arch_8ngel

Even major "trader" brokerages like IB are blocking transactions in some of these stocks. It is shady as hell, and I am willing to bet that class action lawsuits come out the other side of this thing.

It's going to be interesting to see how it manifests during open market hours. If you watched GME during the pre-market the vast majority of retail doesn't participate during that time and aren't feeding into the supply/demand. The shorts are definitely trying everything they can (media campaigns, pre/post market action, etc) to convince people that it is over -- but they supposedly haven't covered yet, and short interest is still over 100% of the stock.

If they can get anywhere close to those prices, they should. GME still has $100MM they're allowed to get through a share dilution, as well.

It is an exciting saga to watch -- the guy made an unlikely bet that he really believed in back in 2019 and has ridden it to a massive gain. I definitely have some respect for the guy being willing to ride DAILY 7 and 8 figure swings in portfolio value. But at the end of the day -- his portfolio is just a convenient "score" to keep track of as events unfold, aside from the price of the ticker. Though, I don't think you're very familiar with the guy and how little he has posted about any of this, if you're trying to paint him as a "bad guy". And it IS genuinely interesting to see which groups are siding against WSB and which support it right now. The hedge funds had no excuse to have been as short on GME as they were -- and to have not covered a LONG time ago. They did this to themselves and deserve no sympathy, whatsoever, once their prime brokers force them to cover their losses. For perspective, they stayed short when the price was $2, rather than cover and capture their gains. Then they continued to stay short at $6 for MONTHS, before the rise started last year following Cohen going in, long, for what is now 13% of the company.

I had the impression they weren't accepting filing yet. I can't file until mid March anyway.

It's going to be interesting to find out.

It has had global coverage at this point. NPR talked about it on the radio. Bloomberg had it come up as commentary during 5 separate segments on their evening financial news.

If the call holders exercise the calls, then the hedge funds that sold the other side of them are required to cover, even if it would bankrupt them. But there is a strong chance that the kind of people that bought the problematic (for the hedge funds) OTM calls, are the exact kind of people that can't afford to exercise their calls. So they may just end up having their calls expire and pay out at value, but no shares actually being required to change hands.

Just want to point out, that out of his $48 million, as of today's close, $13 million is ALREADY cash.

The hedge funds are the major short positions. They aren't the people on the other side of the current buy-sell activity. BUT they ARE the people that potentially have to cover a massive amount of ITM call contracts on Friday (i.e. up to 15 million shares they may be required to purchase "at any price" if the calls are exercised)

They're back.

I'm guessing that the people long on GME are going to take it as a rallying cry, since it mirrors the trend of the VW short squeeze so well and stimulates their confirmation biases. EDIT and the measure of when "too late" is will come down to whether they can keep all of the calls in the money for Friday and force another gamma squeeze. At current prices, people on the wrong side of the calls were going to be destroyed.

Joke or not, there is real money to be made while hedge funds go bust from this.

DeepFuckingValue closed the day at $48 MILLION! Sold another batch of his April calls but still has all 50,000 of his shares. Absolutely wild.

They are fine as well I'm just pointing to Schwab and Fidelity as the "majors" for "discount brokers". The difference with Schwab and Fidelity over eTrade is that the former have own-brand ETFs that you can transact for free and have extremely low expense ratios. With eTrade you are forced to trade somebody else's ETFs. For individual stock trading -- any "real broker" should be fine, assuming you have a good deal on the cost of trades. I'm just cautioning against the new wave of app-based crap like Robinhood.

Every broken has been eliminating margin on the meme stocks -- and with pretty good reason. Kind of an odd generic message, though.

I thought they got bought by Schwab and haven't kept up since that announcement. TD is a good brokerage for active trading, as far as I know.

There is absolutely nothing normal or sustainable about what any of these few stocks have done in the last couple of days. Even over the course of a YEAR these would be stupendous gains. For perspective a GOOD year in the general market is a 15% return -- and a long-term average is closer to 10% or less (nominal). And over a whole portfolio, you'd expect lower (bonds / cash / etc dragging down the raw stock returns) So seeing 100% PER DAY, multiple days in a row is... unusual, to say the least. There is genuine "mania" here -- and there will be people that lose their shirts from the greed. So for those that want to gamble/speculate on the mania -- just keep your commitments reasonable, and be willing to take a profit -- and keep the bulk of your portfolio growing with the general market in funds that do most of the rebalancing for your.

When was that? GME opened at over $300 today, so no way would $165 get filled. (even in extended trading it was generally well above $200)

If you want to trade individual stocks, then the two "real" discount brokerages are Schwab and FIdelity Personally, I use Schwab (because that is where my 401k is and I got used to their interface) -- Jonas uses Fidelity. They both have their merits and both offer free trades (as well as a good selection of own-brand ETFs at very low fees for the bulk of your long-term money) I don't know much about Wealthsimple -- but I'm assuming it's a newer brokerage looking to capitalize on app-based investing. I guess I'm from another era -- because I couldn't imagine putting 5-figures with some startup-brokerage instead of one of the major discount brokerages (specifically mention "discount" because the guys like Merrill will devour you in fees over the long term). So on that side of it -- yes, I would definitely get a $25k+ portfolio away from an app on my phone and into a real brokerage (which also offer apps if phone-trading is your thing -- I just haven't messed with that, since I prefer to do it from a PC).

I'll try again If you can afford to keep $25k in the account -- then get a real brokerage because it will all work better and the tools are better.

There is definitely some reallocation going on right now. I have about 5 - 10% of my portfolio in various ARK funds (basically my tech position relative to most of my portfolio being broader markets) -- and they have seen some definite "outflow", and it wouldn't surprise me AT ALL to find out that the net traffic was flow from ARK into GME and a couple of other meme stocks while the mania has been building.

You're going to get better and more reliable functionality from a real broker. But if you're hopping in and out of stuff, that likely means you'll need at least $25k in the account to avoid patter day trader considerations. You can have the vast majority of that in more traditional investments or cash -- no need to gamble all of it. But it has to be there, for if you get tagged as a day trader. I've seen a lot of horror stories about crappy trade execution from the app-based brokerages, but I have never had a problem with Schwab. EDIT: also, some brokerages will restrict how high you limit sell orders can be relative to the last close. if there is a ceiling with Schwab, I haven't found it yet.

Thanks. I'm interested in the concept of options, but definitely don't mind seeing a more practical example of how the options price moves relative to the underlying.

Well, now I'm pondering buying back in at 11 BTW -- can you keep us up to date on how your options are reacting to the daily price? Would be educational, I think.