/r/wallstreetbets is one of those strange communities that provides nearly limitless comedy. Best watched from a distance.
Reddit’s profane, greedy traders are shaking up the stock market
231–240 of 364 posts
Re: Reddit’s profane, greedy traders are shaking up the stock market
#232tl;dr the wallstreetbets hive mind has the purchasing power of a mid size hedge fund
if there’s roughly 1000 upvotes on a piece of content, and assuming only 1% of lurkers ever up vote; that means there are roughly 100,000 people taking investment info from this sub.
let’s say they have an average portfolio size of $10k, then 100,000 users * $10,000 = $1 billion dollars.
assuming they split the portfolio by meme %, so like 1/3 TSLA, 1/3 SPCE, 1/3 AMD; then we’re looking at like $330 million in trading volume going into SPCE.
when you look at the last couple days of trading volume on SPCE, about 30million shares traded daily, was previously around $10 a share , it about equals out, that like $300million dollars of meme money did a pump and dump on SPCE
Re: Reddit’s profane, greedy traders are shaking up the stock market
#233Earlier quoted context omitted.
A comment I'm sure you expected you'd get on this forum: you're gonna have to elaborate a bit on/defend a bit that opening line there about being one of the best options traders in the world.
> I am one of the best options traders in the world. The best traders in the world are worth billions? So the above translates to "I am a billionaire". Seems unlikely!
Well, they could have fantastic results with very small volumes in niche situations.
Whether that merits the title, on the other hand...
Re: Reddit’s profane, greedy traders are shaking up the stock market
#234Are the effect of the coronavirus on the stock market could be opportunity for investing? The SP500 went down 8% this past 5 days. I'm wondering if that will go lower those next days. I have a bit amount of money on the side, I didn't know where to invest. Would now be a good opportunity to lump sum all the money, or would you Dollar Cost Average? Anyone else with the same dilemma, and would have more arguments? Or m…
this seems like a conversation to have on wallstreetbets rather than HN
Re: Reddit’s profane, greedy traders are shaking up the stock market
#235Come 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…
You haven't looked at the numbers. There's so much option trading that it affects the entire market a lot: https://themarketear.com/posts/cqKGhoO98L/image/0 Pair that with poor price discovery: few actively managed funds; shit-ton of indexation (both explicit and closet). We may, and I repeat - may , see some interesting action here. Legends like Michale Burry or David Einhorn often complain about price discovery. Wh…
>You haven't looked at the numbers. There's so much option trading that it affects the entire market a lot
The question is "what effect does have?", not "does option trading effect the market?"
Re: Reddit’s profane, greedy traders are shaking up the stock market
#236> After years of indifference, individual investors seem to be finding their way back to stocks, for better or worse.
There's an old adage in London that it's time to sell when the retail buyers start entering the marketing...
Re: Reddit’s profane, greedy traders are shaking up the stock market
#237In other news, Vegas' profane, greedy gamblers are shaking up the economy.
I've never gambled before in my life. I've always been a very conservative indexer, but... I've got some spare dough. I have always been quite interested in the finance side of things, having worked under and been good friends with a dude with a graduate degree in Quantitative Finance, I spent years learning about random bits of finance stuff from him - enough that I knew a good bit about of some of /r/wallstreetbets…
I'm curious why you chose to reply to me specifically with this. I assume you agree that there are both kinds of people in Vegas, and the analogy still stands?
Re: Reddit’s profane, greedy traders are shaking up the stock market
#238I use Robinhood app to gamble on options, most of the times I lose and sometimes I won big to cover all losses.
I don't understand options, other than a few things about them which help me trade them
It's ok to ignore the big picture. Not everything has to have a profound meaning behind and similar are the stock moves. I believe most of the movements are irrational, so studying fundamentals or anything is going to offer nothing other than wasted time.
I love the crazy vibe of that subreddit which motivates me to take crazy positions which I'd have never taken if I carried on with my risk averse friends.
Even if probability of becoming double digit millionaire from a single digit millionaire is small through options trading. It's well worth it because once you've saved enough to retire, why not bet on random positions? You never know when you'll fall on the long tail end of the game and experience the Black Swan event which changes your life forever.
Then I am also doing other things which people might consider crazy like steroids to maintain Greek god physique - considering neither I am model, atheletic or body builder.
YOLO is not bad way to live if it gives you the highs you need move out of sorrows and sufferings.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#239Re: Reddit’s profane, greedy traders are shaking up the stock market
#240Earlier quoted context omitted.
I am one of the best options traders in the world. Options dealers don't necessarily sell options. They can also buy them. And "writing" an option means to sell it, so "wrote the contract and sold it" is redundant. Options dealers are not automatically short all of the contracts that they sell. They may already have a long position in that option contract, in which case their sale is a closing sale. Also, I think you…
A comment I'm sure you expected you'd get on this forum: you're gonna have to elaborate a bit on/defend a bit that opening line there about being one of the best options traders in the world.
Even if that's not the best options trader in the world, its still a much better explanation than the post being replied to.