3 ms·

> One individual sitting at $31M currently on a $50k investment. What happens when one tries to cash out this kind of position? Does he or she actually walk aw

by mdoms 6y ago

> One individual sitting at $31M currently on a $50k investment. What happens when one tries to cash out this kind of position? Does he or she actually walk away with $31M?

rabuse 6y ago
Yes. The large order is placed on the market, and it would be gobbled up at this point in time.
- pbhjpbhj 6y ago
  I know nothing about trading: Presumably they'd want to split the sell offer into smaller portions to avoid indicating a turn in the market which might cause a fall in price before they realise [as big a] profit on their position? Like trying to get out of a place when you see things heading south (ie a calamity approaching). If you run for the door then everyone will see you and the people close to the door might block your exit as they seek to escape. If you cautiously walk, avoid being direct, etc., you've more chance to get out.
  - lordnacho 6y ago
    Dripping it out with an algo is perfectly legit and done by many people.
  - meowkit 6y ago
    Large positions are most likely sold off in smaller portions as you said. I don't know what the person you are responding to is implying. Often large positions as a single order are used to create buy or sell walls that can influence sentiment and algorithms to move the price in a way that they desire.
alfl 6y ago
In this case (/u/DeepF*ckingValue) it's a rolling options positions so: yes, less the fees they've accumulated over the 2+ year history of the position.
- alfl 6y ago
  u/DFV has closed $13 million of the position (ie sold for cash, cash in their account). Total position including cash was almost $50 million at close. Incredible.
ogre_codes 6y ago
Assuming they liquidate the position before it crashes, yes. It's very easy for retail investors to look at points in time and see stellar results. Unless they cash out some of that, before things start to drop, their massive position vanishes as quickly as it arrived.
chasebank 6y ago
FWIW, he was sitting on $31M at close yesterday (~$141/share), Jan 26th. It's mid $300's now, Jan 27th, easily doubling his position from yesterday north of $60M. Edit: He just updating his daily position. Cashed out 13M, has 35M still riding in shares and options. [1] https://old.reddit.com/r/wallstreetbets/comments/l6ekdz/gme_yolo_update_jan_27_2021_guess_i_need_102/ https://old.reddit.com/r/wallstreetbets/comments/l6ekdz/gme_...
- celticninja 6y ago
  It's approx $44m based in his most recent post.
- deleted 6y ago
  [deleted]

by mdoms 6y ago

> One individual sitting at $31M currently on a $50k investment. What happens when one tries to cash out this kind of position? Does he or she actually walk away with $31M?

rabuse 6y ago

Yes. The large order is placed on the market, and it would be gobbled up at this point in time.

pbhjpbhj 6y ago
I know nothing about trading: Presumably they'd want to split the sell offer into smaller portions to avoid indicating a turn in the market which might cause a fall in price before they realise [as big a] profit on their position? Like trying to get out of a place when you see things heading south (ie a calamity approaching). If you run for the door then everyone will see you and the people close to the door might block your exit as they seek to escape. If you cautiously walk, avoid being direct, etc., you've more chance to get out.
- lordnacho 6y ago
  Dripping it out with an algo is perfectly legit and done by many people.
- meowkit 6y ago
  Large positions are most likely sold off in smaller portions as you said. I don't know what the person you are responding to is implying. Often large positions as a single order are used to create buy or sell walls that can influence sentiment and algorithms to move the price in a way that they desire.

alfl 6y ago

In this case (/u/DeepF*ckingValue) it's a rolling options positions so: yes, less the fees they've accumulated over the 2+ year history of the position.

alfl 6y ago
u/DFV has closed $13 million of the position (ie sold for cash, cash in their account). Total position including cash was almost $50 million at close. Incredible.

ogre_codes 6y ago

Assuming they liquidate the position before it crashes, yes. It's very easy for retail investors to look at points in time and see stellar results. Unless they cash out some of that, before things start to drop, their massive position vanishes as quickly as it arrived.

chasebank 6y ago

FWIW, he was sitting on $31M at close yesterday (~$141/share), Jan 26th. It's mid $300's now, Jan 27th, easily doubling his position from yesterday north of $60M. Edit: He just updating his daily position. Cashed out 13M, has 35M still riding in shares and options. [1] https://old.reddit.com/r/wallstreetbets/comments/l6ekdz/gme_yolo_update_jan_27_2021_guess_i_need_102/ https://old.reddit.com/r/wallstreetbets/comments/l6ekdz/gme_...

celticninja 6y ago
It's approx $44m based in his most recent post.
deleted 6y ago
[deleted]