Anyone following what is happening with GameStop stock? Absolutely insane
- Thread starter Noodle
- Start date
Their upcoming IPO is likely less of a conspiracy theory and more the motivation, can’t imagine shopping that around would be nearly as successful if they allowed this to go unchecked. They capitulated this evening, because they can’t lose the retail investors either, those that closed accounts seemed to have caused a minor “run” on Robinhood which was required to tap a credit line with jpm/gs. My guess is Robinhood is trying to thread the needle to keep all of this from falling apart.
I think technically, neither selling nor buying is blocked, but rather, opening new positions is blocked. So people with short positions can buy, and people with long positions can sell. And, of course, that limitation is only placed on people on those platforms, so others can provide the necessary bids. Most likely, the "others" are the institutional investors who are trying to get out of this mess.
The market maker who sits in between a buyer/seller does all of the direct buying/selling (taking the difference between the ask/bid price). So in this case the market maker was buying shares from robinhood accounts, but not selling any shares to them.
At the least I hope this throws some light on some of the naked corruption people knew was there but probably couldn’t entirely understand or prove.
This is why I just handed my shit over to a guy I'd come to trust (and who was well thought of by others) and told him to invest it as if I was his dad. So far he's done me good.
Or another way to look at it, they are the reddit and more effective version of a bald guy who has silly bells and whistles going off on his daily TV show saying "BUY THIS STOCK!!!!!"
I have yet to see an argument that separates the two in my mind. CNBC is a TV station full of analysts saying, "you should buy this stock because of X, Y, Z" Seems to me the DFV guy on reddit did his homework and said, "The people who shorted the GME stock are way over extended. If you purchase the stock now and hold it it is undervalued and these guys are going to have to pay up which will drive up the price leading to a nice profit for you."
There are people at hedge funds looking for those kind of buys all the time. They buy these short positions, leak a bunch of info to CNBC and other market watchers about how the stock is overvalued because of X, Y, Z and then reap the benefits off the downward pressure on the stocks price. Turn about is fair play.
Or, simply announce that they are shorting the stock, which itself can drive the price down if it’s a significant player.
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anon_mlxxvlbug9dpa
Guest
There are multiple avenues of approach to attacking Lyin’ Ted. Her fainting couch approach is lame AF.
You might be right, but I'm not willing to give Ted that rope without consideration.
CEO of Robinhood just laid an egg on CNN. Can’t believe they put him out there.
OMG they put him back out there after an earlier egg laying?!? Good lord
He's dodging the liquidity questions while they're actively drawing "several hundred million" on their credit lines.
Not a lot of short covering
This article is interesting:
1. Most covering occurred Thursday (when buying was restricted and GME dipped 200 points in 20 mins).
2. Melvin stated publicly they closed their short on Tuesday, it will be interesting if that is true, if not that public declaration might pose a problem down the road
3. Given options expiration today, the afternoon might be volatile, but overall GME has been pegged at 300-325 today, however if the short interest is still significantly high this will be a story throughout February.
This article is interesting:
1. Most covering occurred Thursday (when buying was restricted and GME dipped 200 points in 20 mins).
2. Melvin stated publicly they closed their short on Tuesday, it will be interesting if that is true, if not that public declaration might pose a problem down the road
3. Given options expiration today, the afternoon might be volatile, but overall GME has been pegged at 300-325 today, however if the short interest is still significantly high this will be a story throughout February.
Redditors are profiting from GameStop stock going up, which is understandable. My question is, who’s reaping the billions in profits from the short-sale losses? When someone sells short, who buys short? Who’s the lender?
I assume the major investment banks, likely those that ipo’d the company. Technically any brokerage could have shares available for loan. It will be very interesting.
WTF does any of this have to do with MTIOTF?
Do the lenders lend for the interest rate only or are they betting the stock will go up? Don’t they lose when it goes down? Seems like a great deal for them. Gain interest if the stock goes down. Gain interest plus capital gain if it goes up.
Yes they get interest, so that is one motivation. I don’t know their criteria for evaluating the when/why/how much to make available for lending
The funny thing for Me is how Hedge Funds are complaining about this. Anytime you Short a Stock, in theory you are accepting the risk of almost Unlimited Loss. The higher the stock Price goes the worse the position becomes, and the more it costs you to get out from under. If another Hedge Fund or Investment Company kept buying shares of the Stock based upon their Research and Conclusions and the Price rose like this it would be just part of doing business. What ticks them off is Joe The Plumber, Mike Main Street and other Ordinary People have found a way to gather and exchange information to Trade a Stock. It's as if they think this is a game for a limited number of Players, and how dare these ignorant bumpkins show up to play their Game and beat them at it.
the little guy vs the big guy makes for good tv, but doesn't enter into the motives of the side with the most power..
who they were trading against and who was trading against them matters not to them.
the hedge fund guys shut down trading because they had the power to do so, and doing so was in their own best interests at the time, not because of who was on the other side of the bet.
and yes, it is a rigged game, and a zillion times more rigged than this one example.
that said, money is power and power is money, and for those with the power to rig it,
IT'S NOT PERSONAL, IT'S JUST BUSINESS.
JDB..“If they are all egging each other on using a social-media platform, they are effectively engaged in a crowdsourced pump-and-dump scheme,” said Daniel Hawke, a partner at Arnold & Porter Kaye Scholer LLP.
The traders “are making no effort to conceal their apparent intent to manipulate the price of the stock,” added Mr. Hawke, a former chief of the Securities and Exchange Commission’s market abuse unit.
GameStop Stock Surge Tests Scope of SEC’s Manipulation Rules
The frenzy for GameStop shares has played out on public websites where investors exhort others to buy shares and options, which could make it easier for regulators to levy claims of manipulation.www.wsj.com
Saw an interesting note today on another site.
It talked about the Whales counterfeiting stock to attempt short term attacks upon companies to drive them down to the point of going out of business. The post said there is a term for this; 'Strategic-fails-to-deliver".
Can you educate me on this little tactic?
I'm not sure this is necessarily the tendie-loving basement dwellers doing of and by themselves.
Interesting read on another site mentioned Elon Musk and his dislike for (Plotnik?) a Hedge Fund manager who shorted Tesla a while back, and then blew a lot of smoke about it online.
I have not heard of this, is the site confusing naked shorts with counterfeiting or claiming some of it is?
I don't know..the article was not complete..I'll work a little harder to find out...just wondered if you knew the term...thanks
When you have that crazy GME eff you money.
I think Robinhood’s motivation was “oh shit now we are going to get sued and the SEC may hammer is too”.
Apparently their CEO (who looks like he's 15 and lives in his mom's basement) will be on Capitol Hill soon. Should be entertaining.
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anon_mlxxvlbug9dpa
Guest
The instant Robinhood blocked buying was the instant to sell. Some decisions don’t require rocket science.
