals.com/washington/stories/2000/06/19/story5.html
https://honors.libraries.psu.edu/files/final_submissions/2135
https://www.nytimes.com/2000/12/15/business/microstrategy-chairman-accused-of-fraud-by-sec.html




reading materials.
https://i.imgur.com/Z909SaG.jpg

[Martinjmpr]

OK, I've forgotten most of what I learned about securities but I don't see how this is legal at all. Even if "legal" in a criminal sense it seems that these trading companies would be liable to the stockholders and directors of the company they are trying to tank.

It's times like this I wish I could call on my old securities law professor Harvey Gelb. He literally wrote the book (or at least one of them) on securities regulation.

[MrPrena]

Supply and Demand alone does NOT change the price of the stock.

I blame it on most of market makers', indices, and stock exchange's algorithm to calculate the price. It changed a lot since 1998.
I blame mainly on major banks/financial institute which allowed some hedge fund companies to open short position of 107% shares float. WTH is wrong with these people.



In this case, Bears were disguised as PIG, and PIG got slaughtered by a MOB OF BULLS (GME Buyers).

[RblDiver]

I think the "legal" question (about shorting a stock then telling people about it) is that it's public information, not private. In the larger scheme of things, I would agree, I don't see Gamestop as a good business to last a long time. More and more game purchases are going digital, lessening the need for a physical location. Thus, telling people that it's not good, and I recommend shorting it, because I'm doing this in a public way, that makes it legal.

Where I think the illegal is coming in is the forcible stopping of purchases, forced selling, that sort of thing. A lot of the SEC protection was nominally designed to protect the small investor who can't do their research, who don't have the time/money to do full research into the company, etc. However, most of the GME buyers are doing it knowing full well what they're getting in to. As such, they should be allowed to buy whatever they want. If they lose, they lose, that was their decision. By Robinhood and others forcing them to stop, while other big hedge funds can still do trading on their own platforms, this creates a huge market manipulation. Plus, as one of my coworkers pointed out, if you allow people to "sell," but you don't allow people to "buy"....then how are you selling? Oh, that's right, they're forcing you to sell to those big firms who don't have the restrictions at the cheaper prices they're going for.

[MrPrena]

This is a legitimate question...

Am I missing something?

It is concerning when I agree with the comments coming from AOC and Talib on a current event.

Not really, Even most conservative member of senate Ted is siding with small investors.




Yahoo Finance
'This is unacceptable': AOC, Ted Cruz and others side with retail investors, slam Robinhood and Wall Street amid GameStop mania
Ethan Wolff-Mann
Ethan Wolff-Mann?Senior Writer
Thu, January 28, 2021, 10:19 AM


https://finance.yahoo.com/news/this-is-unacceptable-aoc-and-others-side-with-retail-investors-slam-robinhood-and-wall-street-amid-game-stop-mania-171906758.html

[hollohas]

As such, they should be allowed to buy whatever they want. If they lose, they lose, that was their decision. By Robinhood and others forcing them to stop, while other big hedge funds can still do trading on their own platforms, this creates a huge market manipulation.

And this is what it boils down to. If hedge funds can gamble billions betting on shorts, why the hell can't retail investors bet on those same stocks not actually going down? Beating against shorts is a valid strategy, as crazy and unorthodox as it may be.

The stock market is supposed to be a gamble. In Vegas the house always wins. In stocks, sometimes you win. Sometimes you lose...but when you win, you still lose apparently, because the big guys risked too much to lose.

[Irving]

So could people who were forced to sell, take those gains and purchase again under the companies that weren't locked out? By the time they set up accounts and transferred funds, the stock would be low again. In theory.

[RblDiver]

Lol, been seeing a great new response to this all:
Hedge fund managers can just learn to install solar panels!

https://twitter.com/Grummz/status/1354899267635187713

[Irving]

Haha, #learntosolar.

[cstone]

Haha, #learntosolar.

Can someone code a solar panel?

[colorider]

Buy on rumors. Sell on news. Or is it the other way around ? Lol.

[Little Dutch]

Can someone code a solar panel?

Not directly, but I could probably program the controller.

[Sawin]

I think they've stopped allowing buys because of options trading... couldn't someone just go buy short positions on it right now, knowing it's going to drop?

[MrPrena]

And this is what it boils down to. If hedge funds can gamble billions betting on shorts, why the hell can't retail investors bet on those same stocks not actually going down? Beating against shorts is a valid strategy, as crazy and unorthodox as it may be.

The stock market is supposed to be a gamble. In Vegas the house always wins. In stocks, sometimes you win. Sometimes you lose...but when you win, you still lose apparently, because the big guys risked too much to lose.

Yes when billionaires fight against short and long, they get praised. When avg joe does it, instituted block em.

The funniest one was Icahn and Ackman on MLM Herbalife.

[MrPrena]

I think they've stopped allowing buys because of options trading... couldn't someone just go buy short positions on it right now, knowing it's going to drop?

