I heard a commentor somewhere mention it in passing, but they didn't explain it in detail.
They hypothesized that people would have calls on NVDA which went up a lot in the after hours last night, but that today "they" (market makers/hedge funds/someone?) would push the price down to avoid having to pay out for those calls.
Can someone explain this in more depth?
Also, can someone who actually worked in an institution/hedge fund/market maker verify whether they ACTUALLY do this? It sounds very odd, is it illegal? It also seems dangerous because if they think a stock should go up, and they force the price down by SELLING TONS OF SHARES, it seems like a risky gamble because what if it doesn't work and now they have even less shares.
I feel like when this idea gets brought up, it's always by people who have no experience working in the industry, so how would they actually know it happens? What if it's just a conspiracy like "oh the bad guys came and pushed down the price of my stock and that's why I lost money".
Does anyone have links to interviews or youtube videos where industry people actually say this really happens? (No offense but if a person has never worked in the industry, how would they know that this kind of stuff happens? It would be like trusting a person with no military experience to tell you about secret strategies only people deep in the military would know)
[link] [comments] https://www.reddit.com/r/stocks/comments/1604rla/can_anyone_explain_the_theory_that_they_market/
Login to add comment
Other posts in this group
Please use this thread to discuss your portfolio, learn of other stock tickers, and help out users by giving constructive criticism.
Why quarterly? Public comp
When you sell a stock to buy another stock, do you prefer to set the estimated amount of the capital gains taxes aside in a money market or do you think it better to
Saving for retirement is crucial, but relying solely on a 401(k) might not be enough due to high inflation. Consider investing in growth stocks, especially in the tec
I’m think this is not a good investment as there is no chatter at all on the 52 week low. They are involved in a class action lawsuits by investors and credit card co
Sorry if this is the wrong sub. Let’s say I had $1 million in VOO but I wanted to sell half of it to buy SCHD. It would suck to pay taxes on $500k. So how would you g
Hey guys, I did a deep dive into Crocs. In this analysis, I will do a brief breakdown of the company and go over some quantitative data, qualitative data and estimate
