Anonymous
Post 01/28/2021 16:48     Subject: Re:Gamestop
Also from Bloomberg: RH said to draw on credit lines from banks amid tumult. LOL
Anonymous
Post 01/28/2021 16:44     Subject: Re:Gamestop
Bloomberg trailer just now on screen: RH to allow limited buying. Can't wait to see all the restrictions they pile on.
Anonymous
Post 01/28/2021 16:41     Subject: Re:Gamestop
Anonymous wrote:
Anonymous wrote:I just heard from someone that RH is selling people’s GME shares without their consent..anyone else heard this or can verify? Don’t know if it’s a crazy rumor or not


If they can't make a margin call, RH can legally sell their shares.

Margin buyers have very few rights.


The problem is that RH didn't even make the margin call. They straight up sold the positions at the bottom of the market.

RH also canceled overnight cash purchase orders of the single name equities. Totally crazy and unethical.
Anonymous
Post 01/28/2021 16:35     Subject: Re:Gamestop
Anonymous wrote:
Anonymous wrote:I just heard from someone that RH is selling people’s GME shares without their consent..anyone else heard this or can verify? Don’t know if it’s a crazy rumor or not


If they can't make a margin call, RH can legally sell their shares.

Margin buyers have very few rights.


Considering that they barred people from buying at the same time to drive down the price, I'm thinking their insurers are talking to their lawyers about how to get out of covering the settlements.
Anonymous
Post 01/28/2021 16:23     Subject: Re:Gamestop
Anonymous wrote:I just heard from someone that RH is selling people’s GME shares without their consent..anyone else heard this or can verify? Don’t know if it’s a crazy rumor or not


If they can't make a margin call, RH can legally sell their shares.

Margin buyers have very few rights.
Anonymous
Post 01/28/2021 16:21     Subject: Re:Gamestop
Anonymous wrote:I just heard from someone that RH is selling people’s GME shares without their consent..anyone else heard this or can verify? Don’t know if it’s a crazy rumor or not


Yes, if they were on margin over a certain percentage (I'm not using the correct terminology). This isn't investment or legal advice.
Anonymous
Post 01/28/2021 16:19     Subject: Re:Gamestop
Anonymous wrote:I just heard from someone that RH is selling people’s GME shares without their consent..anyone else heard this or can verify? Don’t know if it’s a crazy rumor or not


unless they made the decision to move from facing lawsuits to facing prison, I doubt it
Anonymous
Post 01/28/2021 16:16     Subject: Re:Gamestop
I just heard from someone that RH is selling people’s GME shares without their consent..anyone else heard this or can verify? Don’t know if it’s a crazy rumor or not
Anonymous
Post 01/28/2021 16:14     Subject: Gamestop
Anonymous wrote:I was on hold with e-trade (about something else) and the recording said they would not trade $GME or $AMC. I gave up with waiting on the phone and tried to chat online and the estimated wait time is 310 minutes. Wild


Vanguard or Fidelity.
Anonymous
Post 01/28/2021 16:08     Subject: Gamestop
I was on hold with e-trade (about something else) and the recording said they would not trade $GME or $AMC. I gave up with waiting on the phone and tried to chat online and the estimated wait time is 310 minutes. Wild
Anonymous
Post 01/28/2021 15:56     Subject: Gamestop
PP here, thank you! I am reading the investopedia. The "real world examples" are simple enough for my financially illiterate brain to understand, haha.

We bought BBBY months ago, turns out that's part of this wave, too.
Anonymous
Post 01/28/2021 15:50     Subject: Gamestop
https://www.youtube.com/watch?v=MiybniIIvx0&t=328s


^
Anonymous
Post 01/28/2021 15:49     Subject: Gamestop
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:OK I read like 3 articles and I *think* I finally understand what short selling is. Someone thinks a stock is going to go down, so they borrow shares at a certain price (say, $10) and pay a fee for doing so. Then when the price goes down to say $5, they buy a bunch of shares on the open market at the lower price to pay back the ones they borrowed. Is that right? So they sell the borrowed ones for 10 and buy replacements at 5, and make $5 per share (minus the borrowing fee).

if so, what is "naked" shorting? Something about not having a timeline on the borrowing? I need someone to ELI5 all of this haha.


Naked means not owning the underlying shares.


PP here - so that means they're on the hook for the shares they already short sold, and have to get them wherever they can - like buying on the open market at a high price? And in this case I guess there aren't that many shares out there in the first place.

Now I need to figure out what calls and options are. If anyone knows of a good 101-level resource (other than Wikipedia) I'd love it!


Investopedia is how I learned everything.

This guy provides a great breakdown.

https://www.youtube.com/watch?v=MiybniIIvx0&t=328s


https://www.investopedia.com/terms/c/calloption.asp
Anonymous
Post 01/28/2021 15:42     Subject: Gamestop
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:OK I read like 3 articles and I *think* I finally understand what short selling is. Someone thinks a stock is going to go down, so they borrow shares at a certain price (say, $10) and pay a fee for doing so. Then when the price goes down to say $5, they buy a bunch of shares on the open market at the lower price to pay back the ones they borrowed. Is that right? So they sell the borrowed ones for 10 and buy replacements at 5, and make $5 per share (minus the borrowing fee).

if so, what is "naked" shorting? Something about not having a timeline on the borrowing? I need someone to ELI5 all of this haha.


Naked means not owning the underlying shares.


PP here - so that means they're on the hook for the shares they already short sold, and have to get them wherever they can - like buying on the open market at a high price? And in this case I guess there aren't that many shares out there in the first place.

Now I need to figure out what calls and options are. If anyone knows of a good 101-level resource (other than Wikipedia) I'd love it!


Investopedia is how I learned everything.

https://www.investopedia.com/terms/c/calloption.asp
Anonymous
Post 01/28/2021 15:41     Subject: Gamestop
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:OK I read like 3 articles and I *think* I finally understand what short selling is. Someone thinks a stock is going to go down, so they borrow shares at a certain price (say, $10) and pay a fee for doing so. Then when the price goes down to say $5, they buy a bunch of shares on the open market at the lower price to pay back the ones they borrowed. Is that right? So they sell the borrowed ones for 10 and buy replacements at 5, and make $5 per share (minus the borrowing fee).

if so, what is "naked" shorting? Something about not having a timeline on the borrowing? I need someone to ELI5 all of this haha.


Naked means not owning the underlying shares.


PP here - so that means they're on the hook for the shares they already short sold, and have to get them wherever they can - like buying on the open market at a high price? And in this case I guess there aren't that many shares out there in the first place.

Now I need to figure out what calls and options are. If anyone knows of a good 101-level resource (other than Wikipedia) I'd love it!


I think you got this. Now you know why retail investors are fuming that RH etc have prohibited them from buying GME (which would drive the price upward, complicating the HF's situation) and only allowing sales (which would drive the price downward, benefiting the HFs).