2021 Trading Thread - Page 21 - Business, Finances and Investing Forum

Naw man not a bloodbath yet. You must be on twitter right now. I've lived through 87 (as a kid of someone who intensely followed the market), 2000, 2008. This is still in the frothy up stage. this is lol a 500 pt sell off. The bloodbath wont happen, and you wont feel it, until you literally think it is the end of the world. Literally you will psychologically think that. We are nowhere near that.

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01-27-2021 , 04:20 PM

#502

t3hbandit

Carpal \'Tunnel

Join Date: May 2012 Posts: 6,259

thedude plz go and watch a 5 min video on how shorts work. Ppl here shouldn't have to read this.

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01-27-2021 , 04:20 PM

#503

jefkve

old hand

Join Date: Mar 2009 Posts: 1,453

Oh boy, good times ahead...

https://finance.yahoo.com/news/yelle...183420988.html

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01-27-2021 , 04:24 PM

#504

thedude404

old hand

Join Date: Jun 2014 Posts: 1,447

Quote:

Originally Posted by Wittgenheiny

You're not reading. It doesn't matter what the brokers do. If Person A lends person B a share and sells to person C, person C now owns person A's share, and Person B owes A one share.

Person C can do whatever the hell he wants with his legitimately bought share, including lend it to someone else. The brokerage isn't on the hook for any of this (I don't think, anyway, not sure of the laws and remedies). Person B owes A, Person D owes C, and that's it. The brokerage just facilitates the trade.

Brokers lending margin is a slightly different case.

OK sorry admittedly I've been drinking. What you said has finally sunk in. Ok so I have a question then. Why isnt the short shares monitored by the SEC to make sure it doesnt go above 100% of the float?

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01-27-2021 , 04:25 PM

#505

thedude404

old hand

Join Date: Jun 2014 Posts: 1,447

Quote:

Originally Posted by t3hbandit

thedude plz go and watch a 5 min video on how shorts work. Ppl here shouldn't have to read this.

It finally sunk in. Sorry for ruining your day.

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01-27-2021 , 04:25 PM

#506

Wittgenheiny

adept

Join Date: Mar 2020 Posts: 776

Quote:

Originally Posted by thedude404

Why should they? The amount of money circulated is many times more leveraged, and they don't care about that either.

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01-27-2021 , 04:27 PM

#507

Carpal \'Tunnel

Join Date: Aug 2004 Posts: 47,021

Quote:

Originally Posted by thedude404

I'm not saying the bubble has popped, I'm saying there is no more control.

When it was just people posting about AMC and GME it's whatever. Those are legit stocks with possible bull cases. Their valuations are off but that's whatever.

Now it's just people shouting about NAKD which is trading at $0.90 (now over $1.5) and is an obvious pump and dump of a penny stock. It's just going to get worse and worse.

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01-27-2021 , 04:32 PM

#508

TheStuntman

Pooh-Bah

Join Date: Oct 2009 Posts: 5,390

Bought 25 8c 8/20 MVIS calls. Wish me luck.

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01-27-2021 , 04:35 PM

#509

thedude404

old hand

Join Date: Jun 2014 Posts: 1,447

Quote:

Originally Posted by Wittgenheiny

Why should they? The amount of money circulated is many times more leveraged, and they don't care about that either.

Good point. I guess they may want to care about it to limit these super bubbles. I am thinking they might start caring when this GME bubble spreads to multiple other stocks. At first I didnt think this could be a catalyst to bring the market down, but now I"m not so sure.

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01-27-2021 , 04:37 PM

#510

Mr Spyutastic

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Join Date: May 2012 Posts: 15,078

When GME comes back down to $30 you'll know it's done.

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01-27-2021 , 04:38 PM

#511

Wittgenheiny

adept

Join Date: Mar 2020 Posts: 776

Quote:

Originally Posted by thedude404

The market has been in a bubble for a long time. If this is the catalyst that sends it back to reality, so be it. I am fully hedged.

Buffet has said it best:

"The stock market can never return more money than the companies making up the stock market generate in their lifetimes."

Also why bitcoin is nothing but a polished turd, but I digress. No more derail for me. Back to stonks.

