Yea, but what about trading platforms like Robinhood (which some of these hedge funds apparently have a financial interest in and can control) suddenly refusing to execute buys of GME?
They’ll let you sell, but not buy. Thus clearly designed only to drive the stock price down.

Well, it's working. Down from $483 at peak today to $153 and dropping like a rock.

Of course, that is also the natural trajectory of this stock. :cool:

Robinhood now says

'This stock is not supported on Robinhood'

for AMC and Gamestop.

Pardon my ignorance, but I'm more of a "buy and hold" guy.

When you short a stock like GME, how long do you hold it before you have to "pay the piper"? Can these guys just play the waiting game and wait for the stock to drop back to $8 or do they get "called' and have to take a loss at say, $135.

Check again. Also, take a look at VAG graph just prior to short squeeze ;)

But yes, the stock itself is not worth more than 40 bucks. But it is not over yet...just watch.

The lender of the shorted shares can request that the shares be returned by the investor at any time, with minimal notice, but this rarely happens in practice so long as the short seller keeps paying its margin interest.

Pretty soon though, those margin interest payments become very very expensive and not practical to pay anymore.

Pretty wild. From $475 down to $125 in an hour and a half.
Then back to over $300 in an hour.

Money to be made there, but I wouldn't touch it with a 10 foot pole.

then back to $230 an another hour:eek:

I'm sure they realize it's all on paper anyways, but can you imagine the major shareholders of the stock like the exec's, etc that have seen their net worth go from a couple million, to billions, back to millions in the span of 24 hours?

Sounds like the big boys are crying foul that rules they made to allow them to create wealth out of nothing at all are now working in favour of people they don't think should have the same opportunity.
3 Million individual buyers are just that, individual buyers. Change the system or suffer the reality that people can talk and generate buying power.

The stock market as it stands should not even exist. It is a huge portion of what broke the world economy, you cannot generate wealth from nothing at all and think it is sustainable.

doesnt that just show just how stupid this entire system is?

http://forums.pelicanparts.com/uploa...1611860979.jpg

Manufacture something that adds value to a persons life when purchased.
Sell that product, pay your workers and your other bills and you get to keep what's left.
Use some profit to make a bigger factory, develop other products, or to do good works if you choose.
I used to live in a country that worked pretty much like that, but I'm older than most of you here.
Too bad.

Algorithm's designed so Billionaires can make money by jacking around a stock just became totally invalid due to social media activity that can yet to be quantified into an Algorithm.

Its a great day for the little guy

People who yesterday didn't know what an option or a trading halt or Gamestop are suddenly hailing this as the next social revolution and/or jumping in to get rich quick. Stupid. At least know the rules of the game. Rule #1: the market powers will step in to preserve the stability and orderly functioning of the financial markets. Rule #2: no one cares if you (or Mr. Hedge Fund) makes or lose money when they step in. Rule #3: your ideas of "fairness" don't matter.

I don't know exactly what Robinhood is doing, but last I heard they and other brokers had placed options on GME, AMC and some others on "closing transactions only". This means you can buy an option only to cancel an existing option i.e. close the position.

As for Robinhood, everyone (with a brain) has known that its business model is to get more retail investors day trading with "free" trades and an addictive interface, and funnel those trades to the market makers for payment. 80% of RH's revenue is payment for order flow. The market makers aggregate the millions of retail trades, discern the direction of trading thus prices, and front-run those trades. all in milliseconds.

Last year Citadel made something like $7 billion on market making. They made so much that they shut down their own hedge fund early in 2020 - why make your own bets when you can scalp others' bets. RH's founders came from the high frequency trading world, they knew exactly how they were going to make money.

Options trading is very attractive for the dealers because they make the option premium in addition to getting the front running opportunity. RH is thus particularly motivated to steer retail traders into options.

The r/wsb board is led by some ringleaders who steer the 2 million-strong mob to trade the stocks/options that they identify. Take your own position, with out of the money long-dated options or LEAPs that are super cheap, then rally the mob to spend their money driving the stock in your direction.

Enough of your followers will make money, derive psychic gratification from being part of a mob, or think that they might make as much money as you, to keep them fired up. Throw in some populist "screw the man" messaging and doctored "screenshots" of fabulous gains from shell accounts. A bunch of hedge funds will quietly dive in there too, a HF has no problem killing another HF. Its a stock trading version of Q'anon meets Vegas. 1.999 million of r/wsb are stupid and 0.001 million of them are making bank using the stupid ones' money.

I got a text from my friend "tell me about options trading". I referred her to a book. It is 200 dense pages. She texted "No, I have to do it to understand it". Yeah, that'll end well.

hint: you never lived in that country.

I like you more and more each and every day.

Reddit will be cancelled... and flooded with shills and noise makers intended to prevent organized movements from happening.

I’m not sure which Big Data provider hosts Reddit but you can bet they’re getting a lot of pressure to pull the plug on them a la Amazon / Parler.

When the establishment doesn’t like the little peons making noise, they find ways to squelch them. Same as it ever was.

It’s been very amusing to watch and I applaud it, but you know the hammer fall is coming.