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gay picnic defence posted:There’s usually rules against price manipulation but those have generally related to a small group of shareholders who own a significant number of a company’s shares doing stuff without the knowledge of the rest of the market, not an entire subreddit full of people doing something in full public view. Cramer goes on tv every night and smacks a big buy or sell button with millions of viewers How is that any different than what wsb does
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Jan 23, 2021 20:09
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wet_goods posted:Cramer goes on tv every night and smacks a big buy or sell button with millions of viewers That's how I feel about it. Or like how Citron had a ton of short sales then announces a low price target tanking the stock. Seems like more manipulation to me then a bunch of WSBers just buying and holding
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Jan 23, 2021 20:34
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wet_goods posted:Cramer goes on tv every night and smacks a big buy or sell button with millions of viewers Cramer is well-aware of SEC rules about his TV appearances. He's run afoul of the SEC over the years and there are a million disclaimers on his show and very specific phrasing he must follow to not get prosecuted. Here is one of MANY examples of Cramer/SEC interactions: https://www.latimes.com/archives/la-xpm-2006-mar-01-fi-cramer1-story.html Meanwhile, the SEC itself has warned against web stock recommendations in the past, https://www.sec.gov/oiea/investor-alerts-and-bulletins/iastockrecommendations That link specifically highlights prosecution of people who: quote:Used different pseudonyms to publish multiple articles that promoted the same stock; and/or ...and all of that is basically endemic on WSB
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Jan 23, 2021 20:38
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ETF chat. You've all probably seen my posting about various useful or thematic ETFs over the past year. I sometimes get asked about them in discord. For anyone else diving into the world of ETFs, here is the complete list of ETFs in my TOS watchlist. This is about ~100 ETFs across all types of investments and provides a great baseline for anyone looking to explore:code:I am more than happy to answer questions about ANY specific ETF in that list, regarding why I decided to include it or when I might consider investing in it. pmchem fucked around with this message at 21:02 on Jan 23, 2021 |
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Jan 23, 2021 20:52
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pmchem posted:It's a weekend and it's been a while for a twitter list update. These were exported via tweetdeck.twitter.com and you can import them at that site. I just split my main #fintwit list into two lists: Does anyone have suggestions for a list of humorous financial/investing accounts? I'm thinking along the lines of... (I'm new to this corner of twitter so please warn me if any of these are toxic) @BagHolderQuotes @leveredlloyd @FinanceFrat @thestinkmarket @tumtonks @wallstmemes @ParikPatelCFA @FinTwiDipshits @thestonkmarket1 @CaptainNasdaq @VCBrags @StockMarketHats @Cokedupoptions @hardmoneymag @StockCats @TikTokInvestors
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Jan 23, 2021 20:55
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For those, unlike me, who actually know something about how the stock market works, does this take on WSB make sense? https://www.reddit.com/r/wallstreetbets/comments/l3fye9/how_fridays_gme_gamma_squeeze_may_trigger_a_short/ quote:I don't know if anyone else noticed, but Friday was kind of a big one for GME. It ripped face from $43 up to $75 in the morning session. That was loving wild, even for this autist's dream of a stock. I have 18 shares of GME, bought for an average of $52, and I've already made more than I expected to. I debated selling them all on Friday afternoon, but it was going so nuts at the end of trading that I just couldn't bring myself to. If I closed all my positions at the price the stock ended up at Friday afternoon, I'd make $230, which would be really cool. If the price tanks obviously I'll lose some cash, which will suck, but it wouldn't be the end of the world. So basically, from reading the above post on WSB (and many others saying effectively the same thing) there are apparently still a ton of shorts out there, and everyone on the planet is now aware that GME is shooting into the stratosphere and will want to buy in on Monday morning. That part I obviously understand, but the stuff about the short positions is a little more cryptic to me. Aren't the people with those short positions big investors and hedge funds and stuff? Can they not afford to ride this out and wait for the stock to inevitably tumble back down in a week or however long it takes?
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Jan 23, 2021 21:22
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Bardeh posted:https://www.reddit.com/r/wallstreetbets/comments/l3fye9/how_fridays_gme_gamma_squeeze_may_trigger_a_short/ As someone with zero shares of GME watching on the sidelines for all this... 
