Posted by DigiNomad on 20th of Dec 2023 at 03:26 pm
Trillions in net long calls and not trillions to back them up.
Can't buy and hold calls so the rug had to be pulled eventually.
This is our new reality. It will happen to the upside and the
downside...but crashing up should be more common than down (in
theory).
Posted by DigiNomad on 20th of Dec 2023 at 03:35 pm
Put it this way, I took off almost 100 million in notional long
in the last 30 minutes. I don't have a fraction of that in net liq.
Now multiply that by every options trader out there...and you get
wild swings in both directions as soon as the music stops and
people rush to remove their leverage (both sides, but the market
prefers to be long so upside leverage is more common whereas puts
used to outpace calls most of the time). *I've already got
orders up to put my positions back on.....likely to check back,
IMO.
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It was parabolic
Why is market tanking ?
Posted by lamb on 20th of Dec 2023 at 03:07 pm
It was parabolic
Yes but it’s across all
Posted by anjali25 on 20th of Dec 2023 at 03:11 pm
Yes but it’s across all indexes - so was there some news —-
go into a meeting and 30 min later huge drops 😬
Trillions in net long calls
Posted by DigiNomad on 20th of Dec 2023 at 03:26 pm
Trillions in net long calls and not trillions to back them up. Can't buy and hold calls so the rug had to be pulled eventually. This is our new reality. It will happen to the upside and the downside...but crashing up should be more common than down (in theory).
Put it this way, I
Posted by DigiNomad on 20th of Dec 2023 at 03:35 pm
Put it this way, I took off almost 100 million in notional long in the last 30 minutes. I don't have a fraction of that in net liq. Now multiply that by every options trader out there...and you get wild swings in both directions as soon as the music stops and people rush to remove their leverage (both sides, but the market prefers to be long so upside leverage is more common whereas puts used to outpace calls most of the time). *I've already got orders up to put my positions back on.....likely to check back, IMO.