I own the underlying and participate in the options market for these securities. I understand the mechanisms very well.
Nothing you have said indicates you understand professional options markets.
Are there any resources or books or anything you'd suggest checking out? Right now I'm definitely at an early "learn as much as possible" stage and would love to hear any suggestions you might have on how to get exposure to this world.
Thanks.
Presuming it’s the latter, I would start here: https://reddit.com/r/Superstonk/comments/nwqaj0/gme_moass_th...
That’s a link to a comprehensive beginner’s guide covering the GME saga so far, and offers plenty of supporting research in favour of a further potential squeeze. I hope it’s a useful starting point for you, assuming that’s what you were asking after!
I guess one goal would be to be able to walk into a trading role at a hedge fund (long/short probably? Also curious about macro strategies) and be at a decent starting point to hit the ground running
Then using what you've learned in your textbook, just keep your book hedged, without any opinion. Watch how your greeks change, and how that corresponds with your risk and pnl. Most people only really end up learning on the job. I didn't "get" options until I started running some risk and making some money. But that only happened when I first started working.
Now of course you want to do both, because ultimately you'll want to know why vols are trading where they are, which will be determined by the behavior of the underlying. But at first you just want to get a qualitative sense of how all the pieces fit together. Then once you do, you can do you fundamental analysis and incorporate that thesis, and start to develop a vol thesis.
One of the most well-known contributors at Superstonk is a former Citadel employee — he’s even spoken publicly about these events in an interview with CNBC. I think that makes him less of a “rando” than an otherwise-anonymous career hedge fund trader, who just happens to support your viewpoint.
There are experts on both sides. Nobody knows what’s going to happen. We’ll see!
>One of the most well-known contributors at Superstonk is a former Citadel employee
Source for both of these?
And here’s Dave’s interview with Superstonk: https://youtu.be/AYct0XX0uTU
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As for “plenty” of career hedge fund traders: I’ll accept “plenty” is a bit of a meaningless word here. Given the anonymous nature of Redditors, I’ll struggle to give you any meaningful identities.
Anecdotally, however, I’ve come across quite a few who claim to be professionals, and were accompanied by some kind of reasonable evidence to back it up. /r/DDintoGME has often brought attention to these people.
There have been several professional traders providing regular updates from their corporate Bloomberg Terminals [1].
Michael Burry, famed investor from “The Big Short”, held a long position on GME [2]. I think he sold it last year, but his tweets have been very bullish about the prospect of a market crash and accompanying MOASS resulting from Wall St being overleveraged. Take this one with a pinch of salt.
Perhaps, most tellingly, there are plenty of major hedge funds — including Blackrock and Vanguard (both of which are full of career traders!) — who seem to think it’s worth holding [3].
[1] https://reddit.com/r/Superstonk/comments/nzyh7f/14062021_gme...
[2] https://www.reddit.com/r/investing/comments/cthume/dr_michae...
I've not argued for/against GME. I've just argued against the conspiracy theories. I have zero insight into their core business, and if I don't have edge, I don't trade. But I know a thing or two about how markets work, and all of the conspiracy nuts who have jumped onto the GME story just don't really get it. That's what I take issue with.