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Let's talk about investing! Stock market, ETF, etc.


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Just now, Llevron said:

 

God honest the only reason I did this was cause I had money to play with and AMC was so down bellow where it looked like it normally should be back in march, I think. I wouldn't suggest knowing nothing like i currently do cause its a ****ing lot of catch up on in a short period of time. Its kinda stressful 

 

I feel you. Got a heavy interest in the looming advanced AI boom, and grabbing shares in that realm. I have no idea where and how to start tho

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30 minutes ago, Llevron said:

Dont laugh at me help me lol @tshile

Bro I’m in the same boat as you that’s why I’m laughing 😆 

 

the only difference is I’m not participating. 
 

And that’s not necessarily a good thing for me. 😂 

19 minutes ago, ExoDus84 said:

If you do, take my advice and set stop loss orders. Protect yourself.

Noob question 

 

stop loss orders only work if there are buyers when your trigger is hit, right?

 

ie: if it hits the trigger because everyone has decided to bail on the stock, and there are no buyers, you aren’t protected. Correct?

20 minutes ago, Llevron said:

 

God honest the only reason I did this was cause I had money to play with and AMC was so down bellow where it looked like it normally should be back in march, I think. I wouldn't suggest knowing nothing like i currently do cause its a ****ing lot of catch up on in a short period of time. Its kinda stressful 


I’ve always found a way to be happy selling early. Sure you didn’t make as much. But you made money. 
 

I’ve never found a way to be happy selling too late ;)

 

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3 minutes ago, tshile said:

Bro I’m in the same boat as you that’s why I’m laughing 😆 

 

the only difference is I’m not participating. 
 

And that’s not necessarily a good thing for me. 😂 

 

I was for real over here like 

help me phone GIF

 

 

 

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1 hour ago, tshile said:

Noob question 

 

stop loss orders only work if there are buyers when your trigger is hit, right?

 

ie: if it hits the trigger because everyone has decided to bail on the stock, and there are no buyers, you aren’t protected. Correct?

 

 

You are correct to a degree. Stop losses are based on the current market price. If everybody herds towards the exits at the same time, the sales engine will trigger your stop loss, but the actual price you get might be lower than the price you set it at. This is called slippage, and it's determined by the available liquidity at your stop loss point. You aren't, per se, guaranteed to get your stop loss price if tens of millions of dollars in sales happen all at the same time. There needs to be liquidity (buyers, in this case) at the time the order is triggered.

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6 minutes ago, Dr. Do Itch Big said:

That’s a huge stretch to say they are saving jobs during a pandemic. Let’s not make it more than it needs to be. 

 

Can't speak for AMC but Gamestop I do know about. They have a ****ty image when it comes to how they treat their employees recently (last few years). They fired a lot of non entry level positions a year or so back and basically now rely on part time entry level schlepps to sell their Pro membership and disc insurance. 

Edited by The Evil Genius
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Hedge funds routinely bet against companies and the broader market, and their actions often spook investors, resulting in enormous gains for the risks they took.

 

I have not heard a good argument for protecting hedge funds against the risks they willingly took on, just because it turned out that the risks were bigger than they could stomach.

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47 minutes ago, The Evil Genius said:

 

Can't speak for AMC but Gamestop I do know about. They have a ****ty image when it comes to how they treat their employees recently (last few years). They fired a lot of non entry level positions a year or so back and basically now rely on part time entry level schlepps to sell their Pro membership and disc insurance. 

Have they actually held off on firing people or hired people? If so then how is it saving jobs. Like how do we know they aren’t still relying on entry level people. 

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Someone that’s more knowledgeable help me out here, if you’re willing

 

how is what these people done even approaching the level of illegal? Hedge funds do the same thing except their power is in access to money. In this case the power is in access to a lot of people, who together can amass enough money to play the same game. But ultimately it’s the same game, with the same rules. 
 

and, if you can explain why the conversation of illegality at least has merit, then where do we draw the line between people that planned it and people that read about it via public sources of information and joined in? Is there a difference? How would the sec even parse that

 

How is shutting down the markets not illegal. It’s not a mystery what’s going on. It’s public information and a trending topic. It’s everywhere. And anyone could join or go against it. And it’s not investing - options trading is gambling - so it’s not like they can just claim they’re trying to protect investors. 
 

im not an anti corporation guy, I mean I enjoy sticking it to someone that usually skates away from everything mostly unscathed, but it’s not like this is hitting on some special note for me.

 

but I’m absolutely an anti-unfair person. I’m usually flexible on the rules but I’m not flexible on applying them evenly or making them easily understood. 
 

why the **** would accounts be locked out. Or trading halted. Or why should there be investigations. Or rule changes. 
 

every time the economy collapses we make demands on them and they get away with nothing. 
 

one of them gets scratched and publicly humiliated one time and now all these calls for regulator action?

