Board 8 > Stock Topic 18

(+) Yeah! (+)

GANON1025 posted...

OK. So if the market is closed, any order you put in won't actually happen until like 8:00 AM the next business day (or whenever the exact time it opens). If that's the case, then is it possible the price of the stock can go up or down before your buys go through? Or is that just not possible?

The stock price is the last price a stock sold for. This is true during both during the day and during extended hours. The stock price won't change until 8 am Monday when the first sale occurs when it could theoretically go way up or down.

What is more relevant is the bid and ask. The bid is the highest amount a person is currently willing to pay for the stock with a limit order, the ask is the lowest a person is willing to sell for. Usually during the day they are relatively close to each other. During extended hours there can be a sizeable gap though, like 11/13 or something of that nature. In that case if you put in a market order to buy you would be buying at 13 regardless of the "price" of the stock. If you put in a market order to sell you would be selling at 11.

So regardless of what the price of the stock is currently, the stocks ask and bid at opening at open are what matters. Extended hours i generally only do limit orders because there's such low volume they can change very quickly. If you want to buy right at extended hours open, either way a minute and see what the bid and ask are and put a buy limit order in the middle of them if you most likely want to buy, or put it at the ask to buy immediately unless someone beats you to it. If you want to be really risky you can put a limit buy order at a cheap price hoping to strike a deal. It's possible you overpay doing this if it would have opened with a lower bid than your price point

---

PerfectChaosZ posted...

What time does the market open Monday, and should I invest my shirt on AMC if I think it's low enough? XD

9:30 am for regular hours.

If you have extended hours it can be earlier, i think 8 am is the earliest. Depends on your broker though

---

AMC volume at 500 million+ every day (1 billion+ for multiple days before the broker crackdown) caused it to run like every single day pre-market. There's just no way it doesn't do it again imho. Of course, that could cause a big dip upon market open and a good buy opportunity then, but it's also a Monday. I think it would keep running in that case, for a little bit.

Had the thought earlier to do some quick google trend searches on AMC, social arbitrage style investing.

https://trends.google.com/trends/explore?q=How%20to%20buy%20amc%20stock&geo=US

Everything AMC related is a 100, the highest it can be. Just "AMC" and "buy AMC" are the same as this one. It says the data set is not complete though, so I think it just takes a couple days for that. If it stays a sustained spike, that's an incredibly good sign.

---

I can confirm that AMC will explode on Monday.

Are call contracts exercised on the pre-market or on market open?

---

StartTheMachine posted...

Are call contracts exercised on the pre-market or on market open?

I'm not sure when exactly but the latest they can be exercised after the market closes Friday and before midday Saturday. All ITM call contracts from last Friday should already be exercised

They can be exercised early however.

---

Oh huh. Call options being exercised drives up stock prices on their own, right? Or is it only that it makes gamma squeezes possible?

And have you guys heard about the movement to buy CTRM? Assuming this shit is actually correct and not misreported somehow....uhhh:

https://www.marketbeat.com/stocks/NASDAQ/CTRM/short-interest/

25,790,000 shares shorted...out of a total of 2,400,000 shares in the float. That's... over 1000% of the float that was sold short.

Unbelievable that this stuff is legal, but dear god almighty. Just seems like a shit ton of hedge funds colluded on this one.

Fuck doge coin, I'm throwing 10 or 15k at this.

---

red sox, you were saying you think this will result in a pull down of other stocks? Presumably because a squeeze will damage large hedgefunds enough to pull out their investments?

Maybe parking my gains in ETF's right now isn't a good idea after all....

---

Isn't there a period that's after extended hours where investment banks are still able to trade, but retailers can't?

---

whats up with that maritime company? why is it so cheap to begin with?
---

barreldragon88 posted...

Isn't there a period that's after extended hours where investment banks are still able to trade, but retailers can't?

Yes, this is what accounts for gap ups. Some people can trade literally 24/7.

If you think this is unfair, you should learn about the prices insiders can purchase warrants at!

---

StartTheMachine posted...

Oh huh. Call options being exercised drives up stock prices on their own, right? Or is it only that it makes gamma squeezes possible?