Yeah. I want to buy FEb or even any month GME PUT. It is kinda weirding out at TD Ameritrade , wells trade and fidelity.

https://www.ar-15.co/threads/91081-Long-Position-on-Silver-and-Gold?p=2316129&viewfull=1#post2316129



ETA
Feb 5 puts are crazy expensive. LOL.


https://finance.yahoo.com/quote/GME/options?p=GME&straddle=true&date=1612483200

[Grant H.]

Blatant lies from RH that I got. I pulled all my money out of RH a while ago (months), and now I am going to actively close my account with a note about their collusion with Citadel and Melvin.

https://live.staticflickr.com/65535/50885249013_ec2ddb5748_z.jpg (https://flic.kr/p/2kwycHx)RH Lies (https://flic.kr/p/2kwycHx) by ARNEWB (https://www.flickr.com/photos/61071044@N08/), on Flickr

[hollohas]

I am the stereotypical robinhood trader. I don't know anything about trading. As such, I don't do anything outside of simple buy/sell shares. No options, no ETFs, no crypto, no futures...I don't even know what a PUT is.

I make sure not to get marked a pattern day trader.

Bare bones simple because I don't want to get myself in trouble.

That said, in 6 months I managed to get a 65% return on my investment trading stocks using robinhood. I got some great stocks that just killed it, based on nothing other than guessing on what industries and companies I thought had promise. (PLUG, SPCE were some of the best).

So prohibiting simple buys of shares limits me completely. I don't know how to do anything else.

So now that Robinhood is going to randomly cut me off from doing the only trading I know how to do, I'm out. I'm closing my account as soon as they settle-up.

[Singlestack]

With all of the "Elites declare war on the little people" stuff ramping up and the little people now being labeled as domestic terrorists, I've been wondering when the real pushback starts. This is probably it. Of course, the elites will probably grossly overreach in their response, which will escalate this. Stay tuned.

[MrPrena]

It seems like the "position trading" has taken over the term as day trading.
Day trade disappeared after HTF took over and bid/ask price spread is extremely narrow from it.

Right now it reminds me of 1999.
You can pick almost any stock and make money without doing quantitative, fundamental and technical.

Of course 2Q 2000 was horrible.

[Irving]

With all of the "Elites declare war on the little people" stuff ramping up and the little people now being labeled as domestic terrorists, I've been wondering when the real pushback starts. This is probably it. Of course, the elites will probably grossly overreach in their response, which will escalate this. Stay tuned.

I'm in the stock market pretty much zero. Honest question, because I don't know, but how do you think the numbers compare to gun ownership? I assume more people are involved in the stock market due to retirement accounts.

[whitewalrus]

I am the stereotypical robinhood trader. I don't know anything about trading. As such, I don't do anything outside of simple buy/sell shares. No options, no ETFs, no crypto, no futures...I don't even know what a PUT is.

I make sure not to get marked a pattern day trader.

Bare bones simple because I don't want to get myself in trouble.

That said, in 6 months I managed to get a 65% return on my investment trading stocks using robinhood. I got some great stocks that just killed it, based on nothing other than guessing on what industries and companies I thought had promise. (PLUG, SPCE were some of the best).

So prohibiting simple buys of shares limits me completely. I don't know how to do anything else.

So now that Robinhood is going to randomly cut me off from doing the only trading I know how to do, I'm out. I'm closing my account as soon as they settle-up.

You can move your positions to another brokerage company if you want. You don?t have to sell them.

Information from Fidelity about it:
https://www.fidelity.com/customer-service/transfer-assets


Sent from my iPhone using Tapatalk

[whitewalrus]

I'm in the stock market pretty much zero. Honest question, because I don't know, but how do you think the numbers compare to gun ownership? I assume more people are involved in the stock market due to retirement accounts.

Retirement accounts are typically very passive, especially workplace. They limit the funds you can buy. So I wouldn?t say these are active at all.

Also most people in the US do not have much in retirement accounts, or any.


Sent from my iPhone using Tapatalk

[Little Dutch]

Email from TD Ameritrade

No additional comment from me. Just sharing.


We are in the midst of an unprecedented week in investing. It has included some of the highest-volume days in history.

I want to acknowledge that this week's trading volume and volatility across our entire industry has led to significantly increased call volumes and hold times for our clients, as well as challenges for some with our platforms at market open. Nothing is more important to us than serving you. We understand that service disruptions are frustrating and want you to know that we take these issues very seriously and sincerely apologize for any problems this may have caused.

In some cases, the volatility we are seeing in a small number of stocks has forced us to put restrictions in place. These restrictions will not prevent clients from buy and sell transactions. For the latest list of impacted stocks, visit tdameritrade.com/restricted.

We appreciate your patience and are committed to providing the high level of service and reliability you have come to expect from us.

To help you stay up to date on the current market conditions, our latest expert perspectives are always available at tdameritrade.com/marketupdate.

Sincerely,
Tom Butch signature

Thomas W Butch
President, TD Ameritrade Retail

[Irving]

Retirement accounts are typically very passive, especially workplace. They limit the funds you can buy. So I wouldn?t say these are active at all.


Also most people in the US do not have much in retirement accounts, or any.


So are you saying that this wouldn't be the tipping point because most people don't consider themselves to be in the stock market, so will look at this as just another event that happens to other people? That's the way I'm leaning.

