Stocks - The Best Buys 2

[Enoch Root]

Originally Posted by Kiran403

Multiple halts so far this morning for each of those stocks. The volume generated is ridiculous.

And seriously WTF RBC, spend some of those profits and upgrade your servers.

I don't think RBC's servers are the problem. All trading systems are suffering the same issues right now - I suspect the problems are with the trading platforms as volumes are insne.

[Cappy]

Originally Posted by Enoch Root

I am curious why you think Friday matters

My understanding was that there are several short sellers with deadlines on Friday and Monday.

Like i said, i could be wrong

[manwiches]

Originally Posted by Enoch Root

I am curious why you think Friday matters

Shorts have to pay premiums, and many don't like to hold short positions into weekend, because of those, and also news. What if something comes out over the weekend on a ticker you shorted, and it gaps up on Monday? You're boned.

I sold 25% of my AMC at 25 this morning, holding 75% for the bigger move. that was a 1100% P/L for me.

Today is choppy af with the halts etc, as brokers/institutions/MMs are all salty that the retailers figured out their game.

[flylock shox]

Originally Posted by Cappy

As great as this is, the money being pulled out of other stocks are really messing with the rest of my portfolio. Square is down $40.00 since last week. Microsoft and Apple earnings are probably contributing too.

Sounds like a buying opportunity...

[Enoch Root]

Originally Posted by Cappy

My understanding was that there are several short sellers with deadlines on Friday and Monday.

Like i said, i could be wrong

Short-selling does not come with hard deadlines (like options, for instance)

It can be the case that whomever has leant you the shares have demanded that you square your position. But that is rare and unlikely. More likely that people are simply speculating that there is a deadline. (as that is more fuel for the storyline)

[Enoch Root]

Originally Posted by manwiches

Shorts have to pay premiums, and many don't like to hold short positions into weekend, because of those, and also news. What if something comes out over the weekend on a ticker you shorted, and it gaps up on Monday? You're boned.

I sold 25% of my AMC at 25 this morning, holding 75% for the bigger move. that was a 1100% P/L for me.

Today is choppy af with the halts etc, as brokers/institutions/MMs are all salty that the retailers figured out their game.

Interest rates are almost zero right now. The volatility on one minute of trading is larger than the carrying cost for the weekend.

[Enoch Root]

Also, 'news' comes under fundamentals. ANd the fundamentals on these stocks favor the short-sellers. What is going on right now has nothing to do with fundamentals, it is all about cash management and pressure.

Short sellers are managing those issues by the second right now. The weekend is completely irrelevant.

[manwiches]

Chamath is absolutely obliterating this CNBC Reporter right now. It's hilarious. Exposing CNBC for their bias. I bet this reporter lost a boatload. lol

[Kiran403]

Originally Posted by Cappy

My understanding was that there are several short sellers with deadlines on Friday and Monday.

Like i said, i could be wrong

On Friday all the call and put options for the end of the month expire so people on both sides will be closing their positions.

[Enoch Root]

Yes, option expiry date. Thank you.

That isn't a short-selling deadline, but considering the current volume and volatility on these stocks, it sure as hell will be impactful. Hard to say which way though.

[Cappy]

Originally Posted by Kiran403

On Friday all the call and put options for the end of the month expire so people on both sides will be closing their positions.

Yes. According to my account, the most expensive option position on Friday is $9.00. If AMC holds above $9 until Friday then all calls are in the money. All puts are out. If those calls are naked, then there could be more buying to cover.

Again, I’m not an expert and my experience in options trading has been poor lol

[J pold]

Picked up 350 shares of NOK. Let's gooo!!

[Enoch Root]

Originally Posted by Cappy

Yes. According to my account, the most expensive option position on Friday is $9.00. If AMC holds above $9 until Friday then all calls are in the money. All puts are out. If those calls are naked, then there could be more buying to cover.

Again, I’m not an expert and my experience in options trading has been poor lol

It's counter-intuitive, but in-the-money calls will result in selling pressure. Instead of paying for the shares, when the calls settle, most options-turned-shares are immediately liquidated. easier to take the profits than tie up real capital to maintain the position.

[Cappy]

Originally Posted by Enoch Root

It's counter-intuitive, but in-the-money calls will result in selling pressure. Instead of paying for the shares, when the calls settle, most options-turned-shares are immediately liquidated. easier to take the profits than tie up real capital to maintain the position.

Not always, though. Especially if a stock is promising.

[CroFlames]

Originally Posted by J pold

Picked up 350 shares of NOK. Let's gooo!!

Holy crap CP is literally WSB now.

Please just no r-words. I cringe reading that on WSB.

Although most of their schtick is pretty funny.

[badradio]

BB to the moon!

[Enoch Root]

Originally Posted by Cappy

Not always, though. Especially if a stock is promising.

Sure, some investors won't sell. But many will. It is net selling pressure, not net buying pressure.

You buy a $9 option at $1. It costs you $100. On expiry day, the stock is at $15. You can pony up $900 to keep the stock, or, you can just sell and take your $700 profit without tying up any more capital.

If you still like the stock, you buy more options (which requires less capital)

[TorqueDog]

Keep in mind that the options traders that are selling long calls have to buy to close, as they sold to open the position. If they don't want a maximum loss, they have to close out the position before expiry.

[burn_this_city]

Is Melvin dead yet? I smile when I imagine some random GME middle manager sitting on his crappy $4 near bankruptcy share grants that WSB probably made a millionaire.

[Iggy_12]

Anyone else having issues buying NOK? wont fill my order