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alanzo123 t1_iy0a0g7 wrote

market will go down when everyone gives up on shorting it. all of wsb is trigger happy with put buying, market makers will farm premium like pigs at the feeder by making the market flat.

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juffury3 t1_iy16xok wrote

>market will go down when everyone gives up on shorting it

Define everyone? Is your grandma shorting SPY? Any of your siblings or friends? Whenever I tell my friends about put options, they look at me funny. Like I'm regarded or something.

WSB thinks they can speak for all retail and the MMs are constantly monitoring us because we're such an omnipresent force in the market. No, we're a bunch of self declared degenerate regards and nobody gives a shit about us.

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alanzo123 t1_iy1ckwg wrote

traders, everyone who isn’t managing billions

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juffury3 t1_iy1f10y wrote

All I'm saying is that WSB is a shitty barometer to measure retail or trader sentiment. The majority of the posts here don't even show positions. Just some regard perma bear or bull karma farming.

Also, think about your average WSB redditor. More than likely he's an early to mid 20s guy who's a virgin to trading a bear market. Sure, he lived through 2008, but had no skin in the game. This applies to redditors over at r/stocks too. All they know is "stonks go up". In fact, a majority of WSB came in during 2020 during meme stock mania when trillions in stimulus were injected into the economy.

Boomer retail traders with the most $$$ in stonks don't hang out on reddit, lest of all WSB. Are they "trigger happy with put buying" too? Go ask your parents.

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Sensitive-Cold-4956 t1_iy1hatv wrote

It’s like an easy layup in basketball, a man wide open down the field in American Football, or an empty net in soccer/hockey. Sure that’s easy for professionals, but most of us would miss.

What percentage of retail traders have ever bought a put? How many are approved, understand the Greeks, and are willing to go? I’d guess it’s insanely low.

I think most are going to baghold to the bottom and continue to DCA. I’m sure some will move some into cash. But this big measurable rush of retail buying puts, I just don’t see it.

And even those of us who are willing to buy these puts, a lot of us are getting scared bc it’s so obvious… this do the opposite of sentiment narrative, which I generally agree with. But if only a tiny percent of retail is actually going to make an active bet here, the act against sentiment argument loses some steam.

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quesoqueso t1_iy1vjl5 wrote

Shit I am doing both. DCA on my long positions while taking it in the ass and trying to offset some of it with puts at the same time. I'm long and short, so probably highly regarded.

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dickmidget t1_iy0cp1q wrote

Do MM’s really make THAT much $$$ off of retail buying calls & puts?

It doesn’t seem like much money in comparison to large institutional buyers when it comes to options trading.

I could be wrong but I am genuinely curious.

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Sensitive-Cold-4956 t1_iy0h15h wrote

I ask this myself. They say 99% of retail is 100% long. Most retail is down way more than the SPY this year.

You ever try to explain to your college educated friends how calls and puts work? They look at you like you’re speaking Arabic. Maybe they can understand calls… but puts? What percentage of retail could buy puts even if they wanted to? Are they even approved through their broker?

I think the more realistic explanation here is that most of retail’s $ is in ETFs in their 401ks, in various longs, and cash. If SPY were to fall off of a cliff, I don’t think the single digit retail who are options approved and willing to press the Put button will matter all that much.

Also sounds like the perfect situation for institutions to take from retail with minimal resistance.

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dickmidget t1_iy0krg3 wrote

The people I’ve talked to do understand the difference between calls & puts, along with the investment criteria behind such moves. I must confess that I am still learning and trying to evolve in this crazy market.

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laglory t1_iy29jlx wrote

> market makers will farm premium like pigs at the feeder by making the market flat.

you realise that "making the market" refers to the process of simultaneous offering of both bid and ask? Market makers don't move the markets, they provide liquidity.

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RedOctobrrr t1_iy3pkoq wrote

This is the pro guidance you degens need to listen to.

My puts were like 1.5mo out. They're now a few weeks out. Nearly worthless on this make-believe rally.

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ever-right t1_iy26134 wrote

That's why I'm selling calls. Go ahead. Make the markets flat.

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