$NVIDIA (NVDA.US)$ I spoke to one of my buddies whom I've kn...
$NVIDIA(NVDA.US$ I spoke to one of my buddies whom I've known for 30 years he sits on a trading desk I won't say the name but a major Wall Street house and there's a hedge fund right now that's shorting the stock, they have shorted over 200,000 shares today and he tells me that there's about another 300,000 they're trying to get filled before the market closes. so this is just one hedge fund there's probably several others right now that are hitting it and thinking that there's no way they can possibly exceed the forward expectations that they have already projected and the highest whisper number forward projections and it's $100 markdown the moment that they disappoint on the forward projections
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35+ yrs in the trenches, raised tens of millions for start ups, syndicate ipo's, yrs on trading desk mkt maker.
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DannyK99 : personally i'd not go short here but what do i know, they are the MMs
10baggerbamm OP DannyK99 : okay I don't think you understand so I'm going to say this as polite as possible. if you make a market in the security you want to trade flat meaning you buy 10,000 shares you want to have them sold as soon as possible you don't want to sit in inventory because you have a capital requirement that you need to maintain when your Market maker and the more securities you make a market in the greater your Capital requirement is. so you want to be risk-averse and you want to get paid for order flow or if you want to take a short-term gamble if you will and there's somebody selling 10,000 shares of Nvidia you can go out there and say I'll give you higher than the bid and then you cross it in between the spread so that you make that difference so you are in basically a riskless transaction. frustration so when people say oh it's the market makers fucking you I'm telling you it's not it's the money that they are trading for because they don't want to put their trading desk at risk for security that goes against them. I owned a broker dealer I sat on my trading desk and we traded small cap stocks there was a few we made markets in and we did not want to sit in inventory overnight on anything we wanted to be as flat as possible. I hope this explanation makes sense to you and answers some of your possible questions because what you said is not correct
73944091 : It’s still a gamble
71798136 : Market almost close, where is another 300,000 share?
10baggerbamm OP 71798136 : there could be another hedge fund overseas there could be a mutual fund with a block that they're trying to sell a million shares for example and you know it's out there so you can call them and say listen I'll place this trade for you I know you're trying to get X I'll give you this it's less than what you want but I can close out your order immediately and if you do that you're not taking that in your inventory you've already crossed that you got a buyer in mind that already says I will buy x amount of shares if you can find them for me
10baggerbamm OP 73944091 : I don't understand your statements kind of open-ended what is a gamble if you're a market maker again you try to trade flat but I can tell you I had a stock halt on me. and we just bought I want to say it was a little over 15,000 shares and we were just trading for about a two or three Penny spread at that time. the stock halted and it was pending a freaking FDA approval it's not like we were gambling on the approval we were a market maker in the security so we when we did it we need to take in at least a thousand shares that's what the rules are you bid for a thousand shares at least back then. anyways it freaking halted and your heart sinks because you don't want to bet on fundamentals or technicals or approvals or contracts anything you just want the bid offer spread is what you want to do and trade couple hundred thousand shares throughout the day for a few pennies at a time five cent six cents whatever you can get you do and you do it over and over again anyways out of nowhere is FDA declines a freaking approval the stock loses 25% instantly so that was a week and a half of trading pissed away in a nanosecond. so when I tell you Mark and makers want to trade for older flow and in the spread and if they have a large seller they want to find the buyer they do a cross trade and typically after the market at 4:00 and a few seconds you see a large print that's how they do it that's how we did it
Daniel Jeya Raman : @10baggerbamm, so no use trading NVDA as they will still get the stock down, even if the earnings call do exceptionally great, is that so?
Sttttttttttt : Then he must be laid off soon due to company got squeezed after ER release
10baggerbamm OP Daniel Jeya Raman : I kind of don't understand what you're trying to say. Nvidia is going to drop a hundred bucks if there's any kink it will go up 50 to 75 dollars if they knock the cover off the ball gravity always wins sadly and so there's always a greater potential risk of a gap down then up.. you can look at the Sox today the chip index it got hit because there's short sellers right now that are building positions in anticipation of what they think might be weakness projected because of the news with Microsoft today because of the news with arm this past week because of the news with AMD the stories that are written on Nvidia are bullshit because Nvidia doesn't sell a chip it's a cuda core so Google it so that you can see the difference.
10baggerbamm OP Sttttttttttt : a hedge fund doesn't get laid off it's absurd ,I mean it's almost laughable that somebody would make a statement they are the 1% of the 1% that trade with billions of dollars of other people's money so it's not a matter of getting laid off.
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