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Market Shenanigans. GME, Reddit, and more

cactusflinthead

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hayden_horn

hayden_horn 11365

Posted
Posted
Just now, Fudge Nuggets said:

So you’re saying they banned even cash purchases of GME?  If so, that is total bullshit and a good reason to never use a shit broker like RH in the first place.

what they did was disallow buying of gme, but you could sell it. they turned into a one way street to encourage panic selling. they destroyed their whole business because reasons.

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Macanudo

Macanudo 13012

Posted
Posted
28 minutes ago, Brisketexan said:

I was JUST about to make that comment.  She's smart.  She's kinda scary.  She doesn't take any shit.  The "smart and confident and comfortable in her own skin" makes her sexy -- I definitely have a type (I married it).

So, yeah, I dig her.  She's awesome.

Yeah, we know who wears the pants in your family.

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TexArcher

TexArcher 38066

Posted
Posted (edited)
22 minutes ago, Brisketexan said:

Yeah....I do NOT know a whole lot about the regulatory field there, but.....an outfit selling your stock, without your consent.....in order to assist the market position of a third party......

I am really curious about how RH legal counsel signed off on that.

 

EDIT -- I see the point about RH no longer trading GME, so auto-selling is the only option.....but just because they used a mechanism (no longer allowing trades) to get to that outcome shouldn't protect them.  

I'm a financial advisor, and the only way it's possible is if the client signed off to give an advisor discretionary trading authority.  I can do it for clients, but I don't, for some obvious reasons.  We talk about every trade same day or the day before.  And as far as I know, Robinhood doesn't offer that level of advisor relationship (or any?).

If they're actually selling shares without consent, which again, I seriously doubt, a bunch of people are going to be kicked out of the industry forever and fined to Bolivian.

Edit: the simple blocking of purchases of particular stocks, which they are definitely doing, should get them into some major hot water with the regulators.  My firm is still accepting those orders as long as they're marked "unsolicited."

Edited by TexArcher
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956 Worldwide

956 Worldwide 34772

Posted
Posted
32 minutes ago, henrygandorf said:

i believe what she's trying to say to ted is, "hey, you, get off of my clout."

I’m not really an AOC Super Fan, but these dweebs have to start picking fights with someone else on social media. When it comes to social media it’s not a fair fight at all.

tom hardy film GIF

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SquishMitten

SquishMitten 10435

Posted
Posted

Does anybody know how many of the shares were held by RH or any of the others that are apparently engaging in shenanigans? Will this have a chance to completely save the shorts? It's obviously helping them as the price is already down 50% from it's high this morning, but will they be able to drive it down far enough to avoid insolvency?

Also, one thing I don't completely understand is what happens when the contract or whatever expires forcing them to fulfill their obligation? I assume that drives the price way up for a short period of time, then everyone else races to dump their shares as fast as possible before the stock returns to its "normal" price?

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henrygandorf

henrygandorf 29194

Posted
Posted
3 minutes ago, DonkeyCigars said:

You 100% can buy puts and calls on RH. I mean maybe you personally don’t know how, but the royal you. 

robinhood requires a workaround that i've never dealt with vs an old school investment house like fidelity, because i don't keep enough money in my acct, nor does robinhood have access to my funds to operate in any way on their own.  they limit themselves intentionally, or did until today. 

i only play around with robinhood because it's fun day-to-day trading akin to sports gambling, and my wife doesn't know or care that much about it.

1264148794_RHSHORT.jpg.8324107ec99fda67b63a2b0e64dd7e83.jpg

 

apparently they are getting thousands of 1* reviews and now might get pushed off the apple store.  not a great turn of events.

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horn4life

horn4life 3783

Posted
Posted (edited)
15 minutes ago, SquishMitten said:

Does anybody know how many of the shares were held by RH or any of the others that are apparently engaging in shenanigans? Will this have a chance to completely save the shorts? It's obviously helping them as the price is already down 50% from it's high this morning, but will they be able to drive it down far enough to avoid insolvency?

Also, one thing I don't completely understand is what happens when the contract or whatever expires forcing them to fulfill their obligation? I assume that drives the price way up for a short period of time, then everyone else races to dump their shares as fast as possible before the stock returns to its "normal" price?

The folks that were short way back when (4 days ago) either got out long ago, or have pockets so fucking deep that they do not give a shit about this "blip." My understaind was that some fo the other hedge funds have helped out with some monetary support.  But I know one fund was off like 30% this week.  I guess for me now I am mostly curious where GME ends up leveling out at.  

I am very unsure about the restrictions on retail traders, as advantages like quicker ability to make transactions for example are not restricted for the big boys.  IF the mob is allowed to rule it will make the overall market unpredictable to a point where the unpredictability could cause a lot of money to pull out of the markets in general and create an overall market retreat (perhaps crash.)

