All things STOCKS

#7,651
#7,651
DancingOutlaw said:
There are going to be people that hang themselves when this all collapses. I could see trading brokers not wanting to appear as enablers for the ruin of lots of small time investors.
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That's another big reason they are limiting trading as well. For PR and liability reasons. In wake of the dot com boom there was a lot of civil action taken against brokers, especially online brokers (which were relatively new at the time) for "enabling" reckless behavior.

Of course, having said that, Robinhood in particular is probably inviting civil action because they are limiting orders. So it is damned if you do, damned if you don't.
 
#7,655
#7,655
Ha ha. Maybe. That's a big step down for sure.

Changing the subject, is anybody still holding RKT? I bought RKT back when it first came on the market, and I've been selling covered calls against it. It just sits, for months, at $20. Monday it shot up to $24 on heavy volume. There was very dull (in my mind) news on Wednesday. Gapped up and now seems headed back to $20. I don't look much at the twitterverse so I don't know if anybody is talking about it anywhere.

I'm torn. The IV has gradually decreased, but I was still making 1% a week on covered calls, because I am selling closer and closer to ATM. I simply can't get rid of the stuff. I suppose, on a brighter note, this whipsidoodle will increase the value of calls for a little while.

It seems like it's hard to ask for more than 1% a week on a company that is profitable and pretty stable.
 
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#7,656
#7,656
Firebirdparts said:
Ha ha. Maybe. That's a big step down for sure.

Changing the subject, is anybody still holding RKT? I bought RKT back when it first came on the market, and I've been selling covered calls against it. It just sits, for months, at $20. Monday it shot up to $24 on heavy volume. There was very dull (in my mind) news on Wednesday. Gapped up and now seems headed back to $20. I don't look much at the twitterverse so I don't know if anybody is talking about it anywhere.

I'm torn. The IV has gradually decreased, but I was still making 1% a week on covered calls, because I am selling closer and closer to ATM. I simply can't get rid of the stuff. I suppose, on a brighter note, this whipsidoodle will increase the value of calls for a little while.
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Literally read my mind. Just bought RKT.
 
#7,658
#7,658
I sold what little I had last week. Might look to re-enter when it bottoms out again.


Still waiting for the right stock to get into.
 
#7,662
#7,662
What I’m missing is how the hedge funds can short 140% of the shares. I thought that if share owners put on limit sell orders then those shares could not be loaned to shorts. Why in the eff does the SEC allow 140% short positions? But let’s limit the retail investor’s ability to buy shares... that will fix things.
 
#7,663
#7,663
05_never_again said:
Robinhood did, probably because they are losing their ass doing trades at this scale (remember, they don't charge commissions) and/or don't have the cash to enable them. Mark Cuban was wondering about that this morning. Interactive Brokers and some others have raised margin requirements to 100% in those names, meaning they won't loan you any money to buy those stocks.

They are trying to reduce their own risk at this point.
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I don't believe what you said about Robinhood and volume trading is correct. Robinhood makes it's money on volume trading where they receive fees for directing large volumes of trades to clearing agents/brokers.
 
#7,664
#7,664
GoDucks349 said:
I don't believe what you said about Robinhood and volume trading is correct. Robinhood makes it's money on volume trading where they receive fees for directing large volumes of trades to clearing agents/brokers.
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Yeah they receive payment for order flow, but what about the costs they incur when orders are sent to them, before they sell them to Citadel or whoever? Are they overwhelmed by the buy orders at that kind of volume? RH has struggled with outages before on busy market days.

I have no sympathy for either side of this trade, either the hedgies that were blown out of their shorts or the WSB crowd. If the hedgies don't like it, then manage your risk better. That's job #1 for them. If WSB doesn't like it, then get a better broker, preferably one that doesn't sell your orders to other brokers. TANSTAAFL.
 
#7,665
#7,665
Thunder Good-Oil said:
What I’m missing is how the hedge funds can short 140% of the shares. I thought that if share owners put on limit sell orders then those shares could not be loaned to shorts. Why in the eff does the SEC allow 140% short positions? But let’s limit the retail investor’s ability to buy shares... that will fix things.
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I don't think they do allow it, which is why I'm majorly confused about all this.
 
#7,666
#7,666
Thunder Good-Oil said:
What I’m missing is how the hedge funds can short 140% of the shares. I thought that if share owners put on limit sell orders then those shares could not be loaned to shorts. Why in the eff does the SEC allow 140% short positions? But let’s limit the retail investor’s ability to buy shares... that will fix things.
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There's also what is called "naked shorting" going on everyday, on every ticker but it's illegal and allowed to happen.

Screenshot_20210128-121257_Chrome.jpg
 
#7,667
#7,667
ButchPlz said:
I don't think they do allow it, which is why I'm majorly confused about all this.
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138% shorted on GME. That's the problem. Not retail buying and holding past the day the short has to cover. The brokerages are fine with shorting firms stepping on stocks like this but when the retail investors make a buck or two oh we can't have that.

Screenshot_20210128-121420_Chrome.jpg
 
#7,669
#7,669
BigOrangeMojo said:
And here is the bounce.....
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Screen-Shot-2020-03-03-at-6.20.21-AM.gif
 
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