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Comment by zzleeper | Hacker News Reader

The volatility of the Gamestop is just insane. People think it's because of the short squeeze, but it's not just that but the fact that the stock goes from $100 to $400 to $200 within the hour, and then as OP mentioned you end up with a lot of your liquidity stuck in Gamestop until the contracts settle.

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I sure hope that GameStop or whatever companies are affected that their corporate employees aren’t in a sell blackout period. Usually you can’t sell for a few weeks before earnings are released. If you’re just a paper pusher, I would consider taking a slap on the wrist.

Pretty sure right now you will be looking at more than a slap on the wrist. DOJ and SEC will be looking to take their pound of flesh from anyone who did anything outside the letter of the law on this thing. Not good to be the sacrificial lamb they hold up to show the public they prosecute Wall Street scammers.

I think you’re right, but unless you have insider knowledge that would move the stock, is trading in blackout a legal or corporate violation?

I believe it’s a corporate violation. Since different companies have different blackout policies.

Yeah, I was saying if I were an employee I’d take the slap on the wrist. Likely life changing money on the table. Maybe look into doing what Mark Cuban did with his costless collar if the shares are locked up at a company controlled broker. Although volatility may make that less of a good deal.

https://www.acceleratedfi.com/real-world-options-example-how...

In the current environment, it would be impossible to find a long dated symmetrically priced collar like Cuban did. Everyone knows these hype stocks will eventually tank, it's just a question of how and when.

Interesting that Yahoo allowed option trading on the underlying security during the lockup period. Is that ordinary?

The bankers got a good deal smarter after that.

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