Big Phoenix
Pronouns: zie/zhem/zer
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Investing General Discussion
- Thread starter Furious
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Sanrith Descartes
Veteran of a thousand threadban wars
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This is the exact functionality of the stock market. Is binary. For every buyer there is a seller. Feeling bad for bagholders is like feeling bad for Jets fans. It just isn't in my DNA. If it was, I wouldn't invest.
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Same with my +$40k from AMC. Wish I’d sold for $85k on Wednesday but I’m happy and stress free getting out when I did.
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Sanrith Descartes
Veteran of a thousand threadban wars
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Lucky bastard. I have 3 people out sick and am actually doing their jobs instead of sitting in front of my ATP making tendies. FML. But it looks like round two of the dip is coming so maybe hope for me yet.Sanrith Descartes I sold 20 contracts of $350 strike puts on that dip and bounce off 368 on SPY, these expire Monday so just someone paying me $1,000 to insure them against a 5% decline over the weekend. Going to cash with this money at high yesterday paid off nicely.
Reason I'm not making a bigger play is I want to reassess the pull back on Monday/Tuesday then sell 2/19 expiring options.
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Fogel
Mr. Poopybutthole
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Uber Uberest
rdr^2
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If they were out of money they wouldn't let you sell an unlimited amount of GME and only buy 1 share. It's to protect the hedge funds. If you sell you're letting them survive.
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I understand this, but I think it's also relevant who you're playing against. In this situation, the odds of your profit coming from a neophite who can't afford it a and causing acute harm are fairly high. I'm not saying it's wrong to play, but it's an issue I consider.
Edit: Also, this is only really true for short-term trades. If you're talking longer time frame investment on fundamental growth, there isn't necessarily a loser and it's just a question of who wants their money in the market when.
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I hope AMC / GME can fuck up the hedges for as long as possible to the greatest extent possible.
I’m also though looking forward to getting back to SPACS and lower personal energy trades myself. This week has made everything weird.
I’m also though looking forward to getting back to SPACS and lower personal energy trades myself. This week has made everything weird.
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Sanrith Descartes
Veteran of a thousand threadban wars
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I also play poker. I don't ever lament seeing dead money sitting at the table either. Why would I ever want to bet against
Blazin
on a trade when I bet against SoccerMom1134562?
Sanrith Descartes
Veteran of a thousand threadban wars
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Gravel
Mr. Poopybutthole
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With over 100% still shorted, you actually are basically guaranteed that you're taking it from the hedgies.
Uber Uberest
rdr^2
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If the stock is shorted over 100% please tell me how it hurts a normal person? That stock can literally continue to rise if the shorts arent satisfied. You understand that right?
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Fogel
Mr. Poopybutthole
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Yeah, the market has been tough to trade outside of options because even if you were ignoring GME it was having a downstream affect on a lot of the market
Blazin
Creative Title
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I know few are interested in overall market at the moment, but those watching decline. The market is trying to hold the 50 day, if the bulls can hold here it could put a stop to the decline. The vix this elevated however is a warning that we may not be done.
Either way I think this will be a dip to buy overall and the high for the year is not in even if this is a pretty choppy next couple months
Either way I think this will be a dip to buy overall and the high for the year is not in even if this is a pretty choppy next couple months
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fris
Vyemm Raider
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as I understand it, RH didn't run out of money. when you buy/sell through RH, what you sell isn't bought by someone at RH. RH moves your transaction through a clearning house. that process takes 2 days. that process comes w/ a cost, a 1-3% based on the stock price, as the stock will probably move in price over those 2 days. RH keeps enough cash to cover the typcial volume of trades at a 1-3% cost.
the clearing house saw the price swings on these stocks, so jumped the cost on them from 1-3% to 100%. this meant RH could no longer cover trades on those stocks.
Every brokerage that used a clearing house was hit w/ this crazy spike in cost to trade those stocks. Fidelity doesn't use a clearing house, thus why they never had a problem continuing to let people buy through their platfrom.
someone correct me if i'm misunderstanding any of this.
the clearing house saw the price swings on these stocks, so jumped the cost on them from 1-3% to 100%. this meant RH could no longer cover trades on those stocks.
Every brokerage that used a clearing house was hit w/ this crazy spike in cost to trade those stocks. Fidelity doesn't use a clearing house, thus why they never had a problem continuing to let people buy through their platfrom.
someone correct me if i'm misunderstanding any of this.
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Falstaff
Ahn'Qiraj Raider
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why would RH draw down lines of credit if they were restricting trading to help hedge funds? or is that fake news?
I think there are certainly multiple angles/narratives/storylines to this fiasco, but I forget some of you guys believe in QAnon so you would believe anything...
I think there are certainly multiple angles/narratives/storylines to this fiasco, but I forget some of you guys believe in QAnon so you would believe anything...