[MrPrena]

During 90s (when many didn't even knew what email nor AOL was), I opened Ameritrade account. It sucked and I only get 10 real time quote per day. So, i got disappointed and got a Datek online. I was really happy with Datek, and opened another one when they had special promotion.

After I met my wife, she opened an Ameritrade account, and also opened traditional IRA after rolling over her 401k.
Just on TD Ameritrade, I think we have about 6 accounts.

[dig]

[whitewalrus]

So are you saying that this wouldn't be the tipping point because most people don't consider themselves to be in the stock market, so will look at this as just another event that happens to other people? That's the way I'm leaning.

Yes, but the ?bros? have piled into the market during the pandemic. So it?s a decent size chunk of very vocal people that normally wouldn?t have cared about the market. The wall st bets Reddit has over 5 million members in it.

Plus the stops were only on a few number of stocks.

I don?t think the majority of Americans will not care, other than the general sentiment that wall st gets their money for nothing and always screws over people.


Sent from my iPhone using Tapatalk

[Irving]

Feels like that's the normal perception of Wall Street, so nothing new.

[MrPrena]

Only way for Gamestop to sustain that current price is IF Microsoft and Sony gives Gamestop EXCLUSIVE sales of XboxX and Playstation5 at $200 marked up msrp. :)

[whitewalrus]

Only way for Gamestop to sustain that current price is IF Microsoft and Sony gives Gamestop EXCLUSIVE sales of XboxX and Playstation5 at $200 marked up msrp. :)

Have you seen the P/E ratio for TSLA? Some of these cult following stocks can remain insanely high.


Sent from my iPhone using Tapatalk

[hollohas]

Have you seen the P/E ratio for TSLA? Some of these cult following stocks can remain insanely high.


Sent from my iPhone using TapatalkExactly. Tesla just reported it's first ever annual profit but somehow shares are over $800.

[MrPrena]

Have you seen the P/E ratio for TSLA? Some of these cult following stocks can remain insanely high.


Sent from my iPhone using Tapatalk

Ah, yes, prior to that, it was AMZN. They had cult following since 2001ish? AMZN was in high 700 to 1000s since they were profitable. I think they went down to ~100 now?
As we all know, TTM P/E and any fundamental is dinosaur. It is projected future TM Fundamentals what moves the price. :)

Now, as for GME, they need to get their EPS at least 0.01 before they can get a price per earning ratio.

[Aloha_Shooter]

Best explanation for laymen I?ve seen was from Louis Rossman

https://youtu.be/D-U2rOHIv94

[Jer]

Exactly. Tesla just reported it's first ever annual profit but somehow shares are over $800.

Keep in mind that TSLA split 5-ways in 2020.

[drew890]

Disregard, too early for me to read clearly lol.

[hollohas]

Keep in mind that TSLA split 5-ways in 2020.Is that what allowed them to finally post a profit?

[hollohas]

Robinhood released a statement that said in part, that they would start allowing trades on these shorts again. But, so far, they have not. https://uploads.tapatalk-cdn.com/20210129/0f7ba13367f10235e89c648aef506b30.jpg

[O2HeN2]

Robinhood released a statement that said in part, that they would start allowing trades on these shorts again. But, so far, they have not.
In their software it takes longer to turn a stock "on" than to turn it "off".

O2

I have a bridge for sale, too.

[FoxtArt]

Stonks. I was rather surprised that Merrill let me buy AMC. Picked up 480, if I take losses not a biggie. Haven't tried GME but that is too risky imho.

[MrPrena]

Who knows. If everyone buys GME and AMC, they can have 200b market cap!
:)

[BladesNBarrels]

Don't want freezes by traders?

Go Bitcoin!

[Coffee]

[JDF]

Buy Dogecoin

[Little Dutch]

Lots of people talking about Dogecoin on 4chan, and musk tweeted about it yesterday (maybe 2 days ago now). I'm probably a fool for not having bought a few hundred $$ worth immediately after the tweet.

[roberth]

Blatant lies from RH that I got. I pulled all my money out of RH a while ago (months), and now I am going to actively close my account with a note about their collusion with Citadel and Melvin.

I've been watching this develop and we are not part of the "club" that is permitted to make millions shorting stocks.

[roberth]

https://media.gab.com/system/media_attachments/files/063/687/646/original/5cc9f11395627839.png

[FoxtArt]

One thing to remember is this does amount to a Ponzi scheme. Gains are only realized by selling the stock to new "stronk" investors buying in. When that runs out, it'll nuke.

If you do buy, make sure you're in and out and you wrap it twice. On the flip side of this are catastrophic losses.

[battlemidget]

Robinhood clears their own trades. If a big shop (goldman, morgan, etc) did this, it would be called 'arbitrage'. I like the premise of Robinhood, but I think they're way out over their skis.

[hollohas]

Robinhood clears their own trades. If a big shop (goldman, morgan, etc) did this, it would be called 'arbitrage'. I like the premise of Robinhood, but I think they're way out over their skis.They sure are. They had to pull in an extra $1B in cash this week to cover their obligations this week.

[hollohas]

Oh, Robinhood is letting people buy again...kind of. They have severe restrictions on shares allowed.

