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09-04-2020, 09:20 AM | #6016 |
NFL's #1 Ermines Fan
Join Date: Jul 2001
Location: My house
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I don't quite get how the market responds to option trading. So Softbank is buying a bunch of call options. Why is that pushing the market up? Is it just magnifying momentum because they exercise calls when prices go up and that in turn makes prices go up more? And then the opposite happens when it goes down?
We're having a big pullback on tech. Is it all or mostly attributed to this one company? If so, that's scary. |
Posts: 142,118
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09-04-2020, 09:27 AM | #6017 |
The Seated Villain
Join Date: Apr 2007
Location: Seattle
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Oops, sorry everybody.
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Posts: 10,610
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09-04-2020, 09:31 AM | #6018 |
NFL's #1 Ermines Fan
Join Date: Jul 2001
Location: My house
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Posts: 142,118
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09-04-2020, 09:38 AM | #6019 | |
TACO SALAD
Join Date: Apr 2008
Location: yes
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Posts: 5,992
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09-04-2020, 09:40 AM | #6020 | |
Andy Reid Supporter
Join Date: Apr 2012
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Quote:
I’m thinking this will be similar |
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Posts: 46,740
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09-04-2020, 09:41 AM | #6021 | |
Why so serious?
Join Date: Dec 2016
Location: Chicago
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Quote:
Anyway, take that to an extreme where market makers are short a lot of calls (i.e., something called 'gamma' which is the amount the delta changes as the underlying stock moves) and the market is going parabolic. It's made worse because of the Robinhood crowd who's been chasing returns left and right. Hope that helps. |
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Posts: 12,503
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09-04-2020, 09:48 AM | #6022 |
MVP
Join Date: Oct 2006
Location: West of the Equator
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I wonder if Softbank will reveal they have a rogue trader within their organization? That's some serious risk.
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Posts: 13,670
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09-04-2020, 09:54 AM | #6023 |
Why so serious?
Join Date: Dec 2016
Location: Chicago
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Posts: 12,503
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09-04-2020, 01:25 PM | #6024 |
TACO SALAD
Join Date: Apr 2008
Location: yes
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My email to customersupport@softbank.com must have worked. It seems they went back to buying calls as everything has turned around and shot back up.
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Posts: 5,992
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09-04-2020, 01:34 PM | #6025 | |
Spooky Action
Join Date: Dec 2003
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Posts: 6,352
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09-04-2020, 02:12 PM | #6026 |
In Search of a Life
Join Date: Aug 2005
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BMO Bank of Montreal doing very well for me, plus a dividend payment this quarter.
Just bought BNS Bank of Nova Scotia 2.72 Div (6.36%) this week. And PNNT Pennant Park Investment 0.48 Div (13.15%) Nice Green day for my portfolio after an up and down week. |
Posts: 43,200
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09-04-2020, 02:47 PM | #6027 |
Fish are scared of me
Join Date: Nov 2001
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Here you go Rainman, Don't sweat the dip!
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Posts: 40,587
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09-05-2020, 02:45 PM | #6028 | |
He's Mahomie!
Join Date: Aug 2001
Location: Jax, FL
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Quote:
And if you like Amazon, check out BABA stock. It's Chinese Amazon but with 1.5 Billion customers. |
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Posts: 17,387
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09-05-2020, 03:03 PM | #6029 |
I'll be back.
Join Date: Nov 2002
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Posts: 282,545
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09-05-2020, 03:06 PM | #6030 |
Fish are scared of me
Join Date: Nov 2001
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Posts: 40,587
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