WSB vs Wall Street / Gamestop Stock and others blown up by Subreddit
- Thread starter Kasper
- Start date
Even Trump Jr standing up the the little guys
According to a WSB thread, the requirement to settle the options isn't until Monday/Tuesday, so we may not see any substantial movement until then. Even if the share price does finish over the popular call strike prices tomorrow.
Don't have a clue about stocks, and I don't normally listen to this guy, but Dave Portnoy is absolutely going at these "suits" right now live on a stream including calling out Steven Cohen. He also was banging on about Trump JR, AOC and all that agreeing, showing how shady the whole thing has been.
The reason I find it interesting is that Cohen has actually been replying to him on twitter which suggests there's something in what Portnoy is saying.
The reason I find it interesting is that Cohen has actually been replying to him on twitter which suggests there's something in what Portnoy is saying.
It's very relevant. Whoever owns them may choose not to exercise them or not be able to, or they may hold the other side or have a straddle going on. Theres a whole host of reasons why those options might not be a problem.
I don't even...
this is a good example of where power really lies and what it will do to protect itself. reminds me of the dnc ratfecking bernie after nevada
Who knew the revolution would come via NEETs leveraging themselves to the tits on a social media trading app to crush wall street.
No longer need to camp in a park and protest, just download an app
No longer need to camp in a park and protest, just download an app
Who was it who realised the Gamestop thing to begin with?
/u/DeepFūckingValue
Have they applied for asylum yet?
In reddit, DeepfeckingValue (though his opinion might have well been partially based on Michael Burry's decision to buy 2.8M shares where every other hedge fund was shorting it).
I love how redcafe changed his name.
Okay so it is him. And is there an original post where he explains what he is doing and how he noticed what is going on?
The oldest post I found, though not the original one. A bit piggybacking on Burry's idea.
Reading through some of the posts down on WSB. Comedy gold.
The Right as we speak...
It's up 50% since close...
I cannot stand the way they talk, but there's a more recent breakdown here - not by the original guy though. I read it last week and now for the life of me can't find it.
www.reddit.com/r/wallstreetbets/comments/kz7ygv/gme_dd_one_dd_to_rule_them_one_dd_to_find_them
www.reddit.com/r/wallstreetbets/comments/kyyoa0/gme_dd_fundamentals_why_wsb_just_bought_a_value
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What the feck is wrong with Shapiro? Was he always such a degenerate?
EDIT: That's a parody account, I got fooled
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A decent ELI5
Probably a good time for a short summary of what went on today with Robinhood and other retail focused broker/trading platforms.
Firstly, none of them access the stock market directly, they have agreements with third parties called liquidity providers (Citadel Securities is one) to use their access. They agree certain terms, for example $500m liquidity pool at 0.1% spread, next $500m at 0.3% spread, and anything over the agreed amount usually requires a phone call. When you place a trade with your broker, it is sent to these liquidity providers, who go into the market to execute it. When you execute a trade, you have to find somebody to match the other side. Whoever matches first gets the trade. Your broker has an obligation to provide you with best execution, but under this arrangement they are always at a disadvantage. They also have a legal duty to protect you from taking on excessive risk (some of them will give you more leeway if you are a professional investor). Basically they wont let you do stupid trades that could lose you a lot of money, and they will do all they can to get you the best price.
Today and yesterday it looks like all those things fell down. Yesterday volumes were so high the platforms started lagging and crashing, which meant that they couldn't provide good execution. With the lag and violent price swings, it exposes the customer to bad pricing and risk of big losses, and that puts their licence at risk and them at risk of lawsuits. Some of them probably also got close to liquidity limits. You might click trade at one price and find yourself actually paying something completely different.
Today they switched most functions off to prevent it happening again. They prevented buying because they couldn't guarantee execution or to close the position if it went against you, and they switched off selling because they couldn't allow customers exposure to potentially massive losses from derivatives and lending transactions those things require. This is not uncommon and happens frequently with volatile instruments. To let unqualified people go out and trade whatever they wanted today would have been reckless and opened them up to regulatory scrutiny.
Maybe somebody did make all these brokers to halt trading (i cant explain why Robinhood was apparently force closing positions, unless they were on margin) but all the above is pretty standard practice and provides a perfectly rational explanation for it, and a lot of people are crying foul today without any knowledge of how these systems work.