They'll let you buy 2 shares of GME.

Here are the other restrictions.

https://uploads.tapatalk-cdn.com/20210129/06705aca072895f3c0c02eed6728d417.jpg

[roberth]

LOL

You may buy only so many because they don't want you proles to get wealthy playing their games.

Have fun with your 401Ks, especially when they decide your 401K has been a little bit too successful.

[RblDiver]

Is there a rush on the banks going on? I'm on one site trying to get in on some Doge, they're super slow. OK, go to my bank's site to make sure things are in order, it's also experiencing heavy volume and can't log me in. Uh, what's going on?

[00tec]

Now, Facebook took down a group that discussed the whole thing.

https://www.yahoo.com/finance/news/facebook-takes-down-trading-group-061117679.html

[hollohas]

And...the list of limited stocks keeps growing over at Robinhood. Kiss that brokerage goodbye. Robinhood must be in trouble.

There are 50+ stocks limited to 5 shares or less.

There are some great stocks on this list, some that really aren't big shorts nor are they increasing anything like GME and the others.

https://robinhood.com/us/en/support/articles/changes-due-to-recent-market-volatility/

[hollohas]

Now, Facebook took down a group that discussed the whole thing.

https://www.yahoo.com/finance/news/facebook-takes-down-trading-group-061117679.htmlSocial media censoring teams up financial market manipulation. The elites really are happy to stick together aren't they.

[MrPrena]

Is that what allowed them to finally post a profit?

Opposite. They diluted the shares float to 5 : 1.
If 100m shares outstanding just became 500m but at lower price1/5). However it does bring liquidity of shares trade vol.

[Irving]

People tanked Robinhood's rating down to 1 star and Google started deleting reviews until it was back to nearly a 4-star rating.

https://www.theverge.com/platform/amp/2021/1/28/22255245/google-deleting-bad-robinhood-reviews-play-store

[.455_Hunter]

People tanked Robinhood's rating down to 1 star and Google started deleting reviews until it was back to nearly a 4-star rating.

https://www.theverge.com/platform/amp/2021/1/28/22255245/google-deleting-bad-robinhood-reviews-play-store

Zuckerberg looking out for his friends.

[Singlestack]

This week, Glenn Beck said that he thought the US was already an oligarchy, with the power in large corporations. Hard to argue that with the power of Google, Facebook, Twitter, Amazon, etc. on full display now, with no backing off. It is also clear the financial industry and large banks on fully onboard with the woke agenda with not giving business loans to businesses they don't like (firearms, for example), or simply dropping customers who supported the last administration or attended a rally. Now a smaller player - Robinhood - is clearly acting in concert with the left. I don't know if that is because of threats, carrot/stick, or political connections of their owners. But it is definitely a trend.

I remember a few super bowls ago (the last one I watched), when Gillette had their "woke girly guy" commercial that got me and my boys so pissed off at them. The explosion in corporate wokeness since then is astounding, and growing very fast. Combine that with the actions and rhetoric of the woke cancel culture - with forced woke and diversity training in many fed, state, and local governments - and we have changed culture. The speed this is happening is breathtaking.

[BladesNBarrels]

Have heard the term, but being from a whole different generation, I had to use Google Search to get more precise definition

Woke (/ˈwoʊk/ WOHK) is a term that originated in the United States, and it refers to a perceived awareness of issues that concern social justice and racial justice.
It derives from the African-American Vernacular English expression, stay woke, whose grammatical aspect refers to a continuing awareness of these issues.

https://i.imgur.com/CYySvfd.jpg

[Gman]

This GameStop shenanigans reminds me of the old ?pump and dump? scheme to defraud investors.

None of GameStop?s fundamentals have changed. They are the next Blockbuster.

[RblDiver]

None of GameStop?s fundamentals have changed. They are the next Blockbuster.

Under normal circumstances I'd agree. I haven't been to a Gamestop in probably more than a decade. Much of their business model is outdated. However, where I take issue is that "hedge funds are allowed to manipulate markets, but not average Joes banding together."

Plus, as I also recently learned, they have new management, the guy who started then sold Chewy to Petsmart for 3 billion dollars, so he seems like someone who could potentially turn things around.

Last, I find the idea that you can short more stock than they physically have pretty offensive. I still don't get how that works; like a guy has 2 cars, you borrow them and sell to someone else, then borrow one car again, so you owe 3 cars when there are only 2?

[MrPrena]

Next move for these companies are to dilute more shares and raise capitals at the cost of shareholder.
They need to survive too.... lol.

https://www.barrons.com/articles/american-airlines-stock-reddit-short-squeeze-raise-equity-51611944110







GameStop short sellers are still not surrendering despite nearly $20 billion in losses this month
PUBLISHED FRI, JAN 29 2021 12:15 PM EST
UPDATED FRI, JAN 29 2021 5:24 PM EST
Yun Li
@YUNLI626

https://www.cnbc.com/amp/2021/01/29/gamestop-short-sellers-are-still-not-surrendering-despite-nearly-20-billion-in-losses-this-year.html

[hollohas]

Wonder if this sort of manipulation will make smaller companies 2nd guess going public in the future? Hedge funds target struggling companies and speed up their demise? Why subject your company to that sort of outside manipulation?

