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I think for both shorting puts, there's a lockout period after the stock is issued. And limited inventory for borrowing.
Or has that changed?
I see almost all recent high-flying IPOs as overly inflated investor cashouts. Steve Blank had a post about this...
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Is there any actual evidence this is true beyond just internet accusations?
There is evidence, was involved in it. Someone else took a screenshot. https://i.redd.it/86xuz0p7w2e61.jpg RH is a front for organised crime, selling data to Citadel so the can front run retailers trades. Hope to see Senate action on it at some point.
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Nonsense. Clearing houses don't lose anything during a short squeeze, as long as funds committed to a trade actually clear. They aren't the ones on the hook for a short exploding. They raise their collateral requirements during a period of high volatility. As it turns out, when you run a zero-fee brokerage, you don't just have a couple of extra billions of dollars lying around that you can put up as collateral on a m…
> The only people allowed to naked short are market makers The SEC made naked short selling illegal after the 2008 financial crisis. Market makers are not allowed to naked short. > Clearing houses don't lose anything during a short squeeze, as long as funds committed to a trade actually clear Exactly my point — as long as funds clear , which they were at risk of not doing, thus putting clearing houses like the DTCC o…
You mean the 8-K that showed 55M votes out of 70M shares outstanding? How does that prove anything? Maybe you're confusing shares outstanding with the float.
there's no way to bet against freshly issued IPOs, right? I think for both shorting puts, there's a lockout period after the stock is issued. And limited inventory for borrowing. Or has that changed? I see almost all recent high-flying IPOs as overly inflated investor cashouts. Steve Blank had a post about this...
Sell call options? Buy puts?
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There is evidence, was involved in it. Someone else took a screenshot. https://i.redd.it/86xuz0p7w2e61.jpg RH is a front for organised crime, selling data to Citadel so the can front run retailers trades. Hope to see Senate action on it at some point.
Merely speculation that that was done to favor their partner other than something else.
The people who will invest in the IPO aren't going to be the people who lost money due to RH locking the purchasing of stocks and stopping the price from sky rocketing.
But in terms of a customer base, in terms of a company, RH are dust.
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Merely speculation that that was done to favor their partner other than something else.
What is not speculation is that they restricted the buying of stocks while not restricting the selling. The rest, though it may be speculation, has enough circumstantial evidence to allow most regular folks to make up their mind. The people who will invest in the IPO aren't going to be the people who lost money due to RH locking the purchasing of stocks and stopping the price from sky rocketing. But in terms of a cus…
Earlier quoted context omitted.
Is there any actual evidence this is true beyond just internet accusations?
There is evidence, was involved in it. Someone else took a screenshot. https://i.redd.it/86xuz0p7w2e61.jpg RH is a front for organised crime, selling data to Citadel so the can front run retailers trades. Hope to see Senate action on it at some point.
Whether Robinhood should have had more capital or how those margin requirements were handled is a serious question but that's entirely separate than these accusations which seem to be made by people who have no idea how the system actually works.
These valuations are crazy - meaning one of two things are going to happen in the mid-term. Either we see inflation outside of asset prices (wage rises, increased consumer spending) and the revenue of these companies rise to justify the valuations, or we don't see that inflation and these stock prices slide since they can't justify their values. Now I'm not an economist - so maybe someone can help me out here. If the…
When the stock market collapses, it probably won't move inflation directly rather the collapse in demand across the economy will. second order effects as credit is no longer available due to banks panicking and govts intervening...
Earlier quoted context omitted.
Merely speculation that that was done to favor their partner other than something else.
What is not speculation is that they restricted the buying of stocks while not restricting the selling. The rest, though it may be speculation, has enough circumstantial evidence to allow most regular folks to make up their mind. The people who will invest in the IPO aren't going to be the people who lost money due to RH locking the purchasing of stocks and stopping the price from sky rocketing. But in terms of a cus…
Yes but RH didn't have the billions of $$$ deposited at the clearing house for their trades to be honored. Buying stock to settle a few days later requires collateral that RH didn't have.
It may help to read through the answers: https://money.stackexchange.com/questions/136272/why-would-c...
This is why they scrambled at the last minute to raise billions to meet the higher collateral requirements: https://www.google.com/search?q=robinhood+2.4+3.4+billion
RH does some questionable things but their "restriction of the buying" is an inevitable consequence of not having the billions to meet any margin calls. They were the tail not the dog.
Earlier quoted context omitted.
There is evidence, was involved in it. Someone else took a screenshot. https://i.redd.it/86xuz0p7w2e61.jpg RH is a front for organised crime, selling data to Citadel so the can front run retailers trades. Hope to see Senate action on it at some point.
That's not evidence that RH was: > supporting the short selling hedge funds Just to be clear: Robinhood claims that they prevented buying certain stocks because of increase collateral requirements by DTCC due to high volatility. Do you have any evidence that's untrue. Let's establish that before we move on to the claim that Citadel front-runs retail flow.