Do we have reliable estimates on the amount of trading in GME type positions that's by the Reddit/WSB "gang" vs what I would assume to be a more well-financed group of "symmetry-breaking yields price momentum trend followers"? GME traded almost 200m shares on 1/22. At $55/sh (just a guess as I don't have the VWAP), that's $11b. That's a lot of $600 checks!
Dunno of any open source data. My understanding is that you would need order flow information which is probably very expensive. But in general momentum traders are always present. Their response functions are also procyclical. I think the stimulus check story is probably overblown. At least if we weight by bet size, the marginal trader in r/WSB is a former options trader at a Wall St firm with some money in the bank. Or at least that’s my impression. I haven’t spent any time on r/WSB.
"Melvin", not "Mervin"...
Do we have reliable estimates on the amount of trading in GME type positions that's by the Reddit/WSB "gang" vs what I would assume to be a more well-financed group of "symmetry-breaking yields price momentum trend followers"? GME traded almost 200m shares on 1/22. At $55/sh (just a guess as I don't have the VWAP), that's $11b. That's a lot of $600 checks!
Dunno of any open source data. My understanding is that you would need order flow information which is probably very expensive. But in general momentum traders are always present. Their response functions are also procyclical. I think the stimulus check story is probably overblown. At least if we weight by bet size, the marginal trader in r/WSB is a former options trader at a Wall St firm with some money in the bank. Or at least that’s my impression. I haven’t spent any time on r/WSB.