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GameStop (GME) Stock Surges Amidst New Board, Short Squeeze [Read Threadmarks]

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Mrflood

Mrflood

Member
Oct 25, 2017
734
Gamechanger87 said:
They are under no obligation to allow you to trade any stock or any form they want. Brokers just serve as a conduit to the market in the form of their choosing. They are a middleman who collects fees in exchange for some risk.

The brokers are bound by a number of regulatory bodies.
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The challenge is that these "Regulatory bodies" haven't put in regulations regarding what's happening right now. Let's not pretend all these brokers are doing this because of "risk". They are all doing this to keep their real clients happy. (The Hedge Funds)

The fact that someone could even argue that what's going on here is "Ok, and perfectly legal" blows my mind. This is CLEAR market manipulation. Either enforce the rules for ALL investors or none.
 
RomanticHeroX

RomanticHeroX

Member
Oct 27, 2017
2,882
You can talk about wanting to mitigate risk by blocking options trading or buying on margin, but what kind of argument can you make for keeping people from buying stock with cash? That's indefensible.
 

Deleted member 5596

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Gamechanger87 said:
Yep, Melvin was obviously allowed to do what they wanted. Thats why they got bailed out by investors. They levered up hard and we blowing through equity.

They had a backstop.

Joe K from Georgia with $20K in cash and $80K of levered stock doesnt.
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It's there a backstop that you can use as an excuse when you play with infinite loss capabilities of short selling? If he wasn't pulled early on an extraordinary maneuver he would be as fucked as that Joe K from Georgia or more.

Or when goverment had to bail out massively with public money on 2008? Where was the backstop back then?

Those are rethoric questionsI know the answer: the difference between Joe K and Melvin is privilige not really based on checks or 'understanding'.
 
Kewlmyc

Kewlmyc

Avenger
Oct 25, 2017
26,684
Way too late for me to open an account and buy, but I do enjoy BIG MONEY getting screwed over. Good job, y'all.
 

Deleted member 2379

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Alucrid said:
i guess they never changed ease of access to more complex options after that suicide then? probably kicking themselves for that one right now
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Unless I missed it no. I know they just hired a former regulator a few weeks ago.

I believe RH asks minimal questions around your trading ability and its easy to get access to the riskiest options strats without much work.
 
LetsEatSnacks

LetsEatSnacks

Member
Oct 18, 2020
1,780
United States
disparate said:
What's the case for it?
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Sundial and NAKD were two of the stocks that seemed to get some rallying behind them yesterday. In the case of the former, one stock was 60 cents and this morning it was up to 1.20. There seemed to be some attention going to it but now it seems to be middling out again. Thought I may have found a hidden gem but it doesn't look like it.

I do have one share of Bed Bath & Beyond that does fit into that whole brick & mortar push but I wasn't able to buy more of it because of Robinhood's tomfoolery.
 

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Relaxed Muscle said:
It's there a backstop that you can use as an excuse when you play with infinite loss capabilities of short selling? If he wasn't pulled early on an extraordinary maneuver he would be as fucked as that Joe K from Georgia or more.

Or when goverment had to bail out massively with public money on 2008? Where was the backstop back then?

Those are rethoric questionsI know the answer: the difference between Joe K and Melvin is privilige not really based on checks or 'understanding'.
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Correct. He would be completely screwed and his investors lose all their money. There would likely be claw backs etc.

His investors bailed him out so he didn't get forced to liquidate everything and take them to zero. He got cash to meet the margin calls so he could do an orderly liquidation. This is similar to LTCM.

Hedge funds weren't bailed out in 2008. Not sure where that is coming from?
 

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Mrflood said:
The challenge is that these "Regulatory bodies" haven't put in regulations regarding what's happening right now. Let's not pretend all these brokers are doing this because of "risk". They are all doing this to keep their real clients happy. (The Hedge Funds)

The fact that someone could even argue that what's going on here is "Ok, and perfectly legal" blows my mind. This is CLEAR market manipulation. Either enforce the rules for ALL investors or none.
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Hedge funds are making a killing here. Do you really think there is enough retail value to hit $20B in daily trading volume? Retail is like 5 - 10% of the volume here max. Only screwed hedge funds are the short ones.

