DO NOT FALL FOR THE NEW RULE THAT YOU CAN DAY TRADE ALL YOU WANT...
YOU ARE REQUIRED TO HAVE A MARGIN ACCOUNT, IN ORDER TO DO THAT AND YOU CANNOT DO IT IN A CASH ACCOUNT... THEY WANT YOU TO HAVE A MARGIN ACCOUNT, BECAUSE THEN IF THERE'S A MARGIN CALL, THEY CAN TAKE ALL YOUR SHARES WITHOUT YOUR PERMISSION
Some additional notes on GameStop warrants:
-Warrants showed up as fractionals in brokerage accounts when they were issued, while the warrant agreement explicitly stated no fractional warrants will be issued
-It's possible this is how brokers are accounting for them on the backend, but because fractional warrant dates and amounts aligned with GME purchase dates and amounts, some warrants were misclassified as long term holdings upon issuance for GME investors who had any shares longer than a year
-No broker has been able to answer this simple question yet: will GameStop receive $32 for every $GME warrant exercised through the broker?
-NSCC just pushed settlement responsibility to brokers yesterday. While that in itself may be nothing unique, the fact that it involves $GME changes everything in my opinion
Once again, I am not advocating for or against investing in warrants. Please do your own research if you are considering them as they could very well go to zero. I just think they add an incredibly fascinating angle to the story!
BREAKING: As per OCC memo, NSCC will no longer settle Gamestop warrants as of today and will instead place the responsibility on brokers. 👀
There was no official reason provided to justify the change but I have a feeling we already know why.
$GME
In all the excitement, I forgot to check on $AMC today.
So much for the nay Sayers for a drop yesterday or today.
No option expires until Aug 21. This could get interesting.
You can’t make this up.
Why would the NSCC and OCC publish this and tell brokers they’re on their own when it comes to $GME warrant transactions? 👀
Something is coming and it’s very very big. 🥵
Can't Stop, won't Stop, GameStop 💎🙌
The NSCC is no longer settling $GME warrants.
They didn’t give a cause, but they are effectively pushing the resolution into the brokers/OCC.
The options chain remains active and the price is well below the exercise price.
Why would they stop settlement?
Most likely reason is that they foresee a ton of undeliverable warrants, creating a net settlement nightmare. If another entity is in charge, they can enact a cash settlement to effectively settle ‘naked’ positions in cash.
Since they are enacting this right now, they likely got wind that there is a very real issue with these warrants.
It is basically removing the locate requirement for warrants.
These little loopholes are what Wall Street uses to abuse every corner of the stock market.
BREAKING🚨 S&P GLOBAL HAS UPGRADED AMC THEATRES FROM CCC+ TO B-
“This follows AMC’s strong performance through the first two quarters and improved box office results.We now believe that AMC’s capital structure is sustainable.” $AMC
eBay is up $4.12 today. That means GameStop, with 43M shares, is up $179M on their eBay position today.
When you move, I move. Just like that.
$GME $EBAY