871–880 of 1001 posts
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> And how to do it? You get people to invest in a stock that is expected by the industry to go belly up. A lot of the people involved aren't just buying and holding. They're specifically buying/selling short dated out of the money options in order to move the price. Some understand the market microstructure and the various levers they have to make the price move using what is effectively leverage. > Seriously. It's t…
> They're specifically buying/selling short dated out of the money options in order to move the price. This exactly what stock market speculation is about, is it?
Thing is no one is going to prosecute a randomer on the internet for throwing $5k at an option especially when there's no proof that it was done in bad faith.
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> It does feel like a watershed moment regarding hedge funds Let's wait six months. This story is being badly reported all over. I suspect the hedge funds will mostly be fine. >You get people to invest in a stock that is expected by the industry to go belly up. Seriously. It's that easy. It's not illegal. Yes, it is, it's an abusive short squeeze, which is market manipulation.
If anything is market manipulation, its shorting over 100% of a company to push down it's share price even lower and destroy the company
There is some brilliant analysis on WSB, some rubbish - the usual. But there was great analysis on this post a few hours ago: https://old.reddit.com/r/wallstreetbets/comments/l6n4ay/the_... Assuming it (like others) gets taken down, here's a copy+paste with some cleanup: Note that Discord has had significant investment from private equity funds including FirstMark Capital, Greenoaks Capital Partners, Index Ventures,…
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When you're able to play a video game and have a large amount of users agree to use anything besides Discord, then I'll grant this objection. Until then, I'll refer to it as a monopoly (not over all communication of course, just within its own niche).
Anything is a monopoly if you define the niche narrowly enough.
https://en.wikipedia.org/wiki/Market_power#Elasticity_of_dem...
For a free product, the analogy to "raising prices" would be "adding annoyances or other negatives to the product".
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> And how to do it? You get people to invest in a stock that is expected by the industry to go belly up. A lot of the people involved aren't just buying and holding. They're specifically buying/selling short dated out of the money options in order to move the price. Some understand the market microstructure and the various levers they have to make the price move using what is effectively leverage. > Seriously. It's t…
Why is the solution always to either shut something down or to regulate? Why is educating people to act more responsibly never ever considered an option?
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This is a tired old argument and it isn't convincing or effective. There's a big difference between some kids screaming in your coffee shop and a community on a website supposedly dedicated to free discussion. A more apt comparison would be a group in a corner having a conversation at a rock concert. Suddenly this argument appears less apt. And while some are screaming for these sites to get shut down over it, most o…
> The internet needs a true public square Honest question: why?
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Why is the solution always to either shut something down or to regulate? Why is educating people to act more responsibly never ever considered an option?
I'm not arguing that shutting down or regulating is the best solution, but it is the most likely outcome. How would one go about educating people? There's been a lot of ink spilled on this story and it seems to have captured the public's imagination. Not all of the reporting is accurate, but all the major media outlets get out the point that this is essentially reckless market manipulation by a group of loosely bande…
You're talking about the hedge funds, right?
It does feel like a watershed moment regarding hedge funds. This is the first time netizens capitalize on hedge fund short favorites and it has been surprisingly easy to cause an absolute catastrophy in the order of billion losses for them. I heard Melvin Capital may even have gone bankrupt? And how to do it? You get people to invest in a stock that is expected by the industry to go belly up. Seriously. It's that eas…
> And how to do it? You get people to invest in a stock that is expected by the industry to go belly up. A lot of the people involved aren't just buying and holding. They're specifically buying/selling short dated out of the money options in order to move the price. Some understand the market microstructure and the various levers they have to make the price move using what is effectively leverage. > Seriously. It's t…
I totally agree, but it's not like there's a level playing field now. If the new regs enshrine the current reality in law then maybe there'll be more hope for fundamental reform.
Basically what we probably have now is a behavior that is legal so long as no one engages in it. Losing a fake option is not losing anything.
> I don't see how this is different than what is constantly being criticized such as flash crashes, contagion and large moves based on rumors, other than the group benefiting (fiscally irresponsible internet strangers vs fiscally irresponsible professionals)
Isn't that the whole point WSB is making? This is not different and the media treating it as something crazy or new is disingenuous.
There is some brilliant analysis on WSB, some rubbish - the usual. But there was great analysis on this post a few hours ago: https://old.reddit.com/r/wallstreetbets/comments/l6n4ay/the_... Assuming it (like others) gets taken down, here's a copy+paste with some cleanup: Note that Discord has had significant investment from private equity funds including FirstMark Capital, Greenoaks Capital Partners, Index Ventures,…
Is this great analysis, or is this random paranoia?