ULTIMATELY the limiter will be that REDDIT or any other forum based "mob trading" is that it is public.  Simply because the overall market is aware of the site, and they had a million new members join yesterday.  But the information is not secret, and even mentions of stocks on reddit can cause movement.  Not ONLY from Reddit forum usuers but from folks like me simply watching.  I bought some throw away NOK options simply on the possibility that the eye of reddit might be that direction.  SURPRISE is why it worked the first time.  Could it be regularly replicated?  With more eyes paying attention to the posts on the Wall Street Bets forum? It will be more and more difficult to get the edge of surprise to prevent reactions.

Edited by horn4life
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Beau Vine

Beau Vine 54429

Posted
Posted
2 hours ago, Nice Guy Eddie said:

Saw some TV stock analysts whining that pension funds are getting caught up in the losses as well. Why its true that some innocent people could see problems with this story, it's also important that pensions need more oversight on the investment companies they are utilizing. Perhaps pensions and retirement managers need to stop selecting investment firms based on the location (Vegas, Bahamas) of the annual trip the fund managers are taking them.  

Pension funds are not allowed to short-sell, are they?

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henrygandorf

henrygandorf 29194

Posted
Posted
Just now, Beau Vine said:

Pension funds are not allowed to short-sell, are they?

i was thinking the same thing.

theoretically whomever has a say in the funds associated with the pension would just be at the whim of whomever controls the fund, right?  i would think there's kind of a gentlemen's agreement to not expose that type of fund to shenanigans, even if they're hugely profitable.

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TexArcher

TexArcher 38066

Posted
Posted
14 minutes ago, DonkeyCigars said:

You 100% can buy puts and calls on RH. I mean maybe you personally don’t know how, but the royal you. 

Selling a call and buying a put are options where you want a stock to go down (or at least not up).  But they're not the same as selling short; you need a margin account for that.  Not sure if Robinhood offers that or not.

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Bateshorn

Bateshorn 9940

Posted
Posted (edited)

I only play anything in two modes: we aren’t keeping score or it’s game 7 of the World Series.  I once went into a girl at second during a softball game spikes up to break up a double play.  In all fairness, she played softball for AZ before moving to DC and was fine with it, but it started a fight between the two teams. 

Gambling isn’t for me. 

Edited by Bateshorn
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The Royal We

The Royal We 3072

Posted
Posted (edited)

This has the potential to be a unifying event for our country if the asshats conspiring to disallow the purchase of these stocks are investigated and held accountable.  Democrats could potentially peel a slice of the country off if they lead the charge now that they are in the majority.  Which means....there's no fucking way possible anyone is ever held accountable for this fuckery.

Edited by The Royal We
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Blotto

Blotto 23575

Posted
Posted
27 minutes ago, Beau Vine said:

Pension funds are not allowed to short-sell, are they?

Pension funds are struggling to keep up with their obligations as returns on more traditional investments have gone to shit with interest rates. As a result they are turning to riskier investments in the market. They might not be shorting directly but they can certainly invest in hedge funds, and many of them are to a greater and greater degree.

https://www.marketwatch.com/story/new-york-subway-pension-loses-over-300-million-in-collapsed-hedge-fund-11601224350

Should they be allowed to invest in hedge funds is a separate question

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henrygandorf

henrygandorf 29194

Posted
Posted
4 minutes ago, Bateshorn said:

I only play anything in two modes: we aren’t keeping score or it’s game 7 of the World Series.  I once went into a girl at second during a softball game spikes up to break up a double play.  In all fairness, she played softball for AZ before moving to DC and was fine with it, but it started a fight between the two teams. 

when i was a junior we were in the im softball semi's and i got ejected for yelling at a (girl) umpire for not understanding the infield fly rule correctly.

so yeah, i'm right there with you, bud.

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henrygandorf

henrygandorf 29194

Posted
Posted

so here's an interesting side question for those who know more than me, since clearly, as our resident trumper pointed out, i have shown myself to be completely out of my depth on several posts.

if robinhood is forcing folks into a sell-only position on certain stocks, and many are pissed and are just fucking done with the app altogether, then it seems like those stocks (bb, nokia, bbby, amc) are going to take an artificial emotional hit today, but might be poised to bounce back tomorrow (even though they're kinda dogshit companies with a ton of debt, etc).

this is kinda unprecedented - basically forcing folks to sell or pissing off their customer base enough to take some losses just to bounce (and i'm not referring to gme and their auto-sell policy).

does this make sense?  should i just say fuck it and hold those stocks and possibly even buy some on my new td account?  or am i reading too much into this?

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C-Man

C-Man 27262

Posted
Posted
2 hours ago, burntorangebongos said:

I hope most of them can hold. They are in the middle of the squeeze, not the end of it. 

This has nothing to do with the thread but I was unaware who Lauren Jenkins was until now. She's quite rude.

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