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The nihilism of r/wallstreetbets

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Re: The nihilism of r/wallstreetbets

#231

Post by [deleted] »

bathtub365 wrote: post #190
buryat wrote: post #189

Earlier quoted context omitted.

WSB is more about laughing at themselves rather than trying to amuse or offend someone. WSB doesn’t care much about so called “normies”, they have never attacked anyone outside of wsb and labels don’t spread outside of wsb either. WSB never had nihilistic worldview, there’s plenty of people supporting each other, there’s regular donations to charities, and etc. WSB is just a tongue-in-cheek ridicule of the finance wo…

They’re engaging in blatant market manipulation. I’d say that harms people outside their group.

[deleted]

Re: The nihilism of r/wallstreetbets

#232

Post by interstice »

safog wrote: post #154
undefined1 wrote: post #80

Generational warfare waged via Robinhood. The video and comments here sum up a lot of it: https://www.reddit.com/r/wallstreetbets/comments/l1u036/wsb_...

Along this note, the new generational warfare is Gen Z vs Millenials. Gen Z posters are mostly tired of the millenial narrative of boo-hoo the system is rigged, I'm so poor, why won't someone give me free stuff and it's a meme to make fun of millenials on TikTok for saying this. I wonder how it'll go for them given they're mostly still in college / high school but we shall see. They've mostly graduated into a booming…

There's a bit of survivorship bias in this response, some eras are a lot less forgiving than others. It would be disingenuous to claim that hard work is the only factor for success.

Re: The nihilism of r/wallstreetbets

#233

Post by ThisIsTheWay »

seabird wrote: post #61
ThisIsTheWay wrote: post #27

Earlier quoted context omitted.

> Non sense. Really great contribution there, appreciate you sharing your thoughts and furthering the conversation. What LogicSlave said is dead on accurate. Lowering the barrier to market entry has empowered millions of people to make their money work for them. Is some of it unhealthy? Absolutely. But not all gamblers are addicts, and its not all counter-productive either. The downside is that many are jumping in wi…

There's nothing nonsense about it. These big firms have billions on the line and are interested in protecting it. WSB is a comedy outlet where active posters are at least in the high end of hobbyist traders, and they realized that some very greedy short selling left an opening for a decent buck. The vast majority of Robinhood's userbase couldn't even come close to explaining to you the mechanism through which this ha…

> Markets and the choices you make them in can be incredibly complex. Most people don't have the time and drive to deal with that, no matter how much you "democratize" the technology.

Fully agreed here. My point wasn't to say that people are taking on Wall St. and getting rich quick by developing a deep understanding the mechanizations of the market. But you don't have to understand a gamma squeeze to make money. In the past, brokers were a luxury only the wealthy could afford, and I think it's a great thing that that is no longer the case.

Re: The nihilism of r/wallstreetbets

#234

Post by xscott »

moneywoes wrote: post #202
mywittyname wrote: post #165

Earlier quoted context omitted.

I mean, it's still rational for professions too. If you make gamble and lose, then you just need to work a little longer to catch back up. But if you win, then you might never need to actually work again. Throwing $500-1000 a month into OTM options trading can generate life-changing amounts of money. That's like the lease payment on a 3 Series BMW. So it's pretty sustainable for working pros.

But what is the expected value? You can lose way more than the principal no?

> You can lose way more than the principal no?

Not if you're buying options (calls or puts to open). Maybe you're thinking about short selling, or selling naked options.

Re: The nihilism of r/wallstreetbets

#235

Post by Scoundreller »

virmundi wrote: post #152
Scoundreller wrote: post #142

Earlier quoted context omitted.

I’d be surprised if there are any shorters left right now. Probably all got margin called and forced to exit. VW’s squeeze was different as it turned out their parent was holding almost all the shares. There was only one seller left.

Valid point. People in WSB are tracking shorts. Haven’t heard them call for bailing. Could be they just want to beat up the boomers. Here is a discussion on why they think it will go up. https://www.reddit.com/r/wallstreetbets/comments/l4tu4r/why_...

Dunno how they're doing it.

Thinking aloud, it's not the easiest thing to calculate. You can can short a stock and acquire it right after without closing the two net-zero positions. Why? To mess with short interest calculations. You do lose trading fees and spreads whenever you do it.

Then you have all of the options going around.

Re: The nihilism of r/wallstreetbets

#237

Post by tiziniano »

logicslave wrote: post #2

Wall street bets is just exposing the facade of wallstreet. As more information about investing becomes available, hedge funds and investors will look increasingly less sophisticated. Platforms like Robinhood will erode their edge by increasing liquidity, lowering transaction costs, and providing access to more exotic investments and financial derivatives.

Lo, n behold, yet another example of the average American obsession with "looks".

Re: The nihilism of r/wallstreetbets

#238

Post by tiziniano »

cbozeman wrote: post #96
logicslave wrote: post #2

Wall street bets is just exposing the facade of wallstreet. As more information about investing becomes available, hedge funds and investors will look increasingly less sophisticated. Platforms like Robinhood will erode their edge by increasing liquidity, lowering transaction costs, and providing access to more exotic investments and financial derivatives.

This is what's really pissing off a lot of people who think they're "somebodies" in the finance world. A bunch of people who didn't attend Columbia, Harvard, and Yale Business Schools are using a fucking phone app to do what only they used to be able to do - manipulate the market. And its pissing them off. For decades, these arrogant little shits were told they were the Masters of the Universe. Now they're finding ou…

What is this fantasy? revenge porn fanfic?

Re: The nihilism of r/wallstreetbets

#239

Post by baq »

socialist_coder wrote: post #214
baq wrote: post #84

Earlier quoted context omitted.

market makers who write the options but want to hedge the risk by taking a related position in the market itself. they don't want risk, they just want the premium, so they don't care about the price of the underlying most of the time. what they do is continuously adjust the position as the price changes and time to expiration gets shorter. you can imagine the amount needed to hedge gets very nonlinear the closer to e…

isn't this a serious exploit in the whole market maker system?

it is an exploit; not sure if serious, as conditions required to trigger it are quite extraordinary. couple hundred million loss isn't a big deal for them but pricing models will be updated for sure.

Re: The nihilism of r/wallstreetbets

#240

Post by rubatuga »

umvi wrote: post #48
supernova87a wrote: post #33

It just doesn't add up to me. If you take Gamestop (GME) today's hot item, it's trading 170M shares back and forth, at say, $70. That's $11B sloshing back and forth. You're telling me 10,000 (if even?) guys sitting at home doing retail trading have $1M each in positions driving this? 100,000 people with $100,000 each, during the day? I think it's quant and algorithmic trading. I would love to hear from an expert thou…

> I think it's quant and algorithmic trading. Yeah, I wonder if ML-driven investing is being tricked by reddit into buying stock in failing companies and causing a runaway effect. If so, it makes me nervous that lots of stocks might be massively over-inflated right now.

You are assuming that a lot of investing is ML-driven. It's not.
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