1/2 Basic maths can demonstrate that the massive price moves are not ONLY a function of Reddit retail crowd YOLOing calls turning MMs into delta-hedging chasers. 15% to 20% of daily traded calls become OI (they are day traded) hence have no effect on dynamic delta-hedging
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2/2 this leaves one explanation to the parabolic moves: when Reddit starts concentrating call buying volumes on some names, some keen observers are using this as a signal and fueling the moves. In other words, there are Reddit signal based strategies doing the work for Reddit.
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Replying to @MarginCall4
That’s an assumption. When I look at
$GLE, SI is still exceeding the float. So my answer is: what short covering?1 reply 0 retweets 1 like -
Replying to @INArteCarloDoss
Short churn? Old ones blew out, I.e. Melvin Cap., and new ones come in shorting at new high?
2 replies 0 retweets 1 like
Then the new shorts would offset the price impact of the earlier short covers - short covering can’t be the explanation if there is no significant fall in short interest.
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