WowBB Forums Home 

 Moderated by: Ron, brodiescomics, beejmi  
AuthorPost
WongLee
HALL OF FAMER


Joined: Fri Oct 19th, 2007
Location: Coram, New York
Posts: 8044
Status: 
Offline
Mana: 
Can one of you hillbilly retards explain this to me so that even I can understand it? Reddit is all aglow that the "little guy" is crushing the evil Hedge Fund managers all of whom will be resorting to giving $10 blowjobs in the meatpacking district in order to survive.

Married Jo



Joined: Fri Dec 21st, 2007
Location: Hickory NC
Posts: 7201
Status: 
Offline
Mana: 
it's too damned complicated for me to type out lol, but it's been an interesting few days..and the Robinhood app is probabaly done for when this is all over, they fucked up big time..most of the online trading apps fucked up too today by stopping trading of specific stocks but Robinhood is the face of it and they're gonna take most of the blame.

They had an IPO coming at some point this year and that's prob done for now..

Principal_Raditch



Joined: Mon Feb 18th, 2008
Location:  
Posts: 7435
Status: 
Offline
Mana: 
WongLee wrote: Can one of you hillbilly retards explain this to me so that even I can understand it? Reddit is all aglow that the "little guy" is crushing the evil Hedge Fund managers all of whom will be resorting to giving $10 blowjobs in the meatpacking district in order to survive.

Basically this was a shitass stock. Was hovering @ $4-6 a share last year, then started moving up to the teens in the late fall. So a bunch of their shares were shorted by a Hedgefund, probably banking on it dropping back down to the under $5 range again. In effect they were playing the "Don't Pass" line on a craps table. Some nerds on Reddit decided to counteract this shit and started buyin teh stock. Last Friday it was trading for @ $17/share. All of a sudden monday it's up to $45, tuesday to @ 95, then yesterday into the high $200's. At open to day it skyrocketed to over $450/share, before a huge selloff and closed at just under $200. After hours though it was up another $100 to close to $300. 

All I know is that there's some old Granny who bought 1000 shares of this shit back in August for $5 that's now sitting on 200k.

WongLee
HALL OF FAMER


Joined: Fri Oct 19th, 2007
Location: Coram, New York
Posts: 8044
Status: 
Offline
Mana: 
Thanks for the explanation. But what does "their shares were shorted by a Hedgefund" mean?

srossi
HALL OF FAMER
 

Joined: Sun Oct 14th, 2007
Location: New York USA
Posts: 56711
Status: 
Offline
Mana: 
WongLee wrote: Thanks for the explanation. But what does "their shares were shorted by a Hedgefund" mean?
It means really rich people were betting against the company, trying to drive the price down, and it going up lost them a shit-ton of money. 

Everyone rest easy though. AOC is tweeting about the injustice so it will be straightened out shortly. She’s on it!

Last edited on Thu Jan 28th, 2021 11:09 pm by srossi

Principal_Raditch



Joined: Mon Feb 18th, 2008
Location:  
Posts: 7435
Status: 
Offline
Mana: 
WongLee wrote: Thanks for the explanation. But what does "their shares were shorted by a Hedgefund" mean?

When you short a stock, in effect you're borrowing a stock and hoping the shares go down by a certain set date. Then you "sell" the stock back to the borrower at the prices you "borrowed at it. So for example. Let's say I shorted this stock when it was $15/share, and I have a strike date for 1 month later. Now a month later the stock has dropped to $10/share. Now I get to in effect sell my $10 stock back to the lender at $15. The problem is, if I short it at $15, and the stock goes to $200, I"m fucked. I"m buying it at $200 to sell at $15. 

The Hedgefund is just a name for a company that takes this approach of buying stock they think will go down and gambling that the prices will go negative during the holding period. 

Last edited on Thu Jan 28th, 2021 11:11 pm by Principal_Raditch

WongLee
HALL OF FAMER


Joined: Fri Oct 19th, 2007
Location: Coram, New York
Posts: 8044
Status: 
Offline
Mana: 
Final question I promise. So now if you ask to "borrow" a stock, the person who owns the stock will automatically know that you're taking it to short it correct?

