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The collective power of massive retail options trading (powered by zero-commission brokers like RH) organized by groups such as WSB actually has the power to af
by synaesthesisx 6y ago
The collective power of massive retail options trading (powered by zero-commission brokers like RH) organized by groups such as WSB actually has the power to affect the markets.
I'm guilty of taking advantage of this myself, as there are often plays (Tesla, Gamestop etc) where the conditions are often perfect for such a squeeze. WSB prides itself on buying ridiculously OTM weeklies and losing money, except this time there's enough collective power to force market makers into buying the underlying and "mooning" is inevitable. Case and point, I bought the furthest OTM TSLA 1/15 calls last Thursday and sold on Friday for nearly 1100% returns.
Market conditions right now are enabling boundless opportunity. It's best to take advantage, before the SEC steps in and puts restrictions on retail options trading. "Make hay while the sun shines"
- ketzo 6y agoWow, buying the bets just before the gamblers do is... not a bad thought, even if it is obviously still risky.
- f430 6y agoReading his post reminds me of the fund manager who said he sold all his positions back in 2000 when he found his grandma was buying stocks.
- chronolitus 6y agoThis makes sense, but how do you assess what WSB is going to do? For every post, there's another calling on the inverse, and a third calling on inversing the second.