Talking Stocks in 2021

[jaisonline]

Definitely some shady issues this morning. Ameritrade’s mobile app wasn’t working once 9:31 hit. The mobile issue cost me about $5k in a single put when I attempted to sell it at 9:31am. Forced me to login again but wouldn’t authenticate. By the time I booted up my MacBook Pro, it was $997 & fell to $275.

[Mark Twain]

Wow, now y'all buying Blockbuster stock. Jesus. 

[legoray01]

I have nothing.  all I know is a long time ago  I was told do not borrow money to buy stock and would not shorting a stock be the same.  In the free market no one should have been frozen out of selling their shares.  You can not predict the events of the future .  (you can think you know but you can never be sure)  A lot of people learned that lesson this week (or were reminded).  You know my Disney shares went up about 4% today (yeah for me)  but I also think I will own those shares in thirty years.  

[iahawks550]

People gamble all the time on stocks. Shorting is gambling, but it's no different than buying shares outright. 

[shagmoz]

36 minutes ago, iahawks550 said:

People gamble all the time on stocks. Shorting is gambling, but it's no different than buying shares outright. 

Not entirely correct, shorting is much riskier that buying shares. You have additional borrow fees. Shares be can recalled by your brokerage at anytime and you are forced to buy back, unlimited upside risk, etc. etc. etc.

[elmaslıefendi]

5 hours ago, elmaslıefendi said:

You guys might wanna look at the Dogecoin chart. If we're talking memes & the Internet driving prices up this one is gonna go through the roof.

+226% today.

Doubled my money since this post. What's LEGO? 

[House Schubert]

34 minutes ago, elmaslıefendi said:

Doubled my money since this post. What's LEGO? 

I looked, couldn’t buy it on Coinbase... gave up. 

[elmaslıefendi]

1 hour ago, elmaslıefendi said:

Doubled my money since this post. What's LEGO? 

Update: Tripled.

[Bricklectic]

1 hour ago, elmaslıefendi said:

Update: Tripled.

um....

[elmaslıefendi]

10 minutes ago, Bricklectic said:

um....

That's definitely wrong, it's up 882%.

I almost quadrupled my money.

https://coinmarketcap.com/de/currencies/dogecoin/

Edited January 29, 2021 by elmaslıefendi

[Bricklectic]

1 minute ago, elmaslıefendi said:

That's definitely wrong, it's up 882%.

I almost quadrupled my money.

yep, looks like a blip.

[Bricklectic]

what brokerage do u use for dogecoin. I see coinbase doesnt let me buy

[elmaslıefendi]

3 minutes ago, Bricklectic said:

what brokerage do u use for dogecoin. I see coinbase doesnt let me buy

I use Bitpanda. It's austrian. I don't think you can use it in the US.

Maybe the train has chugged away on this one though.

[exracer327]

5 hours ago, iahawks550 said:

People gamble all the time on stocks. Shorting is gambling, but it's no different than buying shares outright. 

Actually, options are more dangerous than owning shares.  The worst that can happen if you own the shares is it goes to zero and your lose your initial investment.  However, if it does go to zero, you can write it off on your taxes as a loss which will offset against profits made.  Playing options, you can end up owing more money than the stock is even worth and still owe taxes on what you purchased.  

https://medium.com/the-innovation/3-nightmare-options-trading-stories-23e5d4c5fc66

Granted these are some worst case scenarios, but again, the worst that can happen with owning the stock is you lose your initial investment - not owe lots of money you don't necessarily have.

And then of course there is the tax liability: https://www.cnet.com/news/options-dream-turns-to-nightmare/

This is why I don't play the options game.

[LegoMan1212]

2 hours ago, Bricklectic said:

yep, looks like a blip.

looking forward to when redditors figure out they are being played by just more big boys that could put all their cash into a big pile and start a fire and they would never burn out of cash.

Being told to continue to hold is the equivalent of be out in the wild, encountering a bear, you tell you friends to stay still and don't' move, while you run away.

I'm not far off am I?

Edited January 29, 2021 by LegoMan1212

[coelian]

2 hours ago, LegoMan1212 said:

looking forward to when redditors figure out they are being played by just more big boys that could put all their cash into a big pile and start a fire and they would never burn out of cash.

Being told to continue to hold is the equivalent of be out in the wild, encountering a bear, you tell you friends to stay still and don't' move, while you run away.

I'm not far off am I?