[Singlestack]

Entrepreneurs already have it very tough and take all the risk. Throw in a climate of increasing regulations, much higher minimum wage, increasing business taxes, and the fact the gov (Fed, state, local) and larger competitors may be working unfairly against you - why would anyone even try?

[Aloha_Shooter]

I don?t know what the real story is with Robinhood but it does look shady. OTOH, many of the Redditors are clueless social liberals who get all sorts of butt-hurt when you tell the truth about their beloved AOC and her current Stalinist tactics to ram legislation by fiat and silence critics. I?m happy to see shady market manipulators take it in the shorts but at some point this stock (oops, we?re supposed to call it a stonk now?) is going to drop to a reasonable valuation, maybe $15-20. I hope all these new traders get their money when the shorters have to make good but I fear Chinese and Korean financiers are going to be pocketing a lot of the proceeds.

[hollohas]

The Gamestop executives didn't have to be told twice. Many of them reportedly cashed out their shares already.

[MrPrena]

I would too if I was an executive of GME.
Market cap is almost same as Kroger.

[FoxtArt]

200 IQ billionaire move for 2021: Own a majority share of a public business? Massively short the same stock, troll wallstreet bets.

[MrPrena]

Another example:


Bill and Carl's Stupid Adventure (2013)


https://www.cnbc.com/2019/12/13/reliving-the-carl-icahn-and-bill-ackman-herbalife-feud-on-cnbc.html

https://i.imgur.com/9QPl3Wq.jpg


https://i.imgur.com/poF9BaT.png


https://i.imgur.com/3XpzjSm.jpg

[Great-Kazoo]

This week, Glenn Beck said that he thought the US was already an oligarchy, with the power in large corporations. Hard to argue that with the power of Google, Facebook, Twitter, Amazon, etc. on full display now, with no backing off. It is also clear the financial industry and large banks on fully onboard with the woke agenda with not giving business loans to businesses they don't like (firearms, for example), or simply dropping customers who supported the last administration or attended a rally. Now a smaller player - Robinhood - is clearly acting in concert with the left. I don't know if that is because of threats, carrot/stick, or political connections of their owners. But it is definitely a trend.

I remember a few super bowls ago (the last one I watched), when Gillette had their "woke girly guy" commercial that got me and my boys so pissed off at them. The explosion in corporate wokeness since then is astounding, and growing very fast. Combine that with the actions and rhetoric of the woke cancel culture - with forced woke and diversity training in many fed, state, and local governments - and we have changed culture. The speed this is happening is breathtaking.

Speaking of woke. What ever movie we watched the other night. The spouse says. it's about time they Do away with the PG rating. Why?

After watching this movie they should start labelling them PC. It's bad enough they made a lousy movie from a good book. Could they have made it more politically correct? Disgusting.

[Delfuego]

This week, Glenn Beck said that he thought the US was already an oligarchy,He said that? I guess he would know...

84838

[7.62x39(4)life]

I did the math on the one share TSLA I bought for $300 and sold for $400 would be worth about $3900 today (ouch)because of the 5/1 stock split. (If you owned one share that is worth $1000 you now own 5 shares worth $200 each, both scenarios are equal in value)

From a risk management stand point if you are shorting a stock that is as heavily shorted as "gameSTOCK" and you are doing it "naked" (aka without buying options to be able to buy back the stock at a reasonable price to close out the short.) You are an idiot.
The asymmetric nature of that bet is unlimited risk for limited reward.
This protection would have cost next to nothing.
Smart people imploded this thing and reddit & stimulus money were just a catalyst.
The real winner is the people selling the options to cover these shorts.

[Not_A_Llama]

I think the sentiment about class warfare is unrealistic and fueled by a lack of understanding about capitalization requirements for retail brokerages, as well as deep bandwidth and scalability problems that have been related to me by friends working for brokerages that are not RobinHood. Both could have been addressed a priori with foresight to some extent, but nobody saw the autistic army.

Shorting GME stock at $60 was absolutely the right fundamental call. The cult of Ryan Cohen is nothing but post-hoc rationalization of a trade driven purely by greed.

Those early short positions got burned by it, because who would have expected $300 valuation on a stock worth nothing.

But anyone entering a short position today or who has taken a capital infusion on an existing position does expect it, and will wait out the volatility. Martingale betting *works*, and for the purposes of the exercise, the funds *do* have infinite money.

Do the (stochastic) math: ivol=500% (annualized), so call it 500%/sqrt(52) =69% (nice) weekly vol or 98% fortnightly ivol. At $325 underlying, that’s a 68% (+/-1sigma) expectation price variation of +/-$224 weekly and +/-$318 fortnightly. At +2stdev (95.5%), +$448 weekly and +$637 fortnightly. Any large trader entering a short position at that point either is doing that math or it’s baked into their VaR limits.

