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Investment Thread - For all your money needs

So, if I really believed in options trading, now is the time to short the market.

We've hit pretty much every classic numbers-based indicator of a crash and now we've added mainstream news articles talking about investors making money hand over fist and not knowing what to do with it.

There's only one real way this can go. The only question is when will it start.
 
MSM working with their financial friends to somehow tie this to right wing trumpers and dumbasses buying it hook line and sinker is why we will always be fucked.
 
WFcatamount22 said:
MSM working with their financial friends to somehow tie this to right wing trumpers and dumbasses buying it hook line and sinker is why we will always be fucked.
Click to expand...

This is seriously going to make some people want to kill people. Like, this is fucking terrifying.

Does no one understand that if you take this group of people and tell them, "no, you lose and there's no way to win" that their whole fucking philosophy is validated and they are just going to burn the place down?
 
For fucks sake some of you are hilariously hyperbolic. What is happening here is really nothing new. Like I remember K-Tel, back in the late 90's or early 00's, and how that thing got pumped to the heavens by message boards. That didn't end well for K-Tel's holders long-term, at all. And I'm sure there are other examples further back in time.

Here's what happened -

1 - A hedge fund went irresponsibly short on a stock that, frankly, probably deserved to be shorted long term. GME has a shitty business model afterall. Not saying short was the right play short term. But long term that was a fair play. The real issue is Melvin shorted the ever living fuck out of the thing - to the tune of 136%. That's not a wise move.

2 - A bunch of little guys on a message board (and maybe not all of them were so "little" given the anonymous nature of message boards) saw this and decided to go long hard.

3 - Melvin got fucked.

4 - Some of the guys on the message board made a mint.

5 - Now a bunch of people are piling in (still today). And that's after Melvin bought out their short and took it in the shorts big time. Many of them think they are still hurting the long/short hedge funds. They aren't. And many of them will get left holding the fucking bag.

What will really come of this?

A - The market is now going to value picking individual stocks again. That's good for retail.

B - Long/short equity hedge funds are now going to spread out their bets and be much more careful about how they approach any one company. They aren't fucking stupid.

C - There will be regulatory changes. The No. 1 change that should be made, IMO, is to loosen rules on who is permitted to park their money in investments normally reserved for accredited investors. Bc much of this anger and frustration is born out of the average Joe not having access to the game in the same way some big pension fund or family office or rich old person has. And that, to me, isn't right. Let people have access to some of these vehicles and let them take the risk.

D - What is happening now with brokerages putting the breaks on certain high risk moves is what our legal system incents them to do. Why? Because if (I should probably say when) GME collapses and RH and other brokerages don't stop people from using leverage right now to pile in, then you know the lawsuits will be forthcoming saying they didn't do enough to prevent folks from hurting themselves. I'm not saying that it is right or fair, but I absolutely grasp why RH would take these steps for their own interests as a company longer term given the legal framework within which they presently operate.
 
Donkey Deac Doug said:
This is the kind of thing that turns people into killers. Straight up: https://www.reddit.com/r/wallstreet...en_letter_to_melvin_capital_cnbc_boomers_and/

Yeah that person kills themself or someone else when they lose all their money because their investment holding is completely based on emotion. When the stock tanks, and it will tank, they will not get out because then their “enemy” wins.

That's some deep seated fucking anger. Like, "you've fucked with my family" anger.
Click to expand...
 
DeacMan said:
For fucks sake some of you are hilariously hyperbolic. What is happening here is really nothing new. Like I remember K-Tel, back in the late 90's or early 00's, and how that thing got pumped to the heavens by message boards. That didn't end well for K-Tel's holders long-term, at all. And I'm sure there are other examples further back in time.

Here's what happened -

1 - A hedge fund went irresponsibly short on a stock that, frankly, probably deserved to be shorted long term. GME has a shitty business model afterall. Not saying short was the right play short term. But long term that was a fair play. The real issue is Melvin shorted the ever living fuck out of the thing - to the tune of 136%. That's not a wise move.

2 - A bunch of little guys on a message board (and maybe not all of them were so "little" given the anonymous nature of message boards) saw this and decided to go long hard.

3 - Melvin got fucked.

4 - Some of the guys on the message board made a mint.

5 - Now a bunch of people are piling in (still today). And that's after Melvin bought out their short and took it in the shorts big time. Many of them think they are still hurting the long/short hedge funds. They aren't. And many of them will get left holding the fucking bag.

What will really come of this?

A - The market is now going to value picking individual stocks again. That's good for retail.

