Reddit r/WSB bankrupts Hedge Fund using Robinhood

[BellaPippin]

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Revolut in Europe casually pulling this stunt! My account is in limbo land now.

(This was a general announcement not a message directed specifically to me)

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BRO this is on par with RobinCrook. Several class action lawsuits have already been started.

Just .... HOLD.

 

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[lludwig]

@MJ DeMarco you know when you get AOC and Cruz to agree on something, you F*Kd up.

No, when they agree you should hide your wallet. They are about to take something away from you. More than likely your freedom.

 

[Kak]

I can't get in the head of the people who insist on using Robinhood when TD Ameritrade, Fidelity, and JPM all offer zero commission trades... Between crashes, shutdowns and the stupid socialist name, Robinhood is an absolute joke of a trading platform.

 

[NCNY]

GME options have implied volatility of 500-800% which means option buying isn't a feasible option. Those not familiar with IV, this means they are terribly expensive. This is like having a double wide trailer for sale for $35,000 and then next week, it is selling for $3,500,000 ... all because there might be a gold mine underneath it.

I can't remember any such IV pricing in options, perhaps in some hot bio-tech stock with clinical trial news, but then again, I tend to ignore the "hot" stocks.

Just some perspective, TSLA, which is considered a highly volatile stock, has IV of 70% ... so we are looking at unprecedented IVs and hence, unprecedented pricing.

Normally when the IV is this high, option sellers (like me) come in and start selling because the premium is so rich, but seeing this is an anomaly with no historical pattern to backtest, the only play is not to play.

Or if you're feeling speculative, the only (safe) option play on this are spreads to invalidate the high implied volatilies ... I'd go with long put spreads or short call spreads, namely because Gamestop is a turd of a company.

Also of note...

The VIX is starting to reach levels which occurred during the big pandemic crash, except we are not crashing, just merely retreating...

Lol, I've sold $GME FEB 19 '21 24 cash secured put when the stock was about $40, the stock rised 10x since then and i'm still down on paper on that because of the IV rise.
I threw $3k at the stock this monday and x4 the gamble, realized all the profit in 3 days

 

[Einfamilienhaus]

Lol, I've sold $GME FEB 19 '21 24 cash secured put when the stock was about $40, the stock rised 10x since then and i'm still down on paper on that because of the IV rise.
I threw $3k at the stock this monday and x4 the gamble, realized all the profit in 3 days

You need Diamond Hands

 

[MJ DeMarco]

the stock rised 10x since then and i'm still down on paper on that because of the IV rise.

Holy shit. So you got the move correct, but the IV explosion killed the gains... and when the stock starts to drop, the IV will keep going up. It likely will be a hard position to unwind, might need to wait to Expiry.

 

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[CosmicMind]

Not gonna lie , I almost spit my coffee out LOL’ing.

 

[jon2089]

I can't get in the head of the people who insist on using Robinhood when TD Ameritrade, Fidelity, and JPM all offer zero commission trades... Between crashes, shutdowns and the stupid socialist name, Robinhood is an absolute joke of a trading platform.

I only used it to buy fractional shares cause Schwab doesn't offer it. I can't afford to pay 4 digits for some shares.

 

[GuestUser4aMPs1]

Not gonna lie , I almost spit my coffee out LOL’ing.

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edit: WE LIKE THE STONK

 

[Ocean Man]

Diamond hands all the way! Once this is all over, you can expect Robinhood to never get my business again. The only reason I'm not pulling out of it right now is that I own some BB contracts in it. GME and others are elsewhere.

 

[CosmicMind]

Anybody hear how Google deleted thousands of negative Robinhood reviews?

Im really getting sick of these tech companies.

Funny how Google’s motto is don’t be evil?

That seems to be the modus operandi in society today. Don’t like something? Just take a square cube and force jam it in a round hole. Who cares about truth.