The only reason I’m not short as shit underlying is because I get better play on options. I don’t think most of the stock cheerleaders know how shorting actually works - GME is still an ETB stock. Yes, maintenance is 100%, but TD charges me 9.5% on small margin. I can’t even get a hard money loan with my house as collateral for 9.5%. If I enter a short at $300 and it flies in my face to $1k for an entire year, I pay $70ish on interest and when it does finally crater to $20, that $70 of interest will have harmed my return by -25%. Big whoop.

The retail investor will bleed from this and it will have had nothing to do with the supposed “collusion” between brokers and institutionals.

[Singlestack]

He said that? I guess he would know...

84838

Seriously? What the Oligarchs have is unquestioned power and market control. Being rich does not make you an Oligarch. Is Beck a monopoly that uses monopoly power to crush competition a la Big Tech/Parler? Absolutely not.

[hollohas]

I learned something from this. I was using Robinhood assuming it was safe. Turns out it's not. Glad I learned that before I lost anything.

They shutdown buying and there is NOTHING that would prevent them from doing the same thing to selling. Imagine some stock starts to tank, you try to sell on robinhood and whoops, turns out you can't. Either they simply shut it off or there's a glitch. What should have been a profitable sale could turn into a major loss in no time.

I bet we'll hear some stories like this when the certain GME selloff starts.

[Jer]

I did the math on the one share TSLA I bought for $300 and sold for $400 would be worth about $3900 today (ouch)because of the 5/1 stock split. (If you owned one share that is worth $1000 you now own 5 shares worth $200 each, both scenarios are equal in value)

From a risk management stand point if you are shorting a stock that is as heavily shorted as "gameSTOCK" and you are doing it "naked" (aka without buying options to be able to buy back the stock at a reasonable price to close out the short.) You are an idiot.
The asymmetric nature of that bet is unlimited risk for limited reward.
This protection would have cost next to nothing.
Smart people imploded this thing and reddit & stimulus money were just a catalyst.
The real winner is the people selling the options to cover these shorts.

I may or may not know a fella who had his cursor hovering over the "Submit" button on a 60-share buy order of TSLA when it was $168/shr before the split. He would have 300 shares @ $800ish today post-split. He decided to put the money towards his mortgage instead in a continued effort to be 100% debt-free. Ouch indeed.

[hollohas]

Trollin'

https://uploads.tapatalk-cdn.com/20210131/92dbf41eadec51ff6225de337da10bac.jpg

[Delfuego]

Is Beck a monopoly that uses monopoly power to crush competition a la Big Tech/Parler? Absolutely not.Glenn Beck is a clown and he certainly doesn't anything in common with you or me.

I also think you need to learn what actually happened to Parlor from an technical perspective (IT). There is a ton of misinformation about it. Parlor made their own bed from a technical perspective. Media/reporters/blogs/pundits that don't understand technology should not comment on it, Parlor created the mess that Parlor is in (technically & politically). IT companies are not required to uphold the 1st amendment. There was not a grand conspiracy. Just as the Admins here told us to watch what we say and do, if we don't we are gone.

[roberth]

I learned something from this. I was using Robinhood assuming it was safe. Turns out it's not. Glad I learned that before I lost anything.

They shutdown buying and there is NOTHING that would prevent them from doing the same thing to selling. Imagine some stock starts to tank, you try to sell on robinhood and whoops, turns out you can't. Either they simply shut it off or there's a glitch. What should have been a profitable sale could turn into a major loss in no time.

I bet we'll hear some stories like this when the certain GME selloff starts.

Anyone that does not meet their "standard" will be disallowed from participating in any number of endeavors.

[MrPrena]

Robinhood just went in bed with Sheriff of Nottingham.

[Kick1]

[Irving]

Robinhood just went in bed with Sheriff of Nottingham.

[Kick1]

Nice

[Aloha_Shooter]

I may or may not know a fella who had his cursor hovering over the "Submit" button on a 60-share buy order of TSLA when it was $168/shr before the split. He would have 300 shares @ $800ish today post-split. He decided to put the money towards his mortgage instead in a continued effort to be 100% debt-free. Ouch indeed.

I'll see that and raise a fella I know who sold 400 shares of Apple in 1999 so he could pay cash to buy a new car because Apple had been cyclical, was up 50% from when he'd bought it, and had just come out with the stupidest product he'd ever heard of (the iPod). You can do the math on what 400 shares of Apple in 1999 would be worth today (remember to include the splits).

[Singlestack]

Glenn Beck is a clown and he certainly doesn't anything in common with you or me.

I also think you need to learn what actually happened to Parlor from an technical perspective (IT). There is a ton of misinformation about it. Parlor made their own bed from a technical perspective. Media/reporters/blogs/pundits that don't understand technology should not comment on it, Parlor created the mess that Parlor is in (technically & politically). IT companies are not required to uphold the 1st amendment. There was not a grand conspiracy. Just as the Admins here told us to watch what we say and do, if we don't we are gone.

I was responding to your point that Beck was/is an Oligarch simply because he is rich. That is simply untrue, as I made clear. While it may be true that you don't like him and have nothing in common with him, you are out of bounds stating he doesn't have anything in common with me. You don't know me, have never met me, and are in no position to make any comparison whatsoever to anything I may or may not have in common with Beck.

