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01-27-2021, 03:28 PM
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#101
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,586
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Quote:
Originally Posted by Freedom56
Wall Street firms are now asking the SEC to curb social media traders. What the SEC should be doing is preventing short interest to exceed 100% of the float. Reddit is a great site for just about everything so I have no issues with what a stock trading Subreddit was organizing and promoting. It's no worse than Wall Street firms drawing investors into speculative bubbles.
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Hedge funds want the SEC to "save" them from the kids. What a load.
Easy answer: don't short the stock I'd you can't afford it.
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01-27-2021, 03:35 PM
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#102
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Koss has 7.41 million shares outstanding, but only 1.37 million shares are floating.
The volume today is 24 million shares. Wowza!
What a painful short squeeze. It's like having your private parts in a vise grip.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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01-27-2021, 03:37 PM
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#103
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,899
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Quote:
Originally Posted by ExFlyBoy5
The issue I see is that the Reddit group has gotten way too big and they are shouting out too many companies. There is strength in numbers and this is a fracture in their system. KOSS is an example...so many wild swings in the last couple of hours 35 to 70 to 40 to 90 and that is a recipe for wiping out Robin Hood account pretty quick. I think there are going to be some hard lessons learned in the next couple of weeks.
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Yeah, sounds like they are drunk with "power" which rarely ends well. I won't say I'm rooting for the hedge funds, but power can be abused by any group - even one as disorganized as the folks wanting to "destroy" something "bad." I don't participate in this whole mess (at least I don't think my "managed" funds do) but we all have a stake (steak ) in a reasonably stable market. Let's hope this all works itself out with ONLY the participants suffering - not all of us who just want to participate in Mr. Market. YMMV
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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01-27-2021, 03:41 PM
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#104
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Quote:
Originally Posted by Koolau
Yeah, sounds like they are drunk with "power" which rarely ends well. I won't say I'm rooting for the hedge funds, but power can be abused by any group - even one as disorganized as the folks wanting to "destroy" something "bad." I don't participate in this whole mess (at least I don't think my "managed" funds do) but we all have a stake (steak ) in a reasonably stable market. Let's hope this all works itself out with ONLY the participants suffering - not all of us who just want to participate in Mr. Market. YMMV
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I am sure the Redditors who instigated the short squeeze will make out like bandits. Their followers will get hurt, along with the hedge funds maybe.
I wonder if the hedge fund guys won't wait to short these stocks again at the top. Perhaps that's why the trading volume is so high. It's a tug of war, and the whole thing will just collapse as quickly. Winners are the guys who sell last, short or not. Would you want to be long these crazy stocks right now?
Meanwhile, I have added to some of my "innocent stock" positions, or sold put options to buy them at lower prices. Darn, my stock AA may go up to 80% again.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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01-27-2021, 03:42 PM
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#105
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,087
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I don't know the market details, but wondering why naked calls and puts can't be banned.
Of course Hedge funds would miss opportunity (and danger) of spending money they don't really have, but seems to me it would prevent this type of thing from happening.
This downdraft effect has made one of my puts (cash covered) coming close to be callable, so I could be the proud owner of some discounted stock soon.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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01-27-2021, 03:50 PM
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#106
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Quote:
Originally Posted by Sunset
This downdraft effect has made one of my puts (cash covered) coming close to be callable, so I could be the proud owner of some discounted stock soon.
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That's why I only sell puts on stocks that I do not mind buying at the strike price of the option.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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01-27-2021, 03:51 PM
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#107
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,899
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Quote:
Originally Posted by NW-Bound
I am sure the Redditors who instigated the short squeeze will make out like bandits. Their followers will get hurt, along with the hedge funds maybe.
I wonder if the hedge fund guys won't wait to short these stocks again at the top. Perhaps that's why the trading volume is so high. It's a tug of war, and the whole thing will just collapse as quickly. Winners are the guys who sell last, short or not. Would you want to be long these crazy stocks right now?
Meanwhile, I have added to some of my positions, and sold put options to buy them at lower prices. Darn, my stock AA may go up to 80% again.
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It occurred to me that several hedge funds could outbid the "$200 club members" - even combined. I could see this being a "war to the death" because, if the "kids" win, the whole game will never be the same again. I could see several hedge funds working together - just this once - to outlast the kids. Just thinking out loud since I don't have any (actual) money in the game. As always, YMMV.
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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01-27-2021, 03:58 PM
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#108
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Full time employment: Posting here.
Join Date: Oct 2017
Posts: 717
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Here’s an article about GameStop from The Guardian...
https://www.theguardian.com/business...r-heavy-losses
__________________
Whatever failures I have known, whatever errors I have committed, whatever follies I have witnessed in private and public life have been the consequence of action without thought... - Bernard Baruch
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01-27-2021, 03:59 PM
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#109
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,958
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Quote:
Originally Posted by Koolau
It occurred to me that several hedge funds could outbid the "$200 club members" - even combined. I could see this being a "war to the death" because, if the "kids" win, the whole game will never be the same again. I could see several hedge funds working together - just this once - to outlast the kids. Just thinking out loud since I don't have any (actual) money in the game. As always, YMMV.