 

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[Deleted70138]

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edit: WE LIKE THE STONK

my inner charlie munger is face-palming on this phrase.

 

[ljean]

Anybody hear how Google deleted thousands of negative Robinhood reviews?

Im really getting sick of these tech companies.

Funny how Google’s motto is don’t be evil?

That seems to be the modus operandi in society today. Don’t like something? Just take a square cube and force jam it in a round hole. Who cares about truth.

Because people dont believe the truth and then they act like assholes. The truth is these instruments were so active & volatile the brokers had no choice but to shut them down to limit settlement/counterparty risk. I dont want my broker being liable for a few hundred million dollars worth of GME options losses that chewed through their clients margin deposits and now they cant collect on.

 

[NovaAria]

Because people dont believe the truth and then they act like assholes. The truth is these instruments were so active & volatile the brokers had no choice but to shut them down to limit settlement/counterparty risk. I dont want my broker being liable for a few hundred million dollars worth of GME options losses that chewed through their clients margin deposits and now they cant collect on.

Am neither defending RH nor the gamblers on WSB, but they shouldnt be offering stock brokerage if they will allow themselves the option to not offer their service when you need it most. Might as well have firefighters refuse to show up because your fire's too dangerous.
Of course, the guys from WSB are also just as liable. RH is NOTORIOUS for being one of the worst trading platforms on the planet, but what did they do? They signed on there because someone posted a tutorial on how to buy the meme ticker. Talk about due diligence.

The real fun is what will be happening after this whole fiasco is over. There is already talk in the tech industry about overhauling how EULAs and TOS work. Right now, anyone can sneak into their user agreement a clause that allows them to walk into your house and bitchslap your children if they wanted to, and you couldnt do a thing about it because, one, its buried in 12 million lines of legalese, and two, your options are to either click the "I read and accept this agreement" button, or to start your own competing company because they're all using the same EULA abuse.
Of course, this is only one change being discussed among many more reforms. But it will be a tug-war between Tech and Finance lobbies on one side, and the public's attention span on the other.

Am not holding my breath...

 

[PapaGang]

Truth.

 

[lludwig]

Short Sellers Like Citron Aren’t the Enemy of Investors

Short Sellers Like Citron Aren’t the Enemy of Investors

www.bloombergquint.com

 

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[Rabby]

11,000,000+ % ??

hahaha I hope you get to withdraw all that. Nice.

Look closely... it's down 11,000,000 %

Funny how Google’s motto is don’t be evil?

*was. They changed it because it was incompatible with their business practices.

 

[AFMKelvin]

The real fun is what will be happening after this whole fiasco is over. There is already talk in the tech industry about overhauling how EULAs and TOS work. Right now, anyone can sneak into their user agreement a clause that allows them to walk into your house and bitchslap your children if they wanted to, and you couldnt do a thing about it because, one, its buried in 12 million lines of legalese, and two, your options are to either click the "I read and accept this agreement" button, or to start your own competing company because they're all using the same EULA abuse.

View: https://www.youtube.com/watch?v=ifHjG4JKIOk

 

[Guest-5ty5s4]

Look closely... it's down 11,000,000 %

*was. They changed it because it was incompatible with their business practices.

Just like in math classes, one negative sign changes the entire story

 

[Charnell]

Anybody hear how Google deleted thousands of negative Robinhood reviews?

Im really getting sick of these tech companies.

Funny how Google’s motto is don’t be evil?

That seems to be the modus operandi in society today. Don’t like something? Just take a square cube and force jam it in a round hole. Who cares about truth.

When any app gets thousands and thousands of 1 star reviews quickly they will remove them. It's to prevent against abuse (review bombing).

And although what's happening is bogus, thousands of people leaving 1 star reviews on an app they never used is abusing the system.

 

[csalvato]

LOL... Right. Thinks something is digital means it can't be tracked. Isn't most of our currency already digital?

As proven in Communist Russia, it's true commerce will always happen even underground.

