Thoughts on Reddit stock effects?

[Cowpoke]

Is the market going to panic over this, and what will the regulatory actions be? Sending several stocks up by 100-300% in a matter of hours at will is going to get a ton of attention.

 

[Cowpoke]

.... and did any of you cash in? I only had $120 free in my account this morning so couldn't do any damage. Tossed that in NOK and made about a 70% profit in an hour or so. Meaningless with $100 bucks, but stupidly easy money had anyone had free cash ready to dump into it.

 

[hoffmas]

.... and did any of you cash in? I only had $120 free in my account this morning so couldn't do any damage. Tossed that in NOK and made about a 70% profit in an hour or so. Meaningless with $100 bucks, but stupidly easy money had anyone had free cash ready to dump into it.

It's easy money until it's not. I manage investments for a living and have tried to figure out a way to profit on this craziness without it being a complete gamble. Haven't come up with anything yet. The implied volatility on some of these options is so high right now that the stock has to move by 50% or more for you to break even. And that's with a less than one week time frame. There are people that have made a lot of money in the last few days, but someone is/will be on the other side of all of those trades eventually.

 

[Cowpoke]

It's easy money until it's not. I manage investments for a living and have tried to figure out a way to profit on this craziness without it being a complete gamble. Haven't come up with anything yet. The implied volatility on some of these options is so high right now that the stock has to move by 50% or more for you to break even. And that's with a less than one week time frame. There are people that have made a lot of money in the last few days, but someone is/will be on the other side of all of those trades eventually.

I think as it catches on it will solve itself due to tons of folks trying to pump their own favorites, thus spreading the attention out too thin among many pics. In the short run its pretty amazing how that many people came together to say "lets pump these 3 or 4". NAKD may be the big one tomorrow.

 

[osutater]

I got some of NAKD at $0.68 today. Had a couple hundred dollars in Robinhood I had forgotten about.

 

[hoffmas]

I think as it catches on it will solve itself due to tons of folks trying to pump their own favorites, thus spreading the attention out too thin among many pics. In the short run its pretty amazing how that many people came together to say "lets pump these 3 or 4". NAKD may be the big one tomorrow.

That's probably correct. You already see people on the Reddit thread talking about people being diverted to other stocks and telling them to stay in GME.

Hopefully it changes short selling going forward. I wouldn't be upset if some of the Andrew Lefts and Bill Ackmans of the world were run into the ground. They have been doing the reverse of this for years and nobody on CNBC gets outraged about that.

 

[osutater]

Robinhood has essentially blocked everything being suggested by Reddit/Twitter guys from being bought. That’s kinda shady.

 

[Cowpoke]

Robinhood has essentially blocked everything being suggested by Reddit/Twitter guys from being bought. That’s kinda shady.

Wow, extremely. I haven't checked Ameritrade. I freed up some cash yesterday, but I think I have to wait another day to play to avoid free riding. Rarely ever trade quickly enough to worry about that.

 

[osutater]

I made a few bucks on Naked lol. I’ll buy myself a new PS5 game.

 

[Marshal Jim Duncan]

Legislative and/or regulatory meddling as a result is my biggest concern.

 

[hoffmas]

Robinhood has essentially blocked everything being suggested by Reddit/Twitter guys from being bought. That’s kinda shady.

I can see why they would/should block any of these from being traded on margin but to restrict cash trades is a slippery slope. It's not the job of the broker to protect the investor from themselves.

 

[SomeBeach]

They said they are going to allow “limited” trading on the meme stocks tomorrow.

 

[Emmo496]

I was up about $2k on SNDL per Reddit. I literally went to the bathroom and was down $200. It blew my mind. I've dabbled in day trading and remember why I quit dabbling in day trading.

 

[theanvil]

I'm following the WallStreetBets thing and, just for the fun, invested some money in AMC and Nokia the past three days. So far, so good. It's fun to watch it all play out, but you gotta know when get out before greed bites you in ***.

 

[SquinkY5786]

I'm following the WallStreetBets thing and, just for the fun, invested some money in AMC and Nokia the past three days. So far, so good. It's fun to watch it all play out, but you gotta know when get out before greed bites you in ***.

Oh ya. That’s the pretty much impossible task. Have waited too late and lost money. And have sold too early to watch it triple

 

[FourCornersCowboy]

Derivatives have and always will distort markets, one of the greatest enemies to the “natural” market that we falsely claim to have.

 

[JonnyVito]

I am deep into silver. I hear the barstool guy bought a bunch of AMC. Where is this reddit you all speak about with great stock advice?

 

[theanvil]

You might find stock advice on Reddit, but I wouldn't call it "great stock advice" by any means.