Franchise
Low key big hog


Joined: Mon Oct 15th, 2007
Location: Cincy, Ohio
Posts: 5021
Status: 
Offline
Mana: 
Principal_Raditch wrote: WongLee wrote: Can one of you hillbilly retards explain this to me so that even I can understand it? Reddit is all aglow that the "little guy" is crushing the evil Hedge Fund managers all of whom will be resorting to giving $10 blowjobs in the meatpacking district in order to survive.

Basically this was a shitass stock. Was hovering @ $4-6 a share last year, then started moving up to the teens in the late fall. So a bunch of their shares were shorted by a Hedgefund, probably banking on it dropping back down to the under $5 range again. In effect they were playing the "Don't Pass" line on a craps table. Some nerds on Reddit decided to counteract this shit and started buyin teh stock. Last Friday it was trading for @ $17/share. All of a sudden monday it's up to $45, tuesday to @ 95, then yesterday into the high $200's. At open to day it skyrocketed to over $450/share, before a huge selloff and closed at just under $200. After hours though it was up another $100 to close to $300. 

All I know is that there's some old Granny who bought 1000 shares of this shit back in August for $5 that's now sitting on 200k.




Was today’s sell off on the up and up? I saw multiple reports of people saying their digital provider wouldn’t allow them to buy any of the stocks causing these issues. 



I just heard the current number is a loss of approx 70 billion between 500 hedge fund companies with one looking at a near billion dollar loss on its own. 

Principal_Raditch



Joined: Mon Feb 18th, 2008
Location:  
Posts: 7435
Status: 
Offline
Mana: 
WongLee wrote: Final question I promise. So now if you ask to "borrow" a stock, the person who owns the stock will automatically know that you're taking it to short it correct?
Pretty much. It's all automatic through a brokerage. If I go to Etrade, I can put an order in to short let's say.....100 shares of Facebook.  Today the stock closed at $265...So a transaction occurs online with a "seller" on the other end who electronically agrees to the transaction whereby I now borrow those shares for say a month and then basically "buy" them in a month from now officially at whatever the price is that day. I pray it's lower than $265 and the person on the other end is praying it's above $265.....Hence the analogy of Pass/Don't pass from a Craps table.

KGB

 

Joined: Wed Jul 4th, 2012
Location:  
Posts: 2483
Status: 
Offline
Mana: 
Don't worry, Elizabeth "Joe Scarpa" Warren has sent a letter to the SEC asking them to investigate...those meddling redditors!  She may play the champion of the little folk on TV, but don't for a minute think she's going to invite them into her domain.  Yeah, they'll make a show about investigating hedge funds, too, but we all know who the real villains are in this story -- those icky dirt people.  

carpetbeggar
The Ayatollah Of Rock And Rolla


Joined: Sun Oct 21st, 2007
Location: Dangling From A Rope Of...CONFETTI!!!
Posts: 12197
Status: 
Offline
Mana: 
Some Joe Blow Redditors made a shit ton of money today.

I see a thread over there where a 19 year old invested 6K in it and now is at 192K. This person said they are not going to sell and plan on "holding strong". lol

So isn't this going to fuck various unionized workers whose union invested their retirement funds in some of these hedge funds getting pounded now?

carpetbeggar
The Ayatollah Of Rock And Rolla


Joined: Sun Oct 21st, 2007
Location: Dangling From A Rope Of...CONFETTI!!!
Posts: 12197
Status: 
Offline
Mana: 
Principal_Raditch wrote: WongLee wrote: Final question I promise. So now if you ask to "borrow" a stock, the person who owns the stock will automatically know that you're taking it to short it correct?
Pretty much. It's all automatic through a brokerage. If I go to Etrade, I can put an order in to short let's say.....100 shares of Facebook.  Today the stock closed at $265...So a transaction occurs online with a "seller" on the other end who electronically agrees to the transaction whereby I now borrow those shares for say a month and then basically "buy" them in a month from now officially at whatever the price is that day. I pray it's lower than $265 and the person on the other end is praying it's above $265.....Hence the analogy of Pass/Don't pass from a Craps table.
BTW this is probably the best explanation of "shorting" I've seen posted anywhere since this all began.

srossi
HALL OF FAMER
 

Joined: Sun Oct 14th, 2007
Location: New York USA
Posts: 56711
Status: 
Offline
Mana: 
carpetbeggar wrote: Some Joe Blow Redditors made a shit ton of money today.

