Anyone participating in the GameStop short squeeze?

February 05, 2021, 04:08 PM

Some of the WSJ readers responses are interesting: {their comments not mine]

What an absolute ludicrosity is this "broker."

The founders look like children.

ROBINHOOD: The Broker For Fools.

(Hey Don Draper, think that will sell?)

The comments on Wallstreetbets on Redditt are hilarious, inane, profanity laced and in general exposes the financial ignorance of the posters. Does anyone go to B-school anymore or is art all the rage now at colleges? Asking for my nephew.

There are a number of comments suggesting that the regulators and tort attorneys will be dropping by.

February 11, 2021, 12:11 PM

smschulz

So GME is currently at $48.
Do you think the reason it is still that high is because of all the "squeezers" who didn't bail in time and are still holding the bag?

February 11, 2021, 12:25 PM

FishOn

Jan 28

quote:
Originally posted by FishOn:
when the order flow finally swings back under institutional control this is going to get crushed.

From the 400s to 49. That is _crushed_.

February 11, 2021, 12:34 PM

Aeteocles

Yeah, I definitely took a big swan dive from $380 to $90. My wife gives me some ribbing for the money lost, but I remind her that I was playing with previous profit.

February 11, 2021, 12:50 PM

FishOn

I may be a bit early, but today I went 100% cash in retirement accounts. Went all in last March/ April.

February 11, 2021, 01:13 PM

Aeteocles

quote:
Originally posted by FishOn:
I may be a bit early, but today I went 100% cash in retirement accounts. Went all in last March/ April.

I didn't have significant money the last couple bubbles, so maybe you can help me with your previous experience if you have it:

Assuming I had cash set aside for emergencies (upwards of a year in expenses), would going to cash in my retirement accounts be better than going to bonds? My fear is that cash is getting wrecked by inflation.

What alternatives to cash are there to protect investments in a crash?

We already have a single rental property that is valued at over a million (due to really high housing costs) and we are considering selling that and getting 2 smaller condos that would be a little more recession proof.

Accumulating gold and silver seems silly right now with high cost. Even Bitcoin is really high.

I feel like I'm watching my money lose value every day .

February 11, 2021, 01:17 PM

FishOn

quote:
Originally posted by Aeteocles:
quote:
Originally posted by FishOn:
I may be a bit early, but today I went 100% cash in retirement accounts. Went all in last March/ April.

I didn't have significant money the last couple bubbles, so maybe you can help me with your previous experience if you have it:

Assuming I had cash set aside for emergencies (upwards of a year in expenses), would going to cash in my retirement accounts be better than going to bonds? My fear is that cash is getting wrecked by inflation.

What alternatives to cash are there to protect investments in a crash?

We already have a single rental property that is valued at over a million (due to really high housing costs) and we are considering selling that and getting 2 smaller condos that would be a little more recession proof.

Accumulating gold and silver seems silly right now with high cost. Even Bitcoin is really high.

I feel like I'm watching my money lose value every day .

Those are very significant questions, and it would be worth paying a financial advisor. Find a CFP with good references. Pay for the advice, and do the investing on your own. Way too much going on there to take opinions from strangers on the internet

February 11, 2021, 01:24 PM

Aeteocles

quote:
Originally posted by FishOn:
quote:
Originally posted by Aeteocles:
quote:
Originally posted by FishOn:
I may be a bit early, but today I went 100% cash in retirement accounts. Went all in last March/ April.

I didn't have significant money the last couple bubbles, so maybe you can help me with your previous experience if you have it:

Assuming I had cash set aside for emergencies (upwards of a year in expenses), would going to cash in my retirement accounts be better than going to bonds? My fear is that cash is getting wrecked by inflation.

What alternatives to cash are there to protect investments in a crash?

We already have a single rental property that is valued at over a million (due to really high housing costs) and we are considering selling that and getting 2 smaller condos that would be a little more recession proof.

Accumulating gold and silver seems silly right now with high cost. Even Bitcoin is really high.

I feel like I'm watching my money lose value every day .

