4 ms·

No, that analogy doesn't fit. Fully half of robinhood users owned GME stock. They were in the middle of a bet. RH created a situation where the stock could only

by pfisch 6y ago

No, that analogy doesn't fit. Fully half of robinhood users owned GME stock. They were in the middle of a bet. RH created a situation where the stock could only go down. "I think it's like a brokerage that has to post 100% collateral --- out of their money" How is this not the customers money? You deposited 100% of the collateral with RH. Banks can take your money and make loans with it so the bank can make profit, but only so long as they have your money for you when you want to use it.

tptacek 6y ago
Again, this is pretty funny. It really does sound like you're saying the casino can't kick you out if you're in the middle of playing some blackjack strategy. "I'm not done yet!" I'm pretty sure everyone retained their ability to get cash out of Robinhood, for whatever that's worth.
- pfisch 6y ago
  No, you are trying to suggest that these are all new blackjack games, not the middle of one. If you are holding 21 and they shut the game down in the middle that is illegal. HALF of robinhood users bought and were holding GME. They were holding 21 and Robin Hood shut them down in the middle, turning their winning hand into a losing hand. That is the difference. When they bought the stock they had absolutely no reason to think the brokerages would stop selling shares. They were selling call options that are in the money at $500, while simultaneously not actually allowing GME to go to $500. That is outrageous. Right before robin hood shut down GME they closed people's positions out at a price of over $2000 per share. The holders literally broke through the sells and were forcing the short squeeze to happen. Robin hood then forced GME into the floor. That is absurd and should absolutely be illegal. It is a crooked casino. They should've been forced to close out everyone's position at the ask price, but they didn't want to so they cheated.
  - tptacek 6y ago
    If you say so. I think I believe the reporting on the clearing collateral requirements. Sorry.
- pfisch 6y ago
  https://www.reddit.com/r/wallstreetbets/comments/l7em07/coworker_had_a_limit_executed_of_a_little_over/ https://www.reddit.com/r/wallstreetbets/comments/l7em07/cowo... https://www.reddit.com/r/wallstreetbets/comments/l7bpf5/30_seconds_from_triggering_market_nuclear_bomb/gl5vgof/ https://www.reddit.com/r/wallstreetbets/comments/l7bpf5/30_s...
- pfisch 6y ago
  You can clearly see that the price was going to infinity because there weren't enough sellers. This absolutely ruins anyone underwriting options because they now have to immediately cover all outstanding calls at whatever the ask is. This is what r/wallstreetbets was after. Forcing people to buy at $1000+. Robinhood should've had collateral for people buying stock in all cash. If they don't they are basically a busted bank, and they cheated all GME holders.

by pfisch 6y ago

tptacek 6y ago

Again, this is pretty funny. It really does sound like you're saying the casino can't kick you out if you're in the middle of playing some blackjack strategy. "I'm not done yet!" I'm pretty sure everyone retained their ability to get cash out of Robinhood, for whatever that's worth.

pfisch 6y ago
No, you are trying to suggest that these are all new blackjack games, not the middle of one. If you are holding 21 and they shut the game down in the middle that is illegal. HALF of robinhood users bought and were holding GME. They were holding 21 and Robin Hood shut them down in the middle, turning their winning hand into a losing hand. That is the difference. When they bought the stock they had absolutely no reason to think the brokerages would stop selling shares. They were selling call options that are in the money at $500, while simultaneously not actually allowing GME to go to $500. That is outrageous. Right before robin hood shut down GME they closed people's positions out at a price of over $2000 per share. The holders literally broke through the sells and were forcing the short squeeze to happen. Robin hood then forced GME into the floor. That is absurd and should absolutely be illegal. It is a crooked casino. They should've been forced to close out everyone's position at the ask price, but they didn't want to so they cheated.
- tptacek 6y ago
  If you say so. I think I believe the reporting on the clearing collateral requirements. Sorry.
pfisch 6y ago
https://www.reddit.com/r/wallstreetbets/comments/l7em07/coworker_had_a_limit_executed_of_a_little_over/ https://www.reddit.com/r/wallstreetbets/comments/l7em07/cowo... https://www.reddit.com/r/wallstreetbets/comments/l7bpf5/30_seconds_from_triggering_market_nuclear_bomb/gl5vgof/ https://www.reddit.com/r/wallstreetbets/comments/l7bpf5/30_s...
pfisch 6y ago
You can clearly see that the price was going to infinity because there weren't enough sellers. This absolutely ruins anyone underwriting options because they now have to immediately cover all outstanding calls at whatever the ask is. This is what r/wallstreetbets was after. Forcing people to buy at $1000+. Robinhood should've had collateral for people buying stock in all cash. If they don't they are basically a busted bank, and they cheated all GME holders.