Boiler Room: The Official Stock Market Discussion

[winb83]

You have some good picks but a huge ego. There's noway somebody's account goes up thousands every day, especially days that are very red for most people. So, screenshots?

That's not even good picks it's just luck. The whole market was down 2%. I was down 0.18% but my only green position was SoFi which was up about 24% today.

 

[KalKal]

This is the Gamestop situation as I understand it.

The hedge funds were circling Gamestop like vultures because it looked like it was finished. They went to brokers and borrowed a ridiculous amount of shares sold them and then if I'm correct they went back and borrowed more and sold them to the point where the amount of borrowed shares was more than the outstanding shares of the company. Apparently they saw it going to 0.

When the hedge funds borrow the shares they're taking those from real shareholders. The broker has to make those shareholders whole in the event the hedge fund can't. Also all sorts of options are being sold that could possibly be exercised and have to be covered.

WSB inserts themselves by buying options and shares and the plan is hold them and take them out of circulation. As the price rises the brokerage has to cover the options and the shorts in the event the hedge fund can't so the brokerage starts buying the underlying asset which puts more upward pressure on the price. The hedge funds see this and they have to return those shares so they buy and the price continues to rise.

As long as retail holds the shares since the float was more than the outstanding shares there's a permanent shortage of shares and an infinite loop continues pushing the share price higher and higher.

WSB gambit was never about investing in Gamestop it was a cheat code to riches. I was looking at Gamestop like it was an investment not a cheat code. That's why I lost out. I don't wanna buy that company but buying into that cheat was totally worth it.

BB doesn't have the float Gamestop did. Nor does Nok. The people investing in those looking at Gamestop are wasting their time.

Feel free to correct me where I'm wrong.

Here's what I would add based on what I have read or watched on youtube:
The reason the hedge funds "doubled down" on there shorts to begin with was to suppress the stock price around the holiday season. From what I read, the stock actually DID deserve to move up "a little" at the end of 2020, based on new board members, plus new holiday game console sales, and moves to make more money off of game downloads. It wouldn't have had a massive pop, but the hedge funds were doing everything they could to prevent it from popping up at all. In trying to push the price down, they made themselves a target.

Here's the other thing:
I never got into crypto, but I think crypto has drilled the "HODL" mentality into the new retail investor's minds. In the old days, if some kind of "pump" were going on people would have jumped out at the very first sign of trouble. But I'm starting to think things might actually BE different this time. Last week I got lucky with my GME put. I would be tempted to try buying another...but I realize now that would probably be a mistake. I don't want to fight this:

We can remain retarded longer than they can stay solvent

What motivation do these guys have to sell now?

Can somebody explain the Pelosi TSLA play to me ? She bought for 100K or something like that at a strike price of 500. Not familiar with options, but is she still seeing some gains even though the price didn't pop after earnings ?

You can buy deep in-the-money calls as a "Stock Replacement"
Stock Replacement Strategy Definition (investopedia.com)

You get the benefit of owning shares (because the "delta" gets close to 1), but its a lot cheaper than spending $800 per share to buy the actual TSLA stock. The trade off is if the stock crashes below $500 your options are worthless. So, no, when TSLA goes down after earnings you STILL lose money. But you're still "in the money" so you don't lose ALL of your money.

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 "?

In both cases, your stocks expire worthless .

He provides a nice summary and tries to simplify the whole situation.

Good video

 

[GetRichOrDieTryin]

used to spend my fridays playing video games while having a drink or two

now im just researching and learning more about the stock market game

 

[humminbird]

I just went in the subreddit they’re jamming to the little Einsteins theme song

 

[FatherSimp]

used to spend my fridays playing video games while having a drink or two

now im just researching and learning more about the stock market game

Don't forget to enjoy life though

 

[nyknick]

Me and my 6 shares about to eat

Throw a life vest to people stuck with keyboard phone stocks on your way up

 

[Eternal Tecate]

Throw a life vest to people stuck with keyboard phone stocks on your way up

hold that shyt. WSB isn't just gonna go away after GME

 

[nyknick]

hold that shyt. WSB isn't just gonna go away after GME

I'm holding this shyt until we get connected cars if need be

 

[winb83]

The reality check at least I know I needed.

The markets are a circus right now but some companies put up amazing numbers and fell hard. WSB sucked all the air out of the room.

 

[Da_Eggman]

And yet my account looks like a normal day

How

 

[Da_Eggman]

Don't forget to enjoy life though

fukk that

 

[eXodus]

Don't forget to enjoy life though

fukk that

Life ain’t shyt but stress, fake nikkas and crab stunts

naw but seriously.. once this next week of volatility over, ima grab some solid stocks and play the slow and steady game. I just been listening to y’all brothers and sisters picking up game. I don’t wanna get caught in the whole WSb frenzy, although I did make 1,000 on Doge coin lol

 

[Serious]

You have some good picks but a huge ego. There's noway somebody's account goes up thousands every day, especially days that are very red for most people. So, screenshots?

My account doesn't go up Or down, it maintains.

The trick my cost basis is low, because I enter and build positions in stocks before most people.


Plus look at my avi, I'm playing long game. What's happening right now doesn't mean shyt to my profile in the grand scheme of things. I don't care about being or down a few percentages because I don't need the money right now.


That's why I can glance at my account it looks like a normal day.

 

[FreshFromATL]

A shyt ton of institutional investors dumped money into CCIV...somethings coming

Churchill Capital Corp IV Class A Common Stock (CCIV) Institutional Holdings

 

[dora_da_destroyer]

My account doesn't go up Or down, it maintains.

The trick my cost basis is low, because I enter and build positions in stocks before most people.


Plus look at my avi, I'm playing long game. What's happening right now doesn't mean shyt to my profile in the grand scheme of things. I don't care about being or down a few percentages because I don't need the money right now.


That's why I can glance at my account it looks like a normal day.

All that to say your account is down from the top of the week like everyone else’s...got it