Posted on 02/19/2021 2:44:32 PM PST by Navy Patriot
Why on earth would $20 puts do that?
Someone could have made quite a bit of money on this flash crash that was the same day as those puts.
Farris BABA
@farrisbaba
·
Feb 11
I watched the tape all day yesterday, as many know I love reading the tape. Yesterday’s down move was a flash crash as bids were jumping well below the ask. Regular candle sticks won’t show it either.
There have to be better ways of doing it without attracting so much attention.
The margin requirement to carry that many short contracts would be close to $20 million
It’s happening too often. There is a method behind it
Next time I see it I am going to position for a quick short with puts.
btw, there is a 50 cent Vix player that shows up and usually makes money.
Chewy Fanboy
@realChewyFanboy
$CHWY summary:
If you were alive during the $GME flash crash of Jan 25, you just lived through the $TSLA flash crash of Feb 10. Margin calls triggered and selling that is automated was conducted.
Last time, this ruined $CHWY’s momentum. But we’re in a breakout mode. $110 tomo!
bids were jumping well below the ask
Huh? bids are always below the ask... ???
JUMPING WELL below the ask
And yes, I call it a mini flash crash. A move like that as fast as it went is a great money making opportunity as the IV soars...if you were already in. If you aren’t already in it becomes much more tricky.
Usually a flash crash means a very sharp drop and then return to the starting drop point. The “crash” was only for a “flash”. That Feb 10th drop would not be classified as one. Very sharp drop on the open but then it just traded around that level for the next few days.
Around half or more of RH's clientele owned $GME, they were prevented from buying and could only sell. Many of their users have documented that their positions were sold without their consent.
I imagine Citadel was in a position to be better able to cover their new short positions when millions of traders could no longer squeeze the stock but only sell at a loss.......simultaneously, and conveniently there was no financial interest in the clearinghouse requiring RH to increase deposits tenfold.
I bet you still believe that Fannie Mae, Freddie Mac, and Bear Sterns were on sound financial footing.
Reading material .
https://www.reddit.com/r/Wallstreetbetsnew/comments/lo33fm/xrt_is_now_200_short/
Post 77
People who have advance knowledge on legislation that affects a stock or group of stocks.
If Nancy Pelosi or any Democrat congressum OR any Congressum is long then as far as I am concerned it is ethical. (Might not be smart, but its your $.)
There are finite numbers of actual shares available in the market. With Reddit folks (calling each other “tards” and “apes”) were screaming to buy and hold with “diamond hands” there was more demand than supply.
Hence the short squeeze.
But when stock prices surge suddenly regulations meant to act like a brake to the runaway train come into play.
Small , unsophisticated investors led astray by the pied pipers of Reddit....who themselves sold off at high prices in many cases, were saved from jumping on board as a result. More would have bought high....way too high...encouraged by others.
That’s what you can’t wrap your head around.
“ Still not buying it.”
To stay uninformed is your right.
Shorting XRT to be short GME seems very inefficient.
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