 

get the **** out of here

Edited by tshile
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16 hours ago, tshile said:

Someone that’s more knowledgeable help me out here, if you’re willing

 

how is what these people done even approaching the level of illegal? Hedge funds do the same thing except their power is in access to money. In this case the power is in access to a lot of people, who together can amass enough money to play the same game. But ultimately it’s the same game, with the same rules. 
 

and, if you can explain why the conversation of illegality at least has merit, then where do we draw the line between people that planned it and people that read about it via public sources of information and joined in? Is there a difference? How would the sec even parse that

 

How is shutting down the markets not illegal. It’s not a mystery what’s going on. It’s public information and a trending topic. It’s everywhere. And anyone could join or go against it. And it’s not investing - options trading is gambling - so it’s not like they can just claim they’re trying to protect investors. 
 

im not an anti corporation guy, I mean I enjoy sticking it to someone that usually skates away from everything mostly unscathed, but it’s not like this is hitting on some special note for me.

 

but I’m absolutely an anti-unfair person. I’m usually flexible on the rules but I’m not flexible on applying them evenly or making them easily understood. 
 

why the **** would accounts be locked out. Or trading halted. Or why should there be investigations. Or rule changes. 
 

every time the economy collapses we make demands on them and they get away with nothing. 
 

one of them gets scratched and publicly humiliated one time and now all these calls for regulator action?

 

get the **** out of here

I can't answer but 100% agree - how this is ok and they are allowing this to happen is beyond me - these stocks have absolutely tanked because they have shut down buying on a number of brokers.  want to talk about market manipulation?  this is the very definition of it.

Edited by steve09ru
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Ok with this whole GME mess and led me to general question about calls/and puts.

 

From the seller's perpsective, they are selling options to the buyer.   For a call option, they are selling the right to buy the stock within some time frame in the near future(weeks/months), for a price that is less than current value.  For a put option, they are selling the right for the buyer sell the stock at some price higher than current value.    However, while the buyer has a right to buy/sell the underlying stock, they don't have an obligation.  The seller, on the other hand, has an obligation to buy/sell the stock when the option expires if the buyer exercises it.   So what I'm wondering is, as a seller if you "win" the bet, how do you make money because the buyer can simply not exercise the option.   Does the buyer have to pay a high premium to get the option in the first place?  

Edited by DCSaints_fan
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18 minutes ago, DCSaints_fan said:

Ok with this whole GME mess and led me to general question about calls/and puts.

 

From the seller's perpsective, they are selling options to the buyer.   For a call option, they are selling the right to buy the stock within some time frame in the near future(weeks/months), for a price that is less than current value.  For a put option, they are selling the right for the buyer sell the stock at some price higher than current value.    However, while the buyer has a right to buy/sell the underlying stock, they don't have an obligation.  The seller, on the other hand, has an obligation to buy/sell the stock when the option expires if the buyer exercises it.   So what I'm wondering is, as a seller if you "win" the bet, how do you make money because the buyer can simply not exercise the option.   Does the buyer have to pay a high premium to get the option in the first place?  


I think I understand your question. And I bet the answer is they make money by not making enemies of the big fish. 
 

I obviously have no way to know if that’s true though. 

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1 hour ago, DCSaints_fan said:

So what I'm wondering is, as a seller if you "win" the bet, how do you make money because the buyer can simply not exercise the option.   Does the buyer have to pay a high premium to get the option in the first place?  

I’m not sure your understanding is exactly correct. 
 

im an options noob. I don’t even bother with them 

 

but in your scenario the seller should be left holding a stock worth more than they paid. And it should be worth the price the buyer was supposed to pay you. So even if the specific buyer didn’t purchase it you can sell it to the market. 
 

but I don’t know that your understanding is correct. 
 

 

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14 minutes ago, tshile said:

I’m not sure your understanding is exactly correct. 
 

im an options noob. I don’t even bother with them 

 

but in your scenario the seller should be left holding a stock worth more than they paid. And it should be worth the price the buyer was supposed to pay you. So even if the specific buyer didn’t purchase it you can sell it to the market. 
 

but I don’t know that your understanding is correct. 
 

 

 

According to the video below the seller has the obligation, while the buyer has the right.

 

Apparently options do "expire" all the time without the buyer exercising them, because they are worthless - in this case the buyer loses the premium.    So these short sellers must be charging large premiums wrt the current stock value in order to make any money on the short sell (a call option) 

 

Then there are differences between "American" and "European" options, which is another topic

 

 

Edited by DCSaints_fan
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