The government can make life very difficult by banning it as you are still physical.

I'm not saying I'm for any of this but it's foolish to think it can't be seized. In 1933 they didn't seize 100% of the gold either. But most they did.

For casual readers, I must point out that this is an incorrect assertion.

If you believe the words of lludwig here, I suggest you do more research on digital assets and how they can be seized (they can’t) and how duress wallets totally circumvent being held at gunpoint for your keys.

Like most sources of crypto FUD, this is based on ignorance, not fact.

 

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[MTF]

how duress wallets totally circumvent being held at gunpoint for your keys.

Checked it out of curiosity:

Duress PIN​

We provide an optional "duress PIN code". If you enter that PIN code, instead of the "real" PIN code, nothing special is shown on the screen and everything operates as normal... However, the bitcoin key generated is not the main key. It is effectively a completely separate wallet!

To take best advantage of this feature, you should put some Bitcoin into the duress wallet. How much you are willing to lose or what you need to make it plausible, we don't know.

The "duress" wallet will still be derived from the original BIP39 words, so you don't need to back it up separately, but there will be no way to get from that wallet back to the original wallet with the real funds in it.

Gotta applaud the innovation.

 

[Cyberthal]

The truth may be more technical than the superficial narrative of oppressive elites.

COVID19 precipitated massive QE atop already-massive QE.

Eventually, attempts to issue more debt fail due to "pushing on a string": nobody will buy more debt. Deflationary deleveraging collapse follows.

On ?chan, US Senate Anon claimed USG's finances are critical and dependent on CIA drug money for liquidity. Trump sought to grow the US economy with American-school nationalism to eliminate this dependency so he could eliminate his enemies at the CIA.

The GME freeze and clawback was actually precipitated by a liquidity crisis at Robinhood that threatened the larger system. It's rumored that a short squeeze on silver would break the banks and collapse the USD. Silver has been cornered before.

You may recall the Lehman Brother's collapse, which inadvertently brought everything else down with it, requiring massive bailouts.

The common theme here is QE pushed to the absolute limit, minimal liquidity left, and extreme fragility to modest shocks.

That explains the tone-deaf draconian responses to populist nihilist disruption of the stock market.

> "In the long run we are all dead," John Maynard Keynes (1883-1946), the great British economist, wrote in 1923 on the debate in Great Britain on restoring the pre-First World War fixed exchange rate system known as the gold standard.

Keynes' long run is about to arrive, and a lot of people may wind up prematurely dead. Now that's the kind of self-fulfilling prophecy I can appreciate!

It's like telling your patients to take two rounds of .45 ACP to the temple and call in the morning if they don't feel better. You can definitely sleep in.

 

[lludwig]

For casual readers, I must point out that this is an incorrect assertion.

If you believe the words of lludwig here, I suggest you do more research on digital assets and how they can be seized (they can’t) and how duress wallets totally circumvent being held at gunpoint for your keys.

Like most sources of crypto FUD, this is based on ignorance, not fact.

Again, missing the point. They can seize you! They can fine you, arrest you, and tax you. Your wallet can be more than protected no matter the means. Direct or subvert, but it doesn't matter.

So please explain how is this FUD? Enlighten me since you are making the claim of ignorance.

Lastly, yes there are many hoops you can go through to store your crypto securely. What matters with any currency isn't the storage but actually using it for transactions.

Isn't this the whole point???

This is akin to I have my gold stored in a secret location and I haven't told anyone. Yea it can't be seized. Great! Though what good is it if you don't use it?? If crypto is to be used as a currency it needs to be a stable store of value (which it isn't) and easy to use for transactions (if you go the hoops you describe it isn't either).

I swear these crypto guys live in spy-vs-spy fantasy land. Mind you I'm certainly no Luddite or anti-tech but let's get a little reality of how the non-digital world can control cryptos.

