Recent comments in /f/wallstreetbets

Bryguy3k t1_jeb2rwy wrote

Not really - this is a COTS solution that would cost 10s to 100s of billions to develop otherwise. The costs have already been amortized through millions (maybe billions) of devices sold. It enables a high speed data solution for anything placed on the moon and the only major cost will be maintaining the earth-moon link.

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Optimistbott t1_jeb1y9y wrote

I had this same thought today.

IORB is less than 5

T-bill and every treasury yield is less than 5.

commercial paper less than 5.

interbank less than 5.

What could any bank issuing a 5% yield on a CD possibly be buying with that money to turn a profit with safe assets? Discount window is 5% and they might as well be just borrowing from the discount window. But of course, they're now able to leverage the face value of T-bonds but those still don't have those 5% yields ultimately.

So banks offering 5% on CDs must be getting some yield on something that is greater. Which seems like they're going to be riskier assets. If a bunch of money is tied up in less liquid assets, the chances of those riskier borrowers paying back those loans (or mortgages) could go down.

After some degrees of separation of asset purchases, it feels like the higher yields coming out of the crypto sector could be the culprit. But that could be this house of cards with all of the unsecured stablecoins. Or something. There definitely feels like something there.

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SuperAppleLover t1_jeb0jl3 wrote

That was my point in the comment. Earnings will not be the same where it was before because everyone took their cash out. Plus with higher rates, they cannot maintain their previous earnings. How will it recover when most of the people pulled their money out into bigger banks. There’s no incentive for them to return. Example, let’s say you withdrew $5 million out of FRC. Why would you put $1.00 back into FRC?

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silverwind18 OP t1_jeb07mf wrote

Yes, in order to exercise a put option, you must have the underlying shares available to sell at the strike price. This means that if you don't already own the shares, you would need to purchase them at the market price in order to exercise the put option.

Note that most options traders close out their positions before expiration rather than exercising them.

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Zaros262 t1_jeazocd wrote

I don’t have the skills to write a DD. Basically, it’s now trading at less than 2X earnings. If they can recover from the bank runs and come out solvent on the other side, I truly believe that this stock will recover over the next 6 months-2 years. There’s a possibility of a 10x return on the outside and a 3-4X return doesn’t seem crazy either.

Also, we really want to build an expansion on our house. If this 5Xs that gets us halfway there in our budget

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ConradSchu t1_jeaz6hv wrote

Because the big crash was followed the very next day with the largest intraday swing (upward) in market history. Considering it was day 2 of the crash, I thought it was a dead cat bounce. So I was trying to buy puts.

If you look at the charts for those first two weeks, each huge dip is immediately followed by an equal rally (fed injecting QE). It destroyed the put positions I was able to get (they were long term though) and heavily contributed to today's soaring inflation.

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