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Redditors gave Wall Street traders an absolute pasting

monkeytassle said:
No hedge funds have been bailed out mate. I'm pretty bored of saying this. If anything hedge funds that have lost their trousers have been taken to the cleaners by the people they owe money to. There's a very good book called when genius failed about à fund called long term capital management. Worth a read.
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Read a book recently that went over LTCM briefly. Will give that one you've just mentioned a read. Cheers.
 

Titus said:
Read a book recently that went over LTCM briefly. Will give that one you've just mentioned a read. Cheers.
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My favourite book I think. And anything by Lewis just not liars poker that's shit. And Ben mezrich writes very well about the industry
 
monkeytassle said:
What's your outlook and gamestop and the pump and dump reddit has done on retail investors?

I sold some local vol and it made money. Still short a bit of gamma which isn't nice but it pays well
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A trade that has been months in the making, one any trader would be proud to call theirs

There are a number of factors to this and to say it was simply a "reddit pump and dump" is a load of nonsense.
 
monkeytassle said:
It's a reference to goldman sachs and a caricature that appeared a few years ago. Rolling stone published it.

No hedge funds have been bailed out mate. I'm pretty bored of saying this. If anything hedge funds that have lost their trousers have been taken to the cleaners by the people they owe money to. There's a very good book called when genius failed about à fund called long term capital management. Worth a read.
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Ah ok thanks. So other funds have ‘rallied round’ to underwrite the funds who initially shorted the stock? But that’s not being bailed out?
Apologies if these are dumb questions. Not being sarky here, genuinely fascinated by it.
 
Solero said:
How I understand it

HF had shorted the stocks initially, stocks then went up to 471 from around 20 dollars a share On the backs of the reddit brigade and retail investors. Every time it went up the HFs had to cover the short by buying back in to help bring down or loaning extra shares from which ever broker had surplus. the easiest way to pay back the interest owed on the loaned or shorted stocks is to buy back in for the extra shares loaned and to repeatedly short it more and more at various prices and watch it spiral back down thusfore collecting the profit or try to limit loses whilst repaying the shares quantities back. At the moment it’s around 125%.

Im not a share guy these days, but it’s how I understood it back in the day, damage limitation exexcise.
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Thanks for the reply. Again it’s the bit in bold I can’t quite get my head around, but I vaguely understand what you mean.
 
monkeytassle said:
My favourite book I think. And anything by Lewis just not liars poker that's shit. And Ben mezrich writes very well about the industry
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Historically from what I've read plenty of these hedge funds when they go pop and lose investors money, pop up again a few years down the line under different name. Seems like the clients lose out more often than the hedge fund managers
 
monkeytassle said:
Months in the making? Do you want me to show you a volume chart?
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It would appear you've taken the media/hedge fund narrative and ran with it. Yes, months in the making...

You must be logged on to see media items

Sure show me the chart that shows volume building from Jul last year
 
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Salem Street South said:
Ah ok thanks. So other funds have ‘rallied round’ to underwrite the funds who initially shorted the stock? But that’s not being bailed out?
Apologies if these are dumb questions. Not being sarky here, genuinely fascinated by it.
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A hedge fund sho
Titus said:
Historically from what I've read plenty of these hedge funds when they go pop and lose investors money, pop up again a few years down the line under different name. Seems like the clients lose out more often than the hedge fund managers
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Agreed
Skandhaless said:
Imagine thinking about this shit every day
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Imagine thinking about my job every day
 
Cypher said:
What is the literal difference? If I advise you to buy shares in something how don't you know that the I own the company and it's essentially worthless. Obviously I wouldn't do that but Redditors might.
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people who are paid to make recommendations are not only required to have an extensive knowledge of their customers investment profile but also the products they are recommending and the investing environment. all of this is done under strict supervision of a compliance department. any private investments the advisor/representative has in his own portfolio must be disclosed to compliance. if you violate conflict of interest laws you can lose your licence.

in contrast to 'buygme2021'* telling the general public to buy shares in a public company without all of the above.

i would say there's a difference there.

* name changed for confidentiality
Solero said:
I always find the Enron documentary film a very good watch!
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watched it not so long ago. very good.
monkeytassle said:
Skandhaless said:
Imagine thinking about this shit every day
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Imagine thinking about my job every day
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i hear you mt.
 
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Titus said:
Historically from what I've read plenty of these hedge funds when they go pop and lose investors money, pop up again a few years down the line under different name. Seems like the clients lose out more often than the hedge fund managers
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or the value goes up and down but staying flat whilst skimming their fees every year.
 
Salem Street South said:
Thanks for the reply. Again it’s the bit in bold I can’t quite get my head around, but I vaguely understand what you mean.
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In short selling, a position is opened by borrowing shares of a stock or other asset that the investor believes will decrease in value by a set future date—the expiration date. The investor then sells these borrowed shares to buyers willing to pay the market price. Before the borrowed shares must be returned, the trader is betting that the price will continue to decline and they can purchase them at a lower cost. The risk of loss on a short sale is theoretically unlimited since the price of any asset can climb to infinity.
 
Skandhaless said:
Worse , imagine having a job having think about this shit every day . How's that getting in to teaching coming on ?
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I enjoy my job. When I get bored ill step into teaching. Or tutoring. I have many knowledges to impart.
Salem Street South said:
Ah ok thanks. So other funds have ‘rallied round’ to underwrite the funds who initially shorted the stock? But that’s not being bailed out?
Apologies if these are dumb questions. Not being sarky here, genuinely fascinated by it.
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I'll do you a more comprehensive response tmw if OK mate. I'm in bed as I get up early to take on the markets full speed. (I don't I just wake up and go for a walk). Like normal human beings. Ish
 
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