What's wrong with ordinary traders taking advantage of the flaws in dealers and big money bots? Aren't they (dealers and such) the ones who have been doing it forever?
Reddit’s profane, greedy traders are shaking up the stock market
181–190 of 364 posts
Re: Reddit’s profane, greedy traders are shaking up the stock market
#182Earlier quoted context omitted.
> If you've been on the receiving end of hate speech or discrimination, you tend to be in the second camp. If you've lived a relatively privileged life in terms of 'fitting in' to the world around you, you tend to think people just need to grow thicker skin. As someone who fell into category 1 for most of my childhood, I think you have the labels reversed. I think it takes a tremendously sheltered privileged life to…
> pretty unique to the wealthier segments of the West and Europe. Thank you for letting me know that Asia has no complex rules about how to address people, and no social consequences for failure to obey those rules.
If you ever visit any of Asian country, you're in for a bit of a culture shock if you're expecting to see the kind of political correctness that you edited out from this comment earlier.
The top 5 Asian countries by size are Russia, China, India, Kazakhstan, Saudi Arabia. None of them have correctness, in fact all of them are anti-PC and see it as a weakness, especially in China and Russia where westerners are viewed as thin-skinned and weak minded due to PC culture. And in 3 of them people will either express real hate speech or outright violence towards homosexuals.
Your flowery ideals about the world around you are proving the point I was making.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#183Earlier quoted context omitted.
So your theory is that they're terrible traders, and your evidence is that they made huge profits on call options?
AFAICT the overwhelming majority of posters on WSB are basically burning money. Make enough bad trades and eventually one will accidentally make a bunch of money, but it's definitely not the norm.
Honestly, I'm convinced that most know how to hit F12 on Firefox and edit HTML pages to 'prove' that they are buying meme stocks. I have zero expectation that their 'proof' is even proof.
All modern web browsers have a debug mode that allows you to easily edit HTML.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#184Come on man, there's no where near enough volume there to move anything but the most low volume of stocks. All they trade in is meme stocks like TSLA, NFLX, MSFT, AAPL etc., and a few 100k on calls here or there won't budge the price in the slightest. On top of that, it's not even a P&D group, people there are just trading against each other, you have both bears and bulls and thetas. There's never been a concerted ef…
There are also a few hardened investment professionals on there who will throw bad picks just to watch the fallout
I imagine there's a few professionals on there (and other places) who will seed interest in / make a meme out of a stock in order to pump vega (or whatever you call "the predictability of the timescale on which volatility of the option becomes less predictable"—meta-vega? The thing in decision-theory that lets you capture utility when only you know that someone is pursuing a true-random mixed strategy, when they haven't actually done anything yet.)
Re: Reddit’s profane, greedy traders are shaking up the stock market
#185Earlier quoted context omitted.
> If you've been on the receiving end of hate speech or discrimination, you tend to be in the second camp. If you've lived a relatively privileged life in terms of 'fitting in' to the world around you, you tend to think people just need to grow thicker skin. As someone who fell into category 1 for most of my childhood, I think you have the labels reversed. I think it takes a tremendously sheltered privileged life to…
The internet has generated this weird subculture of people who get really really upset at people making jokes. It has a "think of the children" sort of moral panic vibe to it. A lot of it has to do with completely ignoring any context or intention from the source material, which isn't how language works in any other context. Jokes inherently use exaggeration and extreme positions in jest which make them easy targets…
At what point does criticizing political correctness become as irritating and worthy of shunning as PC scolding itself? Because it's getting to a point where discussions are choked with anti-PC admonishments for every PC statement. It takes two to tangle, after all. Or two to go to culture war.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#186The article's opening paragraph might have been a somewhat accurate depiction of reddit 12-13 years ago, but it's changed a lot since then. It's hard to take the author that seriously when the bias against reddit is that clear in the lede.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#187Earlier quoted context omitted.
A lot of automated trading is arbitrage and market making, where such a trade would not really be an issue. Regardless, option trading tends to have human traders behind the wheel, and they're trained to figure out what's going on (trading options is similar to playing poker).
