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need serous capitalist help people! (pg. 4)
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| notelfreak |
i am black.
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| Deeks1187 |
| its never about companies, its about trust funds and indexes |
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| Krypton |
| quote: | Originally posted by pkcRAISTLIN
i never see you on GPGnet snail you little bitch. |
Now now, I never see you on either PKC.. |
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| Krypton |
| quote: | Originally posted by Knowland
Been in MGM for a little while now. Great company but they are bogged with debt.
And hey, if you though the OP was bad, go read the google finance forums sometime. |
I meant literally go to the casino to gamble. You said you were looking for some quick money on the stock market? Statistically speaking, the vast majority of people who try for "quick money", end up losing money. |
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| Sushipunk |
| Why are you people replying with serious posts to a troll thread? :wtf: |
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| pkcRAISTLIN |
| quote: | Originally posted by Sushipunk
Why are you people replying with serious posts to a troll thread? :wtf: |
its more fun than the 'change a letter at a time' game :p |
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| Sushipunk |
| quote: | Originally posted by pkcRAISTLIN
its more fun than the 'change a letter at a time' game :p |
Yeah, well... :p
I got nothing :( |
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| Knowland |
lots of investors got ed over today. hedge funds wrote an insane amount of calls on a bunch of stocks and effectively sold and shorted the market to make them worthless. they play on investors fears, and this market has no steam behind it like a few years ago. all it takes is a 5% drop to get the retail investors like myself to sell or a promising looking rally like a few weeks ago to buy option calls. count on the S&p at a 940 or above in two weeks on buyback and covering.
this was posted in google and yahoo forums, an insightful take as to what probably happened.
There is a reason for this weeks drop and several hedge funds are
making hundreds of millions of it. This week is options expiration
week for Junes options. Last week there was tons of selling of BAC and
C calls that were in the money. It was all a set-up for the novice
investors. Her is how it works. Last week was mostly a positive week
for banks, especially for BAC who got 8 upgrades in three days. The
stocks were rolling and so were the call options for those stocks.
Many retail investors thought the upwards movement was going to
continue into this week and every indications were positive for this
week being an up week. Here is were hedgies came in. They sold tons of
calls that were in the money. To make it easier to understand I will
give you a very simple explanation:
Lets say friday BAC was selling at $13.50 in the afternoon. The $12
june calls were in the money and were selling at $1.50 (i'm not taking
into account time value of options or that one options contract
represents one hundred shares in the underlying stock.) So you have
$10K and think BAC is going to $16 by next friday (which most on the
BAC message board thought). You can buy a little over 700 shares on
the open market and make $1750 if BAC hits $16. Or you can buy $10K
worth of $12 calls for $1.50 each. And if the share price reaches $16
by next friday, you make around $17000 in profit. So if you are
certain BAC is going to $16 and every indication shows you that it is,
why not risk it and make the big hit. These Hedge funds sold those
calls last week like there was no tomorrow. Come monday, they started
to short the hell out of those BAC shares, selling 1 mil blocks at
market. They drove the share price from 13.80 to almost $12. If they
keep it down by friday, option expires worthless and they get to keep
your cash, then slowely cover over the next two weeks. This strategy
is especially effective in the summer time, when the volume is low. It
is easier to manipulate a stock with low volume.
This strategy was used for C and other financial institutions as well.
Savy investors know what's coming during options week and usually cash
out on Friday before it begins, then they pick up the bargains during
the week. You can check the history of every options expirations week,
90% of those weeks end in the red. |
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| Sunsnail |
| bought msft on 5-18 sold 6-17 made 17% |
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| Sushipunk |
| I pimped out Domesticated for 24 hours, and made 11,000% on my investment. The boy is a machine. 5 customers at once was a bit of an eye opener. For him. |
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| Sunsnail |
| quote: | Originally posted by Sushipunk
I pimped out Domesticated for 24 hours, and made 11,000% on my investment. The boy is a machine. 5 customers at once was a bit of an eye opener. For him. |
not really, he could barely open his eyes after that |
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