abenjami Posted January 28, 2021 Author Report Share Posted January 28, 2021 2 minutes ago, Mythos27 said: Anyone here actually shorting GME or AMC? Why take that risk? Losses are infinite with shorting and the options prices are so expensive you can't hedge buying calls to cover. Mythos27, Jamalisms, and heyitsmeallen 3 Link to post Share on other sites More sharing options...
9 Nines Posted January 28, 2021 Report Share Posted January 28, 2021 2 hours ago, abenjami said: Apparently Robinhood is now selling people's shares of GME without their consent. That is crazy. They gave their consent in the margin agreement. Link to post Share on other sites More sharing options...
abenjami Posted January 28, 2021 Author Report Share Posted January 28, 2021 2 minutes ago, Mythos27 said: No way they can realistically keep this up. GME's fundamentals aren't good and that price will drop like a stone. I love the spirit of this but we don't need more regular people losing their shirt in the middle of a pandemic. The market no longer cares much about fundamentals. See TSLA and it's 1,700+ P/E ratio. wiscotitansfan, and Mythos27 2 Link to post Share on other sites More sharing options...
Mythos27 Posted January 28, 2021 Report Share Posted January 28, 2021 Just now, abenjami said: Why take that risk? Losses are infinite with shorting and the options prices are so expensive you can't hedge buying calls to cover. I'm not advocating anyone should, just wondering if anyone is. Link to post Share on other sites More sharing options...
abenjami Posted January 28, 2021 Author Report Share Posted January 28, 2021 (edited) Just now, 9 Nines said: They gave their consent in the margin agreement. Which I'm guessing would only apply to shares purchased on margin. And yeah, brokers should be able to force sales made on margin. Edited January 28, 2021 by abenjami Link to post Share on other sites More sharing options...
9 Nines Posted January 28, 2021 Report Share Posted January 28, 2021 2 hours ago, Jonboy said: Probably a dumb question here, but aren't these large hedge funds way more likely to have the patience of waiting this out than retail investors? From everything I've read, there are no laws or regulations about when they have to buy back and cover their short sell. What's to keep them from just waiting this out as long as it takes? Assets and liabilities growing causing equity factors to be below capital requirements, funding leaving, etc. Link to post Share on other sites More sharing options...
Mythos27 Posted January 28, 2021 Report Share Posted January 28, 2021 Just now, abenjami said: The market no longer cares much about fundamentals. See TSLA and it's 1,700+ P/E ratio. I agree but this mini-bubble is even more artificial than all the others and once the reddit crowd runs out of steam/moves on to a different cause the party's over. Link to post Share on other sites More sharing options...
oldschool Posted January 28, 2021 Report Share Posted January 28, 2021 1 minute ago, Mythos27 said: No way they can realistically keep this up. GME's fundamentals aren't good and that price will drop like a stone. I love the spirit of this but we don't need more regular people losing their shirt in the middle of a pandemic. It has absolutely nothing to do with the value of GME as a company. It's about forcing the hedge funds that crushed GME BY shorting it to have to pay out on all their put options at 100x or more. heyitsmeallen, and abenjami 2 Link to post Share on other sites More sharing options...
Mythos27 Posted January 28, 2021 Report Share Posted January 28, 2021 (edited) 3 minutes ago, oldschool said: It has absolutely nothing to do with the value of GME as a company. It's about forcing the hedge funds that crushed GME BY shorting it to have to pay out on all their put options at 100x or more. I get that. I do. But still when/if this fever breaks do you really think GME stock will stay where it is? The stock was under $31 per share over the last five years... My guess is the big guys outlast the reddit crowd and eventually the stock plummets. Edited January 28, 2021 by Mythos27 Link to post Share on other sites More sharing options...
abenjami Posted January 28, 2021 Author Report Share Posted January 28, 2021 1 minute ago, Mythos27 said: I get that. I do. But still when/if this fever breaks do you really think GME stock will stay where it is? The stock was under $18 per share over the last five years... My guess is the big guys outlast the reddit crowd and eventually the stock plummets. No, it won't stay where it is long term. Everyone realizes that. It's going to crash hard when this is over. The question is whether those who bought in have the staying power to squeeze the shorts. oldschool, and Mythos27 2 Link to post Share on other sites More sharing options...
9 Nines Posted January 28, 2021 Report Share Posted January 28, 2021 (edited) 1 hour ago, abenjami said: I'm not expert on securities law, far from it actually. But I think it will be interesting to see what the securities lawyers come up with on the issue of brokers restricting retail traders from buying specific stocks. I would have to imagine the laws under which their broker licenses are granted have to contain rules about not restricting investors from making their own decisions and anti-discrimination stuff as well. I am also interested to see the economic effect on these specific stocks. E*trade just suspended buying of GME and AMC. I think now every single retail broker, or at least all of the large ones, have done this. What will that do to the price of the stock if current owners can only sell and in essence they can only sell to institutional buyers because the trade restrictions made retail demand =0? Pretty funny. These renegades, sticking it the "man" - whoever that is, will be part of a class action lawsuit, getting a dollar or two a share on their $200+ loss, while the attorneys get a couple of new yachts, where they can make christening toasts to the little guy. Edited January 28, 2021 by 9 Nines Mythos27 1 Link to post Share on other sites More sharing options...
Mythos27 Posted January 28, 2021 Report Share Posted January 28, 2021 3 minutes ago, abenjami said: No, it won't stay where it is long term. Everyone realizes that. It's going to crash hard when this is over. The question is whether those who bought in have the staying power to squeeze the shorts. Right. I'm thinking they do given the cover they'll get from there financial industry as a whole. They can't let this little uprising stand otherwise they'll have to keep dealing with it. The way some of these guys are talking they're investing money they can't really afford to and will be left holding the bag in the end. Link to post Share on other sites More sharing options...
9 Nines Posted January 28, 2021 Report Share Posted January 28, 2021 1 hour ago, heyitsmeallen said: This legit has me laughing so hard. Her parody is probably more knowledgeable than 90% of the Redditors posts. Link to post Share on other sites More sharing options...
Mythos27 Posted January 28, 2021 Report Share Posted January 28, 2021 6 minutes ago, 9 Nines said: Pretty funny. These renegades, sticking it the "man" - whoever that is, will be part of a class action lawsuit, getting a dollar or two a share on their $200+ loss, while the attorneys get a couple of new yachts, where they can make christening toasts to the little guy. Right. This is a feel good story that will end badly for a bunch of average joes in the middle of a pandemic. Love the sentiment but that's the reality. Link to post Share on other sites More sharing options...
abenjami Posted January 28, 2021 Author Report Share Posted January 28, 2021 6 minutes ago, Mythos27 said: Right. This is a feel good story that will end badly for a bunch of average joes in the middle of a pandemic. Love the sentiment but that's the reality. I don't think anyone disputes that. It's going to be comical to see the fallout on reddit when it happens. But at the same time, lots of average joes are going to make a lot of money too. Mythos27, and oldschool 1 1 Link to post Share on other sites More sharing options...
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