$Alibaba (BABA.US)$ this is a perfect example of price manip...
$Alibaba (BABA.US)$this is a perfect example of price manipulation anytime a stock like Alibaba hits a load zone you'll see the hedge funds algorithms kick in and they're going to make the stock stay down they want to keep the price action within a certain range so it's going to go up down up down and it destroys options so if you're getting an option on Alibaba put it out 45 days you need to Delta much higher than the data value to offset that price action
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knowledgeispowerful
OP
:
and the easiest way to tell that is to be done is if you look at the price action you're going to see a lot of 100 share orders whether buy or sells it doesn't matter you know that's an algorithm
knowledgeispowerful
OPithrivemach
:
keep in mind hedge funds don't consistently I'll go trade the same stock they wait for a stock to hit a load zone meaning that the market overreacted and now they're algorithm is reading it as it oversold position and when that happens it's usually only a stock that's in one of the major indexes because algorithms usually are programmed to trade anything other so yes today will be a bad day for you but likely tomorrow is not going to be algorithm Traded
knowledgeispowerful
OPLou Blacksail
:
yeah put option is part of a credit spread I've got about 2.3 million in trades on the put side as credit spread and I didn't pay hardly anything for it I think I've got maybe $25,000 all together maybe 30 at tops in collateral and most of that isn't even my money but it acts as a good edge if you know how to work it
knowledgeispowerful OP : and the easiest way to tell that is to be done is if you look at the price action you're going to see a lot of 100 share orders whether buy or sells it doesn't matter you know that's an algorithm
Lou Blacksail knowledgeispowerful OP : thanks man! I need your help. I've got my RH account back to normal again. I need to turn this around my dude.
ithrivemach : Buy?
knowledgeispowerful OP ithrivemach : of course I bought I loaded up I've got almost 400 contracts
knowledgeispowerful OP ithrivemach : keep in mind hedge funds don't consistently I'll go trade the same stock they wait for a stock to hit a load zone meaning that the market overreacted and now they're algorithm is reading it as it oversold position and when that happens it's usually only a stock that's in one of the major indexes because algorithms usually are programmed to trade anything other so yes today will be a bad day for you but likely tomorrow is not going to be algorithm Traded
Lou Blacksail knowledgeispowerful OP : you got to show me how to trade like this man... damn!
knowledge is power 2 Lou Blacksail : It all comes with time
knowledgeispowerful OP Lou Blacksail : yeah put option is part of a credit spread I've got about 2.3 million in trades on the put side as credit spread and I didn't pay hardly anything for it I think I've got maybe $25,000 all together maybe 30 at tops in collateral and most of that isn't even my money but it acts as a good edge if you know how to work it
Lou Blacksail knowledgeispowerful OP : fucking wow! awesome job man. I really would love to do this big of plays.
tkhan knowledgeispowerful OP : wow
. Just curious, what option would you suggest for Baba stock?
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