Excercising a call option does nothing directly to price. What it does do is force people that have sold calls without owning the underlying security (aka naked call) to buy them before the week ends. Selling naked calls is more common the less likely a strike price is to be reached.

A gamma squeeze is basically when a stock price rises quickly to where every strike (or most at least) is ITM. This means that you catch a lot of people with naked calls that now have to buy the stock so they can fufill their obligation. This buying is what drives the price up, causing more strikes to be met meaning more people have to cover, repeat.

---

CoolCly posted...

red sox, you were saying you think this will result in a pull down of other stocks? Presumably because a squeeze will damage large hedgefunds enough to pull out their investments?

Maybe parking my gains in ETF's right now isn't a good idea after all....

Yes, but it's already happened to a significant degree Wednesday and Friday last week. I'm kicking myself for not selling some of my other positions on Thursday since I was thinking this on Thursday. Just got too tired up with work and the stress of following the ridiculous variance on GME and politics to put some time and energy into making up my mind on it. But now I don't want to sell a dip which I believe has nothing to do with the fundamentals, so I'm probably just holding.

---

There has to be something wrong with that data on CTRM right? It goes from 290k shares shorted to 25 million in 2 weeks. That looks like a typo.

---

Guys do remember that marketbeat updates twice a month. That short data is from 2 weeks ago. And with a 0.3 days to cover it could be long covered

red sox 777 posted...

There has to be something wrong with that data on CTRM right? It goes from 290k shares shorted to 25 million in 2 weeks. That looks like a typo.

Seems a little weird buy with a daily trading volume of 300 million is easily possible

---

Colegreen_c12 posted...

Excercising a call option does nothing directly to price. What it does do is force people that have sold calls without owning the underlying security (aka naked call) to buy them before the week ends. Selling naked calls is more common the less likely a strike price is to be reached.

A gamma squeeze is basically when a stock price rises quickly to where every strike (or most at least) is ITM. This means that you catch a lot of people with naked calls that now have to buy the stock so they can fufill their obligation. This buying is what drives the price up, causing more strikes to be met meaning more people have to cover, repeat.

Thank you so fucking much for this.

---

StartTheMachine posted...

Yes, this is what accounts for gap ups. Some people can trade literally 24/7.

If you think this is unfair, you should learn about the prices insiders can purchase warrants at!

The inequality is unreal

---

MoogleKupo141 posted...

whats up with that maritime company? why is it so cheap to begin with?

Found this, which is old now but should explain it pretty well:

https://www.reddit.com/r/pennystocks/comments/hqhtt3/sinking_ctrm_dilution_warning/

7 dilutive offerings...a true penny stonk!

Penny stocks in general are usually trash. The only stocks I trust, at least holding for a while and not trading pump and dumps or meme buying, that might trade below $5 regularly are SPACs. (Well, also recovery stocks for the time being, like AMC is). Lots of SPACs fail too, so doing research is extremely important for them. However, getting a company on the publicly traded markets via SPACs instead of IPOs has become immensely more popular the last year and a half or so.

Penny stocks are often just shitty companies with no real future scamming people into buying them. That's why I'd only be comfortable throwing like 10% or less of my portfolio at CTRM. But if it seems like a ton of people are pumping it, it's tempting for a quick 2x play.

---

Now that there are hedge funds long in GME, I have a conspiracy theory that if the SP gets real high, they might purposely activate a new short position and then dump their long positions hard, assuming they have a shitton of shares now to drive down the price.

Is that a realistic possibility? Feels like something they would do

---

StartTheMachine posted...

Now that there are hedge funds long in GME, I have a conspiracy theory that if the SP gets real high, they might purposely activate a new short position and then dump their long positions hard, assuming they have a shitton of shares now to drive down the price.

Is that a realistic possibility? Feels like something they would do

Why would they do that? Hedge funds with long positions would rather profit off their long positions. And they are going to make a killing on this trade when they sell their long stock into the short squeeze as short side firms cover.

---

Did Melvin really close out of their position now? My thesis was based entirely upon that they hadn't, so doing something like that would simply be entirely to help their buddies out.