 

[csalvato]

Again, missing the point. They can seize you! They can fine you, arrest you, and tax you. Your wallet can be more than protected no matter the means. Direct or subvert, but it doesn't matter.

No, you’re missing the point because you’re acting closed and narrow minded.

The risk of such persecution is small, and also it’s a risk worth taking.

If you want to live your life in fear of economic persecution and don’t think that standing up for liberty may be worth jail time or death, that’s fine.

I do.

The only way someone will get me to give my keys is to hold a gun to the heads of my kids, and if that’s happening, we have far greater problems on our hands than bitcoin being illegal.

 

[AceVentures]

idk if it's because I've spent too much time in Texas, but all of this "they" talk as if "they" is some insurmountable force of nature perplexes me.

Power goes through cycles - and if "they" need to resort to force, "us" has historically found a way to overcome "they".

I'd like to encourage us to stop thinking as if we're powerless.

 

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[Cyberthal]

Goldman Warns If The Short Squeeze Continues, The Entire Market Could Crash

Goldman Sachs has a dismal take on recent events, and writes that

talkmarkets.com

Not every day you write an out-there post and then find Goldman Sachs agreeing with the material conclusion an hour or two later.

No wonder crypto is exploding. For those seeking true anti-state security, see Ethereum and Sovereign Society.

 

[AFMKelvin]

Again, missing the point. They can seize you! They can fine you, arrest you, and tax you. Your wallet can be more than protected no matter the means. Direct or subvert, but it doesn't matter.

So please explain how is this FUD? Enlighten me since you are making the claim of ignorance.

Lastly, yes there are many hoops you can go through to store your crypto securely. What matters with any currency isn't the storage but actually using it for transactions.

Isn't this the whole point???

This is akin to I have my gold stored in a secret location and I haven't told anyone. Yea it can't be seized. Great! Though what good is it if you don't use it?? If crypto is to be used as a currency it needs to be a stable store of value (which it isn't) and easy to use for transactions (if you go the hoops you describe it isn't either).

I swear these crypto guys live in spy-vs-spy fantasy land. Mind you I'm certainly no Luddite or anti-tech but let's get a little reality of how the non-digital world can control cryptos.

They can only do that if they know you have the crypto. If you keep your mouth shut who's going to find out? How would they find out?

Multiple wallets
Anonymous coins
Keys only you know

 

[csalvato]

This is akin to I have my gold stored in a secret location and I haven't told anyone. Yea it can't be seized. Great! Though what good is it if you don't use it?? If crypto is to be used as a currency it needs to be a stable store of value (which it isn't) and easy to use for transactions (if you go the hoops you describe it isn't either).

Addressing your stealth edit in a new post...

This is the last time I will address you, then I will just let people make their own decisions.

It's clear you know almost nothing about crypto, because storing BTC in cold storage is nothing at all like storing gold in a secret location.

You don't even need to hide the wallet, you just need to hide or memorize your keys (and with most modern wallets this is just 24 words).

With that information, you can restore your wallet on any device, including a totally new wallet, and send it to anyone within minutes.

Burying gold bricks in a secret location does not have this level of accessibility or divisibility.

In short, even in an absolutely ridiculous apocalypse scenario where the gov't is threatening to kill my children, having BTC or another crypto on a hardware wallet is nothing at all like storing gold bricks in a safe buried in Wyoming.

To be clear, I'm not posting this for you. It's obvious to me you don't care to learn or challenge your poor assumptions and understanding. This post is purely for casual readers who are open minded, and trying to understand both sides of the coin.

If anyone wants further commentary about this, please tag me in your reply - don't expect me to reply to @lludwig.

 

[lludwig]

They can only do that if they know they have the crypto. If you keep your mouth shut who's going to find out? How would they find out?

Multiple wallets
Anonymous coins
Seeds only you know

You are correct on this you can make it difficult if you don't use them. The more you use the more they can determine who is using it. Digital fingerprints.