Chapter 854 – 0DTE
Stock market volatility.
It’s getting crazier as the days go by.
It is also known to general investors.
No, it is gaining sensational popularity.
‘…’
0DTE investment.
It is bound to be difficult for investment banks.
“This is crazy…”
“Half of the daily trading volume is showing movement related to 0 DTE. This is not a normal situation at all.”
It is the entity that issues options.
What does it mean that someone hit the jackpot by thousands of percent?
This means that the investment bank suffers that much loss.
Of course, the opposite is also true.
‘No matter what, this is out of line.’
Most of them are gourds.
There is a reason why the price was a piece of toilet paper in the first place.
It would be welcome if trading volume increased.
You can take a lot of fees.
“It’s not just a simple hedging, it’s a gambling bet. There are definitely people who are going into debt.”
The total trading volume remains the same.
The options are just going crazy.
It’s never a good thing.
Even if you just look at it in terms of market health.
“Among our customers?”
“There will definitely be one.”
“Then I guess I’ll have to do the stress test again…”
Options are different from stocks.
It is not a market that can be solved by just doing something.
All or nothing.
The moment the maturity date arrives, the value changes to $0.
Gulp!
There is no problem if you do it with your own money.
There are not only normal people like that.
This is especially true when the market is chaotic
When I lose money, my eyes turn upside down.
‘It’s not surprising at all if bankruptcies continue to appear.’
Taking on debt.
Pay back!
With the mindset that you just have to take it and pay it back.
That’s how you fall into a quagmire.
No one was a gambler from the beginning.
“It’s not just options. If stock market volatility increases like this, other areas will definitely be affected.”
“Damn it!”
The mentality of making money comes into play.
It is an optimal(?) Environment for it to explode.
It’s easy for people to feel embarrassed.
Taking responsibility for it.
‘I haven’t been able to get off work for a while.’
This is exactly the role that banks play.
Money that is not recovered is recorded as a loss.
Be prepared for that.
This can be said to be the reason for accumulating loan loss reserves.
Thump, thud!
It is piled up to the point where it is impossible to retrieve.
It’s bound to be a headache.
In the past, customer management was handled one by one.
In modern times, it is calculated mathematically.
“As a result of the stress test, if a series of put option gamma squeezes occurs… I think we will need to hold much more loan loss reserves than we have now.”
Convenient.
It’s just not a problem that can be solved once the results come out.
It affects the rate of return of investment banks.
Investments such as stocks and bonds must be subtracted.
“How can we reduce it? This is too excessive.”
“Our calculations are correct.”
“Well… As always, the decision should be made by the head of the department.”
From the executives’ point of view, I want to avoid it.
I want to make a profit by playing a lot with money.
‘What kind of damn bastard…’
I was already doing it.
The market has become a mess due to high interest rates and high prices.
Another uproar broke out.
0DTE.
A bad prank that I don’t know who started.
Gulp!
It’s hard to ignore.
This is not a situation that can be quietly covered up.
Corona period.
Among the 5,000 banks in the United States, not a single one went bankrupt.
It’s like the calm just before a typhoon.
A sense of anxiety that only the incumbent can feel creeps in.
─The sell order has been fulfilled!
The loan loss allowance will be expanded.
The economic report also takes on a more negative tone.
‘…’
Such a situation.
Adds uncertainty to the stock market.
Hedge funds have no choice but to suffer.
It’s not their money.
This is money entrusted to us by customers.
I have to make a profit and return it.
“I had a small position in both stocks and bonds… And the loss at 0DTE was fatal.”
It can’t be that.
This is not a time for general investment.
Still, you have to make a profit.
That’s what a hedge fund is.
‘I’m done here?’
What if I can’t pay?
Having to leave a room is fate in any industry
Hedge fund.
Most of them do not complete 40 months and go through the process of closing their business.
Crack!
I don’t want that to happen.
No, I cannot tolerate it.
Running a fund.
“It’s because of that damn 0DTE bastard.”
“It’s really making the market abnormal.”
He is a talented person who at least once reached the peak.
Made a name for himself on Wall Street.
I couldn’t leave my name.
He is a silver medalist who was pushed out by Wall Street legends.
‘Don’t think that this absurd option tug-of-war will work forever.’
Pride.
Very noble.
It was scratched properly.
You can’t back down.
I feel bad.
That’s what makes me think like that.
“Now that I have a general idea of what kind of organization it is and what kind of person it is.”
It’s natural.
Odds.
This is especially true if you see the possibility of giving it back.
Tug of war with options.
There is a reason why I backed out even though I knew it was a loss.
“That’s right. It was probably done by Lee Chan-wook of CW Securities.”
“That kid is the only one.”
The purpose is unclear.
There is only one case.
