Re:Bankrupt Hertz targets Robinhood traders in plot to dump ...
by dragontamer on Friday June 12, 2020 @08:20PM
(#23505372)
> Not exactly, the current shareholders are getting paid interest to loan out their shares to short sellers.
I don't believe Robinhood traders get this benefit. A premium service like Interactive Brokers provides the ability to lend shares. Sophisticated investors buying/selling and trying to make money through bankruptcy is fine.
The issue I have is that normal, retail investors, are going to be caught up in this game. Under traditional retailer strategy (ie: buy and hold, and/or dollar cost averaging), the retail investor is going to be wiped out here.
> Or doing all that indirectly through options. If you know that the stock will still be worth 12 cents in 4 months, that can earn a fortune.
You don't need to own any shares to buy or sell options. You can play the options market whenever you feel like.
I don't believe Robinhood traders get this benefit. A premium service like Interactive Brokers provides the ability to lend shares. Sophisticated investors buying/selling and trying to make money through bankruptcy is fine.
The issue I have is that normal, retail investors, are going to be caught up in this game. Under traditional retailer strategy (ie: buy and hold, and/or dollar cost averaging), the retail investor is going to be wiped out here.
> Or doing all that indirectly through options. If you know that the stock will still be worth 12 cents in 4 months, that can earn a fortune.
You don't need to own any shares to buy or sell options. You can play the options market whenever you feel like.