These brokerages have nothing to do with the hedge funds. In fact, they would prefer the brokers stay open because market makers like citadel are selling on the flows.

These hedge funds deal direct with prime brokers and the desks. They don't touch any of this retail stuff.

They don't call TD Ameritrade to purchase a 15k block of shares.
 
test_account

test_account

Member
Oct 25, 2017
4,645
I have to admit, at first when i read that RH was stopping new orders of the GameStop stock to be done, i didnt think too much about it since it was one single trading platform, and i thought that every other trading platforms would allow new orders to be placed, and that one platform alone wouldnt make much difference to the overall change in the stock price. But thinking a bit more about it, it still sucks that they halted new orders, especially seeing the big drop in the stock price happening. And it sucks more that other trading platforms did the same as well :\ I definitely agree with that this situation sucks.

I'm curious to see what will happen in the next few hours and tomorrow.
 

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NewDust said:
As I understand Citadel doesn't own RH, but can 'pre-screen' RH and other retail trade apps trade flows, having an advantage for their algorithms, by seeing the the data milliseconds earlier.

They are still two-sides-ing it though.
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Citadel effectively passes the trades along and can trade on the data miliseconds before processing it. Its why RH is free.
 
BloodHound

BloodHound

Member
Oct 27, 2017
8,998
NewDust said:
As I understand Citadel doesn't own RH, but can 'pre-screen' RH and other retail trade apps trade flows, having an advantage for their algorithms, by seeing the the data milliseconds earlier.

They are still two-sides-ing it though.
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Citadel doesn't actually own Robinhood. But it "owns" Robinhood. Robinhood makes money by using Citadel as it's market maker (they're basically the middle man that allows transactions to be settled without two noninteracting parties having to negotiate directly).
Using citadel lets Robinhood collect more profit per exchange than companies like TD or etrade

Edit: Without citadel Robinhood has no real advantage over their competitors. They are daddy.
 

uncleniccius

Member
Nov 3, 2017
1,082
A Grizzly Bear said:
I'm waiting for power hour

A bunch of short positions are up at end of day tomorrow. They'll have to cover and why today is so volatile. They're doing everything in their power to drive this into the ground so they profit or mitigate their losses.
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Just to be clear - i thought shorting was not time bound and that only applied to options or am I misunderstanding?
 
xyla

xyla

Member
Oct 27, 2017
8,385
Germany
It might have been the best and the worst time to go for a run.

Didn't see the bottom but also wasn't there to buy on the dip. Or at least really think about doing that.
 
Bigg

Bigg

Member
Oct 25, 2017
6,619
Calamari41 said:
Directly forcing the bad actors in charge of our financial system to show their ass to the world is a pretty impactful activist activity.
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Enforcer said:
How about you let him do whatever he wants with his money.
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yeah okay nevermind I'm out of here

If y'all seriously think this will result in anything other than the SEC implementing some arbitrary rules to prevent this from happening again than be my guest
 
DeuceGamer

DeuceGamer

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Oct 27, 2017
3,476
Anacaona said:
It went down a bit and got halted. :thinking_emoji:
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Not letting people buy the dip bringing it back up and potentially causing people to panic sell.

Definitely manipulating the market and I don't see how anyone can argue otherwise. Whatever the connections between apps/brokers like Robinhood and the hedge funds, favors were definitely called in.
 

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Gamechanger87 said:
Correct. He would be completely screwed and his investors lose all their money. There would likely be claw backs etc.

His investors bailed him out so he didn't get forced to liquidate everything and take them to zero. He got cash to meet the margin calls so he could do an orderly liquidation. This is similar to LTCM.

Hedge funds weren't bailed out in 2008. Not sure where that is coming from?
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My point is there's a lot of bad actors as unreliable as Joe K, but they are allowed to trade.

Hedge Funds are making a bank here today, but Joe K can't do now. The fact that 'this is how the system is built' don't make it fair. The market allowed Joe K to play until they saw it fit. If an amateur discover how to win then that can't be allowed, because of risks and 'understanding' as if a lot of the people managing those hedge funds has more understanding, when a bunch of memekids brings you to bankruptcy.
 
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