Those are very significant questions, and it would be worth paying a financial advisor. Find a CFP with good references. Pay for the advice, and do the investing on your own. Way too much going on there to take opinions from strangers on the internet

I'm highly distrustful of anyone trying to tell me to do anything with *my* money. But, I like to hear what people are doing with *their* money

.

Thanks though!

February 11, 2021, 01:41 PM

old rugged cross

There are many options. Opportunities and risks of course.

Here is my advise. Spend some time figuring out where you want to go. I mean, really want to go and the time lines to get there.

Once you have that figured out for the most part. A plan on how to get there becomes a lot more clear.

As an example. If you have a million dollars in cash available. Break in down to tens of thousands and put it where it makes sense based on where you want to go and the amount of time you have allotted to get there. And of course adjust over time as becomes necessary.
I still think diversification wins out.

February 11, 2021, 02:00 PM

architect

quote:
Originally posted by nhracecraft:
^^^I have AT&T stock that I inherited from my Father, who worked for AT&T for over 50 years, though I don't have anywhere near 10K shares.

How can that be? The current AT&T (Cingular+BellSouth later acquired by SBC Communications) has only been in business for about 15 years. Many people believe that the current AT&T International, Inc. is the same company as the AT&T Corporation, which evolved from the Bell Telephone Company founded by Alexander Graham Bell, and which used to provide virtually all the "land line" telephone service in the US. Cingular adopted the name circa 2004 after buying AT&T Wireless (AKA "Cellular One" at the time). Instead, the assets of the original AT&T Corporation, formed in 1885, are now the property of SBC Communications Inc., previously Southwestern Bell, one of the original "baby Bells" that emerged from the antitrust breakup of the "original AT&T" (AKA "Ma Bell") in 1982. SBC acquired Cingular in 2005, and promptly changed their name to "AT&T, Inc."

I am not doubting that you hold AT&T stock, but it isn't the same company your dad worked for.

February 11, 2021, 02:01 PM

doublesharp

Study up on dogs of the dow theory and stick with dividend aristocrat type stocks. not particularly sexy but it works.

February 11, 2021, 02:49 PM

bogeyman

quote:
Originally posted by nhracecraft:
^^^I have AT&T stock that I inherited from my Father, who worked for AT&T for over 50 years, though I don't have anywhere near 10K shares.
How can that be? The current AT&T (Cingular+BellSouth later acquired by SBC Communications) has only been in business for about 15 years. Many people believe that the current AT&T International, Inc. is the same company as the AT&T Corporation, which evolved from the Bell Telephone Company founded by Alexander Graham Bell, and which used to provide virtually all the "land line" telephone service in the US. Cingular adopted the name circa 2004 after buying AT&T Wireless (AKA "Cellular One" at the time). Instead, the assets of the original AT&T Corporation, formed in 1885, are now the property of SBC Communications Inc., previously Southwestern Bell, one of the original "baby Bells" that emerged from the antitrust breakup of the "original AT&T" (AKA "Ma Bell") in 1982. SBC acquired Cingular in 2005, and promptly changed their name to "AT&T, Inc."

I am not doubting that you hold AT&T stock, but it isn't the same company your dad worked for.

My guess would be that his dad, having worked for AT&T for that long, would have had the “old” AT&T shares, and thus would have had shares in the “baby Bells” when they split off from the main company. The shares that he would have owned in the old SBC would have given him shares in the new AT&T. If that is the case, if/when he sells those AT&T shares, I don’t envy his tax preparer trying to figure the cost basis of the shares.

February 11, 2021, 02:53 PM

heathtx

quote:
Originally posted by Aeteocles:
quote:
Originally posted by heathtx:
quote:
Originally posted by heathtx:
I have some GME, have watched it shoot up. I bought some $300 puts to protect my profit. The guy who sold the put MUST buy each share at $300 anytime (if it closes below $300) between now and Feb 19. So I don’t really care what it does, I locked in a good profit today.

The higher GME goes, the less that option costs, so if GME continues to climb I can ratchet up the strike price of the put...

Post above is from Jan 27. It looks like the GME bubble is over,

Not sure when I will exercise the Put, but whoever sold the Put is going to feel some pain............

Nice! I was actually thinking about your post from the 27th and wondering what your premium was.

