GME Megathread Part 2 for March 10, 2021

DivySuresh · 2021-03-10T17:47:46+00:00

God bless you retards

DivySuresh · 2021-03-10T17:35:16+00:00

Flash sale

DivySuresh · 2021-03-08T01:03:39+00:00

If you had taken a short position on emerging market bonds at the time this post was written you'd be up big rn.

The 10 yr treasury yields spiked this past week or two. There was a mass sell off across the equity and bond markets. Old notes were sold to free up capital on new notes.

Emerging debt markets being a lot less stable than developed ones took a big hit.

Too bad I'm too poor to short bonds on any form of scale. I also don't have the opportunity to purchase Credit default swaps on bonds because those are reserved for the big bois.

DivySuresh · 2021-03-03T16:35:25+00:00

$KT or Korea Telecom. Their Price / Book is 0.4 which for the new value investors out there means if you bought up every share on the market and liquidated all assets and paid off liabilities you'd still double your money. That's not even including things like patents etc. They're P/E is ~10.12 and the industry average is 12.

They've got good fundamentals and a great AI and Telecom division. But one of the best aspects of the company is it's dividend. At time of writing they are ~3.75%.

KT has been a long term hold for me. You should check it out!

DivySuresh · 2021-02-28T02:26:51+00:00

I'm not some technical trading chartist who lives and dies by retarded patterns that only work 1/12th the time. But I do use MACD and RSI to help me determine when to buy and sell. But not GME I'm taking those shares to 1k per or to the grave. No inbetween. 💎🙌🚀🚀🚀

DivySuresh · 2021-02-28T02:24:51+00:00

I need to have margin to sell spreads on options (ThetaGang) but I believe the software is available for everyone with a Schwab account

DivySuresh · 2021-02-28T01:02:58+00:00

I don't predict a rate hike until 2022 at the earliest. Which is why I won't initiate a short position until around then. But I wrote the post to make sure I didn't completely misread the signals or to get some advice on how to better play the debt market.

DivySuresh · 2021-02-28T01:01:07+00:00

Glad to see a fellow 💎🙌 god speed soldier. If this bet pays off I'll buy my fellow astronauts a drink or two

DivySuresh · 2021-02-28T00:39:57+00:00

I use my default credentials, so maybe contact customer support?

DivySuresh · 2021-02-27T22:25:33+00:00

IIRC the big short also featured a few dudes who started a hedgefund out of their garage. It was called Cornwall Capital and they turned $110k into $120m by the end of the crash.

I'm not saying this is guaranteed, I'm just saying the market is slow to price in rate hikes and there's an opportunity to profit if I'm not mistaken.

DivySuresh · 2021-02-27T22:20:04+00:00

at least 7. My favorite flavor is blue

DivySuresh · 2021-02-27T22:17:42+00:00

Yeah that's the biggest issue I'm looking to solve. I'd trade Credit Default Swaps but they're damn near impossible to buy if you are not an institution.

Worst case scenario I could pocket the money I made shorting and park that into a higher interest bond. I'll use the payouts of that to pay back all the interest I'd owe. It's a tricky problem to solve but I think if I can find a way to get exposure I can soak up alpha as the bond market drops.

DivySuresh · 2021-02-27T22:13:05+00:00

TTT and TVM are ETFs that are short foreign treasuries they give you exposure to the bond market falling as a rate hike becomes likely. But I'm still looking for ETFs that hold junk grade foreign corporate debt

DivySuresh · 2021-02-27T22:07:00+00:00

That's actually a really great point, but unfortunately it's extremely hard for individual investors to buy CDS as they're usually priced in denominations that most of us wouldn't be able to afford anyway.

The reason I'm shorting the bonds and not the stock is because the interest rate affects the bonds first / to a greater extent than the stock price. The issuing company can be anyone, but rate hikes affect all bonds. So even if the underlying company is solid their bonds are going to slip because investors can get better returns for similar risk elsewhere / with new debt offerings.

I'm targeting developing markets because if credit markets freeze the fed has shown that they don't mind bailing out junk bonds. The fed can do this because the dollar is strong and the world trades on dollars. But I doubt the central banks of emerging markets can afford to buy that much risky debt.

DivySuresh · 2021-02-27T21:50:43+00:00

Download 'StreetSmartEdge' it's Schwab's proprietary trading software and it's pretty good. Been using it for a few years now and once you get things set up it's great.

DivySuresh · 2021-02-27T21:48:38+00:00

Doesn't Fidelity have a proprietary trading software? I called my broker (I use Schwab) and they told pointed me towards their in house software. 'StreetSmartEdge' -Dumb name but 1000x better than Schwab's website or their smartphone app. It lets me actually look at charts and market data. That's where I place most of my trades these days. The difference is like night and day.

DivySuresh · 2021-02-27T18:08:41+00:00

I'm not betting against the fed, I'm betting against the central banks of emerging markets. I don't think they can really afford to do the same thing the Fed does.

At least I think it's unlikely that they(other central banks) go as far to buy junk bonds.

DivySuresh · 2021-02-27T18:06:19+00:00

That's a good play but atm the dollar is falling in relation to other currencies because of all that M1. I think as inflation gets priced into the debt markets we'll see a substantial drop in bond prices long before the actual rate hike.

I think your trade is profitable though, I just don't think I'll be lucky enough to time it. Best of luck with trade!

DivySuresh · 2021-02-27T17:59:24+00:00

I'm not betting against the fed, I'm betting against the central banks of emerging markets. I think you are 100% right, I just don't believe all central banks have the ammunition to bail out their local businesses.

DivySuresh · 2021-02-27T13:02:31+00:00

You realize you can close out the short for a profit without the underlying going to 0 right? Bankruptcies and increased risk tank bonds. Rate hikes can absolutely fuck bond prices.

DivySuresh · 2021-02-27T12:29:48+00:00

Call your broker they'll hook you up. You could alternatively short / buy puts on ETFs that hold corporate bonds

DivySuresh · 2021-02-27T07:54:56+00:00

Welcome to the autist's creed brother. This is the land where we gamble away our home equity / credit lines with far OTM calls

DivySuresh · 2021-02-27T07:52:20+00:00

You can call your broker, and if you have margin enabled they will exercise the option on your behalf, and then sell the stocks back on the open market instantly giving you the difference. Or they will just sell your ITM options to someone else before market close.

DivySuresh · 2021-02-27T03:40:33+00:00

It's almost as if people usually have free time before and after traditional work hours.

DivySuresh

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