B - Long/short equity hedge funds are now going to spread out their bets and be much more careful about how they approach any one company. They aren't fucking stupid.

C - There will be regulatory changes. The No. 1 change that should be made, IMO, is to loosen rules on who is permitted to park their money in investments normally reserved for accredited investors. Bc much of this anger and frustration is born out of the average Joe not having access to the game in the same way some big pension fund or family office or rich old person has. And that, to me, isn't right. Let people have access to some of these vehicles and let them take the risk.

D - What is happening now with brokerages putting the breaks on certain high risk moves is what our legal system incents them to do. Why? Because if (I should probably say when) GME collapses and RH and other brokerages don't stop people from using leverage right now to pile in, then you know the lawsuits will be forthcoming saying they didn't do enough to prevent folks from hurting themselves. I'm not saying that it is right or fair, but I absolutely grasp why RH would take these steps for their own interests as a company longer term given the legal framework within which they presently operate.
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I feel like you leaving out the part where the retail trading platforms shut down the buy side of their platform is kinda material.
 
DeacMan said:
For fucks sake some of you are hilariously hyperbolic. What is happening here is really nothing new. Like I remember K-Tel, back in the late 90's or early 00's, and how that thing got pumped to the heavens by message boards. That didn't end well for K-Tel's holders long-term, at all. And I'm sure there are other examples further back in time.

Here's what happened -

1 - A hedge fund went irresponsibly short on a stock that, frankly, probably deserved to be shorted long term. GME has a shitty business model afterall. Not saying short was the right play short term. But long term that was a fair play. The real issue is Melvin shorted the ever living fuck out of the thing - to the tune of 136%. That's not a wise move.

2 - A bunch of little guys on a message board (and maybe not all of them were so "little" given the anonymous nature of message boards) saw this and decided to go long hard.

3 - Melvin got fucked.

4 - Some of the guys on the message board made a mint.

5 - Now a bunch of people are piling in (still today). And that's after Melvin bought out their short and took it in the shorts big time. Many of them think they are still hurting the long/short hedge funds. They aren't. And many of them will get left holding the fucking bag.

What will really come of this?

A - The market is now going to value picking individual stocks again. That's good for retail.

B - Long/short equity hedge funds are now going to spread out their bets and be much more careful about how they approach any one company. They aren't fucking stupid.

C - There will be regulatory changes. The No. 1 change that should be made, IMO, is to loosen rules on who is permitted to park their money in investments normally reserved for accredited investors. Bc much of this anger and frustration is born out of the average Joe not having access to the game in the same way some big pension fund or family office or rich old person has. And that, to me, isn't right. Let people have access to some of these vehicles and let them take the risk.

D - What is happening now with brokerages putting the breaks on certain high risk moves is what our legal system incents them to do. Why? Because if (I should probably say when) GME collapses and RH and other brokerages don't stop people from using leverage right now to pile in, then you know the lawsuits will be forthcoming saying they didn't do enough to prevent folks from hurting themselves. I'm not saying that it is right or fair, but I absolutely grasp why RH would take these steps for their own interests as a company longer term given the legal framework within which they presently operate.
Click to expand...

Deacfan defending the brokerage houses is the least surprising part of this whole thing.
 
Also the remember the 90s, nope I don’t remember where millions of dumb ass shit people had access to the internet and could make trades from their phone in a matter of seconds.
 
This is going to end quickly and badly with retail investors selling as fast as they can as the stock continues to plummet and their paper gains vanish into thin air.

Feels like it has already started, but there have been other reversals the last few days.

When it happens for good, it's gonna be quick and painful. Maybe today.
 
Yeah seeing people yelling hold the line as you watch the stock you bought at 300 plummet to 200 and down.
 
Louis Gossett Jr said:
Also the remember the 90s, nope I don’t remember where millions of dumb ass shit people had access to the internet and could make trades from their phone in a matter of seconds.
Click to expand...

You are aware that cuts both ways, right. Like you can get in and out of a position in seconds instead of in minutes or hours. Life remains relative.
 
DeacMan said:
For fucks sake some of you are hilariously hyperbolic. What is happening here is really nothing new. Like I remember K-Tel, back in the late 90's or early 00's, and how that thing got pumped to the heavens by message boards. That didn't end well for K-Tel's holders long-term, at all. And I'm sure there are other examples further back in time.

Here's what happened -

1 - A hedge fund went irresponsibly short on a stock that, frankly, probably deserved to be shorted long term. GME has a shitty business model afterall. Not saying short was the right play short term. But long term that was a fair play. The real issue is Melvin shorted the ever living fuck out of the thing - to the tune of 136%. That's not a wise move.

