OT: Stock trading | Page 77 | The Boneyard

OT: Stock trading

Deepster said:
Hey JFS, can you explain this a little more like I'm a toddler?
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The hedge funds are required to buy these stocks back by a set time (call it 3:30 PM today for example). Robinhood and others closed out buying more stock on their apps so that the price can't go higher and the hedge funds lose any more than they have already
 
Deepster said:
Hey JFS, can you explain this a little more like I'm a toddler?
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The hedge funds need to buy stock that they borrowed. Jerks borrowed stock to sell at 20 hoping to return the share to the owner at 13.

But, when it went crazy, they are looking to get out of the contract. Only way to do that is to buy stock and fast. So, if you can only sell shares, I would think that hedge funds are going to be able to buy the shares. Not retail investors.

So, hedge funds don't have the competition of the retail investor in acquiring shares to close their position.
 
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JohnFSilver said:
The hedge funds need to buy stock that they borrowed. Jerks borrowed stock to sell at 20 hoping to return the share to the owner at 13.

But, when it went crazy, they are looking to get out of the contract. Only way to do that is to buy stock and fast. So, if you can only sell shares, I would think that hedge funds are going to be able to buy the shares. Not retail investors.

So, hedge funds don't have the competition of the retail investor in acquiring shares to close their position.
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One thing being missed - the issue isn't just shorting and contracts. The issue is doing that WITHOUT hedging on something else to compensate. If you're hedged well, you can sit out all of this GME nonsense, and watch it plummet back to earth with a smile.

This is all about a hedge fund not hedging, and being caught.
 
It may have been said here before but probably worth repeating, if you're thinking of going into any of these names, only invest what you're willing to lose. I'm sitting on the sideline watching this debacle unfold and while I like the idea of Main Street vs Wall Street, it's not going to end well for some.
 
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StllH8L8ner said:
It may have been said here before but probably worth repeating, if you're thinking of going into any of these names, only invest what you're willing to lose. I'm sitting on the sideline watching this debacle unfold and while I like the idea of Main Street vs Wall Street, it's not going to end well for some.
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Exactly. I would gladly throw some $ in for the fun of it, but only money I can afford to lose. Treat it like you would money spent at a casino in Vegas.

Curious to see if these stocks are available to me via Fidelity when the market opens.
 
StllH8L8ner said:
It may have been said here before but probably worth repeating, if you're thinking of going into any of these names, only invest what you're willing to lose. I'm sitting on the sideline watching this debacle unfold and while I like the idea of Main Street vs Wall Street, it's not going to end well for some.
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well, yeah
 
StllH8L8ner said:
It may have been said here before but probably worth repeating, if you're thinking of going into any of these names, only invest what you're willing to lose. I'm sitting on the sideline watching this debacle unfold and while I like the idea of Main Street vs Wall Street, it's not going to end well for some.
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It's not going to end well for a lot of folks. There is no doubt in my mind that there are a lot of newbie investors that have not a clue how this all works. Think of folks who have an unhealthy predilection to gambling. This is really no different and it has more of a feel of legitimacy - I'm trading and investing.

As for the Wall Street crowd, there big boys and if they get banged around a bit so be it....imo.
 
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StllH8L8ner said:
It may have been said here before but probably worth repeating, if you're thinking of going into any of these names, only invest what you're willing to lose. I'm sitting on the sideline watching this debacle unfold and while I like the idea of Main Street vs Wall Street, it's not going to end well for some.
Expand ...

I'd still bet on Wall St for the same reason casinos tend to stay in business. Wall St has more money to ride stuff out and make the long play.
 
I sold a couple different stocks after hours to free up some stale money in case I wanted to jump on something quickly. Robinhood hasn't put those through yet. Not sure if they're so jammed up or just slow on purpose.
 
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I've been trying to sell some of my AAL shares thru Fidelity and it's giving me an error every time.....such BS
 
So if I were to futz around with these, better AMC or Naked?
 
Robinhood
"Due to ongoing volatility, some securities like AMC and GME are position-closing only."
 
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