Someone started a cryptocurrency version of WSB recently as well: https://www.reddit.com/r/SatoshiStreetBets/
Reddit’s profane, greedy traders are shaking up the stock market
81–90 of 364 posts
Re: Reddit’s profane, greedy traders are shaking up the stock market
#82Earlier quoted context omitted.
Nope his theory is that most trading is algos, and you can mess with algos, by doing crazy stuff.
Case and point, just five years ago Redditors figured that out that by upvoting a post of image of a potato titled "Gaming Console. If you upvote this potato it will show up on Google Images when people search for Gaming Console." It even borked their news algorithm - https://i.imgur.com/A0zLPSR.png
Not trying to be a jerk but the phrase is "Case in point".
Re: Reddit’s profane, greedy traders are shaking up the stock market
#83Earlier quoted context omitted.
hmm... what about MU, AMD, BYND, SHOP. you’re not paying attention. imho, robinhood gets the most out of it. the number if issues this reddit sub has found with RH is mind-boggling
infinite money!
cannot literally go... sideways
what about box spreads? it’s foolproof!
Re: Reddit’s profane, greedy traders are shaking up the stock market
#84Come 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…
hmm... what about MU, AMD, BYND, SHOP. you’re not paying attention. imho, robinhood gets the most out of it. the number if issues this reddit sub has found with RH is mind-boggling
They've definitely moved MVIS before.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#85Come 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…
If they can influence the conversation then they can impact the price movement- the volume comes from institutional investors that get spooked by calls on meme stocks relative to normal stocks, then their algos (which aren't trained to handle meme stock banter) go nuts. That's just my theory though.
Outside of institutional traders who can individually move large volumes of stock it's all herd mentality. Where the algos have the advantage is they see the herd moving either way earlier and react quicker.
On a naive level you could just think of the Reddit group simply spooking the herd to start going in a certain way. All fun and games.
In reality it's likely the same few individuals doing the triggering making it an effective pump and dump scheme. Someone has to lose out when stocks move with no underlying justification.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#86Come 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…
Hm... trading bot trolling.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#87This is giving wayyyy too much credit to a sub-reddit that's all about poking fun at the trading game, and each others. Please don't throw your money away following them.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#88For those interested in r/WSB's reactions... https://www.reddit.com/r/wallstreetbets/comments/f9sx9d/cong...
Re: Reddit’s profane, greedy traders are shaking up the stock market
#89> You're in private mode. Subscribe to continue reading in private mode. I didn't realise that Bloomberg blocks private mode too. Messages like this assume that tracking is the default and make sure that we keep losing privacy. I really dislike this trend.
Not sure how many here have tried it but it takes all kinds of tricks to scrape Bloomberg reliably. Not surprised they're doing something like this.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#90Earlier quoted context omitted.
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…
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 trades, precisely because pricing skew is more of an art than a science. Trading away from spot can have a substantial impact on the way the implied volatility surface looks. And this can affect trades of other maturities and strikes.
Trading options, for me, is nothing like playing poker. Poker doesn't have an underlying storyline the way companies do. Nor are there catalyst dates in poker.