Stocks and Trading Thread - Channeling your inner Mono

[The Minsky Moment]

LOL--and here is the crux. "Not that high". US median household income is $65k.

Right and nearly half of American own NO stock. 

I agree here is the crux but respectfully to say that the problem that median income households earning 65K a year face is lack of sufficient ability to engage in esoteric trading strategies and options plays misses the point in a very big way.   

[Tamas]

https://www.youtube.com/watch?v=Q-AFMM3paOU&t=267s

Interview with Ameritrade ex CEO.  He explains Robinhood's clearing situation some more.

Boils down to the two day lag to transfer funds.  So even though Robinhood is sitting on the customers' cash, when a customer makes a purchase that cash takes two days to get to the clearing house.  So Robinhood has to maintain a deposit at the clearing house to cover that float.

A little surprised it takes BIG FINANCIAL INSTITUTIONS that long to move money.

Well it's easier to be clever with numbers and accounting on both ends if there's a bit of a lag.

[alfred russel]

LOL--and here is the crux. "Not that high". US median household income is $65k.

Right and nearly half of American own NO stock. 

I agree here is the crux but respectfully to say that the problem that median income households earning 65K a year face is lack of sufficient ability to engage in esoteric trading strategies and options plays misses the point in a very big way.

They are able to engage in esoteric trading strategies and options. They just can't do so through a hedge fund. Back before I ditched cable I used to see lots of advertisements and infomercials offering to teach them all sorts of methods to do so on their own. For those so inclined they would probably be better off sticking to trying to flip houses, or paying Sal with the 4am infomerical $20 for his "lock of the week" gambling advice.

Without googling stats, I feel safe in saying the vast majority of households with stock ownership fall short of the "sophisticated investor" financial criteria. I also suspect that is true of those playing with options.

[Tamas]

In hindsight it seems clear the Gamespot squeeze ended with the purchase bans on Thursday. Until it happened the price was climbing steadily, then collapsed, never getting close to the pre-ban highs.

Whether it was deliberate to get this effect or not is up to debate, but the effect itself seems very clear to me.

[garbon]

How exciting that there are now two films in the works about this.

[Josquius]

I'm not so sure it's over.
Looking at todays posts it seems the quantities being sold a very low with it all being artificial ladder attacks to try and push down the price to trigger people's sell offs.... The problem is that (for the short sellers) the WSB lot are not selling. Even those who stand to be millionaires if they sell are still holding out for the squeeze, confident that time is on their side and they just have to wait whilst the shorters interest payments keep increasing.
Despite all this it seems to be rising again, currently stuck trying to crack the $250 barrier. The most interesting part lies ahead I reckon.

[Tamas]

My understanding is that volume was low compared to last week's frenzy but in line with normal times.

More importantly there were insane amounts of useless noise on WSB even before this, so I wouldn't try to understand the situation by reading them.

[Tamas]

Also Tyr, Tradingview has the last after hours price at 187.

[alfred russel]

I'm not so sure it's over.
Looking at todays posts it seems the quantities being sold a very low with it all being artificial ladder attacks to try and push down the price to trigger people's sell offs.... The problem is that (for the short sellers) the WSB lot are not selling. Even those who stand to be millionaires if they sell are still holding out for the squeeze, confident that time is on their side and they just have to wait whilst the shorters interest payments keep increasing.
Despite all this it seems to be rising again, currently stuck trying to crack the $250 barrier. The most interesting part lies ahead I reckon.

There was never going to be a conventional short squeeze at these prices, where the short sellers have to close their positions resulting in an effective decrease in the number of shares available. As one short seller leaves, another will be around to step in. There were a lot of people trying to short the stock but unable to do so because shares weren't available.

[Admiral Yi]

I'm not so sure it's over.
Looking at todays posts it seems the quantities being sold a very low with it all being artificial ladder attacks to try and push down the price to trigger people's sell offs.... The problem is that (for the short sellers) the WSB lot are not selling. Even those who stand to be millionaires if they sell are still holding out for the squeeze, confident that time is on their side and they just have to wait whilst the shorters interest payments keep increasing.
Despite all this it seems to be rising again, currently stuck trying to crack the $250 barrier. The most interesting part lies ahead I reckon.

What's a ladder attack?

[Admiral Yi]

https://money.stackexchange.com/questions/135807/closing-shorted-positions-via-short-ladder-attacks

Look it up your own damn self Yi! 

This site says it's a bullshit term made up on WSB to convince people to hold onto their shares.

If this is right this, those talking about ladder attacks are dancing around the line between stupidity and fraud.

[Admiral Yi]

How exciting that there are now two films in the works about this.

Yeah, right?  Two films about people typing on their phones.

[Admiral Yi]

I realized my post evidenced half-baked thinking.

While, sure, I could sell a covered call on TSLA, at 1000, that expires in April, for $5K...which sounds like a too-easy five grand, especially as I doubt TSLA would make 1000, and if it did, I'd almost certainly sell off there.

BUT...I then realized the downside...I have to hold the stock until April...and if it nose dives, I cannot unload it before then.

Shorter option periods, less FOMO.  I'm selling 1 week TSLA options, two weeks max.

[Admiral Yi]

GME down to 128 in pre-market.

[alfred russel]

GME down to 128 in pre-market.

I hope the 1% that got access to short the stock enjoy the new mega yachts they are get to buy with their winnings.