Fidelity, Vanguard, TD, Etrade. More traditional brokers often have a higher barrier of entry for options trading though, making it harder to buy OTM weeklies lotto tickets.
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This is such bullshit.
They are currently protecting hedge funds that are holding a SHIT LOAD of naked shorts.
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That’s so 48 hours ago. Most of the major shorts are out by now.
The ironic part now is the shorts actually own the stock now and are most likely busy selling it to NooBs looking to buy into the frenzy.
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We didn’t start the class war, but we need to fight back.
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Holy crap, my cousin would hit the reset on the Intellivison if he was sucking.
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The barrier is you check a few boxes and go on your way.
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Not according to this guy:
https://twitter.com/OfWudan/status/1354823253068406787
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On RH, yes. Fidelity requires things like collateral and experience.
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Sell high for me; sell low for thee.
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Okay, so what I’m getting from Doctorow’s thread is that the stock market and shorts can actually be used for good and to ensure that a market and economy actually works effectively by sniffing out B.S. using shorts, but the stock market is mainly a place where only those with power can do whatever they want.
Based on my reading of this, my opinion is that even though the hedge funds who shorted GameStop were technically making a good bet thanks to the fact that digital distribution has eaten their lunch and will continue to eat their lunch, hedge funds are still bad in that they can do whatever they want. I’m glad that r/WallStreetBets has shined a light on how ludicrous the power dynamics of the stock market are. My hope is that this exposure is something that will actually enable the imbalanced dynamics to shift to where the stock market can actually be a reflection of events occurring in the global economy and also be used to hold lying companies accountable, rather than a playground for the uber-rich.
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Another lesson on engagement from AOC. This is how you do it!
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The hardware store asked me if I had my Melvin Farms corporate ID. When I told them I didn’t work for Melvin Farms, they politely informed me that due to limited supply, they were restricting pitchforks. They did, however, offer to sell me a tiki torch.
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“It’s not about populist outrage at rigged financial markets, it’s about ethics in gaming journalism”
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I don’t have an account with Robinhood so I don’t know what their requirements are. Getting approved for level 2 trading with Sharebuilder (now absorbed by E-Trade) was just a matter of checking the experience box and signing a disclaimer. There was little or no collateral requirement. Ameritrade was about the same.
Fidelity says this:
Anyone can trade options in their brokerage account, if approved. At Fidelity, this requires completing an options application that asks questions about your financial situation and investing experience, and reading and signing an options agreement. It is also possible to trade some options strategies in other types of accounts, such as an IRA.
So yeah, a checkbox and you’re on your merry way.
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That’s because old shorts are being replaced by new ones. They’re basically betting on the inevitable crash.
The only way WBS wins is if the stock keeps going up and up - which we know is impossible.
Hedge funds don’t stay in business without knowing how to hedge their bets.
So while older shorts are being squeezed out of their position, other short-sellers are establishing new ones, making the probability quite high they will profit handsomely when GameStop stock returns to earth, as it must.
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Sadly the opening line of this report:
Robinhood was founded to “provide everyone with access to financial markets, not just the wealthy.”
is completely incorrect. Robinhood was founded to give that appearance to draw in a large number of users so their trading data could be sold to their real customers microseconds ahead of the rest of the market. Their real customers? The hedge-funds.
So when Robinhood’s product (the users) starts colluding to their own advantage and explicitly targets hurting the hedge-funds, it put them in an awkward spot, to say the least. Seeing them step in and take action is, in some way, not surprising. I would be curious if it was in response to customer (hedge-fund) complaints, if it were so then just how legal is that?
Now it looks like Robinhood’s product (the users) may have an opportunity to raise complaints with the SEC, and join the recently opened class action suit.
It seems having an entire company based on a duplicitous mission statement of “democratizing finance for all” is coming back to bite them.
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Looks like the party’s over. All that’s left now is to start counting the bodies
It’s important for investors to understand that nothing fundamental has changed with these companies. There is no news out on any of these stocks that has driven these rallies over the last several days. The prices have been pumped by traders on Reddit to successfully squeeze out short-sellers.
But the pullback today shows that traders are beginning to take profits, meaning that these stocks could still have a long way to fall as all three of these businesses are still up significantly this year, and Bed, Bath & Beyond and Fossil Group are still in precarious positions.
…
Today’s decline likely means that yesterday was the peak of the rally, though there’s no way to know for sure. Still, if you happen to own one of these stocks, it makes sense to sell right now because over the long term, the fundamentals of these businesses don’t justify the valuations.
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Now they’re apparently forcibly selling people’s shares too.
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