2 - A bunch of little guys on a message board (and maybe not all of them were so "little" given the anonymous nature of message boards) saw this and decided to go long hard.

3 - Melvin got fucked.

4 - Some of the guys on the message board made a mint.

5 - Now a bunch of people are piling in (still today). And that's after Melvin bought out their short and took it in the shorts big time. Many of them think they are still hurting the long/short hedge funds. They aren't. And many of them will get left holding the fucking bag.

What will really come of this?

A - The market is now going to value picking individual stocks again. That's good for retail.

B - Long/short equity hedge funds are now going to spread out their bets and be much more careful about how they approach any one company. They aren't fucking stupid.

C - There will be regulatory changes. The No. 1 change that should be made, IMO, is to loosen rules on who is permitted to park their money in investments normally reserved for accredited investors. Bc much of this anger and frustration is born out of the average Joe not having access to the game in the same way some big pension fund or family office or rich old person has. And that, to me, isn't right. Let people have access to some of these vehicles and let them take the risk.

D - What is happening now with brokerages putting the breaks on certain high risk moves is what our legal system incents them to do. Why? Because if (I should probably say when) GME collapses and RH and other brokerages don't stop people from using leverage right now to pile in, then you know the lawsuits will be forthcoming saying they didn't do enough to prevent folks from hurting themselves. I'm not saying that it is right or fair, but I absolutely grasp why RH would take these steps for their own interests as a company longer term given the legal framework within which they presently operate.
Click to expand...

GME was still shorted at almost 140% after Melvin *allegedly* got out. The squeeze tomorrow was going to be biblical unless the brokerages put their thumb on the scale, which they did.

If you genuinely believe Robinhood did this out of some altruistic nature to protect retail investors from themselves, then you are a fucking moron. Robinhood literally makes money by selling real time trading data to institutional investors, and they saw that revenue spigot about to be upended and saved their own asses.

Why don't you calculate the delta on how long it takes you to go fuck yourself the rest of today?
 
DeacMan said:
D - What is happening now with brokerages putting the breaks on certain high risk moves is what our legal system incents them to do. Why? Because if (I should probably say when) GME collapses and RH and other brokerages don't stop people from using leverage right now to pile in, then you know the lawsuits will be forthcoming saying they didn't do enough to prevent folks from hurting themselves. I'm not saying that it is right or fair, but I absolutely grasp why RH would take these steps for their own interests as a company longer term given the legal framework within which they presently operate.
Click to expand...

Okay, but is it right or fair?
 
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DeacsATS said:
This is going to end quickly and badly with retail investors selling as fast as they can as the stock continues to plummet and their paper gains vanish into thin air.

Feels like it has already started, but there have been other reversals the last few days.

When it happens for good, it's gonna be quick and painful. Maybe today.
Click to expand...

Maybe not "today", but yes. The people buying in at the top are going to be fucked. And if any of them were able to do so using leverage they'll be really fucked. Even on this board I'm pretty amazed by how much people are engaged in an A or B type analysis.

Bottom line -

Good for the folks who caught Melvin over-extended on a trade and punished them. They did nothing illegal.

Bad for the folks who are going to churn in that wake and get left holding the bag. Bad in the sense they are piling into a battle that is already over. Someone (s) is going to be run over here.

Longer term I do think this may really aid retail investors - hopefully changing some of the rules about where they have access to invest.
 
TenaciousKory said:
Okay, but is it right or fair?
Click to expand...

I tend to think people should be left to their own devices. Hence my call for accredited investor rules to be changed. So yeah, I say live and let live.

But it isn't surprising that RH is taking the steps they are taking. Because they've got a legal/compliance department who knows if a bunch of their customers get wrecked using leverage to buy into an asset that has been massively displaced, they'll get sued to the bejesus. They're in a no win situation and they're taking the safer risk course. How much that hurts their business remains to be seen. Might be the wrong move. But that's what's driving them.
 
DeacMan said:
I tend to think people should be left to their own devices. Hence my call for accredited investor rules to be changed. So yeah, I say live and let live.

But it isn't surprising that RH is taking the steps they are taking. Because they've got a legal/compliance department who knows if a bunch of their customers get wrecked using leverage to buy into an asset that has been massively displaced, they'll get sued to the bejesus. They're in a no win situation and they're taking the safer risk course. How much that hurts their business remains to be seen. Might be the wrong move. But that's what's driving them.
Click to expand...

Why do you keep bringing up leverage? Robinhood has literally gone so far as to stop you from buying the stock at all. That's what the discussion is about, not about leverage
 
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