Categories Trading
I did not *write* much this year, but I was lucky to have a few things published anyway:
1. My essay “What *was* primitive accumulation?” — which has been online since 2017 — got its permanent published form in @EJPTheory vol. 19, issue 4:
The article argues against the recent revisionist accounts of primitive accumulation.
2. My highly critical review of Gareth Stedman Jones’s biography of Marx was published in Historical Materialism: https://t.co/tTh3FUaW1s An excerpt:
3. My engagement with @martinhaegglund’s This Life: Secular Faith and Spiritual Freedom appeared in @LAReviewofBooks, as part of a symposium on Hägglund’s book.
Please do not invest money you can't afford to lose.
"We are seeing a new reality," says @alexisohanian. "This is a drastic shift--the menu is open with this combination of technology and ubiquity of connected people sharing insights and opinions." pic.twitter.com/vuiRb9crOy
— Squawk Box (@SquawkCNBC) January 28, 2021
https://t.co/ypc8ViK1Gq
This is personal for a lot of people. We've never seen anything like this.
These aren't just random comments on the internet, community is meaningful, this is a person standing up in a stadium of millions of people they consider allies/friends/confidants speaking their painful truth and getting a a roar of applause and cheers and support.
This is going to be in textbooks one day
It is pretty straight forward.
For those that are new to stocks / options (because of the influx of interest due to $GME, $AMC, $SLV, etc), here are some terms you should google:
-Short Interest
-Call option
-Open Interest
/1
XL Fleet short interest increased from 50% to 72% in the latest reporting (came out Friday)
That alone piqued my curiosity in the company so I took a position in some Feb calls (in my robinhood account) and will be adding more in my TD account this coming week.
/2
Several days ago, Biden announced that he would be replacing the entire govt. fleet with electric vehicles
https://t.co/DNNMOwq6dv
$WKHS got a massive pump on this news but that was about it.
Who are the other likely candidates? $GOEV and $XL
Why is $XL one of the top candidates?
-Partnerships with Coke and Pepsi
-Board of Director members have strong ties with UPS and FedEx
-Management team is very connected in govt. associations for clean energy in wind, solar, and EV
- $XL is focused on transforming existing FLEETS
All of this can be found on their
Okay, this is starting to make sense, I'm about to do a massive infodump in the comments, get ready folks.
More than half of all Robinhood users own at least some GameStop stock.
— Motherboard (@motherboard) January 28, 2021
They are now unable to freely trade it; the app is only allowing users to close out their positions. https://t.co/DgN1H496wx
The tl;dr is this: Melvin Capital made an overleveraged short on gamestop last week which was floated to 140% of all available shares. Since xmas GME has been doing well thanks to console releases and so on. Few days ago, a new CEO from Chewys got on board and price 2x to $40
A user on reddit, deepfuckingvalue had been holding it and buying various pulls on the stock since last year as a YOLO option with a possible initial investment of $56,000. It has since ballooned to tens of millions if he sells it at all.
So, with that redditor being popular last week as well as the leveraged shorts that Melvin explicitly went on youtube/social media to call resulted in WSB jumping on them for even daring to short it. As such, media attention started to pop up and speculation happened.
On Friday, the 21st, a gameplan was made to pump the stock up to initiate the beginning of a short squeeze and prevent the shorts from profiting for melvin & citron (another hedge fund that also shorted GME). For whatever reason, the stock price jumped up to $69 at EOD.
What do you do when your hot stock is falling fast?
💥 (a thread)
Check your goals.
When do you need this money?
Now? In a few days? In a few years?
If you have time to wait, then it could make sense to hold on for now.
Remember your why.
Stocks rise and fall. It’s the nature of the market, and swings are the price of investing (h/t @morganhousel).
Just think about Apple. Amazing rally over the past few decades…with a lot of big
What they tell you:
— Callie Cox (@callieabost) September 24, 2020
If you invested $100 in Apple's IPO and and held shares until today, that investment would be worth about $100,000.
What they don't tell you:
If you invested $100 in Apple's IPO and held shares until today, you would've endured 23 declines of 20% or more.
Back to the why. If your why behind buying this stock hasn’t changed, then it might be best to wait this drop out.
Who will come out stronger from the stock market tech bubble in #NGS? https://t.co/TDn5J0glhi
— Albert Vilella (@AlbertVilella) January 11, 2021
Looking at the NASDAQ for the last 5 years, there was a big drop in March 2020, triggered by the first wave of worldwide #COVID19. The tech bubble was already inflated back then. But the market recovered with a matter of weeks, and kept climbing up.
