Stocks and Trading Thread - Channeling your inner Mono

[Josquius]

Robin Hood is going to be destroyed due to this. Trading 212 seems to blocking buys too.
I hope there is some outcome from it all and it isn't just swept udnet the carpet.
Power to the people and all that.

I do wonder where gamestop will settle for the long term. Higher than before seems likely I'd say.

[Admiral Yi]

Ho, rally continues!

[crazy canuck]

I bought 3 GME at the start of the week. Just sold 1, so I'm in profit for the lot, won't be losing anything. Now I can relax with the other 2 and see what happens.

You should sell them and enjoy your profits and never do this again.

This is beginning to feel a lot like the time just before the 90s tech boom collapse. 

[Josquius]

WSB says

Do not fall for the naked short ladder attacks! This is where MMs naked short a stock and sell the same stock back and forth to each other - this is what is going on when you see the stock drop down in a straight line out of nowhere!

I'm not sure about the 90s tech crash but I hope there is a reckoning out of this.
Gamestop should never have been allowed to be shorted over 100%. This kind of investment vulturism is finally getting a taste of its own medicine and everything is being thrown to protect it.
There is also clearly a gap in the market for a more independent mainstream stock tool given the buying freezes going on.

[The Minsky Moment]

Is the current US financial system flawed?

It's hunky dory.

I wouldn't go that far, but this is a problem that can be fixed by upping market manipulation enforcement and adding some clarifying legislation targeting this coordinated schemes.  It's hardly an indictment of the entire financial system.

[Admiral Yi]

I wouldn't go that far, but this is a problem that can be fixed by upping market manipulation enforcement and adding some clarifying legislation targeting this coordinated schemes.  It's hardly an indictment of the entire financial system.

How would you define the problem?

[Sheilbh]

WSB says

Do not fall for the naked short ladder attacks! This is where MMs naked short a stock and sell the same stock back and forth to each other - this is what is going on when you see the stock drop down in a straight line out of nowhere!

I'm not sure about the 90s tech crash but I hope there is a reckoning out of this.
Gamestop should never have been allowed to be shorted over 100%. This kind of investment vulturism is finally getting a taste of its own medicine and everything is being thrown to protect it.
There is also clearly a gap in the market for a more independent mainstream stock tool given the buying freezes going on.

I think Joe Wiesenthal's point is probably right that this will change things because once you've seen what is in effect a crash, upwards you can't go back to a framework where that doesn't exist. Whether that'll just be changing in how you price options or something else - who knows. But we now know there's a possibility of shares being Gamestopped which is new and not something I don't think anyone had ever previously really considered - who's heard of investors having to decrease their exposure because a stock is doing too well

[The Minsky Moment]

Is there any fundamental reason why anyone would short sell a stock?  There must be some, because some very smart people are doing it, but it sounds like such a dangerous hassle.  Can't you just buy a put or sell a call if you are bearish on the stock?

Options are standard form contracts with fixed durations and strike prices so they are less flexible than shorts.  With a short you can maintain the position as long as you keep making margin.

[The Minsky Moment]

I wouldn't go that far, but this is a problem that can be fixed by upping market manipulation enforcement and adding some clarifying legislation targeting this coordinated schemes.  It's hardly an indictment of the entire financial system.

How would you define the problem?

The internet allows otherwise unconnected individuals to coordinate together on a decentralized market manipulation scheme.

[Admiral Yi]

Goddamn you're smart Joan. 

[Admiral Yi]

Yow, price is charging back.

Stay in Squeeze, stay in!

[crazy canuck]

I wouldn't go that far, but this is a problem that can be fixed by upping market manipulation enforcement and adding some clarifying legislation targeting this coordinated schemes.  It's hardly an indictment of the entire financial system.

How would you define the problem?

The internet allows otherwise unconnected individuals to coordinate together on a decentralized market manipulation scheme.

decentralized market manipulation?  Isn't that what we call the market 

For all the hype from those like Yi who defend the market with the mantra that if left unregulated it is efficient and prices are set by the price one is willing to pay yada yada yada,  this shows the need for regulation.   For the first time the market insiders didn't have the advantage they normally do. 

[Habbaku]

I bought 3 GME at the start of the week. Just sold 1, so I'm in profit for the lot, won't be losing anything. Now I can relax with the other 2 and see what happens.

You should sell them and enjoy your profits and never do this again.

This is beginning to feel a lot like the time just before the 90s tech boom collapse.

Beginning? Where have you been the last three years? 

[Habbaku]

decentralized market manipulation?  Isn't that what we call the market 

[The Minsky Moment]

For all the hype from those like Yi who defend the market with the mantra that if left unregulated it is efficient and prices are set by the price one is willing to pay yada yada yada,  this shows the need for regulation.   For the first time the market insiders didn't have the advantage they normally do.

There is regulation; the SEC brings plenty of manipulation enforcement cases and has plenty of authority; the exchanges also have some power to address manipulation. It's just that this manifestation is novel, the regulators are used to ferreting out schemes hatched by related individuals (e.g. in the same firm or industry) not an anonymous group of people on a subreddit.

And it's not like the US is the only country in the world that has an options market.  It's just a lot bigger than most of the others.