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01-27-2021 , 04:43 PM

#512

Guy Incognito

old hand

Join Date: Jan 2005 Posts: 1,888

oh great, I'm unable to close my calls on Fidelity, and I'm 199th in the support queue.

thisisfine.jpg

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01-27-2021 , 04:44 PM

#513

thedude404

old hand

Join Date: Jun 2014 Posts: 1,447

Quote:

Originally Posted by RT

Well, looking out for #1 and as a person who is inclined to go short albeit always too soon, I welcome it getting worse. No personal offense.

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01-27-2021 , 04:47 PM

#514

thedude404

old hand

Join Date: Jun 2014 Posts: 1,447

Quote:

Originally Posted by Wittgenheiny

Oh god "stonks". This is the kind of thing that sets me off lol. It was good talking with you even though I probably come off as a dumbass. I am already short TSLA via puts so I hope the massive sell off comes immediately since they expire in March.

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01-27-2021 , 04:49 PM

#515

thedude404

old hand

Join Date: Jun 2014 Posts: 1,447

Quote:

Originally Posted by Guy Incognito

oh great, I'm unable to close my calls on Fidelity, and I'm 199th in the support queue.

thisisfine.jpg

Back in the day working at TD Waterhouse we'd have people call in and say "now I know why people shoot up brokerage firms" when **** was broken online. Of course this Karen called in right after a mass shooting in Buckhead, Atlanta, Georgia at a day trading firm due to some guy losing his ass. At least we dont have to worry about that anymore.

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01-27-2021 , 04:49 PM

#516

Wittgenheiny

adept

Join Date: Mar 2020 Posts: 776

Quote:

Originally Posted by thedude404

A gap in knowledge is not a sign of low intelligence. Everyone has lots to learn.

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01-27-2021 , 04:50 PM

#517

razorbacker

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Join Date: May 2006 Posts: 7,362

Quote:

Originally Posted by thedude404

I'll give you an example......would you buy a FEB 30 put on GME prices at $3.50? I sure as hell won't. And the prices just go up crazily from there. There are more complex option trades that could be made, but I've been out of that loop for a long time so maybe somebody else could chime in here.

The prices are absurd. It was a 54% borrowing rate this morning and I've seen numbers as high as 80% this afternoon. I still may buy some short term puts on Friday, depending on pricing.

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01-27-2021 , 04:50 PM

#518

SpursDynasty

grinder

Join Date: Nov 2005 Posts: 610

So now they can pick and choose which massive short squeezes they can examine and monitor?

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01-27-2021 , 04:53 PM

#519

Wittgenheiny

adept

Join Date: Mar 2020 Posts: 776

Quote:

Originally Posted by SpursDynasty

So now they can pick and choose which massive short squeezes they can examine and monitor?

I know right? Scumbags need to be thrown out on their ass IMO

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01-27-2021 , 04:56 PM

#520

razorbacker

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Join Date: May 2006 Posts: 7,362

Quote:

Originally Posted by thedude404

2008 literally felt like the entire system was going to collapse. Of course, it almost did. I remember leaving my office at Merrill, after we had heard a couple of money market funds were going to open at .94-.97, thinking it was over.

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01-27-2021 , 04:58 PM

#521

coordi

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Join Date: May 2007 Posts: 22,811

Quote:

Originally Posted by RT

Its all accounts with like 3 karma too.

They've completely lost the plot over there

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01-27-2021 , 05:00 PM

#522

thedude404

old hand

Join Date: Jun 2014 Posts: 1,447

Quote:

Originally Posted by razorbacker

The prices are absurd. It was a 54% borrowing rate this morning and I've seen numbers as high as 80% this afternoon. I still may buy some short term puts on Friday, depending on pricing.

I guess it all depends how much IV is still priced in. OH hell you gonna by puts expiring 1/29 that expire on 1/29? That is giving me degen tingles.

But here is my thinking on all this.

A. Supposedly the big shorts are out.
B. The market makers have already bought to cover their call positions
C. I have personally seen some crazy s*it happen on expiration day where I have had options that were virtually worthless and come back from the dead.

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01-27-2021 , 05:02 PM

#523

Carpal \'Tunnel

Join Date: Aug 2004 Posts: 47,021

Quote:

Originally Posted by coordi

Its all accounts with like 3 karma too.

They've completely lost the plot over there

Yeah, it's ****. Not that GME, BB, AMC, etc won't come crashing down at some point, but it seems likely there was some legit value there at some point.

NAKD looks like trash and its 1 penny stock now, it will be 10 tomorrow and on and on.