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Justin Godscock posted:
It won't even be the short-sellers themselves. It will be their brokers, and if the brokers can't cover the losses then it will be the insurers and banks. I honestly hope this ends up scuttling Robinhood's IPO, leaving Citadel stung from multiple directions. https://twitter.com/nytimes/status/1355038483635720193 Lolie fucked around with this message at 07:56 on Jan 29, 2021 |
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Jan 29, 2021 07:53
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GABA ghoul posted:
If Melvin can't cover the loss, their broker has to cover it (there were rumours a couple of days ago that Melvin's position in Alibaba had been liquidated). If their broker can't cover it, then it has to be covered by the insurers/banks. wsb have been very clear from the outset that this is about screwing over Melvin (and the hedge funds who have already come to their rescue) and not about making money. Up until the trading apps started requiring people to buy whole shares, many people were throwing less than $100 at this purely to spite Wall Street and they were happy to lose that money. GME was a perfect storm of circumstances. The other meme stocks are not at the moment.
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Jan 29, 2021 21:54
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hawowanlawow posted:if more shares were borrowed than exist and the hedge funds get liquidated or bailed out, how do those who lent out the stocks get their valuable gamestop stock investments back? As far as we know, they were naked short selling so they never borrowed the shares in the first place.
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Jan 29, 2021 22:06
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wsb estimates that Melvin's losses to date are around $20 billion.
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Jan 29, 2021 22:22
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Extra Large Marge posted:Why are people still using Robinhood? Because the news that Citadel has a stake in them as well as in Melvin is taking a while to spread.
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Jan 29, 2021 23:01
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Haulin Oates posted:I've been reading WSB, and while I don't know how many are sincere, there are a poo poo ton of posts by people declaring that they're knowingly and happily throwing their money away for the chance to destroy a hedge fund. As far as many of them are concerned, whatever they paid was just the price of admission. It's called Wall Street Bets, not Wall Street Investments; they're pretty clear that they're gambling on the stock market. I noticed the same with people buying GME. People buying the other meme stocks because they can't get hold of GME seem less informed, though, and many don't understand that just because those stocks are being shorted doesn't mean the people shorting them are in the same situation as the funds shorting GME. There are plenty of AMC stocks available, for instance, so those who've shorted them can easily cover their positions no matter how many redditors jump in.
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Jan 30, 2021 00:34
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Lister posted:AMC has the bonus of potential to bounce back when people are confident to go back to theaters. I don't think that one is an outlandish investment at its current price. Carnival is in the same boat but literally no one is memeing about it so it's still struggling. Yeah, AMC could definitely be OK as could Nokia. Throwing your life savings at either would be stupid but risking a modest amount on them isn't the worst decision you could make. Sucks to be Robinhood today. https://twitter.com/MrFourToEight/status/1355274195836391424
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Jan 30, 2021 01:03
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Goobish posted:Are they planning on doing the same tactic with AMC stock? It seems on the surface like people are buying AMC because they truly think it'll come back and be a good stock to have. But, I mean, this is just more of the "pump and dump (for lack of a better term)" thing right? To the moon! AMC and Nokia are companies which both have potential to recover. While that's not assured, people could do worse than making a small investment and holding them. The "to the moon" stuff being applied to every shorted stock is just bullshit hype, though.
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Jan 31, 2021 19:43
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Fake James posted:Counterpoint, the 5G in the vaccine means everyone will be able to stream on the go! The 5G in the vaccine means you should be buying Nokia.
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Feb 2, 2021 00:15
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feelix posted:I didn't know that stocks could be traded outside of business hours, so let me guess how that works: Institutional trades can be made after hours but retail traders don't have access to the after hours market.
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Feb 2, 2021 10:59
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