By 9/8/2020 there was another attempt of a correction, mostly #COVID19 related, but again, with a highly inflated tech bubble, the market recovered and quickly jumped another 1,000 points (around 11,800):
Pretend Robin Hood is a casino (a stretch I know).
Casinos hold a certain amount of cash reserve on hand to cover all daily activities. Now imagine everyone playing starts winning big all at the same time. Slots, tables, etc and the House is losing huge. /2
The Casino's cash reserve is getting dangerously low, a few more big wins to pay out and they'll have no cash left. So they go out and close a few rows of tables, rope off some slot machines, forcing some players to be unable to play. /3
Then they call the bank and have them deliver a new boatload of cash, and reopen the Casino fully once they have enough to operate again.
That's kind of what is going on behind the scenes here, in the plumbing of the markets. /4
Most people have never heard of a "clearing firm", but without them the stock markets wouldn't function. Most of the largest brokerages are "self-clearing", meaning they also run their own clearing firm, but many use a third party.
See below: /5
wow, @apexclearing now blocking @public from allowing customers to trade specific stocks
— Mike Dudas (@mdudas) January 28, 2021
wall street norms imploding in real time, fallout is gonna be wild pic.twitter.com/gUyhufV32t
2/A few years ago we invested in a private company called Meituan (3690 HK). Meituan is like doordash or Uber eats and we thought in China, with over 100 cities >1m pop, this would be a huge market. The other competitor was owned by Alibaba.
3/The company went public less than two years later at 70. We were ecstatic! Then the stock rapidly plunged to 40 based on renewed fears of competition with https://t.co/oVbw4yOOYV (Alibaba)
4/At the time we were locked up so there was nothing we could do. Today the stock is at almost 300 and $250B market cap. I fear what we might have done if not subjected to the lock up!
5/What’s the learning? In the private markets, the focus -FIRST- is TAM (size of market), then second everything else. And the stock price is static unless there is a new round. So you have time to develop your thesis.
Here is a master thread related that will help a beginner to understand about Options Trading.
A complete course worth Rs 50K for free.
1/ A detailed thread on basics of Option Greeks and how it impacts Options
There are various Options Greeks like: Delta, Gamma, Vega, Rho, Theta.
— Yash Mehta (@YMehta_) September 4, 2022
A complete guide on how these #Option Greeks impact option price.
2/ Basic Option Trading Strategies:
There are many option strategies to trade. But keeping your strategy simple is the key.
In this thread, all the basic option trading strategies are being
Option trading is tough but here\u2019s what can make it easier for you
— The Chartians (@chartians) September 17, 2022
8 option strategies that you can use in any market (sold as a \u20b9 50,000 course !)
3/ What are the things that you should look at before taking any Option
They say options trading can make YOU BANKRUPT - is it true ?
— The Chartians (@chartians) September 23, 2022
If yes then why ?
A thread on Risk management and Position sizing in options trading (worth 50k\u20b9 course)\U0001f9f5
4/ Is Option Selling Possible with Rs 1 Lakh Capital?
Even a beginner can start trading in option selling with capital as low as Rs 1 Lakh.
What are the techniques one can use and how to mitigate the infinite loss risk is shared in this
101 guide on how you can start option selling to generate active returns with less capital (Rs 1 Lakh) \U0001f9f5:
— Yash Mehta (@YMehta_) August 19, 2022
A course on option selling available for free.
@JeffSnider_AIP
@LynAldenContact
@LukeGromen
But this thread is (mostly) about @profplum99
👇👇👇👇👇
2/ Mike has an encyclopedic knowledge of market history. This interview by @DiMartinoBooth (who I also have a lot of respect for) puts that on clear display.
https://t.co/4hSd2TG4du
Mike’s explanation of passive investing and its effects on the markets was eye-opening.
3/ According to research conducted by Anadu et al for the Federal Reserve Bank of Boston, passive funds made up 48% of US equity assets under management in March 2020. That number was just 14% in 2005. Meaning 8.6% annualized growth over 15
4/ Per Mike, “passive funds have this really simple algorithm: if you give me cash, I buy.” No fundamental valuation, just buying the current market-weighted index, which means a stock gets greater representation in your fund the higher its current market value.
5/ Employers and pension fund managers are predictably contributing to IRAs through fixed salary percentages on a monthly basis. And passive funds typically hold tens of basis points of cash on the sidelines because, per Mike, “it’s toxic to their business model.”