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Jan 23, 2021 21:25
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Sand Monster posted:Thanks, I will do some research on these. When you sell, how far out on expiration are you selling? Weeklies. My account and strategy is set up in such a way that it's best to look for premium on a weekly basis. Obviously everyone looks like a genius in a bull market, but I feel happy enough with my snowballing gains doing this that even if a drop does come for some reason, I'll have grown enough that the drop from 400% to 200% YTD isn't an issue. My rule of thumb is to look for 0.30 of premium per $10 of stock value for each put contract (ie. .60 for a $20 stock, etc). You can find that middle ground of .30 buy buying a few contracts at different strikes in a "[ITM] -> 1 -> 2 -> 4" strike OTM contract pattern usually, if that makes sense.
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Jan 23, 2021 21:25
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Also, he's back: https://twitter.com/jbizzathletics/status/1353032122680766465?s=20
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Jan 23, 2021 21:27
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AHH F/UGH posted:Weeklies. My account and strategy is set up in such a way that it's best to look for premium on a weekly basis. Obviously everyone looks like a genius in a bull market, but I feel happy enough with my snowballing gains doing this that even if a drop does come for some reason, I'll have grown enough that the drop from 400% to 200% YTD isn't an issue. My rule of thumb is to look for 0.30 of premium per $10 of stock value for each put contract (ie. .60 for a $20 stock, etc). You can find that middle ground of .30 buy buying a few contracts at different strikes in a "[ITM] -> 1 -> 2 -> 4" strike OTM contract pattern usually, if that makes sense. Yeah, my approach is basically that even selling "cheap" put contracts is making more in premium than I'd be receiving in interest in my "high interest" savings account, so I may as well go with that approach. Are you closing out a 0DTE expiration on a Friday and then selling into next Friday's expiration, so that it's exactly a 7 day rotation on the weeklys? So yesterday you would have closed out 22 Jan and sold a 29 Jan, or is it some other methodology?
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Jan 23, 2021 21:34
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The biggest thing is that the SEC does go after WSB a bunch. That’s why they pull it down all the time supposedly. Also the biggest difference too is that Cramer isn’t participating in what he espouses on his TV that much. I think he needed to divest from his fund to be on TV? and is for sure being watched by the SEC. WSB is clearly a small cabal of people (or a person?) doing pretty bog standard pump and dumps, just over Reddit/the internet. The SEC specifically says they prosecute people who pose as multiple people, or experts, on the internet in order to scalp. But Ponzi schemes are also blatantly illegal and guess how many billions were made by Bernie Madoff and his people/investors?
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Jan 23, 2021 21:35
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Sand Monster posted:Yeah, my approach is basically that even selling "cheap" put contracts is making more in premium than I'd be receiving in interest in my "high interest" savings account, so I may as well go with that approach. Typically yes, Friday is when I'll the majority of mine and get into the next week's positions. I'll close anything out that I can once it hits 0.01 because letting that extra dollar go is absolutely worth it to get into a new position for next week (or the occasional cheeky TSLA put credit spread). A sold put could go from 0.30 to 0.01 in a day and I'd be fine with that - it just frees my capital to get into another position and keep the juice flowing. If the strike price is breached on my sold puts or sold calls, I'll just take assignment or let the shares get called away, respectively. I like letting things move in and out of my account like that, it's a nice risk management strategy that I don't have to do anything for.
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Jan 23, 2021 21:42
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jokes posted:WSB is clearly a small cabal of people (or a person?) Eh... you really think so? I mean, there's 2,023,449 users subscribed, of which 74,156 are currently reading it on a Saturday afternoon. That's a hell of a lot. I think they're the #2 most active reddit community now. If you watch the daily thread during a trading day, it has tens of thousands of posts, and the aforementioned Discord group is enormous and incredibly active.
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Jan 23, 2021 21:43
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Bardeh posted:For those, unlike me, who actually know something about how the stock market works, does this take on WSB make sense? im going to throw a few hundred at some weeklies on open, we'll see what happens what the hell option chain expanded to $115 so gently caress it dude lets go bowling
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Jan 23, 2021 21:48
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I missed my shot at GME, I'm spread thin on so many SPACs and PLTR, TLRY, and BB. Don't wanna exit those positions. Not gonna touch my savings to get in on a huge meme. Too risky.