Large-scale losses must be avoided.
That’s how metallurgy was eaten away.
To the guy who has recently shaken up Wall Street, no, the whole world.
‘A chunk of liver came out of the stomach.’
Lee Chan-wook.
He is on a roll at a young age.
You wouldn’t even know it was so high in the sky.
I was like that myself when I was young.
I thought that Goddess Luck would smile forever.
“Your obsession with 0DTE will be your undoing.”
Aggressive trading.
If you follow the right direction, you can make a lot of money in a short period of time.
You must remember that there is a certain amount of risk involved.
There is a possibility that the prediction is wrong.
─Short sell order has been filled!
You can make it like that.
In kind.
A huge amount was purchased to raise 0DTE.
‘You think we’ll just wait and see?’
Sell first.
After the option expiration date, the stock price is overvalued.
It is Maljjang Sandfish that benefited from options.
You are bound to incur more losses in spot money.
“If it weren’t for this stock, we would be in trouble…”
“Hehe, that can’t be possible.”
The process of being convinced was difficult.
I can’t help but assume just one case.
‘Are there any crazy people at Nvidia other than him?’
But time.
It’s a question of whether it’s too late or too early.
If the tail is long, it gets stepped on.
It is centered around stocks affected by Nvidia.
0DTE related stocks.
—————————–±
『Nvidia』
220.89＄ ▲112.33＄ (+103.47%)
[Graph of increase over the past few months. Jpg]
±——————————————–
Stock prices also soared excessively.
It was already at a level where short selling was difficult.
You can hit it clearly.
By forcing the opponent into a corner where he can’t attack even if he gets out of it.
“The pattern has already been read. I guess we’re not the only ones grinding their teeth.”
“The time has come to pay karma.”
And it is scheduled soon.
Conference.
Explains the value of NVIDIA.
That doesn’t mean it doesn’t exist.
Better than before.
But no matter what.
‘It doesn’t explain the stock price, which has more than doubled.’
A ridiculous goal.
0Prank by DTE.
This is because the two overlap.
It does not give you a chance to clear it.
It will keep you hooked.
“The day Nvidia’s true face is revealed is your last.”
Hedge funds gritted their teeth.
* * *
Stocks.
There are a lot of good stories to hear about value investing and corporate analysis.
‘Essentially.’
Spend money and eat money.
Making money means taking it from someone.
This is a part that should never be forgotten.
Especially in modern times when analysis has become routine.
“The market reaction is different from before. Have we become accustomed to chaos…”
One step faster.
No, even that is too late.
Everyone is trying to look ahead.
‘It’s not particularly unusual.’
The same goes for baduk.
Calculate not just one, two, three, or four numbers, but dozens.
A battle between ordinary people and experts.
This is why you cannot win even with luck.
It is completely unrivaled in computing power.
“It’s about time.”
“Are you going to say this while yawning? I’m shaking to death.”
“Just make your breasts bigger.”
“#^#$@^@%@!”
That’s true when it comes to baduk.
In the world of stocks.
‘Since when did we set rules and fight?’
Just having computing power is not the end.
Rather, if you are smart, you will fail.
AlphaGo.
This can be said to be the reason why we cannot conquer the financial industry.
─The short sellers are slaughtering you!
Double kill!
Triple kill!
Stock prices have risen too much.
Strikes preemptive short selling.
Those old rules.
“0DTE is not the reason we bought NVIDIA.”
This is a place that can be reset after a day.
Only those who always think differently survive.
0DTE, spot, short selling.
Redefine the value of everything from the beginning.
“Still, the stock price is a bit overvalued…”
“Who evaluates that expensive thing? Even if you change the forward PER just a little, the target price changes completely.”
Even if you go to Moro, you can just go to Seoul.
No, the process itself has meaning.
‘What is a stock price?’
You don’t get a value by hitting a calculator.
It is determined by agreement of market participants.
It seems to rise.
I think it will go well.
The mere presence or absence of such expectations causes the stock price to soar.
〈CEO Jensen Huang is coming up. Please welcome us with loud applause! 〉
Make it.
Atmosphere.
This is the future change that NVIDIA will bring.
It doesn’t touch me.
I only feel excitement.
The prejudices of such people.
“What’s the point of destroying it?”
“Something like a new technology…”
“Stocks.”
“Hey.”
It is not for nothing that they say that seeing a hundred words is worth seeing.
In modern language.
‘I should have bought it when I said that.’
Bitcoin.
You end up overestimating something without even knowing what it is.
Stocks are nothing else.
〈Chat With the advent of GPT, we have a new market. The number of parameters increased from only 20 million in 2016 to 175 billion in 2022, and this innovation will inevitably continue.〉
It’s just a process of rationalizing it.
The essence of stocks has always been that way.