[Delfuego]

Fair enough Singlestack. I apologize.

I wanted to stem the flow of misinformation with regards to things like Parlor/Robinhood/Arfcom/Ect. There has been a lot of people spreading opinion that does not reconcile with the ones's and zero's, these opinions are often presented as fact.

[Singlestack]

I understand, thanks for the clarification. And yes, important to distinguish between opinion and fact. [Beer]

[Aloha_Shooter]

Glenn Beck is a clown and he certainly doesn't anything in common with you or me.

I also think you need to learn what actually happened to Parlor from an technical perspective (IT). There is a ton of misinformation about it. Parlor made their own bed from a technical perspective. Media/reporters/blogs/pundits that don't understand technology should not comment on it, Parlor created the mess that Parlor is in (technically & politically). IT companies are not required to uphold the 1st amendment. There was not a grand conspiracy. Just as the Admins here told us to watch what we say and do, if we don't we are gone.

Yes and no. Parler didn't have a resilience plan, thinking that being on AWS was providing physical resilience. What they didn't plan for was Amazon straight up breaching the terms of their contract. The First Amendment is there to protect us from the government but contract law is there to protect us from private entities -- corporate or individual. What happened had nothing to do with technology and everything to do with a socio-political agenda overriding very clear contracts.

[Delfuego]

Yes and no. Parler didn't have a resilience plan, thinking that being on AWS was providing physical resilience. What they didn't plan for was Amazon straight up breaching the terms of their contract. The First Amendment is there to protect us from the government but contract law is there to protect us from private entities -- corporate or individual. What happened had nothing to do with technology and everything to do with a socio-political agenda overriding very clear contracts.You do not know what you are talking about. These are your feelings.

[Grant H.]

You do not know what you are talking about. These are your feelings.

What a useful contribution to this conversation...

Thinking that there wasn't "political" motivation behind this move is just "head-in-sand-ism"...

This doesn't fall under 1A protections, but the whole thing smacks of Anti-Trust violations.

ETA: Proving Anti-Trust Violations would be exceedingly hard in this case...

[BladesNBarrels]

.... From a risk management stand point if you are shorting a stock that is as heavily shorted as "gameSTOCK" and you are doing it "naked" (aka without buying options to be able to buy back the stock at a reasonable price to close out the short.) You are an idiot.
The asymmetric nature of that bet is unlimited risk for limited reward.
This protection would have cost next to nothing.
Smart people imploded this thing and reddit & stimulus money were just a catalyst.
The real winner is the people selling the options to cover these shorts.

Thanks for the common sense comment.
You would think a billion dollar bet by a hedge fund would be better managed.
Maybe a case of arrogance of the smart money looking down on the dumb money (as the small retail investor is called)

[Delfuego]

This doesn't fall under 1A protections, Correct, it's not a 1st amendment issue. It falls under read the "Terms of Service". How people "feel" about is irrelevant. Violate the policies and you are no longer allowed to use it. Build your own systems, built your own cloud. Do people want more regulation? I though the free market would decide? https://www.techdirt.com/articles/20200627/23551144803/as-predicted-parler-is-banning-users-it-doesnt-like.shtml

And for all the people that are mad at Robinhood. This is not much different than when people blame gun rather than the person. Robinhood built a "tool". People are using that tool to do things it wasn't specifically designed for. It's their business, they have more to loose than their customers. They have to protect their business and their investment. Bushmaster comes to mind. Why do people believe the use of private software is somehow protected by the constitution? You cannot apply 20th century concepts to the 21th century reality. We need 21st century solutions.

[hollohas]

Correct, it's not a 1st amendment issue. It falls under read the "Terms of Service". How people "feel" about is irrelevant. Violate the policies and you are no longer allowed to use it. Build your own systems, built your own cloud. Do people want more regulation? I though the free market would decide? https://www.techdirt.com/articles/20200627/23551144803/as-predicted-parler-is-banning-users-it-doesnt-like.shtml

And for all the people that are mad at Robinhood. This is not much different than when people blame gun rather than the person. Robinhood built a "tool". People are using that tool to do things it wasn't specifically designed for. It's their business, they have more to loose than their customers. They have to protect their business and their investment. Bushmaster comes to mind. Why do people believe the use of private software is somehow protected by the constitution? You cannot apply 20th century concepts to the 21th century reality. We need 21st century solutions.

You accuse people of voicing opinions in place of facts but offer no facts yourself. Have you read the AWS Terms of Service Parler agreed to? If not, you're articulating your opinion like everyone else.

And your analogy about Robinhood and guns is a BIG reach. How is trading stocks on a stock brokerage app using it for something other than it was specifically designed for? Trading stocks is EXACTLY what it was designed for.

Edited to add:. The link you provide above goes against your own argument. AWS/Apple/Google all stated that Parler wasn't doing anything to censor bad stuff and that's why they were dropped. The link you provide above says they were in fact censoring people. The reason given for dropping Parler doesn't jive with that facts...

[Delfuego]

Parlor is now "censoring" parlor. They are removing their own users for violating their terms of service.

