271–280 of 364 posts
Earlier quoted context omitted.
What does counter trading and running circles around clueless retail traders mean? Is that another way of saying that retail traders buy on the offer and sell on the bid while HFTs buy on the bid and sell on the offer?
HFT = front running
Come 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…
What's a "theta" ?
Theta gang just means someone who sells options and expects that option to expire worthless, thereby profiting from the slow decay of option value due to theta. It's a legitimate strategy in the options world for professionals, not just for WSB autists. Here's a random example of a finance professional running this strategy successfully in his personal account: https://earlyretirementnow.com/2019/03/27/passive-income-thr...
Disclaimer: I don't know this person, nor do I recommend copying his strategy if you don't know the options greeks; actually the amount of money you would need to execute his strategy would probably make most options beginner uncomfortable anyways.
Earlier quoted context omitted.
Not a perpetual motion machine, but a motion machine, sure. The GP was correct, Matt clearly says it can create some upward momentum, albeit not an unlimited amount.
No, he says it exaggerates the ups and downs, so you get higher highs and lower lows. That is not "creating upward momentum" in an ordinary sense. Also, it takes some guts to defend the idea "this perpetuates an upward movement" by quoting someone explicitly saying it doesn't. A finite upward boost and an infinite upward boost are different things, as explicitly noted in the quote you just pulled and in your comment…
Thank you random HN commenter for pointing out my flaw in the “perpetual upward” comment. Levine’s take still claims that r/wsb can technically move the market, no? Or should I go back and re-read? Maybe I interpreted differently. But I don’t know for sure, because I don’t study such things and hardly know options or markets. Neither does like 98% of the folks on this post based on their comments here (yourself included!)
Come 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…
I have a theory that WSB are so bad at trading that they actually do manipulate stocks due to messing up every automated trading platform that assumes there'd be some logic to the trades being made. Someone's just bought a $1000 call option on a stock that's currently $400? Automated trading systems will probably raise alerts on that stock since someone must know something for that to happen. This appeared to happen…
So I was one of the first people on Wallstreetbets to post options YOLO around 2015, back then it was nothing but rainbow dick banners and penny stocks. I had previously interned at a brokerage and had just graduated college with a degree in physics(I understood the math behind options). Not hearing back from quant trading firms because I guess BSc is not enough for them, I said fuck it and started taking speculative…
It was so frustrating in the earlier days of WSB to want to talk about options. The rules were that "it was the place to talk about VIX and speculative options trades" but it was just full of trash about biomed penny stocks and FDA approval gambles.
It was what set it apart from other "finance" communities online and especially reddit: not being risk adverse.
But then it became similar to other finance communities by having an absolute anathema to anything bitcoin or crypto. The mods there didn't seem willing to see them as options trades that never expire. Crypto has similar returns to options contracts, without the time limitation or theta decay or an actual option. If you are an options trader, crypto is not risky. This still seems to be the case there, so thats been making it less interesting to me.
If I do fund an equities options account and want to trade earnings or some follow on swings for the rest of the quarter, I still like to enjoy the memes and laughs with the WSB crowd.
They really fall short on commodities trading, credit trading, crypto trading, amongst other markets.
Come 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…