Anyway, it's just a silly conspiracy theory. The real thing that will happen if it gets high enough is the usual race to close positions earlier than everyone else before the inevitable plummet. The whales and experienced traders will do this anyway, and the people who turned $10k into like millions on their first stock will learn the hard way what can happen. WSB will be a sad place that day. I hope I'm wrong and those first time investors don't get fucked...just can't imagine it not happening.

So pointless to hold GME beyond 500 if it hits that again imo because 2x gains are not really THAT hard.

---

StartTheMachine posted...

Did Melvin really close out of their position now? My thesis was based entirely upon that they hadn't, so doing something like that would simply be entirely to help their buddies out.

Anyway, it's just a silly conspiracy theory. The real thing that will happen if it gets high enough is the usual race to close positions earlier than everyone else before the inevitable plummet. The whales and experienced traders will do this anyway, and the people who turned $10k into like millions on their first stock will learn the hard way what can happen. WSB will be a sad place that day. I hope I'm wrong and those first time investors don't get fucked...just can't imagine it not happening.

So pointless to hold GME beyond 500 if it hits that again imo because 2x gains are not really THAT hard.

Melvin isn't that big in the grand scheme of things. There would appear to be are a lot of other hedge funds in this. Melvin would have gotten out because any higher would totally bankrupt them.

As for the race to get out quickly....that also applies to the sell side. The first hedge fund to throw in the towel and submit a massive buy to cover order probably gets out at an average price around $500, say. The second would do much worse because the first fund's buying has already sent the price soaring. And so on. It'll be interesting to see how this dyanamic plays out.

---

Goddamn I didn't even think about that, but that is a pretty hilarious situation.

---

I think there's going to be a barrier around $400 with a lot of sell orders, but if we can prevent it from going back down to $200, there's no reason why we can't then shoot it up near $1000.

Again the message all weekend needs to be DO NOT SELL.

---

That's easy to say and hard to do. Even if you got in low the temptation to realize the gains in front of you is going to be strong.

If you got in for sub 30 you have a 10x gain staring you in the face that might simply be gone if you wait too long.

---

Even if it sits at around $300 isn't that enough to fuck over the hedge funds anyway?

---

KamikazePotato posted...

Even if it sits at around $300 isn't that enough to fuck over the hedge funds anyway?

Oh without a doubt. That's why they've tried everything they possibly could to get us to panic sell. We're all just too stupid

---

red sox 777 posted...

The first hedge fund to throw in the towel and submit a massive buy to cover order probably gets out at an average price around $500, say. The second would do much worse because the first fund's buying has already sent the price soaring.

Is there something preventing or disincentivizing them from selling immediately after buying, thus resulting in just a blip increase?

---

who is buying it at that price other than massive hedge funds


---

Oh right, that's nuts

---

I'm actually curious about how slow the "settling of shorts" process is - how long would it take for a short seller to buy a stock, return it to the lender, and for the lender to sell it back onto the market, and thus be available for settling another short seller? Could it happen instantly or would it take days to settle?

---

MarkS222222222222222 posted...

Is there something preventing or disincentivizing them from selling immediately after buying, thus resulting in just a blip increase?

Yes, they are buying to close the position. If they sell again they are now short again and still stuck.

Nanis23 posted...

Just a heads up for people that care about non-meme stocks-
I am following some Israeli Telegram and online forums, some people who are very good at TA are super concered about the closing of Friday. They pretty much said that all major indicies closed below the "support" of "the tunnel" or whatever other bullshit that TA is
And this is the first sign of a correction coming
One of the people that said this is the guru of the forum. He also predicted the COVID market crash like a month before. I know that in hindsight it sounds like "well, duh" but US Stock Market kept on breaking new records up until the 20th of Feburary, and he warned the whole way

But I don't know. I am taking him seriously but...I just don't "feel" like a crash is coming. I felt it very well in Feburary 2020 and I don't feel this now. Maybe I am wrong.
They are very concered about the high exposure that the stock market gets in the last 2 weeks. They are very concered about Robinhood actions. And if those "meme stocks" are really going to fuck hedge firms and they are going to sell the normal stocks they are holding this might lead to a collapse
(Also people leaving Robinhood and selling their stocks so they can leave to another broker easily)
And the VIX doesn't look good either. Two days ago was the 3rd highest increase for a day in the history of the market

