- January 29th, 2021, 1:05 pm
#621474
Few things :
- retail investors only have access to a small % of shares of Gamestop. This is Goliath vs Goliath. other institutions are optioning and shorting this stock for their own purposes. WSB is just along for the ride and getting the pub.
- Options trading and shorting is typically done on margin. meaning you are basically using your credit. These brokerages are just getting slammed and they don't have the collateral to handle it. RH screwed up by now even allowing cash buys. (TDA, Etrade were allowing cash buys but restricting margin calls) I do believe their relationship with Citadel was also squeezed and caused them to artifically drop the stock yesterday (Citadel is invested in Hedgefunds, many of which currently being squeezed)
- Short selling is an important check and balance our stock market NEEDS. Elon is just mad his company has been shorted for years. Shorting is a shake out that has exposed fraud over and over again. That said, a glaring issue with these giant hedge funds shorting companies is they put out Short Reports. These reports basically artificially start the stock on the downward path because everyone reads why this HF thinks this company STINKS and is like oh crap, starts selling price drops, HF completes the short and makes millions. Well I think that will be gone as now you have this organized effort via the internet of hawks who will put the squeeze on any time a short report is put out.
-9 out of 10 amateur options/day/short traders lose money in the stock market. They do however provide liquidity into the market to keep it efficient.
I bought a small position at $60 and 90 and have liquidated half of my position. Its made money but it will go far enough to make up for losses i've had hear and there.
Formerly ishbox.
<--idiot, i guess, per bigsmooth/thepostman
<--smart jerk per bigsmooth
SuperJon wrote: I love dc Talk.