4 ms·

He tweeted negatively about Nordstrom, stock went up. We might be onto something here...

• ISL 10y ago
  One can easily place bets on the volatility of a stock. If you expect it to move, but you don't know which direction, that is tradeable knowledge.
  • k2xl 10y ago
    How?
    • Keepo 10y ago
      Stock options
      • goric 10y ago
        More specifically, a straddle: https://en.wikipedia.org/wiki/Straddle https://en.wikipedia.org/wiki/Straddle
  • BWStearns 10y ago
    Tweets seem to have an impact of around 1-3% lasting hours to days. Many (most?) stocks have too high implied volatility to begin with for straddling by tweet to be a productive strategy.
    • ISL 10y ago
      Even as an ensemble?
      • BWStearns 10y ago
        If you could spot the tweet and know the direction it'd move there might be cheap enough options to make money on one side, but the "ensemble" aspect of a straddle means that you need to make twice as much to cover the premiums before you make any returns.