I don't panic yet and honestly maybe this is all bullshit and Monday futures are going to be green and crisis averted..again

Israel stock market today (we are like...one of the very few countries that has a stock market open on Sunday) is only like 2% down in most indices. There is not panic yet thanksfully

I hope that the futures will open green because I have $15k invested in the US stock market now and this is more than I am comfortable with in a correction

---

Also kicking myself for not investing in IPOE on Thursday. That is the SPAC that is merging with SoFi. Chamath says that SoFi is committed to letting people trade freely. Unfortunately for me it was up 24% on Friday and up more after hours. I may have to break my guideline about not buying a stock that has already surged.

---

I had no idea stock markets being open on weekends was even a thing in the world

---

The topics on WSB are getting stupider by the second. Now these people want $5,000 and $30,000 per GME share and are unironically saying things like "the short squeeze hasn't even happened yet!" Once again, just going to be sad when people throw away impossible gains that they'll never get again.

The good news is I think if GME crashes, AMC only gets more popular. And if GME keeps succeeding, AMC also only gets more popular.

---

StartTheMachine posted...

The topics on WSB are getting stupider by the second. Now these people want $5,000 and $30,000 per GME share and are unironically saying things like "the short squeeze hasn't even happened yet!" Once again, just going to be sad when people throw away impossible gains that they'll never get again.

The good news is I think if GME crashes, AMC only gets more popular. And if GME keeps succeeding, AMC also only gets more popular.

$30,000 is insane but I no longer think $5,000 is a meme number.

$30,000 would shut down the entire financial system though so the government will step in and pull the plug before it ever gets that far.

---

A lot of them are saying that they don't really care about making money out of this, which given WSB's history of cheerfully accepting massive losses on outrageously aggressive bets, actually kinda makes sense.

There are definitely going to be people who sell too late and people who sell too early, which is why I am pretty happy with my strategy of selling on a ramp. Some of my shares will be too early, some of my shares may be too late, but since it's really hard to predict, this way lowers risk.

---

I expect anything above $400 to be a meme, how many people do you think have limits at $420.69

---

Peace___Frog posted...

I expect anything above $400 to be a meme, how many people do you think have limits at $420.69

We were above that on Thursday morning, so any limit orders for that price placed prior to then should already have been filled.

---

Peace___Frog posted...

I expect anything above $400 to be a meme, how many people do you think have limits at $420.69

we were easily hitting $500+ before RH pulled the plug.


---

Fortunately for them I can't put anymore money in or else I'd be ready to re-load on the dip Monday morning.

---

We will be lucky if Gamestop will even be green in Monday
WSB can hype however they want. If the brokers pull the same bullshit again, it won't go up

---

Ok then I stand corrected. I wasn't following the $ all that closely, just the general events of the week.

---

Nanis23 posted...

We will be lucky if Gamestop will even be green in Monday
WSB can hype however they want. If the brokers pull the same bullshit again, it won't go up

A lot of us have moved to Fidelity or other more legitimate brokers.

And the eyes of the world are now on these people. Their options are extremely limited.

I am actually expecting the government to pull the plug on the entire operation and then start a big investigation.

---

https://www.reddit.com/r/wallstreetbets/comments/l9gv98/citadel_is_the_5th_largest_owner_of_slv_its/

Looks like Citadel may have resorted to trying to pump stocks it owns on WSB.

---

It's why everything else needs to be tuned out until we finish this GameStop situation off.

GME only. Buy and Hold. Simple.

---

AMC has far more upside than GME as it stands, and I like more upside.

---

StartTheMachine posted...

AMC has far more upside than GME as it stands, and I like more upside.

am also on AMC so bring on all of that upside. What's ur exit number on there?

---

ExThaNemesis posted...

am also on AMC so bring on all of that upside. What's ur exit number on there?

I don't like price targets and find them generally pointless, but my ideal realistic exit would be 50. I only want 5x gains, I'm not that greedy! I would have a $200,000 trade if it hits that. I already made 50k with my first AMC trade.

---