Is this why people want to be able to stay anonymous on the Internet, I wonder?
I’ve said this elsewhere, but because he had been readily deanonymized I expect everyone to target him instead of any other Reddit account.
‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise
71–80 of 109 posts
Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise
#72Earlier quoted context omitted.
> “Gill’s deceitful and manipulative conduct not only violated numerous industry regulations and rules, but also various securities laws by undermining the integrity of the market for GameStop shares,” the suit said. “He caused enormous losses not only to those who bought option contracts, but also to those who fell for Gill’s act and bought GameStop stock during the market frenzy at greatly inflated prices.” As a re…
I have seen a lot of protests defending Gill. I think there is another side to the story though with many people who lost money buying the stock (selling options is different) based on his advice. Gill is held to a much higher standard than a normal person as he is a licensed security broker. If you look at my comment history on HN, you will see at the time I was pointing out a lot of Redditors were engaging in a pum…
> Gill is held to a much higher standard than a normal person as he is a licensed security broker.
> ...many people who lost money buying the stock (selling options is different) based on his advice.
Out of academic curiosity, how does this work?
Mr. Regular Joe wants to buy some stocks for an investment. He worries he doesn't know enough about the market, so he looks for advice from Mrs. Licensed Broker.
Mrs Licensed Broker says "Hello Mr. Joe, right now, GME is undervalued. It should be around $20, it is now at $4. By my estimates, it is a good buy. Look, I have put my own money into it because I think it's a good idea".
So, Mr. Regular Joe buys GME.
Mr. Regular Joe's wife buys GME.
Mr. Regular Joe's neighbor buys GME.
Mr. Regular Joe's grandmother's pet squirrel buys GME.
All of this buying has pushed the stock above $20.
Whose actions are Mrs Licensed Broker responsible for?
Or do we want to live in a society where every licensed broker who writes opinion pieces on seeking alpha and Wallstreet Journal suddenly realize that reddit could read their article, go crazy and expose them to legal trouble? In such a world, Mr. Regular Joe has to gamble with his money and pick stocks on random, because nobody who understands the market will share information with the Plebeian class.
Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise
#73Why is he always referred to as 'Roaring Kitty' from youtube when he is undoubtedly better known as DeepFuckingValue from reddit? Because of the `F-Word`? It will be interesting how congress will refer to him during the hearings, considering that reddit also has to appear and not youtube, so his alter ego DeepFuckingValue should be in focus?
I would imagine he would appear under his real name. It would be weird to hear his username in Congress, especially when there are no longer concerns about anonymity now that his name is publicized.
Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise
#74Why is he always referred to as 'Roaring Kitty' from youtube when he is undoubtedly better known as DeepFuckingValue from reddit? Because of the `F-Word`? It will be interesting how congress will refer to him during the hearings, considering that reddit also has to appear and not youtube, so his alter ego DeepFuckingValue should be in focus?
They should have used his real name, if they don't like fucking.
Because it makes him sound like a child and therefore worthy of contempt.
Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise
#75Earlier quoted context omitted.
> DFV never said a think about short squeezing. But did Keith Gill? All the argument here tends to treat "/u/DeepFuckingValue" as the sole authority of what this guy did, and in context that seems outrageously naive. Accounts all over WSB were pushing this stock like crazy, and this guys Just So Happens to have been a huge beneficiary, when he was absolutely expert enough to have understood the bubble (and importantl…
DeepFuckingValue(Reddit username), Keith Gill and Roaring Kitty(youtube username) are the same person.
I think that's clear to OP. What OP is getting at is what else did/could keith be doing, how many other reddit accounts did they have, how many botnets, etc all possibly pumping this. That's for discovery and courts to decide. Maybe Keith is only DFV and none of that other stuff exists, or maybe DFV is just one of many keith's tactics to pump this thing.
Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise
#76Earlier quoted context omitted.
there is max fixed gain when selling a call, right ?
Yes. The initial cost of the trade is a credit equal to the price per call multiplied by the number of calls you sold. This is the maximum you can make. Your risk on the other hand is theoretically unlimited, because the price of the underlying is theoretically uncapped. That's when you sell a naked call. If you instead sell a covered call, you keep 100 * the number of calls sold in your account as collateral. Then y…
If you sell a covered call you have no risk right ? Aren't you just capping potential returns in exchange for immediate premium ?
Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise
#77Earlier quoted context omitted.
> “Gill’s deceitful and manipulative conduct not only violated numerous industry regulations and rules, but also various securities laws by undermining the integrity of the market for GameStop shares,” the suit said. “He caused enormous losses not only to those who bought option contracts, but also to those who fell for Gill’s act and bought GameStop stock during the market frenzy at greatly inflated prices.” As a re…
Here are the rules for registered investment advisors.[1] This was a pump and dump. Those have been around since at least the 19th century. Older ones involved newspapers and newsletters. Newer ones involve social media. The SEC fines people for this regularly. This time, the suckers were people who hadn't seen this a few dozen times yet. [1] https://www.sec.gov/divisions/investment/iaregulation/memoia...
I’m not a lawyer but Gill’s conduct was different from Reddit pumping accounts. He has been posting detailed information about his opinion on GME being undervalued for reasons largely different than a “gamma squeeze” or “short squeeze” for a year on YouTube. He just happens to be the most readily sue-able because of this long post history.
Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise
#78Earlier quoted context omitted.
A lot of people who think that buying puts is ,,too expensive''. Nassim Taleb made money by understanding that out of money call options were underpriced, not overpriced how people think generally. People don't learn from the past.
Taleb made money in 2008 by buying options that were way out of the money and hoping for a crash. All other years, his fund lost money. That strategy would have lost money over the last decade, because there wasn't a crash. Whether that strategy is a net win over a business cycle isn't known. Taleb's funds never published their full results.
I guess you're probably talking about Universa, which Taleb is closely affiliated with? Taleb also ran his own shop Empirica for five years, 2000 - 2005. It beat the market on an absolute basis in year one (incidentally, during the dotcom crash) then had mostly negative results all other years.
I don't specialize in derivatives so I can't speak to how compelling his industry work is versus his writing. But my understanding is Taleb's strategies were explicitly designed to lose small amounts of money often and win huge amounts of money occasionally.
The idea is basically to go long vega and gamma waiting for an apparently rare event you believe will happen somewhat more frequently than expected. In the meantime you'll eat the theta and usually lose money, but ideally within certain risk parameters.
Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise
#79The plaintiff sold 200k worth of naked calls and got margin called. What kind of a hack law firm would represent such an idiot?
Probably some firm in Eastern District of Texas
Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise
#80Earlier quoted context omitted.
> “Gill’s deceitful and manipulative conduct not only violated numerous industry regulations and rules, but also various securities laws by undermining the integrity of the market for GameStop shares,” the suit said. “He caused enormous losses not only to those who bought option contracts, but also to those who fell for Gill’s act and bought GameStop stock during the market frenzy at greatly inflated prices.” As a re…
Here are the rules for registered investment advisors.[1] This was a pump and dump. Those have been around since at least the 19th century. Older ones involved newspapers and newsletters. Newer ones involve social media. The SEC fines people for this regularly. This time, the suckers were people who hadn't seen this a few dozen times yet. [1] https://www.sec.gov/divisions/investment/iaregulation/memoia...
This wasn't a pump and dump though. Even if it never hit WSB the pump (squeeze of the short sellers) would have happened. The defining feature of a pump and dump is a socially engineered pump. Here the social aspect was more like "Look what is going to happen with or without us, we should ride it up. It is also obviously going to crash right after". People from WSB to Scion capital saw this coming, and got in.