He sold 50% of his calls for at 160,000% profit. Turned 10k into 10 million
I think he'll go down with the ship with the rest.
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He sold 50% of his calls for at 160,000% profit. Turned 10k into 10 million
I think he'll go down with the ship with the rest.
Only allowing to sell not to buy for a position where one of your biggest customer wants people to sell....
Many people including high ranking politicians have said its market manipulation.
There was a class action lawsuit filed the same day.
I will be interested if Robin Hood can defend themselvess.
The thing is that a layperson like myself (and most retail traders with GME) is that I don't know how to calculate for myself that it's impossible for short holders to have exited their position, and there's also people pointing to their own math saying that the peak has passed and it's just bag holders left. As someone who can't actually check the work of anyone making either claim I've just got to decide for myself, and I see a bleeding stock where the people holding it are super emotionally invested, shouting "fake news" at people who say the squeeze is done, and re-posting the same arguments that may be their own or just something they copied from someone else.
You could definitely be right though and I'll feel like a dumbass when it's shooting past $1,000, but I have to think a lot of people who are getting a bunch of conflicting info right now that they cannot verify are feeling like I do at the moment.
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People need to stop framing him as having some serious balls. He already got his fuck you money from this. All of his remaining positions are unrealized so talking up the gains/losses as if he's actually gaining/losing that money paints the wrong picture for all of the people getting caught up in the hype.
He'll probably go down with the ship because his position has always been very long. People just need to be a bit more honest about the fact that he has a diamond encrusted life yacht waiting for him when it does.
I don't mean to be all doom, but the hype certainly seems to be dying down. Wallstreetbet topics aren't near as active as they were last week. Plus there are far more dissenters. I have lately been debating whether it is better to take the loss and run with this or to try to cash out and make some money. On one hand the loss won't effect me while if it does hit 1000+ that would have a big impact. On the other hand the peace of mind would be nice.
I am not a financial advisor just my thoughts
I am not a financial advisor just my thoughts
Yeah, he has calls for April 16th. This won't last, but there's a good chance he gets more than they are worth for the $12 he'll pay then. Not hundreds, but $20? Sure.
If you get a chance to read the rest of my post and not just the first six words, that's what I said. I'd personally still say it takes a certain nerve to look at a potential 30 million payout and say fuck it, what happens, happens.
Most legal takes I've seen put this as a long shot for the customers considering the terms of the company under section 5.F (Purchases):
The best thing about all of this is when serious newspapers like WSJ have to quote reddit users with names like "u/Thicc_Ladies_PM_Me "
www.wsj.com
Opinion | Why Brokers Had to Restrain Trading in GameStop Shares
They were minimizing their own financial and regulatory risk, not trying to bail out hedge funds.
www.wsj.com
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^^^ I think the same thing when there are MSM articles about esports and such, having to use player handles, while in the same breath talking about the kind of money the industry rakes in.
Maybe I was reading too much into the WSJ article last week, but it really burst the euphoria for me (the comment from his mom, and then what he says at the end about what he might do with his money), which ultimately was a good thing, because I was invested. At this point, I just don't want to see anyone get destroyed by this, which is inevitable, but I think we're going to be hearing some really sad stories after all is said and done.
I dont know myself. I just can check what numbers are available and form my opinion on it. I just think given the low trading volume in the last days it seems unlikely there was a squeeze already and its purely speculation on my part. If Im the bag holder thats fine. I went in with full knowledge that I may loose everything.
We will see about the civil lawsuits. the question is though if this is market manipulation which is more of a regulatory matter.
The best thing about all of this is when a serious newspapers like WSJ have to quote reddit users with names like "u/Thicc_Ladies_PM_Me "
Opinion | Why Brokers Had to Restrain Trading in GameStop Shares
They were minimizing their own financial and regulatory risk, not trying to bail out hedge funds.
amazing lol
There's no circumstance where adhering to financial regulations passed after 2008 are going to be regarded as market manipulation.
they actually raised $4.5B as of today.
last Thursday the DTCC increase their deposit requirements by $1B. They got them to reduce it to $700M.
yes they were told that you need $700M if you want to make trades in these stocks.
