Boiler Room: The Official Stock Market Discussion

[dora_da_destroyer]

Apparently robin hood restricted users from buying cciv towards the end of the day.

expanded the list to 50 securities including GM, SBUX and others...wtf

edit: see you posted the list

 

[analog]

People were putting in limit sells for well over a grand that started to get filled. With margin, options, shorts what do you honestly think would happen if Gamestop had a share price of $5000 a share? Do you think Robinhood and the smaller brokers could afford the avalanche of that? I doubt it.

I agree the situation had the potential to get really ugly.

My only reservation is the amount of RH users that'd be required to exercise margin and dabble in options to push them to the brink. Are there a significant amount of RH users that are savvy enough to endanger the company as a whole?

 

[choc_cardigan]

Robinhood has to cover the pending options and cover shorts forcing them to hold the underlying asset. They have to have liquidity as well to operate. If the ask price on the stock rises thousands of dollars on such a volatile stock how do they stay afloat?

TBH the real answer wtf does that have to do with us? What would Lord free market say?

 

[jadillac]

It won’t happen with AMC. The stock might rise off hype but with GameStop retail investors literally have institutions stuck like a wounded animal. We don’t know how many funds are involved. And if those funds go down, it could ripple throughout the market, as they are counterparties to other people who owe money to other people and so on and so forth. Basically it’s a potential replay of Longterm Capital in 1998. That’s why RH, TD and IB are going nuclear trying to halt trading. We just gotta see how it plays out and how bad it ends. But AMC is different. With GME, they tried to short more than what was available, people caught on and raised the price of the brick.

So you'dssay to sell amc?

 

[dora_da_destroyer]

I agree the situation had the potential to get really ugly.

My only reservation is the amount of RH users that'd be required to exercise margin and dabble in options to push them to the brink. Are there a significant amount of RH users that are savvy enough to endanger the company as a whole?

damn near all the RH kids are fukking with options and buying on margin. WSB and RH subreddits consistently showed people dipping into margin to make YOLO calls.

 

[old pig]

I’m fukking glad the weekend is here...I can relax and get some sleep when AH is over...what a crazy fukking week smh

 

[Rickdogg44]

Experienced options brehs - question

Say I have a $10 strike call and it is the Friday of expiration

Example A:
Stock price at 4pm = $9
Stock price at 5pm = $11
Stock price at 8pm = $9

Example B
Stock price at 4pm = $9
Stock price at 5pm = $11
Stock price at 8pm = $12

What usually happens if "auto exercise "?

 

[winb83]

TBH the real answer wtf does that have to do with us? What would Lord free market say?

Ok what happens on the other side of that hill? What happens when a brokerage that serves 13 million mostly retail customers becomes insolvent? What effect does that have on the stock market as a whole? Honestly it wouldn't just be Robinhood the players smaller than them but with numerous users would face the same fate.

 

[Saysumthinfunnymike]

Robinhood fukking sucks lol I tried to tell yall we tried to tell yall wtf..

 

[Ozymandeas]

So you'dssay to sell amc?

Id advise to not expect the same performance as with GME, and to be okay with losing your investment potentially. If you want to ride the hype, I would sell once it goes up a good amount but don’t get greedy. If you want it long term, I’d wait until after the hysteria is over, then buy it on the cheap and wait a year or two. People will start going back to theaters again once Covid is over and the price will bounce back. But that’s a good 12-18 month wait.

 

[FaTaL]

Robinhood fukking sucks lol I tried to tell yall we tried to tell yall wtf..

I’m so happy I start on fidelity on Monday

 

[无名的]

Nothing sweeter than volatility and time decay. Sorry if it was one of ya'll that spent $2100 on those NOK calls I sold that are now next to worthless

 

[NaijaProdigy Redux]

Robinhood fukking sucks lol I tried to tell yall we tried to tell yall wtf..

absolute trash platform

 

[choc_cardigan]

Ok what happens on the other side of that hill? What happens when a brokerage that serves 13 million mostly retail customers becomes insolvent? What effect does that have on the stock market as a whole? Honestly it wouldn't just be Robinhood the players smaller than them but with numerous users would face the same fate.

I would think what you are describing is a crash. And to play devils advocate isn't that risk we all take when we put money in the market? More importantly why feel bad for Vlad and fats cats tied up into this?

 

[FaTaL]

Robinhood fukking sucks lol I tried to tell yall we tried to tell yall wtf..

It’s too bad, I love the app