Michael Burry a genius at stocks and other things. Among his accomplishments is that he predicted and made bank off the 2008 crash. Right now, he's betting again that things are going to go to shit for the economy, and soon.
SPY and QQQ are megafunds. SPY is a variety pack of the 500 biggest companies, more or less. QQQ is similar but tech companies.
Puts/Shorts are ways to bet that things will go down. You borrow stock today to sell, with a binding promise to buy it back later at the new price. Eg, you think Disney at $80 is going to drop to $20 because of a scandal, so you short 10 shares to get $800. If it drops to $20, you can buy the shares back for $200, and net $600 in profit. If it instead raises to $200, now you need to come up with $2,000 to cover the shares you shorted. Puts are similar, but you pay a premium to make sure you don't lose more than a certain amount if you mess up.
He thinks those stocks are going to crash, but those stocks are bundles of the entire market focusing on big companies/tech. So this guy thinks the entire market is about to get down into shitsville, and he's got a solid track record of being right. That said, he's not betting everything on this. It looks like he's betting a lot but he hasn't put up everything in a blackjack bet here.
Yeah, I'm not sure what a put and a short means. Put may be something related to telling your program to buy/sell something when stock are at a certain price. And you can also tell it to Stop at a certain price to prevent losses.
I had thought a short was when you bought a ton at say 10 dollar, the market saw it was getting popular and increases the price to 15 dollars per share. And then you dump all of your stock, selling at 15 dollar each, having made a profit. But then the price of the share might go down to 5 dollars.
But that doesn't seem to be the case here.
The SPY and QQQ are the names of the company stocks.
For example, Nike's stock might be called NIK.
I think the gamer stocks issue was related to someone shorting the stock but then they didn't actually have the stock etc. Something weird to look into.
Also, some rich Jewish guy was smart enough to short the English pound and make a ton of money. I think he caused a recession or something. Another interesting thing to look into!
It's selling options. Call options mean you think it's going up, put options mean it's going down. You bet on failure with out options and that much volume means he knows something is about to fail big-time and he's going to move up on that failure. Put options are considered a short position while call options are considered a long position.
Michael Burry a genius at stocks and other things. Among his accomplishments is that he predicted and made bank off the 2008 crash. Right now, he's betting again that things are going to go to shit for the economy, and soon.
SPY and QQQ are megafunds. SPY is a variety pack of the 500 biggest companies, more or less. QQQ is similar but tech companies.
Puts/Shorts are ways to bet that things will go down. You borrow stock today to sell, with a binding promise to buy it back later at the new price. Eg, you think Disney at $80 is going to drop to $20 because of a scandal, so you short 10 shares to get $800. If it drops to $20, you can buy the shares back for $200, and net $600 in profit. If it instead raises to $200, now you need to come up with $2,000 to cover the shares you shorted. Puts are similar, but you pay a premium to make sure you don't lose more than a certain amount if you mess up.
He thinks those stocks are going to crash, but those stocks are bundles of the entire market focusing on big companies/tech. So this guy thinks the entire market is about to get down into shitsville, and he's got a solid track record of being right. That said, he's not betting everything on this. It looks like he's betting a lot but he hasn't put up everything in a blackjack bet here.
Yeah, I'm not sure what a put and a short means. Put may be something related to telling your program to buy/sell something when stock are at a certain price. And you can also tell it to Stop at a certain price to prevent losses.
I had thought a short was when you bought a ton at say 10 dollar, the market saw it was getting popular and increases the price to 15 dollars per share. And then you dump all of your stock, selling at 15 dollar each, having made a profit. But then the price of the share might go down to 5 dollars.
But that doesn't seem to be the case here.
The SPY and QQQ are the names of the company stocks.
For example, Nike's stock might be called NIK.
I think the gamer stocks issue was related to someone shorting the stock but then they didn't actually have the stock etc. Something weird to look into.
Also, some rich Jewish guy was smart enough to short the English pound and make a ton of money. I think he caused a recession or something. Another interesting thing to look into!
Maybe someone can explain and clarify?
Does this mean those are good stocks to buy or that those stocks are going to crash?
He thinks they will crash and he wants to make money on the downward movement. You guys didn't stock market during the pandemic??
It's selling options. Call options mean you think it's going up, put options mean it's going down. You bet on failure with out options and that much volume means he knows something is about to fail big-time and he's going to move up on that failure. Put options are considered a short position while call options are considered a long position.
Some global Corp and Vanguard.
Ah so this does involve the entire stock market.
That sucks he's rigged it, those would have been good investments.