There are big 2 reasons Robinhood went down for a little while , first and most importantly was they didn't have capital to cover investments and payouts. Second was because the reddit/twitter/musk crowd turned it into a weapon of mass destruction and they had no way to control it, or payout if needed. You can blame the tool or the user.

All this recreational outrage is hysterical. I feel like people are watching this country burn and are bitching that the fire is either too hot or not hot enough. Sweet death take me now.

84867

[clodhopper]

There are big 2 reasons Robinhood went down for a little while , first and most importantly was they didn't have capital to cover investments and payouts. Second was because the reddit/twitter/musk crowd turned it into a weapon of mass destruction and they had no way to control it, or payout if needed. You can blame the tool or the user.

So, Parler deserves to crash cause the guys who owned it didnt expect to become the new hotness and couldnt keep up with the problems of huge success because of structural flaws in the system. Meanwhile Robinhood deserves a pass because the guys who owned it didnt expect the possibility of a massive runup that could tank them, combined with a massive influx of new users, due to a structural flaws in their system.

Got it. Carry on.

[7.62x39(4)life]

I think the sentiment about class warfare is unrealistic and fueled by a lack of understanding about capitalization requirements for retail brokerages, as well as deep bandwidth and scalability problems that have been related to me by friends working for brokerages that are not RobinHood. Both could have been addressed a priori with foresight to some extent, but nobody saw the autistic army.

Shorting GME stock at $60 was absolutely the right fundamental call. The cult of Ryan Cohen is nothing but post-hoc rationalization of a trade driven purely by greed.

Those early short positions got burned by it, because who would have expected $300 valuation on a stock worth nothing.

But anyone entering a short position today or who has taken a capital infusion on an existing position does expect it, and will wait out the volatility. Martingale betting *works*, and for the purposes of the exercise, the funds *do* have infinite money.

Do the (stochastic) math: ivol=500% (annualized), so call it 500%/sqrt(52) =69% (nice) weekly vol or 98% fortnightly ivol. At $325 underlying, that?s a 68% (+/-1sigma) expectation price variation of +/-$224 weekly and +/-$318 fortnightly. At +2stdev (95.5%), +$448 weekly and +$637 fortnightly. Any large trader entering a short position at that point either is doing that math or it?s baked into their VaR limits.

The only reason I?m not short as shit underlying is because I get better play on options. I don?t think most of the stock cheerleaders know how shorting actually works - GME is still an ETB stock. Yes, maintenance is 100%, but TD charges me 9.5% on small margin. I can?t even get a hard money loan with my house as collateral for 9.5%. If I enter a short at $300 and it flies in my face to $1k for an entire year, I pay $70ish on interest and when it does finally crater to $20, that $70 of interest will have harmed my return by -25%. Big whoop.

The retail investor will bleed from this and it will have had nothing to do with the supposed ?collusion? between brokers and institutionals.


I a 100% agree!!! I think the headline "Robinhood couldn't handle trade volume" doesn't sell news. It was Money requirements rather than censorship.
I work at a retail store and it was just crazy to see "average" non investors talking about this, I had co-workers buying AMC on Robinhood mid mania.
when asked why they said "Robinhood limited me to full share stock purchases and I couldn't afford Gamestop so I bought 4 shares of AMC". My co worker also bought Dogecoin mid hype. I almost think people are using trading apps as a form of entertainment these days.

I called them (Hedge Funds) dumb for shorting naked but the risks are known like you said. The decisions they made where quality, but the outcome was not. With time and money they will prevail at the expense of the retail robinhood user.

[Not_A_Llama]

$125 this morning.

In a bacon & eggs breakfast, the chicken is involved, the pig is committed.

[O2HeN2]

In a bacon & eggs breakfast, the chicken is involved, the pig is committed.

Bacon and eggs: A day's work for a chicken, a lifetime commitment for a pig.

O2

[MrPrena]

NY Mets.


Bernie's account and gme short.
Gme long should dislike Cohen and Mets.

Possible more "Bobby Bonilla day" for Mets players. [LOL]

https://finance.yahoo.com/news/hedge-funds-mudrick-silverlake-point72-gamestop-party-morning-brief-110406546.html

[Aloha_Shooter]

You do not know what you are talking about. These are your feelings.

What exactly do you think is feelings rather than fact? Their contract with Amazon called for 30 days notice before termination of service. Amazon did not provide 30 days notice.
The fact that corporate (contract) law is there to enforce agreements between private parties? How is that emotion?

I cited specifics. You're the one who said "There has been a lot of people spreading opinion that does not reconcile with the ones's and zero's, these opinions are often presented as fact. " without providing a single fact to back up your opinion. Just what in Amazon's termination of service to Parler do you regard as an IT issue and why?

[Not_A_Llama]

https://i.redd.it/lg01l0rph3g61.png

[MrPrena]

Gamstop is creeping up again.

I love the story of Longs beating the crap of shortards,but I might be buying PUT again when it reaches "X" amount of dollar per share.

[Aloha_Shooter]

I wouldn't exactly call $40 going up to $140-180 "creeping". I get the euphoria over the "resignation" of the former CFO but I can't see the stock being worth the prices it fetched yesterday and today. Then again, I've undervalued and sold a crapton of stocks far too early ...