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This article doesn't seem to address 3 big issues: Firstly, most of the stuff on /r/WSB is talking about massive market cap companies like TSLA and AMD. Some pu
by Traster 7y ago
This article doesn't seem to address 3 big issues:
Firstly, most of the stuff on /r/WSB is talking about massive market cap companies like TSLA and AMD. Some punter putting his life savings in AMD puts is not going to actually move the market. I would love to see numbers on this but my gut says that reddit posters posting about their $50k investment in a company that is worth several billion is just retail noise. It's not moving stocks.
Secondly, maybe there are some people genuinely attempting to use the forum to pump and dump but frankly, they're probably not succeeding and even if they are, that's exactly the sort of person the SEC is actually interested in prosecuting. But literally there is no evidence it's happening at all, let alone at any scale or is profitable.
Finally, I love the idea that market makers are just sitting there going "sure is weird that we've seen a lot of retail flow on MIK, better continue straight forwardly hedging using the future and not exploit this predictable market pattern"