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Stock-Age: Stocks, Options and Dividends oh my!

StreetsofBeige

StreetsofBeige

Gold Member
What a scam. RH not allowing buying of certain stocks today. Right before tomorrow's strike price deadlines.

Lucky for me, I'm out. NOK has bricked to below $5 and Trivago is almost bac to where I sold it at before the surge.

My portfolio is slightly up.

Blackberry cratered to $20 cdn (-$10). If it drops another $10 the next few days, I'm going to buy some.
 
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A

Atrus

Gold Member
A number of Canadian brokers, including mine, are down this morning due to what I'm guessing to be trading volume (or coordinated action). We're run by an oligopoly of banks with no interest in upgrading their systems while charging high fees at the same time.

I have no interest in the stocks rocketing to the moon but at the very least I'd like to check up on short % and get my daily news but that's too much to ask for apparently.
 
D

Dunki

Member
so let me get this straight. They are holding ALL TRADE with GME and AMC until the price is down enough for the big ones to make profits again?
 
UnravelKatharsis

UnravelKatharsis

Member
Dunki said:
so let me get this straight. They are holding ALL TRADE with GME and AMC until the price is down enough for the big ones to make profits again?
Click to expand...


Just buys as far as I know. Which limits who can buy. If only the shorters can buy they will chip away at the stock price. But some buyers can buy elsewhere. Just not robinhood etc.
 
sackings

sackings

Member
any recommendations for people outside the US on a RH type app? Im in crypto as well so it blew my mind that you can trade stocks and crypto on RH...
 
ManofOne

ManofOne

Plus Member
So after doing some investigative work. I've come up with a few theories on what's going on

1) The margin requirements for some brokers on buying or shorting specific stocks went up between 300% to 500%.

2) Some (or a lot of ) people seem to be trading with negative equity and cash so they are borrowing money from the brokers to trade these stocks. Brokers have to protect themselves.

3) Some corruption could be involve but who knows

4) It seems to go back to my point earlier about options expiring tomm. So it either ppl buy the options that are deep in the money but if they don't have the capital to do that then it puts their account in margin , sell the option itself if there is a market for it which floods the market with stocks and hurts the option, or let the option expire which is crazy because you lose out a lot of money since all you paying is the premium for an in the money call.
 
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D

Dunki

Member
ManofOne said:
So after doing some investigative work. I've come up with a few theories on what's going on

1) The margin requirements for some brokers on buying or shorting specific stocks went up between 300% to 500%.

2) Some (or a lot of ) people seem to be trading with negative equity and cash so they are borrowing money from the brokers to trade these stocks. Brokers have to protect themselves.

3) Some corruption could be involve but who knows

4) It seems to go back to my point earlier about options expiring tomm. So it either ppl buy the options that are deep in the money but if they don't have the capital to do that then it puts their account in margin , sell the option itself if there is a market for it which floods the market with stocks and hurts the option, or let the option expire which is crazy because you lose out a lot of money since all you paying is the premium for an in the money call.
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lets just say when Robinhood and co did not let people buy anymore these stocks went down like crazy there is no bottom anymore. This is fucking ridiculous. How is all of this legal.
 
ManofOne

ManofOne

Plus Member
Dunki said:
lets just say when Robinhood and co did not let people buy anymore these stocks went down like crazy there is no bottom anymore. This is fucking ridiculous. How is all of this legal.
Click to expand...

Lol, I don't want to speculate man but at the end of the day if people are trading on margin accounts, brokers will the ones holding a lot of bankruptcies if these accounts do go bankrupt.
 
D

Dunki

Member
ManofOne said:
Lol, I don't want to speculate man but at the end of the day if people are trading on margin accounts, brokers will the ones holding a lot of bankruptcies if these accounts do go bankrupt.
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You do not need to speculate when this did happen in ONE HOUR

153.00-194.51 (-55.97%)
As of 11:13AM EST. Market open.
Advertisement

I really hope this means war and it is not over. Sue these companies to hell

I was always a defender of Capitalism and free market but you can see how "free" this market really is. IT is ridiculous
 
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EviLore

EviLore

Expansive Ellipses
Staff Member
6aVEs01.png
 
ManofOne

ManofOne

Plus Member
Lol, called it.

It seems A LOT OF OPTIONS were expiring tomm. So Friday's problem just became a thursday problem.

The best time to sell was yesterday.
 
D

Deleted member 17706

Unconfirmed Member
Well if it drops this low, barely any point in panic selling anyway.
 
D

Dunki

Member
ManofOne said:
Lol, called it.

It seems A LOT OF OPTIONS were expiring tomm. So Friday's problem just became a thursday problem.

The best time to sell was yesterday.
Click to expand...
So they did hold the market until the options would activate? fucking scum.

Well Fuck it. Lets go all out Communism and take away all their money
 
ManofOne

ManofOne

Plus Member
Everything goes back to this post earlier.


ManofOne said:
BTW I WOULD SELL BEFORE FRIDAY. B/C WHAT CAN HAPPEN FOR SHORTS CAN HAPPEN TO RETAIL INVESTORS WHEN THEY TRY TO SELL ON FRIDAY.

Here is a good post on reddit explaining it.

"So what happens next and why is Friday so important?

Since a great deal of call options are well into the money, brokerages are now expecting traders to exercise their options or sell their positions to be exercised else-wise. Since the 29th is a massive day for option expiration, millions of people are looking to cash in and dump shares / exercise to profit.

However, many of these traders do not have the capital required to actually open a position. This causes a huge problem because now all of those traders with options will A) be sold back to the MM who will immediately sell/ adjust their net delta to the downside to protect their risk exposure OR immediately exercise and sell their shares to avoid margin calls/ interest.

Not only does the take away of millions of option contracts and the exercise of such add a massive supply of shares to the market ( to be sold) it also forces dealers to sell shares to reduce their exposure they were forced to originally buy to hedge their delta from the calls. So, in theory the opposite of what happened on the way up can happen on the way down, but this time as dealers unload their shares forcibly to control their delta, shorts will also tack on to add pressure on the way down, also short selling shares to create a massive sell off."
Click to expand...
 
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