These idiots, all day long are going on about how "kids with their stimulus checks" are f'ing everything up in our "markets". OMG. Buuuulllll sh*t. First off, odds are anyone that just jumps in this game with no experience... will lose every damn penny. In a few days. And two.... when was the last stimulus check? And three..... even if they were the one out of a million trading gods... have any of these talking head morons ever heard of the PDT rule? What am I missing here? Tell me why GME pegged $200(ish) with perfect parity? Like I said earlier, the gods are sitting back and laughing at it all. That would be our 'mortal' gods btw... ...just in case any of you found confusion in this prose.
There is no explanation. It just is. Opportunities presented themselves and I wasn't paying attention. GME showed up on one of my scans on Jan 13th. I made the decision to take a pass. Life goes on.
The stimulus check was for $1,200 and more recently, $600. Most people spent that $1,800 total. Even if you somehow managed to save it and have $1800 for a broker account, you cannot place a huge enough trade to affect the stockmarket. All these guys talking are indeed morons.
If enough people on an internet message board target a small cap stock, even if each buyer only throws $3000 or so into the stock, with enough people, it can manipulate the price of the stock (or crypto). But the idea that if enough buying happens in GME or other small cap stocks, it will trigger a short squeeze and hurt all of wall street is false. If someone spreads that information in an attempt to get others to buy, then that sounds a lot like an illegal pump and dump scheme.
I got a RH account for shits and giggles. I was trading 5 contracts w/1k$ deposit. That's 500 shares w/o needing to trade a single stock prior on their platform.
No. Do the math. This thing didn't kick off until $40ish. Say a million robinhooders each have $5000. That's 5 billion. GME has 70MM shares outstanding. Lets call that 4.8B mc at $40/share. If each person maxed out at $7500 (overnight margin) going all in at once.... who drives it beyond $60?share? Bingo. Folks that don't belong to Robinhood and have a tad bit more than 5K. And I was being generous.
Pffff. Right. At what strike? On what day? At what underlying? On what expiration? Take that bs elsewhere h4
Options are purchased with settled funds. There is no margin. Soooo.... you bought bought which ones on which day for $20 ($200)/contract? The Feb $1000's? All five of them? I wanna hear this one. Edit:----------------------------------------- Oops... 5 of the $2 contracts. That must be the June 2030 $45,000 calls. ET ....
Last I checked, a single GME How many of those 70MM shares are available for purchase? When buying pressure is stronger than selling pressure, the sellers determine price based on what the sellers are willing to accept.
Retail traders do not have enough monies to drive the price higher on most stocks including GME and AMC. It was other hedge funds driving it higher because they bought at lower prices. They know if they spend a bit of monies to drive prices higher, other hedge funds would also, pile in. They knew what they were doing and got out yesterday with 1.2 billion shares traded. Probably, shorted it yesterday too. Now, the collapse today only hurt the legions of rank amateur small traders who lost half their monies if they bought near the top. What they gained yesterday, they lost today and some of their monies on top of that. Reddit idiots sent a lot of traders to their demise. Robinhood took a $100 million line of credit from banks. My guess is the losses from the amateur traders was huge because they probably, lost more because they were using margin. Probably, why Robinhood stopped allowing them to buy shares of GME and AMC because Robinhood would have to eat up more losses.