Robinhood, Interactive Brokers Restrict Trading in GameStop Stock and Options

[Phil in Absentia]

Brokers took steps to restrict the trading in GameStop stock and options and other related names caught up in a flurry of trading activity that has captivated the attention of Wall Street and caused big losses for hedge funds. In some cases, investors would only we able to sell their positions and not open new ones.

Free-stock trading pioneer Robinhood and Interactive Brokers both made efforts to curb the wild trading activity in heavily shorted names like GameStop, AMC Entertainment, Koss and more on Thursday.

Initially, shares of GameStop reversed course and slid quickly into negative territory as word of the trading restrictions spread. The stock, which traded above $500 at one point in premarket trading, was below $290 per share shortly after the opening bell.

However, share of the brick-and-mortar video game retailer last rose 9%.

?We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities,? Robinhood said in a statement.

https://www.cnbc.com/2021/01/28/robi...amestop-s.html

[Patrick Bateman]

I've never seen anything like this lol, absolutely wild

[So Nashty]

Lol hedge funds are so mad


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[Dunny]

"How dare the peasants try to play our game!!"

-Hedgefunds, probably

Also, there's even a Mets angle, naturally.

[Morphinity]

This shit is fascinating.

By my extremely uneducated eye, it seems to me the only "lesson" that will be learned from this is hedge funds will do everything in their power to make it so their short positions are not public.

[G1000]

This shit is fascinating.

By my extremely uneducated eye, it seems to me the only "lesson" that will be learned from this is hedge funds will do everything in their power to make it so their short positions are not public.

Yup. Highly likely that "private" short information is going to be much closer to the chest.

[RodrigueGabriel]

You can regulate a beach, but what happens when a whole bunch of grains of sand start acting independently? The SEC must be having an "oh shit" moment right now.

[ThirtyONE]

This. Is. wild.

[BlairBettsBlocksEverything]

I could've sold for a pretty big profit earlier. I held. and everyone who has it should hold. Its down a lot now but they are manipulating the market more to drive the price down to scare more people into selling.

Even if I don't get my money back, I hope all the hedgefucks are dragged before congress to testify under oath about their illegal practices.

[phillyb]

The memes on imgur have been quite amazing.
AOC is gonna be streaming on twitch tonight to talk about what's going on.

How does it go? Oh yeah, eat the rich.

[Dunny]

I'm certainly no expert, but holy fuck. They halted retail trading to allow TPTB to exit their short positions a little more gracefully. It's not even a casino at this point, it's a total farce.

[BlairBettsBlocksEverything]

The company that funds Robinhood didnt exit their shorts. they doubled down on them, right before Robinhood blocked anyone from trading the stock, thus sending the price down and allowing them to recoup their wouldbe losses.

this is plain as day corruption.

[4EverRangerFrank]

Here?s the message; The market is a roulette wheel, a one-arm bandit or a craps table...take your pick. There are quite brilliant people who can research and understand the more obscure and arcane details but for the most part, it?s still a game of odds. Remember, the house always wins.

The big guys should just STFU and eat their losses and of course, write them off against their gains. And yes, always a METS angle at play. *smh*

[LeetchFan]

The company that funds Robinhood didnt exit their shorts. they doubled down on them, right before Robinhood blocked anyone from trading the stock, thus sending the price down and allowing them to recoup their wouldbe losses. this is plain as day corruption.

Actually, it was Net Capital requirements. Doubtful that Citadel had a net short position of size in a tiny stock like GME.

[Patrick Bateman]

Looking more like a clear pump and dump rather than a fight against wall street now lol

A lot of these guys lost credibility when they went the schilling DOGE coin which is the biggest pump and dump vehicle out there. Also hurt the larger crypto community as it made the sceptics even more sceptical

[rmc51]

Looking more like a clear pump and dump rather than a fight against wall street now lol

A lot of these guys lost credibility when they went the schilling DOGE coin which is the biggest pump and dump vehicle out there. Also hurt the larger crypto community as it made the sceptics even more sceptical

The dudes that organized this are walking away with millions as they cashed out and let others "fight the hedge funds". The main guy that organized it was a GME stock holder since like $5. Gee...I'm sure he really wanted to jack the price up because he "hated the system". Followers are left bag holding in the name of a cause that never existed.

[BlairBettsBlocksEverything]

Actually, it was Net Capital requirements. Doubtful that Citadel had a net short position of size in a tiny stock like GME.

ah my mistake

Its clear im kind of fucked here holding the bag but you don't lose money unless you sell so pack our bags boys we're gonna go to the moon eventually

even with this colossal loss, I'm up 35% in my Robinhood account over the past year.

[LeetchFan]

The dudes that organized this are walking away with millions as they cashed out and let others "fight the hedge funds". The main guy that organized it was a GME stock holder since like $5. Gee...I'm sure he really wanted to jack the price up because he "hated the system". Followers are left bag holding in the name of a cause that never existed.

Nailed it perfectly.

[LeetchFan]

Here?s the message; The market is a roulette wheel, a one-arm bandit or a craps table...take your pick. There are quite brilliant people who can research and understand the more obscure and arcane details but for the most part, it?s still a game of odds. Remember, the house always wins.

Yes, but The House is the Little Guy who can invest alongside the Big Guys...is more nimble....has access to research light-years better than decades ago....and can get in or out in seconds.

Invest for the long-term in quality stocks or mutual funds, and you can't lose.

As for the crap we see over on WSB.....that is simply FanDuel and DraftKings meets Atlantic City and Las Vegas.

[4EverRangerFrank]

^Agree, and the last sentence is very true.

On a slightly different note, has anyone else noticed the increased frequency of betting ads on TV? I'm no prude and enjoy the occasional gamble but I cannot see how this ends well. The ad message always includes a 'credit' message saying you will 'earn' up to $X back just for 'playing.' While seeming innocuous, these words have real attraction and meaning. Gamble associated with credit, earn and game is the part that makes me smh.