Source: I used to work for one of the liquidity providers.
Firstly, none of them access the stock market directly, they have agreements with third parties called liquidity providers (Citadel Securities is one) to use their access. They agree certain terms, for example $500m liquidity pool at 0.1% spread, next $500m at 0.3% spread, and anything over the agreed amount usually requires a phone call. When you place a trade with your broker, it is sent to these liquidity providers, who go into the market to execute it. When you execute a trade, you have to find somebody to match the other side. Whoever matches first gets the trade. Your broker has an obligation to provide you with best execution, but under this arrangement they are always at a disadvantage. They also have a legal duty to protect you from taking on excessive risk (some of them will give you more leeway if you are a professional investor). Basically they wont let you do stupid trades that could lose you a lot of money, and they will do all they can to get you the best price.
Today and yesterday it looks like all those things fell down. Yesterday volumes were so high the platforms started lagging and crashing, which meant that they couldn't provide good execution. With the lag and violent price swings, it exposes the customer to bad pricing and risk of big losses, and that puts their licence at risk and them at risk of lawsuits. Some of them probably also got close to liquidity limits. You might click trade at one price and find yourself actually paying something completely different.
Today they switched most functions off to prevent it happening again. They prevented buying because they couldn't guarantee execution or to close the position if it went against you, and they switched off selling because they couldn't allow customers exposure to potentially massive losses from derivatives and lending transactions those things require. This is not uncommon and happens frequently with volatile instruments. To let unqualified people go out and trade whatever they wanted today would have been reckless and opened them up to regulatory scrutiny.
Maybe somebody did make all these brokers to halt trading (i cant explain why Robinhood was apparently force closing positions, unless they were on margin) but all the above is pretty standard practice and provides a perfectly rational explanation for it, and a lot of people are crying foul today without any knowledge of how these systems work.
Source: I used to work for one of the liquidity providers.
Good PR.
A couple of questions:
1) If they care about users risks and won't let me do stupid things, why they allow me to take my life savings and put them all in options that expire next week?
2) If it was only that they just couldn't guarantee that things will go well cause they don't have direct access to stock exchange, why Merrill (essentially BoA' investment part) did the same?
So have some big firms/people definitely lost millions/billions?
CEO of Interactive Brokers just said in CNBC that they stopped trading to prevent short squeezing and to protect the market. You cannot make this shit up, they even stopped pretending that they are playing by the same rules.
I take back what I said earlier about IB ffs! They let me buy at market open so I thought they were all right. But nope.
Boys if I had any money at Robinhood, I’d be getting it out tomorrow...
People buying GME shares listed on the ASX, completely different company, they're up 53% today 
No it'll be taken from peoples retirement funds. But it appears no one cares as they're all boomers and have all the money anyways...
etoro put GME back on, buy more in the dip? Pure500 you can't even find GME to buy anymore.
Holding out for BB to go same way as GME.
Holding out for BB to go same way as GME.
What the feck is wrong with Shapiro? Was he always such a degenerate?
EDIT: That's a parody account, I got fooled
Isn't that par for the course when you hit a "Market Order" vs a "Limit Order" - you're at the mercy of getting your trade done at whatever level the liquidity provider fills it at?
I don't think they shut things down because they couldn't guarantee best execution for their customers - they don't give a fück about that* - I think RH has a liquidity problem and might be insolvent; so they fecking railroaded their customers instead.
*EDIT: https://www.cnbc.com/2020/12/17/sec...ading-customers-about-how-it-makes-money.html
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Watching all this, really just further highlights why no one will shed a tear if these companies do go belly up.
I'm sure a bunch of politicians will make a noise, but ultimately not a single thing will actually be done and they will get away with it once again.
I'm sure a bunch of politicians will make a noise, but ultimately not a single thing will actually be done and they will get away with it once again.
It's fun while it last, but those amateurs will get crashed and be made example.
(I'm on their side, but sadly Wall Street is one hell of an establishment to shake down)
(I'm on their side, but sadly Wall Street is one hell of an establishment to shake down)
I could see him saying that.What the feck is wrong with Shapiro? Was he always such a degenerate?
EDIT: That's a parody account, I got fooled
I followed GME for the humor. And I've always known how bad the system is. But the way they flaunt the rigging in your face these days, disgusts me.