This is classic prisoner's dilemma but it seems that there are enough retards (wsb talk) to hold and actually take the bear down. Remember in prisoner's dilemma they don't get to speak to each other and so will go for personal interest rather than cooperation. There is widespread information now that holding creates the best possible outcome for the 'prisoners'. Sure there are plenty trading the volatility making good money but looking at the volumes it seems the line is being held. There simply isn't enough shares to go around. We'll see how this pans out in the coming days. 

[TheBrickClique]

2 hours ago, exracer327 said:

Actually, options are more dangerous than owning shares.  The worst that can happen if you own the shares is it goes to zero and your lose your initial investment.  However, if it does go to zero, you can write it off on your taxes as a loss which will offset against profits made.  Playing options, you can end up owing more money than the stock is even worth and still owe taxes on what you purchased.  

https://medium.com/the-innovation/3-nightmare-options-trading-stories-23e5d4c5fc66

Granted these are some worst case scenarios, but again, the worst that can happen with owning the stock is you lose your initial investment - not owe lots of money you don't necessarily have.

And then of course there is the tax liability: https://www.cnet.com/news/options-dream-turns-to-nightmare/

This is why I don't play the options game.

As an option trader, I agree that you have more risk with greater volatility. I disagree with some of the points however. 
Selling naked puts, you can owe more than the stock is worth, but the most you would owe is the strike price, but some of that is offset by what you sold the option for. And most accounts won’t let you sell naked puts without experience and the cash on hand to buy them. Similarly, if you bought the same stock and it went down in value, you’d be out the same amount but you wouldn’t have the sale proceeds. So, owning the stock would have been net worse. Assuming you continue to hold the stock and it doesn’t recover.

You can lose a lot of money on selling naked calls. But very few brokers will let you do that. You can sell covered calls and then you may just end up forgoing some profits on the stock you used to own. 
Buying and trading puts and calls can result in losing the money you put into them if they expire before you make money on them. It’s basically a time versus price movement gamble you take.  If you have a hunch about a stock but you don’t have the money to buy the full shares, then this is a good strategy. For example, I made a little money last year buying puts on stocks I expected to be hammered by COVID when it was first starting to make news and before most investors connected the consequences to airline and movie theater stocks.

That second article is misleading. In those cases, people converted their options to stocks. If the options expired worthless, they’d owe no taxes on them. But once you exercise them, you owe taxes on the gains — which is the difference between the exercise price and market value when they are exercised.  And the employee has to pay the exercise amount up front. 
But the employee would have gotten something of value — albeit stock and not cash — they still owe taxes on it that year.  If the stock goes down in value, they can claim short or long-term losses depending on how long they held the stock, but they will only be capped to $3k in losses a year and carry the remaining forward to the next year.  But in all of these scenarios, it wasn’t the options that got them—it was that the company wasn’t required to withhold taxes on the stock conversion.  
Most companies abandoned options however because of the accounting rules changes and issue shares of stock instead.  Those have tax consequences on the day they vest.  And most companies will auto-sell enough on the vesting day to pay the taxes on the remaining shares.  That way the employee can’t be stuck with a surprise tax bill if they do nothing.

But right now I’m watching GME for entertainment purposes.  Not touching that action with a 10-foot pole.  Because while people think they are making money, until they sell, it’s only on paper.  If they are buying it for $300 thinking it will go to $1000, it can just as easily drop to $50 tomorrow — with or without brokerages putting buy restrictions in place.  Nobody is expecting GME to stay at $300.  When folks finally bail and move to something new, it will snap back and people will lose money.  

 

 

[jaisonline]

** some great conversations. Please remember this topic is about “stocks”. Read my original post for more details. Thanks. **

[KvHulk]

Money, money, money, money!

[marcandre]

GME pre market price is ridiculous

[KShine]

Rocket (RKT) might be taking off!

[Miami Bomb Squad]

Money makes people reckless.  Who the hell is buying it at $350 premarket when it closed at $193.60?
Totally insane? 

[cladner]

15 minutes ago, KShine said:

Rocket (RKT) might be taking off!

i'm hoping HIMS gets tumescent.

[Darth_Raichu]

7 minutes ago, Miami Bomb Squad said:

Money makes people reckless.  Who the hell is buying it at $350 premarket when it closed at $193.60?
Totally insane? 

I was going to go in at $200 last night and talked myself out   It would have been 75% gain overnight

[CosmicSpeed]

13 minutes ago, Miami Bomb Squad said:

Money makes people reckless.  Who the hell is buying it at $350 premarket when it closed at $193.60?
Totally insane? 

