The system is rigged against the poor, and weighted heavily in favour of the rich. 2/
So what will be the aftermath of this GME event?
These are simply my guesses, I don't actually know.
Wallstreet will likely push for licenses being necessary to trade, or put more limits on how many trades you can make, or some other way to screw the average person trading. 1/
The system is rigged against the poor, and weighted heavily in favour of the rich. 2/
It's possible, but I doubt it.
It would open up new precedents and the optics would be terrible- i.e. shutting down the market because greedy hedgefunds fucked up, and normal people are taking them to the cleaners. 3/
4/
Anything more than that, I'm not sure.
I think the media will push the threat of the government shutting down trading, in order to scare people into selling, to give short sellers a way out. 5/
And these media giants are some of the biggest, richest, most influential men on the planet. So they're gonna try and help their hedgefund pals out. 6/
They're pushing all sorts of bullshit, like these Reddit guys are manipulating the stock illegally (they're not). 7/
Like, really? REALLY?
These foreign governments don't go after banks, or the US treasury? They go after gamestop? THAT'S YOUR ARGUMENT!?! 8/
What do you guys think is gonna happen?
Brokers are allowing people to sell GME, but not allowing them to buy GME.
— Aaron D. (@MrBrownEyes2020) January 28, 2021
This forces the price down, and is literally market manipulation. Which is illegal.#GME #Gamestop #TheGameIsRigged pic.twitter.com/3rMhgPtKnT
More from Trading
Thread on Short straddle with adjustments:
Short straddle is non-directional strategy
Selling same strike price CALL/PUT option same underlying with same expiry.
Nifty Spot at 14353, So you can sell 14350 CE as well 14350 PE of 14 Jan. Expiry.
(1/n)
*RETWEET for max response
Bullish short straddle: Selling 14400 CE and 14400 PE of same expiry.
Bearish short straddle: Selling 14250 CE and 14250 PE of same expiry.
You can sell straddle as per your market view.
If you are natural view sell CE and PE at ATM strike.
(2/n)
Short straddle has limited profit potential (only premium) and unlimited risk without adjustment.
In Example, Short straddle of 14350, Breakeven is (14131.0-14569.0), need 1.7Lac Margin to sell straddle.
Maximum profit: 16k and Loss: Unlimited, Winning probability: 50%
(3/n)
If market staying near at 14350 then win. Probability increase slowly. Rewards also increase slowly.
Volatility(IV) is also play important role in selling straddle, Like If IV increase so straddle premium increase and IV cool off so premium casually comes down.
(4/n)
Short straddle adjustment:
https://t.co/59Lr64kEtK way to limit the overnight risk.
Convert short straddle in Ironfly, its nothing we have to add long strangle in short straddle it become Ironfly. It gives the good Risk Rewards.
(5/n)
Short straddle is non-directional strategy
Selling same strike price CALL/PUT option same underlying with same expiry.
Nifty Spot at 14353, So you can sell 14350 CE as well 14350 PE of 14 Jan. Expiry.
(1/n)
*RETWEET for max response
Bullish short straddle: Selling 14400 CE and 14400 PE of same expiry.
Bearish short straddle: Selling 14250 CE and 14250 PE of same expiry.
You can sell straddle as per your market view.
If you are natural view sell CE and PE at ATM strike.
(2/n)
Short straddle has limited profit potential (only premium) and unlimited risk without adjustment.
In Example, Short straddle of 14350, Breakeven is (14131.0-14569.0), need 1.7Lac Margin to sell straddle.
Maximum profit: 16k and Loss: Unlimited, Winning probability: 50%
(3/n)
If market staying near at 14350 then win. Probability increase slowly. Rewards also increase slowly.
Volatility(IV) is also play important role in selling straddle, Like If IV increase so straddle premium increase and IV cool off so premium casually comes down.
(4/n)
Short straddle adjustment:
https://t.co/59Lr64kEtK way to limit the overnight risk.
Convert short straddle in Ironfly, its nothing we have to add long strangle in short straddle it become Ironfly. It gives the good Risk Rewards.
(5/n)