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Jan 23, 2021 21:52
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Sand Monster posted:Eh... you really think so? I mean, there's 2,023,449 users subscribed, of which 74,156 are currently reading it on a Saturday afternoon. That's a hell of a lot. I think they're the #2 most active reddit community now. If you watch the daily thread during a trading day, it has tens of thousands of posts, and the aforementioned Discord group is enormous and incredibly active. They're not deciding as a community to introduce pump and dumps like GME or whatever. It's a large community but I'm almost certain it's a handful of people leading the narrative because that's how these things always go. Strictly speaking if you were good at bots and were willing to break the law, just prep 50,000 comments pumping GME, buy some way OTM calls, and launch your botnet and maybe you end up making a few million. If not, you're out a couple grand and you can try again because all it cost you was like an hour of work because doing bot things on reddit is stupid easy. Porn on reddit is already a shitload of bots doing bot things for dumb reasons, imagine if they were motivated by literally millions of dollars to make their botnet do work. The real value of WSB is the people putting $1,000 into whatever the meme stock is with no understanding of what they're doing or what they're buying. Those idiots, times a million, can prompt algos and poo poo to join the pump and the guys who put in their $1000 or whatever are who ultimately is going to get hosed over. So if you can control the narrative with meme bots and get a bunch of idiots to buy bad stocks you can move the market in a serious manner. In criminal poo poo, generally speaking if you can imagine someone is doing a bad thing they'll do that bad thing. American finance is one of the most lucrative industries in the world and the SEC exists for a reason. But for criminals there's no reason not to do whatever will make money and a botnet/community control on reddit isn't out of the question. Chasing WSB is highly risky behavior for a billion reasons but, to me, it's terrifying in the wrong way. Buying OTM calls is fun when it's dumb speculation and it works out so you buy your wife a necklace or whatever and otherwise you just avoid buying a new TV. WSB is something else. It's like converting memes into momentum into money. Anyways what's the next pump stock from WSB? BB? jokes fucked around with this message at 22:01 on Jan 23, 2021 |
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Jan 23, 2021 21:54
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Wasn't one of the major (very demeaning) indicators of something wrong in the stock market of 1929 that "even janitors were interested in buying stocks?" "Newspapers would often publish stories of average school teachers, janitors, and taxi drivers striking gold with a “winner”—a stock that ended up soaring in price." I feel like the pump and dump obvious manipulation of WSB is going to be looked back on the same way. edit - "Picking stocks became a fun way to gamble. In order to participate in the seemingly risk-free market, people would often buy stocks on credit, which was readily available. This is a process known as margin buying, and borrowers could often buy stocks with just 10-20% of their own money. Even large banks were doing it with their own funds, taken from customers’ deposits." Shesh jeeves fucked around with this message at 22:04 on Jan 23, 2021 |
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Jan 23, 2021 22:01
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jokes posted:Anyways what's the next pump stock from WSB? BB? Seems to be. Comments/threads seemed to be around 50/50 focused on GME and BB on Wednesday before GME started blasting off and the sub filled almost exclusively with talk about that one stock.
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Jan 23, 2021 22:02
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Bardeh posted:For those, unlike me, who actually know something about how the stock market works, does this take on WSB make sense? I don't know enough about actual market operations to know exactly how this works in the context of a daily short squeeze but the gamma squeeze stuff sounds suspect to me. Normally a market maker would buy the underlying stock when they sell a call then distribute stock when the call is exercised. If MMs just wrote options then bought/sold the stock at options expiration they'd be wiped out every time there was a big move either way. But like I said there may be truth to the WSB post if there's operational issues in acquiring extremely illiquid stock that's moving very quickly and has a sudden spike in options volume, IDK. Hedge funds, etc get margin called just like people and if you had 5% of your portfolio short GME since $10 -- which is a reasonable thing that could exist for someone -- no, you can not necessarily afford to ride this out.