A reasonably sized trade of wing options (far-OTM calls or puts) should be expected to move the volatility implied in the prices of options at and around that strike. I would call this "vol impact" or "skew impact." Go buy 5k AAPL Jul 250P tomorrow morning, and see what happens to the implied volatility of the offer on that contract by the time the market closes that same day. Market makers are sensitive to wing trad…
It can make a big visible bump in a volatility surface, but experienced option traders are trained not to react like robots, but think instead of following blindly (otherwise it would be very easy to fool them, since it's a relatively illiquid market in which anyone can have a lot of leverage).
In that sense it's similar to poker; you don't have all the information to analyze what other players do. In this particular case, is it an informed trader or a noise trader?
Re: Reddit’s profane, greedy traders are shaking up the stock market
#188Earlier quoted context omitted.
A lot of automated trading is arbitrage and market making, where such a trade would not really be an issue. Regardless, option trading tends to have human traders behind the wheel, and they're trained to figure out what's going on (trading options is similar to playing poker).
A reasonably sized trade of wing options (far-OTM calls or puts) should be expected to move the volatility implied in the prices of options at and around that strike. I would call this "vol impact" or "skew impact." Go buy 5k AAPL Jul 250P tomorrow morning, and see what happens to the implied volatility of the offer on that contract by the time the market closes that same day. Market makers are sensitive to wing trad…
[deleted]
Re: Reddit’s profane, greedy traders are shaking up the stock market
#189Earlier quoted context omitted.
> pretty unique to the wealthier segments of the West and Europe. Thank you for letting me know that Asia has no complex rules about how to address people, and no social consequences for failure to obey those rules.
If you ever visit any of Asian country, you're in for a bit of a culture shock if you're expecting to see the kind of political correctness that you edited out from this comment earlier. The top 5 Asian countries by size are Russia, China, India, Kazakhstan, Saudi Arabia. None of them have correctness, in fact all of them are anti-PC and see it as a weakness, especially in China and Russia where westerners are viewed…
I think he might have meant "political correctness" less in the sense of "extreme sensitivity about denigrating homosexuals" and more in the sense of "arbitrary rules of social etiquette that people get extremely upset at you for violating".
Re: Reddit’s profane, greedy traders are shaking up the stock market
#190Earlier quoted context omitted.
Good choice. Just to elaborate: double opt-in is expected behavior from customer-centric companies, and expected behavior from good actors in the email ecosystem. It's not necessarily required by law in the US, but it's a good practice nonetheless: always make sure you have permission from a recipient to send an email. Anyone can pass anyone else's email address as input to a form, so simply receiving an address as i…
> I consider single-opt-in use of email addresses to be a dark pattern or anti-pattern This is wrong. I want to be able to enter an email address and get a newsletter. This is good UI/UX blah There is nothing dark about helping a user using single opt in. Single opt in is great and preferred. But because of the world we live in, as you explain well, we have to make everyone's lives a PiTA by securing it. It might be…
> There is nothing dark about helping a user using single opt in.
Someone thinks my email address is their email address, and keeps filling it in in various places as "their" email address.
They seem to live in France, and so the things they sign up for are in French.
Sometimes, these are double opt-in, and I can just ignore them.
Other times, I suddenly have to figure out how to unsubscribe from a newsletter that's in french.
Often, the "unsubscribe" link is just a mailto link to their customer service, and now I have to hope they can understand my English as I ask them to remove me from their list.
Also, this same ne'er-do-well has taken out loans with my email address as one of their few pieces of contact information. So now I have a loan company trying to get money from "me." Obviously, loan companies aren't going to be very accomodating when you tell them they have the wrong address. That's what they all say, no?
(It's not quite identity theft, as the loan people really are after the other guy, not me. It's not my credit score being impacted. They just emailed me because mailing the address on file, phoning the phone number on file, etc. didn't work.)
Wouldn't it be great if I could contact this person to tell them to stop? Well, think about how I could accomplish that for a moment. All I know about them is... my own email address!