Odd Lots How A Profane Subreddit Moved The Market
Mar 5, 2020
Join Luke Kawa, a Bloomberg News reporter focusing on the WallStreetBets subreddit, and Jaime Rogozinski, its founder, as they dive into how this online community has transformed trading dynamics. They discuss the influence of social media on market volatility, explore the unique culture of WallStreetBets, and compare it to previous trading eras. Kawa and Rogozinski also reveal how platforms like Robinhood have democratized investment, fueling ambitious strategies among inexperienced traders while challenging traditional finance norms.
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Tesla Options Frenzy
- Luke Kawa noticed unusual options activity in Tesla on January 8th, with high demand for out-of-the-money call options.
- This led him to investigate the WallStreetBets subreddit and its influence on stock prices.
Delta Hedging Gambit
- WallStreetBets traders attempt to exploit delta hedging by buying call options, forcing market makers to buy shares to hedge.
- This strategy assumes collective buying power can push stock prices up.
WallStreetBets Origins
- Jaime Rogozinski founded WallStreetBets in 2012 because he wanted a forum for high-risk trading discussions.
- Existing forums focused on traditional long-term investing.