The Great Hedge Fund Hunt of 2021

[Spock]

They bought a lot of low strike price calls at a cheap price with the call seller's risk being unlimited. Most likely, the call sellers are hedge fund and other Wall Street types.

Someone who sells a call of a stock they own does not have unlimited risk. Selling a naked call, on the other hand, does have a high risk. My guess is that the people who sold the calls originally are the ones behind the big stock runup. They bought the stock slowly and quietly, lit the fire, and then cashed in their chips when the price skyrocketed. Jordan Bellfort feels the way I do, that this is a pump-and-dump that will be very difficult to prove.

OK, smarty pants, this is probably the one case where you can put your money where your mouth is. Put some skin in the game and short one share of GameStop on Monday. I would guess that you will make money on it in a short time. Or do you prefer to just sit on your throne and pontificate about how smart you are.

[silverscreenselect]

OK, smarty pants, this is probably the one case where you can put your money where your mouth is. Put some skin in the game and short one share of GameStop on Monday. I would guess that you will make money on it in a short time. Or do you prefer to just sit on your throne and pontificate about how smart you are.

If I want to gamble, I'll bet on the Super Bowl next week. It's a lot more fun than watching stock tickers go up and down.

[Bob Juch]

SSS>>>"If you make a bet at the race track, your potential loss is limited to the cost of the bet. A bunch of bettors still go home every day broke."<<<

1932 called. It wants its gambling reference back.

BobJ>>>Don't be a condescending asshole.

There are not plenty of articles on GameStop options. The Robinhood trading has been almost solely regular sales<<<<

Takes one to know one.

Please cite a link that this pump and dump is almost solely "regular sales" and that a Gamma squeeze played little part.

https://www.cnbc.com/2021/01/28/robinho ... top-s.html

[Bob78164]

SSS>>>"If you make a bet at the race track, your potential loss is limited to the cost of the bet. A bunch of bettors still go home every day broke."<<<

1932 called. It wants its gambling reference back.

BobJ>>>Don't be a condescending asshole.

There are not plenty of articles on GameStop options. The Robinhood trading has been almost solely regular sales<<<<

Takes one to know one.

Please cite a link that this pump and dump is almost solely "regular sales" and that a Gamma squeeze played little part.

https://www.cnbc.com/2021/01/28/robinho ... top-s.html

Which language in the linked article do you contend supports your point? Because I can't find it. --Bob

[Bob Juch]

BobJ>>>Don't be a condescending asshole.

There are not plenty of articles on GameStop options. The Robinhood trading has been almost solely regular sales<<<<

Takes one to know one.

Please cite a link that this pump and dump is almost solely "regular sales" and that a Gamma squeeze played little part.

https://www.cnbc.com/2021/01/28/robinho ... top-s.html

Which language in the linked article do you contend supports your point? Because I can't find it. --Bob

Are you kidding? The entire article talks about short selling causing the trouble, not about options.

[Bob78164]

https://www.cnbc.com/2021/01/28/robinho ... top-s.html

Which language in the linked article do you contend supports your point? Because I can't find it. --Bob

Are you kidding? The entire article talks about short selling causing the trouble, not about options.

Just because it talks about one cause of the problem doesn't mean it's taking the position that that's the only important cause. It's certainly not an attempt at a quantitative analysis.

I would expect most articles discussing the issue to talk about naked short sales rather than options simply because it's easier to explain to the general public: People are selling borrowed shares without actually borrowing them and they are legally obliged to do whatever it takes to fulfill their promises. --Bob

[silverscreenselect]

Looks like the Gamestop bubble has burst.

[silverscreenselect]

The family of a 20-year old college student who committed suicide last summer is suing Robinhood because he misunderstood the account details on his app and thought that he owed $730,000 (which he did not have). According to the lawsuit, he asked Robinhood for help or an explanation but never received it. It turns out that the paper loss could be erased by the exercise of various options he owned, something he obviously did not understand.

I'm not sure (1) how a college student with somewhat limited knowledge of investment transactions came to wind up with this particular portfolio, and (2) how Robinhood could allow this to happen.

https://www.cnn.com/2021/02/09/investin ... index.html

[Bob Juch]

The family of a 20-year old college student who committed suicide last summer is suing Robinhood because he misunderstood the account details on his app and thought that he owed $730,000 (which he did not have). According to the lawsuit, he asked Robinhood for help or an explanation but never received it. It turns out that the paper loss could be erased by the exercise of various options he owned, something he obviously did not understand.

I'm not sure (1) how a college student with somewhat limited knowledge of investment transactions came to wind up with this particular portfolio, and (2) how Robinhood could allow this to happen.

https://www.cnn.com/2021/02/09/investin ... index.html

Robinhood does no account management at all. That's probably their out. Their ToS that he accepted should have warned he was on his own.

[silverscreenselect]

This movie will be in theaters September 22. Note that Seth Rogen is playing one of the hedge fund executives.