Hi /biz/ I was unable to find any news about this. If this is a joke it got me good. Has this ever happened on reddit before? I am very curious about what went down. Give me your deets or guesses
If I had to assume, they're probably illegally issuing investment advice, like everyone else on the internet. However, if what >>1046090
said is true, they could have caused harm to investors. That kind of thing attracts the SEC.
Its a joke. Weve done it before. The mods are weirdos.
So for this one some kid turned 900 bucks into 55k in 12 days (allegedly) which made us sibreddit of the day or something so they did this to troll
Reddit mods are seriously some of the faggiest motherfuckers alive. They have no power irl so they act hard online.
He bought the puts and then sold them before expiration for less than their current value. For the big players out there, they could buy the almost expiring puts (1 hour left) and execute them for a quick scalp of profit.
Essentially it went like this
Buy 198 SPY puts for .30 per share while SPY is at 203
SPY goes to 190, puts are now worth $9 per share.
Sell 198 puts for $8.90 per share. Someone will buy for the .10 cent arbitrage.
And the guy in this example makes $8.6 on a .3 investment.
I do not know the real wallstreet bet numbers, but that is essentially how it played out.