Loading ...Robinhood limits the number of shares that can be bought for 50 companies
For example, you can only buy one share of AG, one share of SLV. and 5 shares of MUX. This is market manipulation on a grand scale.
Here is the complete article and list of stocks.https://www.kron4.com/news/robinhood-limits-trading-to-50-major-stocks-what-you-need-to-know/
There is a large short position on those stocks. Wall Street Bets (WSB) have been buying out of the money call options on these illiquid stocks to squeeze the shorts.
When a broker sells call options they must buy the underlying stock to hedge their bets. Robinhood has had to borrow huge sums from several banks to cover the call options.
They are at and beyond their credit line, and if this situation is not unwound in a good way Robinhood will fold. They could take one or more hedge funds down with them.
In fact, it is possible they could crash the market. Have been learning from Steven Van Metre – AKA The Bond King (You Tube) Will post S. Van Metre latest video.
I understand all this. But it doesn’t justify what Robinhood is doing. The hedgefunds should not have gorged themselves on short positions.
Absolutely incredible stuff. Surreal. They are as good as toast at this point. Can’t wait for LTCM 2.0 bailout. Just around the corner.
North, more info about Robinhood woes.
https://www.zerohedge.com/markets/robinhood-caps-maximum-holdings-36-stocks-just-one-share
Thanks, silver fox.