The corollary seems to be that citizen and retail investors have teamed up to take on big funds. This is a classic underdog uprising tale that just cannot be passed up.
This couldn't be further from the truth.
The combined buying power of Reddit investors would be no more than 30 - 40 million dollars. Piling on some citizen investors on Robinhood, I surmise that the total investment power couldn't surpass $200 million dollars if they tried their best.
Think about it - Most people on Robin Hood only invest 10s, or hundreds of dollars, let alone thousands. Even aggressive day traders only play with $25,000 at a time. It would take a massive army of hundreds of thousands to get the kind of buying power that could take on the big funds.
Here are some questions to ask;
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Why are specific hedge funds being targeted?
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Why are government officials suddenly interested in regulating the stock market when exploitative behavior has been happening like this for decades?
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Why is this happening while Biden is in office?
This is a well-orchestrated, engineered, and versed effort to collapse and siphon certain questionable funds, with supreme precision. The targeted funds are schemes that launder money (AMC is owned by CCP Wanda, for example) which would normally be too difficult to take down and might take years.
I have a heavy suspicion that White Hats are doing this. This isn't a coincidence.
Good points to digest in this thread.
I would make some other observations.
http://www.baystreet.ca/articles/techinsider.aspx?articleid=63869&mod=mw_quote_news
Take note of the following: GameStop shares shot up 119% to trade at $424 in pre-market trading, after closing down 44% to $193.60 during regular trading hours on Thursday. The stock’s high for the week is $483 a share. Robinhood said its decision to restrict trading on Thursday — which angered many investors — was in order to comply with capital requirements mandated by the U.S. Securities and Exchange Commission (SEC) for broker dealers.
Next to Robinhood, interactive brokers did the same thing.
Arguing that people on these platforms cannot have any meaningful impact in relation to the organized trillions of the fleece party, is being discounted with this insight into the price movement.
Rather, although highly organized, the trillions you are speaking of are usually spread around. This whole GME thing, is a focused effort.
Of course, the higher the stock goes, the less a newcomer with a 1000 bucks to play with will have an impact on the actual stock movement, if invested into buying that stock (adding to the demand)
However, by the same token, a play could be envisaged where call options, and even aggressive call options, may play a role.
Feast your eyes here: https://www.marketbeat.com/stocks/NYSE/GME/options/
For those not versed: Read here about what open interest means, so you can better understand the table you are looking at, and what specifically is worthy of your attention.
Then the costs of the options. For those not versed: https://finance.zacks.com/much-puts-cost-stock-market-5900.html
https://www.nasdaq.com/market-activity/stocks/gme/option-chain
So, what would happen if both de demand for the stock and the upward skewed momentum of the options trade supports the sustained rise in price of the stock?
Next to the usual suspects, there are many platform that both offer specific stock and options to trade. Many of these stem from UK, Gibraltar, Malta and Cyprus. And people from all over the world, except USA, are using these kinds of platforms.
It just so happens to be that these jurisdictions also are tax havens. For many onshore continental European small business, Cyprus is very important. And there is a lot of money to be played with.
And many were screwed out of their money, called a bail-in, to save some Cyprus banks in the onslaught of the 2009 financial crisis. Payback 's a bitch. Memories of this are easily conjured up with the strict lockdowns etc.
And if protesting on the street does not earn you a buck, but protesting this way does ....
1 + 1 = 2
All it took was a little fuel