IIRC, the put for 1k shares was about $22k

February 11, 2021, 03:19 PM

Keystoner

quote:
Originally posted by Aeteocles:
I'm highly distrustful of anyone trying to tell me to do anything with *my* money. But, I like to hear what people are doing with *their* money .

How do you feel about Saturday morning AM radio show "experts"?

February 11, 2021, 03:51 PM

nhracecraft

quote:
Originally posted by bogeyman:
quote:
Originally posted by nhracecraft:
^^^I have AT&T stock that I inherited from my Father, who worked for AT&T for over 50 years, though I don't have anywhere near 10K shares.
How can that be? The current AT&T (Cingular+BellSouth later acquired by SBC Communications) has only been in business for about 15 years. Many people believe that the current AT&T International, Inc. is the same company as the AT&T Corporation, which evolved from the Bell Telephone Company founded by Alexander Graham Bell, and which used to provide virtually all the "land line" telephone service in the US. Cingular adopted the name circa 2004 after buying AT&T Wireless (AKA "Cellular One" at the time). Instead, the assets of the original AT&T Corporation, formed in 1885, are now the property of SBC Communications Inc., previously Southwestern Bell, one of the original "baby Bells" that emerged from the antitrust breakup of the "original AT&T" (AKA "Ma Bell") in 1982. SBC acquired Cingular in 2005, and promptly changed their name to "AT&T, Inc."

I am not doubting that you hold AT&T stock, but it isn't the same company your dad worked for.

My guess would be that his dad, having worked for AT&T for that long, would have had the “old” AT&T shares, and thus would have had shares in the “baby Bells” when they split off from the main company. The shares that he would have owned in the old SBC would have given him shares in the new AT&T. If that is the case, if/when he sells those AT&T shares, I don’t envy his tax preparer trying to figure the cost basis of the shares.

Thread drift again, but...

My Father got a job with AT&T in 1956, right after he graduated from Brooklyn Technical HS, and worked for over 50 years! He had shares of the 'old AT&T', as well as all of the 'baby bells', Lucent, etc. I inherited shares in AT&T, Verizon and Comcast, all of which are in one way or another, the result of the anti-trust breakup of AT&T and then subsequent acquisitions/mergers of and by the 'baby bells' over time. Just to add, like AT&T, Verizon pays a VERY nice dividend as well...

As far as if and when I sell those shares (I may just leave them to my son upon my demise), when inheriting stock from a decedent, there is a 'step up' in cost basis, and in my situation, all shares are valued on the date my Father passed away in 2017, sooo NOT complicated at all from a tax standpoint.

February 11, 2021, 05:03 PM

ZSMICHAEL

quote:
As far as if and when I sell those shares (I may just leave them to my son upon my demise), when inheriting stock from a decedent, there is a 'step up' in cost basis, and in my situation, all shares are valued on the date my Father passed away in 2017, sooo NOT complicated at all from a tax standpoint.

^^^^^^^^^^^^^^
Right now that is correct. Biden has proposed eliminating the step up provision for capital gains.

February 15, 2021, 09:39 AM

FishOn

And here is how the sausage is made.

https://www.zerohedge.com/mark...hood-buy-your-orders

February 15, 2021, 09:58 AM

RogueJSK

Yep. If the service is free, you're the product, not the customer. Your data is being sold to their true customers.

This is the same thing that Facebook et al do with your data while you're using their "free" services.

In this case, it's even more insidious, because Robinhood sends everyone's trade data to hedge funds ahead of their orders being fulfilled, and the hedge funds then use that data as "precognition" to know what the stocks are going to do so they can capitalize on and profit from it in the seconds ahead of everyone's orders going through.

February 15, 2021, 11:19 AM

FishOn

quote:
Originally posted by RogueJSK:
Yep. If the service is free, you're the product, not the customer. Your data is being sold to their true customers.

This is the same thing that Facebook et al do with your data while you're using their "free" services.

In this case, it's even more insidious, because Robinhood sends everyone's trade data to hedge funds ahead of their orders being fulfilled, and the hedge funds then use that data as "precognition" to know what the stocks are going to do so they can capitalize on and profit from it in the seconds ahead of everyone's orders going through.

Yep. HFT frontrunning.