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AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

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Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#241

Post by betterunix2 »

JohnJamesRambo wrote: post #154
SpicyLemonZest wrote: post #96

Earlier quoted context omitted.

I suspect they did. I had multiple friends buy GME and all of them are now in the red on that investment.

This is my experience as well. Many put their whole stimulus in it, and I can’t escape the idea that Wall Street knew all this would happen and they just found a way to get a large chunk of that other stimulus money that went to the people and not to corporations. An artificial movement that they may have created themselves that had an ethos of “bankrupting Wall Street”. Lol. A taxpayer funded pump and dump of epic p…

"Wall Street knew all this would happen"

As if "Wall St." is one giant conspiracy. What happened to criticizing "Wall St." for treating the economy like a casino and driving the stock market into a giant bubble? Where are all those complaints about how "Wall St." is recklessly risking our retirement accounts? The contradictory conspiracy theories are astonishing.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#242

Post by thefounder »

kortilla wrote: post #147
dougmwne wrote: post #85

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

> Here is a truism for you all: In any casino Wall Street is not a casino in this regard. There is no “house edge”.

>> Wall Street is not a casino in this regard.

You either didn't trade options or didn't play casino games. Any trader knows he takes a gamble(calculated but still a gamble) and if something unexpected happens(i.e your stock buying is being halted and people panic for various reasons) you just made the wrong bet. Regardless if you are right you still loose.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#243

Post by romwell »

ditonal wrote: post #212
dougmwne wrote: post #85

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

Conspiracies happen so frequently on Wall St that “conspiracy theories” should be closer to a priori assumption than irrational fringe ideas. Were people skeptical of Moodys A+ ratings of subprime mortgages conspiracy theorists? And that’s far from the only example of financial fraud . There’s a lot of money at stake. Citadel is most of Robinhoods revenue, they put money on the opposite side of the trade via Melvin,…

Thank you so much for spelling this out. I have no dog in that race, but with everything you said, and politicians from AOC to Ted Cruz calling for an investigation, calling the allegations of wrongdoing "conspiracies" is simply being in denial.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#244

Post by quantumofalpha »

nprz wrote: post #188
kortilla wrote: post #147

Earlier quoted context omitted.

> Here is a truism for you all: In any casino Wall Street is not a casino in this regard. There is no “house edge”.

I'm gonna go out on a limb here and suggest the group with teams of PhDs writing high frequency trading algorithms might have an advantage over a dude with a Robinhood account.

HFTs certainly have an edge on micro/milli/seconds timescales, where price moves are more predictable. But that expertise doesn't necessarily generalize to mid/low-frequency trading where human traders and the real world come into play.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#245

Post by betterunix2 »

technofiend wrote: post #22
PragmaticPulp wrote: post #2

I expect a lot of Redditors will be very disappointed when they realize just how much money hedge funds made, on average, out of this episode. The WSB moderators really did everyone a disservice by letting obvious misinformation flood the subreddit. It’s hard to view the later stages of the GameStop phenomenon as anything other than a Reddit-fueled pump and dump scheme.

Game theory inevitably takes over; I better sell before the next guy does and lowers the price even further. The only people with diamond anything are the ones who bailed and took their profits early.

The people with "diamond hands" are the ones who opened short positions when the stock was trading in the $300+ range. They are probably to busy looking up which sports cars to buy with all the money they made to bother looking at WSB right now.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#246

Post by JumpCrisscross »

PartiallyTyped wrote: post #226
jpsalm wrote: post #182

Earlier quoted context omitted.

> Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. Like convincing the world that 'short ladder attacks' were a thing. https://money.stackexchange.com/questions/135807/closing-sho...

The observation was that during the duration of restricted trading and therefore reduced momentum, there had been sequences of trades with batches of 100 shares sold at continuously smaller values with very little difference between one batch and the next and the difference was in 3rd and 4th decimals. The fact that retail was restricted to selling and hedge funds were not, further corroborates foul play.

> there had been sequences of trades with batches of 100 shares sold at continuously smaller values with very little difference between one batch and the next and the difference was in 3rd and 4th decimals

This sounds like the interaction between run-of-the-mill execution algorithms.

Bidding algo is likely a market maker putting out small quotes (100 shares is a standard lot) and adjusting down (up) the price each time the bid (offer) is hit (lifted). Selling algo trying to liquidate a larger block without moving the market. It is hitting the top bid from time to time. If those two are the only market participants talking for a few milliseconds, they'll walk down the price in 100-share increments. Given how volatile GameStop was, I suspect the predatory algorithms, who sniff out this sort of stuff, were offline.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#247

Post by dougmwne »

jb775 wrote: post #177
dougmwne wrote: post #85

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

Hindsight is 20/20. Being the guy on the sidelines saying "I knew this was gonna happen" after the fact never adds any value. It's you trying to make yourself feel special. If you were so confident in your predictions, show me where you shorted the stock and made a bunch of money off it going down. If not, please stfu with your grandmom truisms.

I'm not talking about hindsight or who was right or wrong. Honestly I have no idea how this will continue play out. Anyone who claims they do is misinformed or selling you something. The price went up and down by a huge amount so the lucky will already have big wins. Maybe there will still be more big winners to come or maybe not. Many people seem to have not been aware of what game they were playing and were caught up in hype and frenzy, even here on dear old HN.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#248

Post by betterunix2 »

TheTrotters wrote: post #74
paulgb wrote: post #46

Earlier quoted context omitted.

Just because a fund’s normal MO is to buy and hold doesn’t mean they’re asleep at the wheel and won’t react if their value hypothesis is (more than) realized overnight. (Ontario Teacher’s Pension Fund sold almost 25M shares, for example https://www.bloomberg.com/news/articles/2021-01-29/reddit-fe... )

NB: They sold 25M shares at ~$20/share. That's probably much more than what they paid for these shares but it's nowhere near where GME was over the past few days.

Not that they had any way of knowing what would happen. $20 could have been the peak for all anyone knew, and by the end of next week selling at $20 might look like a smart move.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#249

Post by philihp »

dougmwne wrote: post #227
toolz wrote: post #144

Earlier quoted context omitted.

I find that most people don't realize they are always betting. Keeping your wealth tucked under your mattress in USD is still a bet. Everything is a bet and everything has different risk profiles. If someone sees that shorts in GME are over leveraged, well in hindsight they were absolutely right to buy in to this "gambling". I find the most irrational actors with regards to investing are the people who only do "safe"…

I agree there is some amount of risk in everything. When I say bet, I mean a zero-sum game like in a casino. Somone needs to lose money in order for you to gain money. No new money is being created in an options play or a GameStop squeeze. For you to gain 10 dollars, ten people must lose a dollar. The best you can do is encourage more players to join the bet to increase the size of the pot and the less they know the…

Short term investing is for sure a bet. Long term investing is a bet with the house edge in your favor, because of corporate buy-back and dividends.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#250

Post by dougmwne »

School-Cotton wrote: post #123
dougmwne wrote: post #85

Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…

There is a similar phenomenon when Bitcoin is discussed on HN.

I really enjoy bitcoin speculation because it is so purely about human psychology with no inconvenient external realities or objective value to get in the way.
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