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Just this once could turn into guerilla warfare...it's not going to be a war to the death for the little guys that actually buy the stocks.
Pretty sure what you mention is very much against market rules.
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01-27-2021, 04:01 PM
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#110
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,087
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Quote:
Originally Posted by NW-Bound
That's why I only sell puts on stocks that I do not mind buying at the strike price of the option.
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I don't mind, but in a giant down draft, the stock may become cheaper than my put price However, it should bounce back quick.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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01-27-2021, 04:01 PM
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#111
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2013
Posts: 11,078
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Quote:
Originally Posted by Montecfo
Hedge funds want the SEC to "save" them from the kids. What a load.
Easy answer: don't short the stock I'd you can't afford it.
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Oddly I had to sign all kinds of things and attest to my understanding of options, margins.... before Fidelity allowed me to do them. Too bad the hedge funds didn't throughly understand the risks before they established their positions. I have no sympathy nor do I understand how they can legislate folks talking about buying certain products.
Whole thing has been happening in the open, for over a year. Redditor u/deepf*ck*ngvalue has posted their position dating back to June 2019. Their end of day trade value was $47,973.298.84 from $754,991.37 investment
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01-27-2021, 04:05 PM
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#112
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,958
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Quote:
Originally Posted by MRG
Oddly I had to sign all kinds of things and attest to my understanding of options, margins.... before Fidelity allowed me to do them. Too bad the hedge funds didn't throughly understand the risks before they established their positions. I have no sympathy nor do I understand how they can legislate folks talking about buying certain products.
Whole thing has been happening in the open, for over a year. Redditor u/deepf*ck*ngvalue has posted their position dating back to June 2019. Their end of day trade value was $47,973.298.84 from $754,991.37 investment
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oh the hedge boys are victims of their own arrogance, they think the rules only punish the little guys. They are better, smarter, have more money then God. but I guess they never read The Princess and the Pea.
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01-27-2021, 04:08 PM
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#113
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,899
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Quote:
Originally Posted by ivinsfan
Just this once could turn into guerilla warfare...it's not going to be a war to the death for the little guys that actually buy the stocks.
Pretty sure what you mention is very much against market rules.
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I'm sure it IS against market rules. As you might know, folks don't always follow the rules. Besides, there's always the wink and nod as folks do what's in their perceived best interest - it's kind of the same with the "kids." Technically, they aren't colluding. Their piling on. Why couldn't the "big boys" do the same. They don't even need a phone call (from a burner) to know they MUST win this hand or they may lose the game for all time.
I've now told you (speculated) WAY more than I know so YMMV.
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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01-27-2021, 04:09 PM
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#114
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,586
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Quote:
Originally Posted by MRG
Oddly I had to sign all kinds of things and attest to my understanding of options, margins.... before Fidelity allowed me to do them. Too bad the hedge funds didn't throughly understand the risks before they established their positions. I have no sympathy nor do I understand how they can legislate folks talking about buying certain products.
Whole thing has been happening in the open, for over a year. Redditor u/deepf*ck*ngvalue has posted their position dating back to June 2019. Their end of day trade value was $47,973.298.84 from $754,991.37 investment
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If you want to read about a spectacular investment failure which brought financial markets to near collapse in 1998 read "When Genius Failed, the Rise and Fall of Long-term Capital Management".
Hubris.
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01-27-2021, 04:18 PM
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#115
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,899
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Quote:
Originally Posted by MRG
I have no sympathy nor do I understand how they can legislate folks talking about buying certain products.
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To understand how they think they should be entitled to set their own rules, one need look no further than Vegas - they are quite small compared to "the Market". Casinos can eject you just because you're winning too much and they can't figure out why. Hopefully the back room - knuckle breaking is gone, but still, the "House Always Wins." The rules back them even if the odds let them down once in a while. Can't blame the "big boys" in the market for wanting the same edge - even though I hope they don't get it.
I just see this as (who mentioned?) a tug of war. No one wants to loose this one. YMMV.
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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01-27-2021, 04:21 PM
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#116
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,083
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I don't understand what is being tossed around here. All sounds vague and nonsensical.
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01-27-2021, 04:26 PM
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#117
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,958
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Quote:
Originally Posted by jim584672
I don't understand what is being tossed around here. All sounds vague and nonsensical.
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That's ok, we understand
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01-27-2021, 04:28 PM
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#118
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,083
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Quote:
Originally Posted by ivinsfan
That's ok, we understand
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I'm not an idiot. I have Securities Industry experience. These people are going on about who knows what. I don't think they even know what they are on about.
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01-27-2021, 04:40 PM
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#119
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,958
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Quote:
Originally Posted by jim584672
I'm not an idiot. I have Securities Industry experience. These people are going on about who knows what. I don't think they even know what they are on about.
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Who are these people that you are talking about..I don't want to go OT here
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01-27-2021, 04:44 PM
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#120
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 2,844
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Well I see the powers that be are requesting that the stock authorities have the ability to halt trading on these stocks for two months in order to "protect" small investors. LOL
__________________
But then what do I really know?
https://www.early-retirement.org/forums/f44/why-i-believe-we-are-about-to-embark-on-a-historic-bull-market-run-101268.html
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