I see a thread over there where a 19 year old invested 6K in it and now is at 192K. This person said they are not going to sell and plan on "holding strong". lol

So isn't this going to fuck various unionized workers whose union invested their retirement funds in some of these hedge funds getting pounded now?

On the first point, I really don’t see that going well.  Wall Street is going to figure out how to beat these kids, through ingenuity or plan old crony capitalism, and they’re going to go to zero. Accept the win and get the fuck out with your money before they destroy you. Proving a larger point at the expense of your future is silly. 

Point 2, yes, pensions, IRAs, 401(k)s, etc have been greatly affected. These are mostly very long-term propositions though so by the time most people need them I’m sure they’ll be back to normal. If you were cashing them out tomorrow though, well that’s really bad timing. Depends on what types of funds you asked them to invest in for you though. 

Last edited on Sat Jan 30th, 2021 03:28 pm by srossi

Franchise
Low key big hog


Joined: Mon Oct 15th, 2007
Location: Cincy, Ohio
Posts: 5021
Status: 
Offline
Mana: 
If WS has to resort to underhanded maneuvers to win its going to further undermine confidence in the system. For some of these “investors” watching the pain appears to be the win. Regardless though a lot of people were just shown another part of their life has a double standard.


Has it been confirmed if Jen Psaki’s brother is a lead trader or manager at Citadel?

Last edited on Sun Jan 31st, 2021 06:28 pm by Franchise

KGB

 

Joined: Wed Jul 4th, 2012
Location:  
Posts: 2483
Status: 
Offline
Mana: 
Franchise wrote: If WS has to resort to underhanded maneuvers to win its going to further undermine confidence in the system. For some of these “investors” watching the pain appears to be the win. Regardless though a lot of people were just shown another part of their life has a double standard.


Has it been confirmed if Jen Psaki’s brother is a lead trader or manager at Citadel?

They won't be able to stop themselves from simply gaming the system and getting regulatory protection from their pets in the Imperial Capital.  It's only a question of how many days this week they let this continue before changing the rules mid-stream.  

I point out again that if you accept, and all the evidence is right there in front of your eyes, that they'll keep the dirt people from expressing themselves on social media, that they'll keep the dirt people from making money in their closed-shop casino, that they'll give probation to an FBI agent who falsified documents to enable the wiretapping of a President's inner circle, then why on earth would you stick your fingers in your ears when it comes to election fraud?  

KGB

 

Joined: Wed Jul 4th, 2012
Location:  
Posts: 2483
Status: 
Offline
Mana: 
Ugh.  Amazon company newsletter, The Washington Compost, published an op-ed this weekend titled, "The good guys in the GameStop story?  It's the hedge funds and short sellers."  Something's not right here.  If I've learned anything from Hollywood and the media's own back-slapping slobber fests, it's that newspapers are staffed by plucky, indefatigable investigative journalists, who speak truth to power and are champions of the working class.  You mean they're actually house organs for cloud people, and fairly drip with disdain for anyone outside their rarified air?  Geez, when did that happen? 

https://www.washingtonpost.com/opinions/2021/01/30/good-guys-gamestop-story-its-hedge-funds-short-sellers/?fbclid=IwAR3Y7JZ6lXjZFwVPvNhFDrDZeo0CZjG2zjewuF2wvT1qR5d2MG6xB02npuc

tamalie
HALL OF FAMER
 

Joined: Mon Oct 22nd, 2007
Location:  
Posts: 5139
Status: 
Offline
Mana: 
There are no good guys in this fight.

Principal_Raditch



Joined: Mon Feb 18th, 2008
Location:  
Posts: 7435
Status: 
Offline
Mana: 
It lost 30% today, down $100 to $225. Whoever was able to short this on Wed is sitting very nicely now. 

Last edited on Mon Feb 1st, 2021 09:40 pm by Principal_Raditch

tamalie
HALL OF FAMER
 

Joined: Mon Oct 22nd, 2007
Location:  
Posts: 5139
Status: 
Offline
Mana: 
Where is this at now? The peak is over. Have there been any reports yet of people emptying their savings accounts and 401k accounts, buying GameStop at too high a price, holding for too long when the decline set in, and losing everything?



UltraBB 1.172 Copyright © 2007-2013 Data 1 Systems