WallStreetBets vs WallStreet: It's not about the money anymore

Re:WallStreetBets vs WallStreet: It's not about the money an... by chollida1 on Thursday January 28, 2021 @10:37AM (#25943470)

Then one of two thing is true.

1) they are lying to you. Look at how much the stock has traded, Its alot but its nothing compared to how much SPY trades in a year. There just wasn't' anywhere near enough trading volume to make an entire year in one week even if they participated in every trade that Gamestop had this past week.

2) they lost money last year so any profit beats last year's pnl?

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Re:WallStreetBets vs WallStreet: It's not about the money an... by dcolkitt on Thursday January 28, 2021 @10:50AM (#25943733)

GME has been trading at $2 spreads. SPY trades at $0.01 spreads.

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Re:WallStreetBets vs WallStreet: It's not about the money an... by chollida1 on Thursday January 28, 2021 @11:14AM (#25944147)

Fully aware

I’m in the industry. I stand by what I said:)

You said something that was flagrantly wrong, I’m just trying to help correct you.

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Re:WallStreetBets vs WallStreet: It's not about the money an... by dcolkitt on Thursday January 28, 2021 @11:42AM (#25944568)

I’m in the industry too.

Average PnL per share traded for a firm doing okay is about $0.001. A decent size firm might do 4% of ADV. Tape A trades about 1.5 billion shares per day. That’s 21 million annual trading revenue.

GME traded 1 billion shares in the past week. PnL per share has been averaging close to $0.40. At 6% ADV (HFT market share spikes during volatile periods), that’s 24 million in revenue.

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Re:WallStreetBets vs WallStreet: It's not about the money an... by totalZero on Thursday January 28, 2021 @11:16AM (#25944184)

Or (3) they got hit on some GME paper at the outset out of pure luck, and printed the gamma much higher. SPY volume is higher but SPY doesn't realize like GME has.

I can tell you're in the industry because you say pnl instead of p&l haha.

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Re:WallStreetBets vs WallStreet: It's not about the money an... by 3saryHg6LP2e on Thursday January 28, 2021 @10:49AM (#25943720)

Or the spreads/volatility of GME is big/frothy enough that they can make much more per trade

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