Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

The Battle of GameStop

paranoidenough.com

Post reply on HN
Print view View original

341–350 of 583 posts

Re: The Battle of GameStop

#341

Post by nico_h »

stewx wrote: post #319
dvt wrote: post #6

> The same emotion that caused us to root for the thieves in Ocean’s 11 is what makes Wall Street Bets so enticing. Put frankly, Millennials are tired of getting fucked by the man. When you’re underemployed with $100,000 in student loan debt, your financial situation feels overwhelming. You really don’t want to take the advice of your parents or CNBC talking heads [5] to invest 10% of your salary for a 4% annual retu…

> invest 10% of your salary for a 4% annual return Except we have had bull markets for several years now. It has been an excellent time to be in the market. S&P500 returns for the past 5 years: 2016: 9.54% 2017: 19.42% 2018: -6.24% 2019: 28.88% 2020: 16.26%

TESLA is up 1707% since january 2020. Apple and Amazon "only" 70%

Re: The Battle of GameStop

#342

Post by jeffbee »

a_imho wrote: post #280
tempsy wrote: post #143

Earlier quoted context omitted.

it’s safer than just holding stock which is what 99% of people do...so how is that more exposure than your average long retirement account?

I'm not able to follow the logic. Why is it safer? Isn't the exposure from the options additive to holding stock?

Yes the exposure is much worse. If you are long a stock you can sell it whenever you feel like it is about to lose value. When you sell covered options you may be forced to hold the stock until the contract expires. That’s the whole point of the call: the buyer pays you the premium and in exchange you are taking all of the risk for the duration of the contract.

Re: The Battle of GameStop

#343

Post by koheripbal »

pxue wrote: post #62
IIAOPSW wrote: post #15

I've wrote this elsewhere. The thing that's clicked for me after reading the comments on wsb is that populism, amplified by the modern internet, is going to radically change the finance world in a similar way to how it radically changed our political landscape. These people aren't just investing in GME to enrich themselves. They are doing it to spite the people who they percieve as rigging the game. They are doing it…

this is exactly it. people say the market is a melt up.. another bubble. but i think that's wrong. It's like the show Billions, actual wallstreet does what wsb is doing ALL THE TIME. You make money when someone else loses money, it's simple. Except this time, the money isn't staying in the fraternity, it's being distributed out to the common folks. Can't have that it seems.

There's a significant difference in the willingness to enact change between the Legislative branch and the Executive branch.

Where Congress (legislative branch) has been unwilling to pass any new regulations upon social media, the SEC (executive branch) is going to shut down these sorts of forums when they become disruptive.

Having worked in this field, while the SEC can sometimes be slow to act, the fact that it made the front page of the WSJ, it is only a matter of time before that hammer comes down.

...and Reddit isn't going to fight for this form (or any form) of Free Speech.

Re: The Battle of GameStop

#344

Post by nico_h »

PartiallyTyped wrote: post #277
thaumasiotes wrote: post #274

Earlier quoted context omitted.

> What happens if nobody sells? This has nothing to do with the ratio of short shares to float. What happens if there are 300 shares floating, 20 short shares, and nobody sells?

They owe more shares than there are available and they pay interest on said shares. Even if nobody sells, the interest gets accumulated and they are bleeding.

yeah, but how much can they bleed? Can they just give up, default and declare bankruptcy? And then all the people hoping for a short squeeze end up holding stock that is not worth much anymore?

Re: The Battle of GameStop

#345

Post by chasd00 »

pxue wrote: post #62
IIAOPSW wrote: post #15

I've wrote this elsewhere. The thing that's clicked for me after reading the comments on wsb is that populism, amplified by the modern internet, is going to radically change the finance world in a similar way to how it radically changed our political landscape. These people aren't just investing in GME to enrich themselves. They are doing it to spite the people who they percieve as rigging the game. They are doing it…

this is exactly it. people say the market is a melt up.. another bubble. but i think that's wrong. It's like the show Billions, actual wallstreet does what wsb is doing ALL THE TIME. You make money when someone else loses money, it's simple. Except this time, the money isn't staying in the fraternity, it's being distributed out to the common folks. Can't have that it seems.

Exactly right. It’s all fun and games until the wrong firm loses big enough then the SEC hammer will come down.

Re: The Battle of GameStop

#346

Post by thrwyoilarticle »

admax88q wrote: post #32
IIAOPSW wrote: post #15

I've wrote this elsewhere. The thing that's clicked for me after reading the comments on wsb is that populism, amplified by the modern internet, is going to radically change the finance world in a similar way to how it radically changed our political landscape. These people aren't just investing in GME to enrich themselves. They are doing it to spite the people who they percieve as rigging the game. They are doing it…

I think this is more like beanie babies all over again. Except now that its easier to trade its happening in stocks. Populism of a companies stock doesnt really change the performance of that company. GME will implode eventually and the newest suckers or WSB will be left holding the bag.

Then what do you invest in? P/E ratios are astronimical across the board. It's been 85 years since Keynes wrote about his beauty contest. I think he might be right.

Re: The Battle of GameStop

#347

Post by justforyou »

chii wrote: post #203
hacker_9 wrote: post #185

Earlier quoted context omitted.

Psychology has always been part of the market, and this event can be explained by Soros' theory of reflexivity - that the stock market leads the fundementals, not the other way around. Once you forgo the efficient market hypothesis (and it's never been more obvious how incorrect this is), this event makes more sense. Same as Tesla, momentum is a psychological event lead by a positive feedback loop.

why do you need to forgo the efficient market hypothesis? The market as a whole takes into account the psychology of people as well, because peole participating in the market do so.

There's nothing efficient or concrete about psychology.

Re: The Battle of GameStop

#348

Post by throwaway0a5e »

blackrock wrote: post #249
bilekas wrote: post #238

Earlier quoted context omitted.

I cant agree with this more, I think though once the mindset takes over than a nomad lifestyle is also something that can be extremely fulfilling and changing peoples ideals of that 50's relic is key. We will probably be hampered by the extreme inequality of wealth for generations to come but I think our generation is losing patience and finding new ways to live happy. VERY Slowly but surely.

So now the new proposal is for people to live in RVs, and wander from town to town? No security. No firm ground to call home. This is a life worse than the medieval ages.

> No security. No firm ground to call home.

I don't see the attraction but when you consider all the overhead costs that come with living traditionally I can see why it makes sense.

FWIW a non-trivial minority of people in the residential building trades have been doing this for years. They move north and south with the construction seasons.

Re: The Battle of GameStop

#349

Post by finolex1 »

0b01 wrote: post #7

Citadel can see 80% of retail orderflow such as Robinhood and is massively long since last Friday as can be seen from the calls they are selling. Now it is likely the steam has run out(gamma cascade) so they are placing their bets on the opposite side by taking over Melvin which is massively short without causing too much market impact.

I may be wrong, but there is an information firewall between Citadel Securities (the market maker that pays for order flow), and the Citadel LLC (the hedge fund that is bailing out Melvin Capital)

Re: The Battle of GameStop

#350

Post by throwaway0a5e »

chasd00 wrote: post #345
pxue wrote: post #62

Earlier quoted context omitted.

this is exactly it. people say the market is a melt up.. another bubble. but i think that's wrong. It's like the show Billions, actual wallstreet does what wsb is doing ALL THE TIME. You make money when someone else loses money, it's simple. Except this time, the money isn't staying in the fraternity, it's being distributed out to the common folks. Can't have that it seems.

Exactly right. It’s all fun and games until the wrong firm loses big enough then the SEC hammer will come down.

>until the wrong firm loses big enough

Revolving door doing what it does best.

Post reply on HN