3 ms·
> it doesn't seem like making $3m off Netflix stock trades over a couple of years is particularly alarming on the surface It is often the manner in which this
by rich_sasha 5y ago
> it doesn't seem like making $3m off Netflix stock trades over a couple of years is particularly alarming on the surface
It is often the manner in which this money is made. Very concentrated bets, like buying far out-of-the-money options, that let you get enormous leverage - buy the option for pennies, exercise for $50. Combined with the absence of activity on other stocks, lack of other regular trading etc.
If you just had a "hunch", bought some shares of Netflix, maybe some other techy stocks for camouflage, and made your "measly" 10% return a few times, you'd probably never be caught. But that's not life-changing of course. To make the $3m over, say, 4 trades, you'd need to have $7.5m to play with, which is quite a lot.