GME and AMC stock action (out of main)

[adiggs]

The only people that die in wars are little guys, doesn't mean you shouldn't fight them. These clowns will have to take the most overt and unfair actions imaginable to stop this, and it'll be right in the spotlight. That's the whole idea.

That's one reason I have my token dog in the fight - it's only 100 shares, but hey - ahead 10% right now from the initial purchase!

I did see somebody comment somewhere, probably wsb, to stick with shares. It's buying shares and taking them out of circulation that is turning the screws immediately. Apparently purchased calls require the option to go ITM, and maybe near expiration, before the hedging needs to be turned into shares (for delivery purposes). Until then, hedging can be accomplished with options as well as shares.

 

[elasalle]

Had my fun & games, was invested to follow along and learn what was happening. Closed my AMC. Bought TSLA with the proceeds.
Will be watching a lot of free AMC with the proceeds

I have GME $20 puts (sold), but due to IV, higher than purchase price, so still open.

Market Equilibrium will be achieve once good names are sold and appear more attractive than just piling on to a MOMO,YOLO option ... cheers!!

 

[azaz]

"What we have here is a failure to communicate."

Yes indeed. And the CEOs weren't any better. The RH CEO was awful, seemed he didn't really understand what was going on. The IB CEO did understand, but he understood it too much. He gave highly technical answers that assumed you knew how market operations worked. He didn't explain it so a lay person could understand.

This is how conspiracy theories start...

yes, the IB CEO was also quite pompous. I thought the WeBull CEO was quite impressive and laid it out easy to understand.

 

[MP3Mike]

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

Most brokerages charge a $75 outgoing ACAT fee for a full account transfer. Some charge less, or nothing, for a partial transfer. (Leave $1 behind and then just withdraw it via a normal ACH withdrawl.)

But most Brokerages will refund the ACAT fee charged by the brokerage you came from as long as you are transferring at least $5-10k of net worth. Though they make you ask them to do it, they don't publish that they will do it. (The exception is that Webull publishes that they will reimburse up to $100, but only a single time.)

 

[adiggs]

Soooo... I agree that's it's great that the shorty hedgefund(s) get squeezed like this, and the malarky yesterday with Robinhood and others (in fact it was the clearing house Apex that put in restrictions?) uncovers deeply unfairness in how the public markets operate. But I don't think many of the small time retail crusader investors have thought this all the way through. So let's say that the squeeze can be sustained and the hedge funds are forced to cover at $500, $1000 or whatever number we can assume - what then? Everyone is going to hold on to their shares forever, Gamestop suddenly becomes a $50 billion company but with the same business and number of stores, earnings etc. as 1/2 year ago? No, when it's clear the squeeze is over most people will try unwind their positions and much of the gains will disappear. "They" will be eating their own at this point.

Yes.

But at least retail will be eating their own with a few extra billion from the shortie hedge funds to squabble over. It's still a market after all, but at least one egregious abuse will be handled by the market as well.

And hopefully, the market mechanics abuse that enabled this trade, will also lead to some market reforms. And, ooh - here's a though, a market regulator with their hand on the scale to balance it out!


I'm sure there's more to the market reforms that would be better than only this, but it looks to me like most or all of this whole mess could have been avoided in the first place with the uptick rule in place full time, all shares / companies. I believe it was originally created back in the 1930s in response to the excesses / market manipulation that went on in the 20s. But more recently in time, the financial industry was able to successfully argue that we didn't need it any longer (a relic of a bygone era).

 

[bro1999]

So can someone explain to me like I'm 5 what might happen if GME closes above $320 and over 90,000 call contracts (9+ million shares) are exercised by 4PM? That would drive the price up (way up) after hours, no?

 

[Norse2]

Seems to me a lot of Reddit investors believe that the short sellers are losing billions if it trade sideways. But how much do they really lose if it trades at 300$ in a week or so?

 

[dhanson865]

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

I don't want to withdraw funds, I'd have to sell my TSLA to do that. I'm looking to avoid capital gains taxes and just transfer the underlying stock to another broker.

 

[MP3Mike]

Seems to me a lot of Reddit investors believe that the short sellers are losing billions if it trade sideways. But how much do they really lose if it trades at 300$ in a week or so?

Well the shorters have to pay "interest" on their borrowed shares for every day that they are short them. Last I heard that was at a rate of ~40%, so it would cost them ~33 cents per day per share they are short. (And that fee can change every day.)

Aren't there ~66M shares shorted? So it is costing them ~$22 million per day to hold their short position with GME at $300.

 

[bro1999]

I don't want to withdraw funds, I'd have to sell my TSLA to do that. I'm looking to avoid capital gains taxes and just transfer the underlying stock to another broker.

Ah, I see. I didn't even know that was an option.

 

[WattsHappening]

So can someone explain to me like I'm 5 what might happen if GME closes above $320 and over 90,000 call contracts (9+ million shares) are exercised by 4PM? That would drive the price up (way up) after hours, no?

That's the play for today with both GME and AMC. Tons of calls expiring ITM would create a run on the stock. If no one is willing to sell.... If GME closes > $320 and AMC closes >$9, Monday morning could be exciting.

 

[bro1999]

That's the play for today with both GME and AMC. Tons of calls expiring ITM would create a run on the stock. If no one is willing to sell.... If GME closes > $320 and AMC closes >$9, Monday morning could be exciting.

When do the people holding the bag on those ITM calls have to actually buy/deliver the shares?

 

[MP3Mike]

When do the people holding the bag on those ITM calls have to actually buy/deliver the shares?

When the person holding the call executes it.

 

[Tslynk67]

I really shouldn't, but 200x $AMC @ $12.50, for shits'n'giggles...

 

[bro1999]

When the person holding the call executes it.

Ok, so it's pretty much instantaneous. Thought maybe there was some timeframe the bag holders could put off buying the shares.

 

[corduroy]

Dammit, you guys are going to make me buy back in now. FOMO is a powerful drug.

 

[Artful Dodger]

Wooo, let's go AMC. I told my Dad and brother that if AMC hits 100 I'll buy them each a model Y. What I didn't mention is that I'll also buy myself a plaid +. (it won't...I think)

Hold fast.

Cheers!

 

[H Mak]

I really shouldn't, but 200x $AMC @ $12.50, for shits'n'giggles...

Welcome to the club!

 

[WattsHappening]

When the person holding the call executes it.

Right. And most ITM calls are automatically called after market closes, correct?

I really shouldn't, but 200x $AMC @ $12.50, for shits'n'giggles...

That's what I did, just to watch it play out and hopefully learn something. 200 shares of AMC and 4 shares of GME. Will hold at least through close and see what happens. More fun than watching TSLA today...

 

[Tslynk67]

Welcome to the club!

Already had some earlier this week, and $GME, and $EXPR, but sold... But interesting to play the close and AH, I think