Stop spreading conspiracy theories.
You know nothing about how the market works. Just stop.
The politicians know nothing either.
This had nothing to do with Citadel. Them shutting down buys actually hurts them because of flow.
their entire book was long in a volatile stock and effectively got margin called and they didn't have the cash.
they stopped buys because that is significantly more risk by locking customers out of their shares and also selling helps their collateral calc.
I assume you will join the ban parade soon for spreading conspiracy theories.
I get the feeling that no one knows wtf is going on. Lots of sources are too unreliable and people are using the situation for personal gain. I'm pulling most of the rest out tomorrow, quick as I can. The stock didn't bounce back up after the dips enough to give me confidence in where this is headed. Only reason I didn't pull out more today was the day trading limit. I don't see good news coming quick enough to give it the spark back that it needs. I know Robinhood increased their limits from 1-4...but I dunno. Maybe that's not enough. Maybe it's not all on retail. Maybe they drop it back down if it picks up again.
With Robinhood some people raised the question why didn't they just raise the requirements for margin (or get rid of it) instead of limiting purchases which would affect the stock price considering the people going for GME. If you're buying single shares with cash, why do they need to raise funds. The money is there in peoples accounts. There's no borrowing, no sharing of stock and no margin. But then, they weren't the only broker to do this.
S3 data seems to be really using this to market their short interest prediction algorithm (subscription) - their recent tweet was directed at CNBC where they mocked up a movie trailer for their subscription purchases, saying from the people who predicted TSLA. Someone compared their prediction to previous data and they were off - although it seems they over estimated, which the poster ignored... but they also (recently?) count the number of shares borrowed in the float or something like that which would bring the % down.
There was an article about EFTs being purchased which had large gamestop stocks, which is why they may not show up in the volume traded. But the same author goes on to write new articles that almost suggest the squeeze is on.
Even if there is still significant short interest, I get the feeling people won't be holding onto their stock, nor will institutions to really push it - why not ride the waves and sell for more than it's actually worth, rather than trying to catch a potential squeeze as it drops, they have shitloads of stock... I'm not sure. But if the price keeps dropping, I think this falls apart. Official short interest is more than a few days away and I'm not sure how accurate it will be when it comes out (do they use the previous weeks data? I dunno).
What's going to give this the kickstart it needs again? Media will report hey look it's down this much now! Get out while you can.
DFV said in his last video when the price was around $60 that he has no idea about the short interest and gamma squeeze, he was long. His latest twitter post from today is a cat looking fazed and riding into the night.
Maybe institutions will go for the squeeze and buy back the shares to keep the pressure on remaining shorters. I have no idea but I'm leaning towards unlikely. I think I'd rather watch from the sidelines with a much smaller "investment".
With Robinhood some people raised the question why didn't they just raise the requirements for margin (or get rid of it) instead of limiting purchases which would affect the stock price considering the people going for GME. If you're buying single shares with cash, why do they need to raise funds. The money is there in peoples accounts. There's no borrowing, no sharing of stock and no margin. But then, they weren't the only broker to do this.
S3 data seems to be really using this to market their short interest prediction algorithm (subscription) - their recent tweet was directed at CNBC where they mocked up a movie trailer for their subscription purchases, saying from the people who predicted TSLA. Someone compared their prediction to previous data and they were off - although it seems they over estimated, which the poster ignored... but they also (recently?) count the number of shares borrowed in the float or something like that which would bring the % down.
There was an article about EFTs being purchased which had large gamestop stocks, which is why they may not show up in the volume traded. But the same author goes on to write new articles that almost suggest the squeeze is on.