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Jan 23, 2021 22:17
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You have to be a bit dishonest to compare Cramer telling people to buy SHARES in Apple or SPY vs WSB hivemind rallying everyone to put their life savings into weekly options. Although WSB is not one person, whenever a thread that reaches the top has a stock that gains momentum(GME, PLTR). There tends to be some fundamental reason for the initial rally but then as they pile on with weekly calls and gamma hedging, short term momentum just takes over even more. I can't see how the SEC would stop WSB just because it's open internet board and they are not an org but I do think they could do something about Robinhood by putting some stricter requirements on signing up or using options. Also the doxxing, hacking doesn't help their case. I don't think right now there is enough but this has been just getting bigger and bigger. I think something will have to give. Also remember yes there is massive manipulation by some institutes/hedge funds but they are basically insiders and finance has always been the old buys club, they can ruin millions of lives and then send 1 guy to jail that's enough. jokes posted:Strictly speaking if you were good at bots and were willing to break the law, just prep 50,000 comments pumping GME, buy some way OTM calls, and launch your botnet and maybe you end up making a few million. If not, you're out a couple grand and you can try again because all it cost you was like an hour of work because doing bot things on reddit is stupid easy. Porn on reddit is already a shitload of bots doing bot things for dumb reasons, imagine if they were motivated by literally millions of dollars to make their botnet do work. I actually thought of this last year, you don't even need bots, if you have a bit of money it's insanely easy to push false narratives on reddit. Cause of the upvote system, award system its inherently easy. As someone who has worked in finance last 10 years, I will tell you there is a 0% chance this hasn't already happened or is happening right now. Technically it shouldn't work any stock that has large float cause WSB won't be able to affect it. But you could see some effect on the bid ask spread of options especially the lower caps ones. For this to happen on a large scale though you would need Robin Hood to enable OTC/pinksheets trading if they do that, it might be gameover for that subreddit. Because you will some pump and dumps of massive scale.
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Jan 23, 2021 22:36
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Ulio posted:You have to be a bit dishonest to compare Cramer telling people to buy SHARES in Apple or SPY vs WSB hivemind rallying everyone to put their life savings into weekly options. the overwhelming consensus on WSB is to specifically buy shares and hold, though. not options. yes there is option gain porn but at most people are recommending 80/20 share to options, since they need to drive that price up
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Jan 23, 2021 22:40
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I could see a lot of dishonesty and, well, pump n dump potential with any stock that has substantial short interest. I mean, once you see the start of a short squeeze and see 5% gains in a day you don't really need to manipulate the market anymore it's being handled for you since it's a community of memes and people looking for bags to hold so they release memes and "gains porn" and then another 10,000 dudes buy $1000 worth of GME and a bit more short positions get closed out and blah blah blah. The biggest hurdle for WSB as a criminal enterprise was just getting it popular in the first place. So I'd imagine you'll see some real movements for a while, then the SEC is going to arrest a couple dudes and it'll all tumble down and reddit closes the subreddit and a textbook writes about how democratizing trading and removing barriers of entry causes the exact same problems as democratizing, well, anything related to power and influence and letting everyone have a say in how things are done: truly malicious people take advantage of it for the wrong reasons. thats not candy posted:the overwhelming consensus on WSB is to specifically buy shares and hold, though. not options. yes there is option gain porn but at most people are recommending 80/20 share to options, since they need to drive that price up I agree. I think a lot of them buy stocks because they don't know what options are and options are juuuuuuuust a bit too esoteric for a guy who's investing based on comments off the internet.
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Jan 23, 2021 22:51
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Ulio posted:For this to happen on a large scale though you would need Robin Hood to enable OTC/pinksheets trading if they do that, it might be gameover for that subreddit. Because you will some pump and dumps of massive scale. WSB does not allow pennystocks though so I believe this statement would be false at least in regards to WSB.
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Jan 23, 2021 22:52
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DoubleT2172 posted:WSB does not allow pennystocks though so I believe this statement would be false at least in regards to WSB. Yeah they prohibit anything under 1B in valuation and aggressively ban any talk about SPAC's even.
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Jan 23, 2021 23:04
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I mean WSB is on the same side of the trade as Michael Burry who is probably the second most famous investment guy after Buffett so it's probably not fair to call GME a WSB pump and dump anyway.
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Jan 23, 2021 23:13
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Why did Tesla's stock drop after Elon Musk smoked weed?
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Jan 23, 2021 23:19
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On their discord (like the subreddit but x1000) all the chatter is BB and AMC.
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Jan 23, 2021 23:29
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punk rebel ecks posted:Why did Tesla's stock drop after Elon Musk smoked weed? Generally most would considering having a CEO who willingly gets an impaired state of mind isn't a good look for a 100+ billion dollar company. Spring Heeled Jack posted:On their discord (like the subreddit but x1000) all the chatter is BB and AMC. That discord is a pure nightmare cum dumpster fire. It's like the worst of thedonald.win and reddit smashed into one place with even less of a filter.
