GME and AMC stock action (out of main)

[Artful Dodger]

Miami in da House!

Patrick OShaughnessy on Twitter: "A plane just flew down South Beach with the message “Buy GameStop stock WSB” trailing behind it." / Twitter​

This is the end game...

Cheers!

 

[Artful Dodger]

At least they're covering their bases by blocking all US stock orders.

No they are NOT! They are only blocking BUY ORDERS. And now its for all U.S. equities, not just $GME and its ilk.

The Shorts are licking their chops. ONLY SELLING allowed! Manna from heaven...

Luckily, very little volume from the UK relative to the size of US Markets.

 

[Boomer19]

No they are NOT! They are only blocking BUY ORDERS. And now its for all U.S. equities, not just $GME and its ilk.

The Shorts are licking their chops. ONLY SELLING allowed! Manna from heaven...

Luckily, very little volume from the UK relative to the size of US Markets.

closing only means you can buy to close or sell to close stock or options
they are blocking opening sells and opening buys
i dont agree with blocking an opening buy by the way

why cant i use my $ to buy a put or a call or a share?
i understand not allowing an opening sell, if the share(s) are not available to short, because you cannot locate a borrow to cover that sale

 

[juanmedina]

Any truth to this? AMC could fly after hours.

 

[Artful Dodger]

GAMESTONK!! in da House! TREE-FORDEE!



Cheers!

 

[chronoreverse]

View attachment 631917

Any truth to this? AMC could fly after hours.

I don't see why. Short interest % of float is only 41.91% (GME is _down_ to 121.98%) and it's not like short positions have to expire on a particular day. Seems more like a distraction.

Of course, from what I hear, gamma squeezes are quite possible so it could easily still spike up some.

 

[bro1999]

I haven't tried it either way yet, just going by Transfer Stocks Out Of Your Robinhood Account | Robinhood

Note that there is a $75 fee to transfer your assets out of Robinhood, whether as a partial or full transfer.

That's some BS. TDA doesn't charge anything to withdraw your funds. What other brokers charge fees?

 

[Boomer19]

That's some BS. TDA doesn't charge anything to withdraw your funds. What other brokers charge fees?

brokers generally dont charge to w/d funds, they do however, charge you for account transfers
most do outbound, most dont inbound, for obvious reasons

 

[H Mak]

I bought 100 AMC @ 12.92 for the laughs. Power to the people!

 

[elasalle]

View attachment 631917

Any truth to this? AMC could fly after hours.

Stock Option Max Pain

Max pain actually at $5.

 

[EnzoXYZ]

IB pulled something similar to RH today. I would avoid them.

I have Fidelity and Schwab, I have liked Fidelity better, had problems executing trades on Schwab yesterday, but the margin rates of both suck.

I asked for Schwab to match IB or I leave and they did. They will honor the rate for 1 year. Gives me some time to shop.

 

[Chunky Jr.]

If the side effect of GME etc is the rest of the market taking a bath, this effort hurts retail investors more than it helps them unless some kind of serious reform is enacted that helps everyone over the long term.

 

[WattsHappening]

View attachment 631921

Stock Option Max Pain

Max pain actually at $5.

This is the point being made by WSB. If the stock closes above $9 today, MMs will have to buy lots of shares to cover the calls ITM. And if nobody is selling......

 

[corduroy]

I sold all my WSB calls today. AMC calls I bought Tuesday did the best with about 110% gain (after being up nearly 400% at one point in the week). My BB calls were a loss and NOK calls about 35% gain. Now only holding my 5 shares of GME for the cause. I'm pretty happy to just get out unscathed from this crazy week.

 

[SOULPEDL]

View attachment 631921

Stock Option Max Pain

Max pain actually at $5.

Likewise, do we think GME closes above Max Pain of $115 today?
Thinking the man doesn't like these prices today.

 

[Cosmacelf]

So I’ve posted a couple times about this now, but the now debunked theory that Robinhood partnered with funds to shut down yesterday has people putting their money down in an ideological sense. A lot of people are gonna get hurt like this.

What happened yesterday was robinhood ran out of cash because the volume and volatility of trading jacked up the SEC and DTC deposit requirements beyond their cash on hand. You can’t use customer cash for it by regulation.

while I am not a libertarian so I disagree with the conclusion on Dodd-frank here this Twitter user does a good job, along with some other info I shared in my posts last night, on how the capital requirements for these meme stonks jumped up to an amount higher than anyone could really forecast. I encourage everyone to learn about settlement and clearing.

https://twitter.com/KralcTrebor/status/1354952686165225478

Good answer, but too detailed

TL;DR: When you buy or sell a stock, you have two days to settle. ie. I buy GME today, but I don't have to pay for it until two days from now. The broker is on the hook to make sure you pay. In a normal stock, the broker has a bunch of cancelling buy/sells so their net exposure is minimal and the volatility in the stock is reasonable. GME and others broke that mold since brokers like RH mostly had buy orders and volatility was through the roof. So RH absolutely needed more liquidity to manage their credit risk. More importantly, they should have done things like demand 100% margin for buying/selling rather than restrict buying.

RH CEO, Vlad, on CNBC yesterday was a disaster. I got the distinct impression he doesn't know how market mechanics works. Not a good look for a CEO. Trust, gone.

 

[Drumheller]

I don’t think so. Too late for that. The cat is out of the bag. They can try, of course. But I expect there to be a cry throughout the land. The world is being flipped upside from many sides.

Why are you putting cats in bags?

 

[Big Earl]

I moved shares and options out of RH this week and there was no charge. Are you initiating the transfer at your new broker, to pull the shares out of RH?

I just setup a Fidelity account and initiated the transfer through them. No fees as far as I'm aware. So long, Robinhood.

 

[Cosmacelf]

Good answer, but too detailed

TL;DR: When you buy or sell a stock, you have two days to settle. ie. I buy GME today, but I don't have to pay for it until two days from now. The broker is on the hook to make sure you pay. In a normal stock, the broker has a bunch of cancelling buy/sells so their net exposure is minimal and the volatility in the stock is reasonable. GME and others broke that mold since brokers like RH mostly had buy orders and volatility was through the roof. So RH absolutely needed more liquidity to manage their credit risk. More importantly, they should have done things like demand 100% margin for buying/selling rather than restrict buying.

RH CEO, Vlad, on CNBC yesterday was a disaster. I got the distinct impression he doesn't know how market mechanics works. Not a good look for a CEO. Trust, gone.

One more thing - why does the market take two days to settle? Part of it is historical (in my lifetime it used to be 7 days so that people could buy stocks and then put a check in the mail to pay for it), but the other reason is that brokers make money from it. By default, brokers (like RH) open up a "margin" account for you. This allows you to borrow money to buy/sell stocks. The (current) 1.5% or more interest they make on such loans is now a significant part of a brokers revenue since commissions are essentially non-existent. So, the 2 day settlement period is likely not going away anytime soon.

The real issue here is that certain brokers (like RH) didn't react fast enough to the reddit trades to either increase their own credit lines or slap on 100% margin requirements on certain stocks. They had to panic and do something even stupider. RH deserves to die for being part of this debacle. It was avoidable, but they didn't know what they were doing apparently.

 

[chronoreverse]

It seems that their "understanding" was that the little traders would obviously be losing money (to them) so they never had a plan for what if something happened outside of that. So not direct malice but just arrogance that they will get away with it anyway.