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WallStreetBets vs WallStreet: It's not about the money anymore

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Re: WallStreetBets vs WallStreet: It's not about the money anymore

#401

Post by calyth2018 »

yanderekko wrote: post #319
dreamcompiler wrote: post #163

The endgame here is fascinating to me. The people who got in early will suffer least when GSE finally crashes and burns. But the poor suckers who bought it at $150 are going to be in big trouble. They're all trying to stay strong and hold long because that's the way to make the hedge funds suffer, but the smarter ones will figure out that their only chance to not lose their shirts is to be in the earliest 5% of scabs…

>But the poor suckers who bought it at $150 are going to be in big trouble. These people could get out at this moment with a 100% return. The entire premise here is that as long as there's a ton of these short positions that need to be covered then you should have less worry about being the person who's left "holding the bag" than normal. Yes, if you hold long enough you'll regret it. And there will be plenty of peop…

$468 at the peak to $196 in the span of an hour...

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#402

Post by cocoa19 »

TameAntelope wrote: post #181
willis936 wrote: post #70

Earlier quoted context omitted.

I have seen very little evidence of people investing money in the stock market that is not budgeted as “gambling” (ie disposable income). WSB embraces the idea that memetrading is gambling. This is not a surprise to anyone but a few outsiders.

Then you have not been paying attention to WSB for very long. It's full of degenerate gamblers, so many loss porn posts come from people saying, "How will I pay my rent this month?" Most of the time, WSB is a community to commiserate about losses and lie about gains.

"How will I pay my rent this month?"

That's something I'd say to be funny, especially on reddit.

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#403

Post by chollida1 »

dcolkitt wrote: post #366
chollida1 wrote: post #314

Earlier quoted context omitted.

Then one of two thing is true. 1) they are lying to you. Look at how much the stock has traded, Its alot but its nothing compared to how much SPY trades in a year. There just wasn't' anywhere near enough trading volume to make an entire year in one week even if they participated in every trade that Gamestop had this past week. 2) they lost money last year so any profit beats last year's pnl?

GME has been trading at $2 spreads. SPY trades at $0.01 spreads.

Fully aware

I’m in the industry. I stand by what I said:)

You said something that was flagrantly wrong, I’m just trying to help correct you.

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#405

Post by mancerayder »

fairity wrote: post #281
mancerayder wrote: post #239

Earlier quoted context omitted.

You don't think the shorts are getting a chance out of their positions here?

Slight miscommunication -- what's happening is they're preventing any new positions from being opened. You can close positions, whether short or long.

YOU can't buy, only sell. That means buying power of the Reddit mob was taken away.

The retail brokers bailed out the hedge funds!

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#406

Post by kgwgk »

aynyc wrote: post #399
kgwgk wrote: post #386

Earlier quoted context omitted.

They can set margin requirement separately for each stock. For example, with InteractiveBrokers "long stock positions [of AMC, BB, EXPR, GME, and KOSS] will require 100% margin and short stock positions will require 300% margin until further notice". https://twitter.com/IBKR/status/1354792600004386818

I get that part, but why would 100% margin on buys eliminate the buys? If I have $100K cash, I can still buy $50K of XXX and meet the margin requirement. They are blocking buys, but not sells.

Who is blocking buys?

The context of this subthread is this message https://news.ycombinator.com/item?id=25942677 about brokers allowing the buying of GME but not on margin (and how they don't have to disallow the use of margin for every stock for that).

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#407

Post by mcguire »

ketamine__ wrote: post #311
bidirectional wrote: post #19

Once again, this insistence on viewing 'Wall Street' as a monolothic entity. The largest asset management firm on Earth holds over 9 million Gamestop stock, none of the big banks that received bailouts in 08 are affected by this, 99.9% of hedge funds are not affected by this, high frequency traders are probably making a bundle. Institutional money was long Gamestop before this story entered the public consciousness.…

> Ultimately, a few medium-sized hedge funds were caught doing something stupid Shorting a company that sells a physical product in malls during a pandemic is stupid? It seems their intuition is correct but there was a black swan event.

Shorting a company to the extent that you have enough leverage to go bankrupt? Not the brightest move. Shorting it so that you may not be physically able to satisfy the sales? That's window-licking territory.

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#408

Post by mikestew »

snowwrestler wrote: post #156
bidirectional wrote: post #19

Once again, this insistence on viewing 'Wall Street' as a monolothic entity. The largest asset management firm on Earth holds over 9 million Gamestop stock, none of the big banks that received bailouts in 08 are affected by this, 99.9% of hedge funds are not affected by this, high frequency traders are probably making a bundle. Institutional money was long Gamestop before this story entered the public consciousness.…

Right now it looks like retail investors stuck it to Wall Street and made some money because GME is still over $400/share this morning. Everyone holding GME can look at their app and feel great. But not everyone is going to be able to sell it at $400... or even $100 in some cases. It will be interesting to see how everyone feels after the sell off.

GME is still over $400/share this morning

Guess what's changed in the 56 minutes since you posted this?

GME: $265.00

Though I think it had dipped into around $380 by the time of parent post, and heading down. But someone bought at $430 this morning.

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#409

Post by mejutoco »

philip1209 wrote: post #246
bidirectional wrote: post #19

Once again, this insistence on viewing 'Wall Street' as a monolothic entity. The largest asset management firm on Earth holds over 9 million Gamestop stock, none of the big banks that received bailouts in 08 are affected by this, 99.9% of hedge funds are not affected by this, high frequency traders are probably making a bundle. Institutional money was long Gamestop before this story entered the public consciousness.…

A lens to look at this through is - "why is short selling allowed?" Advocates cite increased "liquidity." But, does society really benefit? Short-selling really just lets trading firms extract value from the failure of others. In that sense - professional trading firms that participate in short-selling could be grouped into a monolithic "Wall Street" in the sense that they are extracting value without a benefit for s…

Another reason is hedging, a form of insurance.

Re: WallStreetBets vs WallStreet: It's not about the money anymore

#410

Post by totalZero »

chollida1 wrote: post #314
dcolkitt wrote: post #51

Earlier quoted context omitted.

> high frequency traders are probably making a bundle. I've heard from a former colleague at a major HFT firm, that they hit their entire revenue target for the year, just in the past week.

Then one of two thing is true. 1) they are lying to you. Look at how much the stock has traded, Its alot but its nothing compared to how much SPY trades in a year. There just wasn't' anywhere near enough trading volume to make an entire year in one week even if they participated in every trade that Gamestop had this past week. 2) they lost money last year so any profit beats last year's pnl?

Or (3) they got hit on some GME paper at the outset out of pure luck, and printed the gamma much higher. SPY volume is higher but SPY doesn't realize like GME has.

I can tell you're in the industry because you say pnl instead of p&l haha.

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