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But timing is essential when taking advantage of an event like this. Lots of people are trading TSLA but few are taking positions immediately before and getting
by modeless 6y ago
But timing is essential when taking advantage of an event like this. Lots of people are trading TSLA but few are taking positions immediately before and getting out immediately after this event, as would be required to make a consistent profit from it. And unless you have an extensive history of similar risky trades (which would probably cost a lot of money to produce by itself) your data is going to stand out like a sore thumb given that timing, even among the sea of TSLA traders.
- ALittleLight 6y agoYou, as the attacker, don't have to do it immediately before either. You could make your trades, wait a week, then do the scam and plausibly say you sold when the stock jumped.
- modeless 6y agoThis isn't really true. Especially with the volatility in the market and TSLA specifically right now, you would be taking a huge risk holding a position like that for a week. Natural moves in the stock could easily be much larger than the move your hack causes. You could even be margin called before the hack happens.
- ALittleLight 6y agoYou buy OTM calls on Hertz and execute that scam from the OP. No worries about margin calls.
- TomVDB 6y agoHow many people are trading Hertz securities for large sums compared to Tesla?
- txcwpalpha 6y agoBizarrely, a lot. Just a couple weeks ago Hertz was the most traded stock on the NYSE and is still up there with incredibly high volume. People in this thread are really underestimating how easy it would be blend into the crowd of millions of traders. As of today, Hertz trading volume is around 5 million, while Tesla volume is around 13 million.
- travisoneill1 6y agoBut a better measure would be dollar volume. HTZ is trading at $1.40 and TSLA at $1500, so it's really $19.5 billion vs $7 million.
- aiisjustanif 6y agoWaiting a week being an insider threat seems unlikely.
- chadash 6y agoTons of people would cash out their options immediately after a major event like this. And you don't have to get in immediately before. You can buy a week or even a month ahead of time and make a profit. I still think the OP is underestimating the risk of getting caught though.
- sweeneyrod 6y agoLots of people must be selling immediately after the event because that's the mechanism by which the price decreases.
- hbosch 6y agoTo make money on a short, you aren't selling. You're the one buying back what you've already sold, just a lower price and pocketing the difference as profit. You stand out in the middle of a sell-off.
- ponker 6y agoNot really, every sell has the equal and opposite buy, so a "sell-off" is also a "buy-in"