GameStop: Anger as trading in GameStop shares is restricted • Hacker News Board

Re: GameStop: Anger as trading in GameStop shares is restricted

#21

Post by secondcoming » Thu, Jan 28, 2021, 4:54 PM UTC

gruez wrote: post #9

nubb wrote: post #5

Earlier quoted context omitted.

Platforms are banning buys for retail, ofc it's going down. If rh and td didnt ban it I bet it would be even higher.

But what's the endgame? That the stock will go up forever, so that the existing investors are perpetually being paid by future investors?

Existing investors only get paid when they sell. As soon as they sell they're out of the game. There is no 'perpetually' in this scenario.

Where it can continue to rise is where there are those holding short positions that need to buy shares to cover those positions. They can only buy at a price the seller agrees, and in a short squeeze situation the seller can demand pretty much any price they want (in theory)

Re: GameStop: Anger as trading in GameStop shares is restricted

#22

Post by gruez » Thu, Jan 28, 2021, 4:54 PM UTC

WrtCdEvrydy wrote: post #13

gruez wrote: post #4

While the title might be true for the "amateur investors" that got in early, I strongly believe that most of them are not outwitting anyone and will be bagholders. As of this post basically everyone who bought yesterday are underwater by 50%.

depends on when the positions are liquidated. everyone who bought yesterday is fighting exchanges whose only option for GME is "sell" because buying is restricted. I don't know how some of these shorts will find 20 million shares by tomorrow.

>I don't know how some of these shorts will find 20 million shares by tomorrow.

you're confusing shorts with options. shorts don't expire. They can be held indefinitely as long as you have the margin to keep up with the losses.

Re: GameStop: Anger as trading in GameStop shares is restricted

#23

Post by latch » Thu, Jan 28, 2021, 4:54 PM UTC

gruez wrote: post #9

nubb wrote: post #5

Earlier quoted context omitted.

Platforms are banning buys for retail, ofc it's going down. If rh and td didnt ban it I bet it would be even higher.

But what's the endgame? That the stock will go up forever, so that the existing investors are perpetually being paid by future investors?

I think the endgame is that it isn't perpetual: the final "investor" is the original short-seller.

Re: GameStop: Anger as trading in GameStop shares is restricted

#24

Post by Out_of_Characte » Thu, Jan 28, 2021, 4:55 PM UTC

gruez wrote: post #4

While the title might be true for the "amateur investors" that got in early, I strongly believe that most of them are not outwitting anyone and will be bagholders. As of this post basically everyone who bought yesterday are underwater by 50%.

Does it matter that your're underwater by 50%? The goal was to beat Wallstreet, They did.

The hedgefunds should definitely take note not to play a dangerous game because losing is always on the table.

Re: GameStop: Anger as trading in GameStop shares is restricted

#25

Post by multjoy » Thu, Jan 28, 2021, 4:55 PM UTC

ButterWashed wrote: post #11

Not being in the US I don't know this but can Robinhood be sued, like a lot of people seem to be calling for, just for refusing to handle trades on a stock?

The T&Cs will almost certainly allow them a huge amount of latitude in what they will let people do with their platform.

Although if a decent amount of retail investors lose money as a result of not being able to sell stock they already own then the blood is in the water for a class action. Saul Goodman is waiting for your call!

Re: GameStop: Anger as trading in GameStop shares is restricted

#26

Post by system2 » Thu, Jan 28, 2021, 4:55 PM UTC

newfeatureok wrote: post #7

gchokov wrote: post #2

OK, we've got this. Can we now stop sharing this every 5 minutes? Amateur investors lose money in the end.

hide/flag the post and move on

I agree with the comment above yours, HN turned into Reddit for the last week.

Re: GameStop: Anger as trading in GameStop shares is restricted

#27

Post by [deleted] » Thu, Jan 28, 2021, 4:55 PM UTC

WrtCdEvrydy wrote: post #13

gruez wrote: post #4

While the title might be true for the "amateur investors" that got in early, I strongly believe that most of them are not outwitting anyone and will be bagholders. As of this post basically everyone who bought yesterday are underwater by 50%.

depends on when the positions are liquidated. everyone who bought yesterday is fighting exchanges whose only option for GME is "sell" because buying is restricted. I don't know how some of these shorts will find 20 million shares by tomorrow.

[deleted]

Re: GameStop: Anger as trading in GameStop shares is restricted

#28

Post by Spivak » Thu, Jan 28, 2021, 4:56 PM UTC

gruez wrote: post #9

nubb wrote: post #5

Earlier quoted context omitted.

Platforms are banning buys for retail, ofc it's going down. If rh and td didnt ban it I bet it would be even higher.

But what's the endgame? That the stock will go up forever, so that the existing investors are perpetually being paid by future investors?

Nope! The price only has to stay high until eob Fiday when ~20 million shorts expire and have to be covered by the stupidly inflated price. Then the price will tank and those with short positions will be holding the bag.

Re: GameStop: Anger as trading in GameStop shares is restricted

#29

Post by newfeatureok » Thu, Jan 28, 2021, 4:56 PM UTC

system2 wrote: post #26

newfeatureok wrote: post #7

Earlier quoted context omitted.

hide/flag the post and move on

I agree with the comment above yours, HN turned into Reddit for the last week.

sure, but what's the point of complaining about it? if enough people flag it will go away. so just flag and move on.

Re: GameStop: Anger as trading in GameStop shares is restricted

#30

Post by SV_BubbleTime » Thu, Jan 28, 2021, 4:56 PM UTC

WrtCdEvrydy wrote: post #13

gruez wrote: post #4

While the title might be true for the "amateur investors" that got in early, I strongly believe that most of them are not outwitting anyone and will be bagholders. As of this post basically everyone who bought yesterday are underwater by 50%.

depends on when the positions are liquidated. everyone who bought yesterday is fighting exchanges whose only option for GME is "sell" because buying is restricted. I don't know how some of these shorts will find 20 million shares by tomorrow.

> everyone who bought yesterday is fighting exchanges whose only option for GME is "sell" because buying is restricted

I can’t really understand how the exchange is saying “no, you’re not allowed to buy, but you can sell all you want” is legal.