People are insane. But it could work.

Quote

Credit to u/PsychoticC4rrot

Please read!!! This text will be the most important piece that you’ll see today!!!

They didn’t exit any of their short positions! You can look it up!!! The fund sold their shares to other funds, which made the stock algorithm think the stock is being sold —> price goes down —> the found that bought sells those shares again to the fund that sold them in the first place —> price drops even more —> they keep doing that —> price drops lower every time —> but as long as we hold they weren’t able to exit any positions!!! Shorts are still up 120% percent. As long as we hold the squeeze is inevitable!! And if you don’t believe me, look at the GME after hour stock price!

Furthermore don’t sell at 1000$ tomorrow or next week!!! It can be way ******* higher! I‘m talking about numbers around 10/20k per share! Compared to the VW squeeze in 2008 GME would need to be valued at 34000$ per share!!!

READ THIS!!!! COPIED IT FROM A WISE REDDITOR!!!

EVERYBODY READ THIS! Important!

Since it got removed: When do we sell? A quick guide for GME Army. (SECRET TO DIAMOND HAND 💎🙌 )

When do we sell? A quick guide for GME Army. (SECRET TO DIAMOND HAND 💎🙌 )

Too much disinformation about when to sell. I'm tired of seeing people paper handing GME when it drops by 20%, or saying to sell Friday (BTW DO NOT ******* SELL FRIDAY OR I WILL COME OVER THERE AND DO STUFF TO YOU!) so here is the DEFINITIVE guide on how to play the ending.

First, we need to understand what is "Days to Cover" or "Short Ratio" .

Official definition:

• ⁠Days to cover, also called short ratio, measures the expected number of days to close out a company's issued shares that have been shorted. • ⁠Days to cover is calculated by taking the number of currently shorted shares and dividing that amount by the average daily trading volume for the company in question. • ⁠A high 'days to cover' ratio can often signal a potential short squeeze.

Dumbed down version:

• ⁠imagine you're Melvin Capital and you have 1 million dildos up your ass. How long will it take to get all those dildos out of your ass? If the volume of dildo removing is 1 per day, then it'll take 1 million days to remove 1 million dildos up your ass. If it's 50,000 dildos a day, then it's 20 days. • ⁠Same thing with covering short positions. How long will it take Melvin Capital and other shorters to cover their short positions? You take alllll the shorted shares, divided by the average volume of share movement per day, and you get something called "Days to Cover"

Now you know what day's to cover means, you can check many websites to see what is the days to cover for GME.

So you can see, even if Melvin Capital wants to cover their shorts, it's gonna take them DAYS, and right now it's gonna take them an entire trading week to cover their position.

So what does that mean for us?

Well, we're just waiting for the day when Melvin Capital starts covering their position. When is that day? VERY ******* SOON. They're are bleeding out of their ass with the insane interest rate they're paying for their position, and a lot of puts are expiring on Friday, plus a lot of ITM (in the money) calls expire Friday and can be exercised to get shares.

Friday might be the day where Melvin Capital have no choice BUT to start covering.

Now, IF this happens, then it's not gonna take Melvin Capital 1 hour to cover all their shorts, but DAYS. Meaning if Melvin capital starts covering FRIDAY, it will take them at LEAST 5 DAYS to fully cover, which means ALL of next week, the price will keep increasing and increasing! So realistically I'd say Weds or Thurs next week might be peak sell time, IF the covering starts Friday. No need to panic sell. No need to worry about a top that lasts for minutes. It will LAST FOR DAYS!!!!!

Now, CNBC and all of the MM's and corrupt media will fool you into thinking Melvin Capital has already covered their shorts or some other bullshit, but don't believe it. It takes DAYS to do so!

The only numbers you should be looking at is the short ratio. If it's getting smaller, then the squeeze has begun. If it's still at ******* 138-140% like it is now, NOTHING EVEN HAPPENED YET.

We're at ******* $250 after hours and the shorts still haven't begun to cover yet! Imagine when they do? $1000 is actually a very low estimate, and is no longer a meme number. If we all play it right and hold while shorts cover, we can literally squeeze this to infinity as they try to cover.

TL:DR = ACTUALLY ******* READ IT AND HOLD MOTHER FUCKERS HOOOOLLLDDDD. WE'RE ROBBING WALLSTREET TOGETHER!!!!!