Posted on 01/26/2021 9:36:23 PM PST by yesthatjallen
Amateur investors piled further into niche stocks on Tuesday, sending professional short sellers scrambling to cover losing bets, with GameStop skyrocketing for a fourth straight day, thanks in part to Elon Musk.
GameStop surged 50% in extended trade after Musk tweeted “Gamestonk!!”, along with a link to Reddit’s Wallstreetbets stock trading discussion group, where supporters affectionately refer to the Tesla CEO as “Papa Musk.” “Stonks” is a tongue-in-cheek term for stocks widely used on social media.
GameStop’s after-hours surge added to a 93% jump during Tuesday’s roller coaster trading session, with the videogame retailer’s stock propelled by traders on Wallstreetbets, many of them buying volatile call options.
The share spikes of the last few days are raising questions about potential regulatory clampdowns from the U.S. Securities and Exchange Commission.
“Such volatile trading fueled by opinions where there appears to be little corporate activity to justify the price movement is exactly what SEC investigations are made of,” said Jacob Frenkel, Securities Enforcement Practice Chair for law firm Dickinson Wright and former SEC enforcement attorney. The SEC declined comment.
SNIP
(Excerpt) Read more at reuters.com ...
Ever deal with this subset of the population?
Once they are aimed, they will play until they lose interest. Threats don’t work, because that just makes them double down.
Ever deal with this subset of the population?
Once they are aimed, they will play until they lose interest. Threats don’t work, because that just makes them double down.
____________________________________________________________
And that’s what makes this so entertaining to watch.
WallStreetBets Responds To The SEC: "Eat A ...
Update 5:55pm ET: In a day when regulators, brokerages, and even the administration launched a full court press to halt the marketwide short squeezes launched by Robinhood daytraders armed with stimmy checks and inspired by reddit's forums - because a few hedge funds complained or were put out of business - Reddit's infamous WallStreetBets, the alleged origin of many of these bull raids, has published a response to the SEC. We present it without commentary.
https://www.zerohedge.com/markets/sec-joins-biden-admin-actively-monitoring-option-volatility
I hate when people mince words.
It's not like they are getting companies to fix the price.
It's not like they are getting companies to sell their products below cost.
Getting a group together to buy the same stock at the same time is no different than getting everyone to flock to movie theaters on opening day for the newest Avengers movie. The company stock goes up just the same.
The problem is with the short sellers, not the long buyers. At least the buyers are trading cash for shares. The short sellers are selling shares they don't own on the bet that the price will fall and they can buy it back at a lower price. It's "buy low, sell high" in reverse order.
Now the shorters are forced to buy the appreciated shares that the gamers legitimately own to stop their own losses.
What kinds of regulations can be put in place? Would it be limits on how much can be shorted by one entity? Would it be limits on the total shares shorted that can't exceed total shares outstanding, or a percentage of that?
Because I don't think limiting the amount of shares one can own is constitutional. It would be an infringement on the freedom of association and free commerce to block the actual purchase of private property, but not the speculation on someone else's private property.
-PJ
I want a tee shirt with “Eat a Dick” on it.
So much for the profanity ban.
This is worth forgoing it.
Nonviolent revolution. Who can complain about that?
WSB is now locked and deplatformed.
Oh dear GOD those idiots are about to find out that with weaponized autism, the ride never ends.
I almost feel sorry for them.
Limiting who can buy and sell a stock, and the way in which they can do so. Say a stock trading license. Similar to paying someone for a hair cut.
Kind of funny how the license guilds work.
You chose poorly. You were supposed to buy frozen concentrated orange juice futures. DOH!
The forum's return came shortly after another notorious daytrader, Dave Portnoy vowed revenge for the downing of the portal, and in addition to revealing that he owns $1MM of AMC and NOK and may buy more, said that tomorrow would be the biggest day yet.
https://www.zerohedge.com/markets/sec-joins-biden-admin-actively-monitoring-option-volatility
Somebody is watching the action of specific hedge funds.
Why was Gamestop picked for the shortsell?
“Watch the regulatory Swamp Men try to change the rules to benefit their Wall Street Cronies.”
They are already talking about doing that today. And wallstreetbets.com has been shut down.
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