Today I just saw a NASDAQ company that was making record profits, beat expectations, growth across all sectors, guiding higher for foreseeable future. This share dipped almost 10% over 2 days. Not one mention of the earnings news on ANY finance portal. All news outlets shared the same narrative. They all only talk about MSFT. "MSFT blows expectations, everyone else disappointed, like Boeing". Needless to say, MSFT rocketed and this stock tanked. I had to go to a tech website to find news about it. And after 2 days, the only news that came out about this share was one that talked about the share being below the buy point (this news came out before it dropped below the buy point) and therefore is not a "Buy". Pre market also saw this share dip almost 2 dollars in one go. Both days. Why? The motherfecking shorts, that's why. Up to 20% of trading for the day, the last few days were shorts.
I see how every news outlet writes gush pieces about Melvin's founder, "he's a good guy", "honest, hardworking", yada yada, nevermind the fact he just tried to crash a still viable company and cost a lot of people their jobs in order to make a lazy buck. All this while news outlets also kept talking shit about GME. I see the whole blocking buys and options and only allowing sales garbage from Robinhood and all the portals. I see hedge funds and market movers literally talking publicly about protecting their hedges shamelessly as if that is not a literal crime. I see news media blaming the crash the day before due to "markets spooked by retail frenzy".
Then I see other shit like how one "5 star" analyst claims Intel is a buy now that they have a new CEO and that will turn things around and is bad for AMD. Then a couple of days later, after Intel stock had rallied to a peak, this same analyst talks about how there is uncertainty that Intel will turn things around with new CEO, as any changes will take more than a year to take affect. Needless to say, the shares also tanked.
The sheer amount of manipulation that goes on is disgusting.
On paper, they make it look and sound good. "protect people" etc etc yada yada.
But dig deeper and you realise conflicts of interest. E.g. Citadel having an incentive to profit from order flows. Citadel having an interest in Melvin.
https://www.vice.com/en/article/qjp...-funds-like-citadel-its-users-are-the-product
The whole concept of "market movers" needs regulation. The whole of wall street needs regulation. Shorting more than 100% of available float? Seriously?
The table is tilted, folks. The game is rigged. It's a big club, but you're not in it.
Today I just saw a NASDAQ company that was making record profits, beat expectations, growth across all sectors, guiding higher for foreseeable future. This share dipped almost 10% over 2 days. Not one mention of the earnings news on ANY finance portal. All news outlets shared the same narrative. They all only talk about MSFT. "MSFT blows expectations, everyone else disappointed, like Boeing". Needless to say, MSFT rocketed and this stock tanked. I had to go to a tech website to find news about it. And after 2 days, the only news that came out about this share was one that talked about the share being below the buy point (this news came out before it dropped below the buy point) and therefore is not a "Buy". Pre market also saw this share dip almost 2 dollars in one go. Both days. Why? The motherfecking shorts, that's why. Up to 20% of trading for the day, the last few days were shorts.
I see how every news outlet writes gush pieces about Melvin's founder, "he's a good guy", "honest, hardworking", yada yada, nevermind the fact he just tried to crash a still viable company and cost a lot of people their jobs in order to make a lazy buck. All this while news outlets also kept talking shit about GME. I see the whole blocking buys and options and only allowing sales garbage from Robinhood and all the portals. I see hedge funds and market movers literally talking publicly about protecting their hedges shamelessly as if that is not a literal crime. I see news media blaming the crash the day before due to "markets spooked by retail frenzy".
Then I see other shit like how one "5 star" analyst claims Intel is a buy now that they have a new CEO and that will turn things around and is bad for AMD. Then a couple of days later, after Intel stock had rallied to a peak, this same analyst talks about how there is uncertainty that Intel will turn things around with new CEO, as any changes will take more than a year to take affect. Needless to say, the shares also tanked.
The sheer amount of manipulation that goes on is disgusting.
On paper, they make it look and sound good. "protect people" etc etc yada yada.
But dig deeper and you realise conflicts of interest. E.g. Citadel having an incentive to profit from order flows. Citadel having an interest in Melvin.
https://www.vice.com/en/article/qjp...-funds-like-citadel-its-users-are-the-product
The whole concept of "market movers" needs regulation. The whole of wall street needs regulation. Shorting more than 100% of available float? Seriously?
The table is tilted, folks. The game is rigged. It's a big club, but you're not in it.
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