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Citadel can see 80% of retail orderflow such as Robinhood and is massively long since last Friday as can be seen from the calls they are selling. Now it is lik
by 0b01 6y ago
Citadel can see 80% of retail orderflow such as Robinhood and is massively long since last Friday as can be seen from the calls they are selling.
Now it is likely the steam has run out(gamma cascade) so they are placing their bets on the opposite side by taking over Melvin which is massively short without causing too much market impact.
- jaycroft 6y agoWere those calls purchased by retail, or by someone trying to cover a short?
- finolex1 6y agoI may be wrong, but there is an information firewall between Citadel Securities (the market maker that pays for order flow), and the Citadel LLC (the hedge fund that is bailing out Melvin Capital)
- RONROC 6y agoI've seen comments about the supposed "information firewall" a couple of times in various threads related to the GME WSB fiasco across a few different websites. I am not a financial professional, but I am not stupid. Anyone who believes that 1. this firewall exists, 2. is up to snuff (ie. working like it should), and 3. is not being constantly undermined formally or informally is sorely mistaken.
- alisonkisk 6y agoRight, and Google Search never intentionally or accidentally makes changes to help Google Ads.
- mizzack 6y agoThe steam didn't run out. They changed the rules. Bid/Ask spread on GME options is now $20 until 3/19.
- delaaxe 6y agoMax bid/ask spread and only on options > $100