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Discussion ***Official*** 2021 Stock Market Thread

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All is not lost Dash. There are still plenty of opportunities out there, we just have to find them.

I was trying to find as many pros and cons of Gamestop beyond the "infinity short squeeze".

Gamestop has 5,000 freaking stores that are not as productive as they used to be (to say the least). Sears and JC Penney also had lots of store before they bit the dust. But GME has lots of investor enthusiasm and that can be harnessed.

I think GME is extremely overvalued ATM and would be cautious. But I had an idea. Since there is new leadership at GME and an activist investor now has board seats, I wonder if they would consider something like converting some locations into weed dispensaries. Then they can create a new subsidiary called "WeedStop" in states where its legal to sell.

Another idea is expanding the product lines and start selling things people can use on daily basis like MegaMilions tickets, chicken tenders and Red Bull. Or maybe selling shares, buying up the leases and closing all the stores. Then they can be 100% online sales of weed, Mega Millions tickets, chicken tenders and Red Bull.

Who knows. For now I have no position in GME as my 400 shares will almost certainly be assigned.🙁

(this post was for entertainment only) 😀
 
FelixDeCat said:
Im not sure what the story is on BB and why it continues to climb. Is it all momentum or if is there a real story and potential ... and thus a PT ($25 maybe?). Otherwise who knows what BB is really worth and if even $15 is too much.

Bargain priced or just lottery tickets?
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News stated that BB was working with AWS on some of their systems, possibly for some of the AMZN investments with electric cars, etc. I look at BB though and picture a company that likely had a lot of skilled talent leave...umm...8+ years ago. Anyone jumping in is purely speculating on Amazon's success by fixing problems with money where BB may not have the initial capitol.
 
FelixDeCat said:
All is not lost Dash. There are still plenty of opportunities out there, we just have to find them.
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Correct you are.

I tried something new the past two days. I saw that INO was offering shares and subsequently plunged. That's right in my wheelhouse. Ended up selling some 8 puts for decent money when it slid under 9. Normally I'd end it there.

But then I thought: if your instinct is telling you INO is a decent bet where it is (it seems to have 9 downward resistance) why not go back to the well?

I ended up carpet bombing the stock. I not only sold more 8's, I sold 7's and 6's as well, across all of my accounts. And as of now - they're all green. Is it risky? Sure. I guess we'll see how good my instinct really is lol.
 
Scarpozzi said:
News stated that BB was working with AWS on some of their systems, possibly for some of the AMZN investments with electric cars, etc. I look at BB though and picture a company that likely had a lot of skilled talent leave...umm...8+ years ago. Anyone jumping in is purely speculating on Amazon's success by fixing problems with money where BB may not have the initial capitol.
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They also settled a big lawsuit iirc.
 
So I read up on all the hoopla with GME. Usually, I steer clear of the wallstreetbets insanity. But I think this is actually pretty hilarious. I might grab 10 shares Monday morning just for the fun of it. Hopefully ride them up a bit then bail.
 
Train said:
So I read up on all the hoopla with GME. Usually, I steer clear of the wallstreetbets insanity. But I think this is actually pretty hilarious. I might grab 10 shares Monday morning just for the fun of it. Hopefully ride them up a bit then bail.
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I'm really tempted to do the same, but don't know much about options. I'm curious how many puts are out there propping the price up.
 
Scarpozzi said:
I'm really tempted to do the same, but don't know much about options. I'm curious how many puts are out there propping the price up.
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Ya I don't mess with options. I will just buy them outright and hold til I see a gain. From what I read, the short squeeze is real and the price can only go up as the short-sellers scramble to cut losses. The risk is that GME is going to dilute the shares to take advantage of the high price.
 
I sold some of the crap I bought with my original $1200 stim money that went up but hasn't done anything for awhile and bought GME at $38. I'm just looking at as playing with free money.
 
I checked with Interactive Brokers and there's currently 4,000 shares of GME available to short. That's it. 4 lenders with measly 4,000 shares total to lend. lol. Borrow rate is 32.70%. If I owned GME shares, I could let IB lend out my shares and receive 32.62% extra interest return just from borrow rebate.

66LEmIgh.jpg


Shorts are so fucked. They're getting screwed from gamma squeeze, short squeeze, and hard to borrow interest fee. Borrow fee compounds even on weekends so everyday they're short GME, shorts are paying 32.70%/365 interest on their short position.
 
How does one go about lending out shares (of any stock, not GME specifically) to shorters and collecting the interest?
 
Train said:
How does one go about lending out shares (of any stock, not GME specifically) to shorters and collecting the interest?
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Interactive Brokers Pro lets you opt in or out if you want to lend out your shares. They take small cut if they lend out your shares while giving you the bulk of the borrow rebate. Just because you opt in the program doesn't automatically mean your shares will be lent out. Easy to borrow shares like Apple will pay very little and have ton of supply so chances of your shares being lent is very small. But for hard to borrow shares like GME, your shares will 100% be lent out and you'll start collecting borrow rebate interest daily. But borrow fee changes daily depending on supply and demand and stock can go from hard to borrow to easily borrow. TSLA shares used to be hard to borrow but now there's > 10 million shares available to borrow at IB. I haven't checked Lemonade recently but that was also very hard to borrow stock with borrow rebate extremely high. The highest one I remember recently was Nikola last summer. Borrow rate on Nikola was over 260% because it was almost impossible to borrow. I read about someone who got assigned short NKLA shares through options because they didn't close it out during 3 day weekend. They were short like $300,000 worth of NKLA. While the market was closed on Sat, Sun, and Monday holiday, borrow fee interest accumulated on the $300k NKLA short position. That person owed like $6,400 in borrow interest for the 3 days while the market was closed. Everyday, the borrow interest on that $300k NKLA position was another $2,200 in interest. That person learned valuable lesson on borrow fee on hard to borrow shares. I guarantee you he will never forget that lesson.