Even if there is still significant short interest, I get the feeling people won't be holding onto their stock, nor will institutions to really push it - why not ride the waves and sell for more than it's actually worth, rather than trying to catch a potential squeeze as it drops, they have shitloads of stock... I'm not sure. But if the price keeps dropping, I think this falls apart. Official short interest is more than a few days away and I'm not sure how accurate it will be when it comes out (do they use the previous weeks data? I dunno).
What's going to give this the kickstart it needs again? Media will report hey look it's down this much now! Get out while you can.
DFV said in his last video when the price was around $60 that he has no idea about the short interest and gamma squeeze, he was long. His latest twitter post from today is a cat looking fazed and riding into the night.
Maybe institutions will go for the squeeze and buy back the shares to keep the pressure on remaining shorters. I have no idea but I'm leaning towards unlikely. I think I'd rather watch from the sidelines with a much smaller "investment".
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Doesn't it take like 4-5 business days for money from people's accounts to actually get into their hands? If they allow instant access to funds but they don't physically have the money yet... yeah, they're using their own. Since they definitely don't have the funds in the bank to cover millions of new investors putting in hundreds to thousands of dollars each, they have to borrow money in the short term.
I have no idea but that makes sense. Maybe the clearing houses can't risk how good their screening/security or insurance is with things like that, I dunno but I reckon it should be looked into at least.
here is what happened
https://www.bloomberg.com/news/arti...-and-how-did-it-stop-gamestop-mania-quicktake
nothing to do with customer margin
a deeper dive if you want more
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Sounds like a lot to do with margin
margin is a component but not the driver. With margin they needed the cash to settle and the collateral. The real driver is vol. read my follow up tweet.
it's a combination of margin accounts, Robinhood a cash and the deposit requirements. They go hand in hand but all brokers got hit hard with the collateral requirements. The only ones with issues were the new ones
brokers can't use client cash for collateral. Only their own. Thursday morning they were told they needed to come up with $1B of their own cash as collateral. They didn't have it. Which is why they shut down buys and raised $4B of cash the past few days.
Yeah I can see that.
And there's very few posts on WSB worth reading now. I think people are getting that feeling too, not all of course, maybe not even most.
The last two times it dropped and went back up significantly was at the open.
I'm speculating of course but I imagine the same might happen again (perhaps the opposite of a short attack?) only for it to dwindle down again. Gives people some hope, gives large shareholders a chance to off-load stock at a higher price... more of a ripple down, less of a knife drop. Of course it might not happen at the open but I bet it goes up at least somewhat significantly at some point, but not enough to skyrocket, just to fizzle down again. Who knows though.
Maybe they milk that for long enough for the new short interest to come out... I dunno how long people will hold on though. I feel like all us newbies looking at these charts all day has already worn thin, especially for people who didn't get in as early as the success stories they might think of.
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in regards to all of the above posts -----
I imagine there could still be a case made against Robinhood for putting themselves in this situation to begin with?
aka they willingly let all of this action flow through them and then realized they didn't have the money to bankroll it..
reminds me of the securities fraud from wolf of wall street a bit
no
and amc is worse at 15% si
people are about to get toast ;/
I imagine there could still be a case made against Robinhood for putting themselves in this situation to begin with?
aka they willingly let all of this action flow through them and then realized they didn't have the money to bankroll it..
reminds me of the securities fraud from wolf of wall street a bit
no
and amc is worse at 15% si
people are about to get toast ;/
I got in at 80. It's certainly a draining affair. Hope this thing peaks by week's end tbh.
so you gotta hope that one of the hedges that shorted buys your stock or you have to make money off of retail investors?
at what point does reddit bear any of the responsibility for what is about to happen?
wonder if this has any long term changes on that site when it comes to moderation
I doubt it, as regulations were the cause for the increase, right? In a way, this worked as intended. They got the news of the collateral increase and took actions to meet it.