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Jan 23, 2021 23:37
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AHH F/UGH posted:Generally most would considering having a CEO who willingly gets an impaired state of mind isn't a good look for a 100+ billion dollar company. I mean they don't care about alcohol.
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Jan 23, 2021 23:40
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idk if should buy more BB or PLTR on Monday
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Jan 23, 2021 23:40
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AHH F/UGH posted:That discord is a pure nightmare cum dumpster fire. Why did you write "pure nightmare cum dumpster fire" twice in a row?
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Jan 23, 2021 23:41
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jokes posted:Why did you write "pure nightmare cum dumpster fire" twice in a row? Cumpster fire
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Jan 23, 2021 23:51
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Are there any good guides out there for someone who’s looking into trading options but also doesn’t want to lose their shirt?
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Jan 24, 2021 00:00
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err posted:idk if should buy more BB or PLTR on Monday Neither. Buy CCIV
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Jan 24, 2021 00:13
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In some non-gme-pump-and-dump discussion, About a year ago today was when coronavirus news was really hitting financial twitter and corporate media in earnest. We know how the market has gone since then. But I was interested to see what stocks are still not at their pre-crisis values. So I ran a TOS screen: stocks in the Russell 1000 that are at least 5% below their 270 day, 260 day, and 250 day past values (3 filters to deal with noise). 243 companies fit the screen. Here's the list, sorted by market cap, just for companies with a current market cap of $20b or greater: code:The defense stocks here actually look fairly attractive as a group, considering that their main income is from US and allied defense spending that is not going away even with dems controlling government. But, I'm sure their next quarterly earnings will be nothing to write home about. Longer term, there's a real good chance of increased world conflict in the aftermath of the pandemic (in my opinion) and their aviation-adjacent revenues will recover. The ETF plays for this sector are PPA (would be my choice due to $HON being in it) or ITA. Anyone think a contrarian defense sector play has value? I still own $TSN, which is in there. Go team chicken. $WBA is an interesting one, apparently their stock lost value because they hosed up management of their U.K. stores. Can anyone make a case for WBA? Don't people need pharmacies this year?
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Jan 24, 2021 00:46
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Spring Heeled Jack posted:Are there any good guides out there for someone who’s looking into trading options but also doesn’t want to lose their shirt? You're looking for covered calls. If you want to go a litter deeper than than look into a strategy called 'the wheel'. Then look for a company you don't mind holding that's on a slow uptrend and not extremely volatile. Then after two months of that, keep staring into the abyss of WSB meme returns and yeet some calls.
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Jan 24, 2021 00:47
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FistEnergy posted:Neither. Buy CCIV  🚀📈💰🤑scrolling through wsb right now and its full of newbies wanting in on gme that don't even know how to place an order for a stock. smells bad
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Jan 24, 2021 02:00
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pmchem posted:In some non-gme-pump-and-dump discussion, T is very interesting to me because DIS has skyrocketed over the potential of DIS+ and yet T has languished despite similar potential with HBOMax. Sure, they bungled the rollout but its Roku and Amazon issues have been resolved, and Warner Bros' controversial decision to launch their entire slate of new films on HBOMax day & date is hugely underpriced right now. And while T has had debt concerns for a while, they at least have legacy businesses that are printing money. Disney's previous cash cow, theme parks, has been ground to a halt. Agree re: the defense stocks. I'm particularly excited to own the ones that are involved in space: NOC LMT LHX RTX. I've omitted BA because their recent troubles have exposed a level of incompetence & complacency I'm not comfortable investing in. It wouldn't have made your list because it's not in Russell 1000, but if you're looking for a beaten up real estate stock, I'm very high on FRT. It's been consistently raising its dividend for 53 years, one of the few real estate dividend stocks that neither cut not suspended its div during the pandemic, and is still at a 30% haircut from its pre-pandemic prices. Right now it's just below a 5% yield too. With a light at the end of the pandemic tunnel, I'm pretty high on it as a recovery play
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Jan 24, 2021 02:03
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pmchem posted:In some non-gme-pump-and-dump discussion, I own KO, MO, VLO and LUV off that list. CSCO and IBM (and probably many others, like T probably) are there because of mismanagement, not delayed timing. I'm not a fan of banks or electric utilities. There's a bunch of names there I need to look into more heavily.
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Jan 24, 2021 02:20
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