I have accounts at 5 different brokerages and IB is the only one that gives me the option to lend out my shares for a fee. Others might have similar program if you call and negotiate provided you have large sized account. Pretty much everything is negotiable when it comes to finance. Whether or not they cater to you depend on if you're worth their time or not and big enough fish.
 
Another sign of how crazy the options market can be:

I sold 20 $6 BB puts for March a while ago when BB was still pretty low (I think around $7) for about $950. Of course as BB has risen the market value of the puts has declined.

So I was thinking I might buy them back today and sell something else. Guess what?

The puts are UP in value like $300. lol
 
TSLA doing its thing. Another day. Another all time high for TSLA.

dasherHampton said:
Another sign of how crazy the options market can be:

I sold 20 $6 BB puts for March a while ago when BB was still pretty low (I think around $7) for about $950. Of course as BB has risen the market value of the puts has declined.

So I was thinking I might buy them back today and sell something else. Guess what?

The puts are UP in value like $300. lol
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That's not crazy. That's rational and perfectly normal. It's because IV on BB options have shot through the roof now. When you sold your puts, BB stock wasn't that volatile so IV wasn't as high. Now it is and MM want to be compensated for making market for the volatile options. Swings are much bigger.

I sold TSLA Jan 2022 $1,400 covered calls like 2 weeks ago when TSLA stock was lower than today. The call price is lower today even though TSLA stock is at higher level and at all time high because the IV on the calls are lower. Always take a look at IV before you buy or sell options. That's like #1 rule of option.
 
10 am margin calls for GME shorts. lol. I bet some of the GME shorts are getting automatic closeout and the brokers are buying back the shares to protect themselves from their dumb short clients going broke.
 
ponyo said:
10 am margin calls for GME shorts. lol. I bet some of the GME shorts are getting automatic closeout and the brokers are buying back the shares to protect themselves from their dumb short clients going broke.
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On a hunch I bought 100 OSTK @ 73.50
 
Now the real squeeze is starting on GME. Last week was mostly gamma squeeze. Now it's short squeeze. I'm so happy for WSB autists. They have won the game and many are becoming rich. This is true Robinhood where the poor takes the money from the rich. You're literally seeing transferring of wealth from the evil hedge fund rich boys to the poor WSB basement dwellers. Collectively, WSB is stronger and more powerful than any investment banks or hedge funds. And now these WSB autists have some serious bankroll they can play with, they're going to start influencing other parts of the market. They will take some of their winnings and buy Tesla cars. They will buy other stocks. They will buy houses. I love it!
 
I keep seeing these days the phrase "stocks only go up", kind of like real estate.

Call me crazy but I am old enough to remember the real estate crash of 1986.

My parents bought a home during the inflation bubble of the late 70s and early 80s. They had a 12% fixed rate mortgage.

By 1986 it was worth 1/2 what they paid for it.

Part of that was due to Reagan removing lots of RE investor tax breaks forcing the overleveraged to vomit up homes and commercial RE for pennies on the dollar.

This eventually lead to the S&L crisis of the late 1980s.
 
FelixDeCat said:
I keep seeing these days the phrase "stocks only go up", kind of like real estate.

Call me crazy but I am old enough to remember the real estate crash of 1986.

My parents bought a home during the inflation bubble of the late 70s and early 80s. They had a 12% fixed rate mortgage.

By 1986 it was worth 1/2 what they paid for it.

Part of that was due to Reagan removing lots of RE investor tax breaks forcing the overleveraged to vomit up homes and commercial RE for pennies on the dollar.

This eventually lead to the S&L crisis of the late 1980s.
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They're trying to shake people with diamond hands and scare them into selling. Of course, you have toilet paper hands so all they need is little water and you'll fold in a heartbeat.

You need balls and diamond hands to make big money. And WSB is completely correct. "stonks only go up."
 
FelixDeCat said:
I keep seeing these days the phrase "stocks only go up", kind of like real estate.

Call me crazy but I am old enough to remember the real estate crash of 1986.

My parents bought a home during the inflation bubble of the late 70s and early 80s. They had a 12% fixed rate mortgage.

By 1986 it was worth 1/2 what they paid for it.

Part of that was due to Reagan removing lots of RE investor tax breaks forcing the overleveraged to vomit up homes and commercial RE for pennies on the dollar.

This eventually lead to the S&L crisis of the late 1980s.
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It seems like the current set of regulations and business climate has kept things very stable, with only COVID causing the disruption.
 
Its to good to be true. I dont know man, somehow the government is going to screw the little guy when they see many making bank.

I would love to know a stat on the number of new millionaires created last year.
 
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