
MacroVoices #256 Russell Napier: Prepare for Secular Inflation
Macro Voices
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How to Stop Robinhooders From Buying Stocks on the Upside
Robinhooders put $280,000 to work in GameStop. The dealer is buying $2.4 million of stock on their behalf essentially to be delta hedged out. But the convexity and the gamma actually means that let's say a very rapid rise in the stock goes from $100 to $150. So they have to turn around and go long. They've figured out this game of having the market makers do all the dirty work of running the stock on the upside. And it's one of the most amazing things that we're seeing. It's going to be history.
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