3 ms·
Well put. I am picturing as a triangle of three perspectives. That also gives you three (or 6) possible cross-perspective stories. The dynamics between these
by dalbasal 6y ago
Well put.
I am picturing as a triangle of three perspectives. That also gives you three (or 6) possible cross-perspective stories.
The dynamics between these perspectives are where things start to get squirrely. 2021 memestocks like gme are good examples. Game perspective (no. 3) was the main story. Short squeezes. Retail investors getting cut off, etc. The stock perspective (no. 2) is now all about game investors. Can the stock attract or sustain all this interest from day traders and such.
Company performance (perspective 1) is affected more by the company's stock than the other way around.
- hckrnrd 6y agoThrough technology—global connectivity, mobile accessibility, and apps like Robinhood and their global counterparts—there’s no reason to expect the demand to wane. https://amp.scmp.com/business/article/3119779/futu-restore-trading-gamestop-shares-friday-founder-li-says https://amp.scmp.com/business/article/3119779/futu-restore-t...
- pashamur 6y agoThe most important concept to understand about today's market is not short squeeze - it's gamma squeeze (which can lead to shorts being squeezed). It's about how traders got their hands on an unusual amounts of leverage (when you buy a call option, the market maker that sells it to you has to buy 5-10x the amount of stock in $$ value that it cost you to buy the option in order to hedge, and the closer the stock gets to your option price, the more hedging stock they have to buy) GME, Tesla, all of the high-flyers and all the craziness of the last few months were driven by gamma squeezes and the YOLO call option buying of /wsb (with some hedge funds obviously jumping on board)