southsider2k5

I can get with it. I mean options pricing is a University of Chicago Nobel laureate formula (Black Schoals), of which volatility is a huge component. If the market place reevaluates what the odds and possibilities of vol are, and finds they need to be higher, the price of options everywhere will go up. That will server as a deterrent to anyone wanting to trade these, as now they need to risk more capital to engage in their strategies.

That also makes sense. None of these new overnight shops are clearing their trades. They aren't the custodians, so they aren't taking those ultimate risks if something blows up. Trust me when I saw that the SEC isn't just looking at the trades, they are looking at the health of the custodians, and if Robinhood is causing problems for their clearing firm, their clearing firm is going to shut the problem down. So essentially what is happening in my eyes is the clearing firms are probably increasing margins on RH, who is then realizing they can't be profitable or pass the costs on to the traders, so instead they are just shutting things down.

It isn't something used everyday. Typically ordinary rules are enough, such as normal margin requirements and short sale rules. But in a spot where are seeing actual coordination, it isn't a normal time.

The brokerage is also on the hook if John Q Reddit goes belly up and can't pay his losses because he doesn't understand what he is doing, so putting 100% cash restrictions on these underliers is absolutely warranted and it is something with history behind this. I happened in 08-09, it happened in 01, and it will happen again.

I am not sure why anyone would be surprised. I spent the end of the 2020 season and the early 21 off season telling anyone who would listen that the Sox weren't going to spend.

Now THIS would be a time for the GOP to complain about freedom of speech...

Chicago CAN do that, we saw it in the middle 2000's when they were good.

Even as a minority team in the 3rd biggest market in the country, there is still more growth potential than somewhere like Nashville or Portland.

Outside of Hendriks replacing Colome, Tony LaRussa really was the biggest move of the off season. It is amazing that this town should belong to the Sox and they found a way to piss away all of that good will like Mitch Trubisky throwing into the end zone.

I am going to bet he gets charged.

One more thing I want to throw out there for the masses. A bunch of hedge funds deciding to do the same trades at the same time because of the same fundamentals is not illegal or market manipulation. A bunch of people getting together to coordinate the same action in the same stock at the same time IS market manipulation and is illegal. It is the coordination and communications to organize that coordination which are the key's here. People can argue about if it is right or wrong, but that is the way the rules are written as they stand today. From the POV of an exchange or market maker, there is actually grounds for trading halts, and even more so than that, SEC investigations for market manipulations.

100% the SEC would let them fail.

Honestly most of the market movement today was a response to the battle over GME and co, both in stocks and BTC. Once it settles out, there is plenty of momentum to be had from the same forces being freed up. The markets will soak up the lions share of that investment money.

BTC was down over 10% today, about 30% from its highs now. Last I heard they wanted a retest of 40k to hold that level but they never got it.

Exchanges have pretty broad leave to institute halts and slow downs such as fast market conditions in situations that aren't normal market conditions, especially if illegal trading is suspected. For the sake of this, I am going to guess that there is a Chinese Wall between the two entities of Citadel here, which means from a technical and legal standpoint the same entities aren't doing these activities. You pretty much have to have your company divided up this way to prevent regulatory nightmares.

Just looked it up, looks like Citadel also put some cash up. They get an equity stake for letting these guys have some cash.

Is the government bailing them out? That doesn't sound likely to me.

Yeah, unless you are short calls, you don't see the unlimited risk scenarios like you do with stock. Stocks can only go to zero, so if you are long risk side your risk is either stock goes to zero, or you have to fill an option and your lose the difference between what you sold the option for minus the difference between strike and zero. Short side risk is a whole other story. Theoretically your risk is infinite. In a case like GME if you were short at $15, and it is now sitting at $350, you are liable for the whole difference. If you had borrowed on margin to finance the trade, they would have let you go as long as you were properly leveraged with enough cash to cover losses, but odds are you wouldn't have had enough to cover a loss like that and would have been blown out. Hedge funds like this are probably loaded with enough cash to crush most short squeezes, though this one is something else. If you sold a 20 call for $5, you have to sell someone the stock at $20, but collected $500 for the right to do so. Long puts are better down side scenarios because you own the option to force someone to sell you stock at a fixed price, with the idea that it would go down. If these guys loaded up on 15 Puts instead of shorting stock, the Puts just go out worthless as no one wants to sell stock at $15 when they can just go the market and sell at $350. The risk there is just what you paid for the option. Missed the 1929 part, but that was kind of two fold. #1, there were no limits to short selling. You didn't have to borrow the stock, or any of the other more recent innovations to limit short selling, such as the uptick rule. Margin was also WAY more allowable. The leverage they gave out then was in multiples. Today is basically 50% leverage with Reg T. People in 1929 were trading 10:1

I am 100% on board with none of that list getting in.

Odds are pretty high that it wouldn't even a major league deal to start with so they could save a roster spot.

The Sox aren't going to promise him a starting rotation spot all year. That instantly puts the Sox as playing from behind.

Again, my premise is that is where he wants to be anyway.,

Ultimately, yes. They owe you your stock, no matter what. If they over-extend someone on the other side of a transaction, and they can't pay, they are ultimately response for those funds as well as the stock. You are only responsible for your gains and losses, and margin if you trade on it.