I think a lot is riding on tomorrow, if the price drops sub $200 the mass panic sell off happens. Wallstreetbets sub Reddit is a dumpster fire, and no useful info on there. Also can't believe there's people with $150-200k tied up in this. I'm assuming that's super rich people's fuck you money but still.
I think it will be more of a slow decline over the course of a few weeks with some days being up but generally trending it down. IMO most of it is/was generic bubble mentality, but there definitely is something there with shorts exerting some upwards price pressure. That price pressure is much more diffuse than the singularity spike people are treating it as. People point to Volkswagon's big squeeze, but that was like ~6x what it was a few months earlier, while Gamestop was at a full 100x last week and is now around 50x, both wildly higher than that sharp spike shown in VW comparisons. This was a huge squeeze, and the massively inflated prices are what that looks like.
It's already sub 200 in after hours, lol.
IIRC the opening has thrown a bit of gas onto the price the last few days, but IMO the dam of 'hodl' starts breaking soon, barring some crazy new information about the short prevalence being incorrectly reported....or another Elon tweet.
yeah but shouldn't they have mitigated this risk?
aka
should they not guarantee that they
a) have enough capital to cover the deposit fees in the midst of a surge
b) calculated much earlier than friday that they need to start to restrict trades or seek additional capital?
What do you expect of a place that keeps referring to themselves as the "r" word and smooth brains. The subreddit is toxic as fuck.
The surge in interest and the volatility made it an issue. I think the jump for collateral was $1B and they got it down to $700M. I need to look at their last balance sheet but I think they had like $250M deposited in June. $700M more is a big jump.
typically these deposits are nothing. You don't have all the trades in one side and 50 percent swings a day. The volatility is what kills you.
these guys try and run Capital tight but this was not something you can prep for as this is just normal clearing.
calculation is incredibly complicated and the brokers don't have perfect insight into the overall vol calc that goes into it. I think they expected a jump but not 10x overnight
It's crazy that he lost 11 million dollars today (DFV) this whole situation is just insane and I missed the boat of course but congrats to all who made mad profits...at this point I find it hard to want to still hold after today and beyond for those people still holding. DFV already got 13 million so if he loses the rest its really not the end of the world for him.
plus movies and books
the movie will be better if his profits sink with the ship
There's going to be thousands of people like this, to varying degrees.
I honestly think that if some of the more mainstream types who were cheering this on understood what was happening better, they wouldn't have been so eager to promote it.
that why on this thread I was trying to talk people away from buying it as people were cheering it on. I know crap like this would happen.
Yes there is if you actually look around. There are people who invested millions to those who only have a few shares, and a lot of them are far from rich. No one is mass panicking, otherwise it would have reflected in the volume numbers today. Some of y'all are just shit posting without much thought at this point.
Only thing of interest is someone was buying millions in 800 dollar calls for this friday and March. Seems like hedging their shorts possibly
100% this.
If you sort the sub by 'hot' or 'rising' there's plenty of good information. Comments like this do not help.
I do wonder hypothetically what the result would have been had RH not had to shut off buyers. I don't buy into the conspiracy schtick, so not spreading it as a malicious act, but surely it must have had a powerful effect on the peak level of GME stock. Having folks *only* able to sell on one of the biggest platforms available to retailers surely helped cause the drops, allowed the shorting ladders to happen more easily, extended this whole process out by a factor of days and now there's not enough gas left in the tank and the cayote's wiggling his legs in mid-air.
So yeah, how much squeezier might the squeeze have squozen if they hadn't had to do that (i.e. if they had already had all the required capital in place, say)?
So yeah, how much squeezier might the squeeze have squozen if they hadn't had to do that (i.e. if they had already had all the required capital in place, say)?
Pump & Dump
except they (WSB veterans) assure everyone that the dump part doesn't exist, while dumping on them to buy a new ferrari.
What ride exactly were you going to get on? By the time they were blocking buys, things were basically at their zenith.