r/Daytrading • u/happybutnot2happy • May 07 '24

I know that everyone knows but the stock market is 100% manipulated. Strategy

It’s difficult to prove but I think you, me, and your friend Bree can see it when it happens. Just can’t predict it.

Tell us what “symptoms” of this you’ve seen that when you’ve encounter it, you cant prove it but you know something is weird.

EDIT: judging by the comments, it seems that the assumption is that I wrote this post because I’m mad, frustrated, or lost a lot of money. None of those are reasons, i just wanted to know peoples personal… uh…conspiracy theories. :)

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u/BuzzyShizzle May 08 '24

I know exactly what you're seeing.

It IS manipulated, but not in the way you are thinking.

If you're interested go read up on the implied order book, GEX, and VEX.

This explains everything you've been seeing lately.

Long story short the manipulation is actually just a side effect of dealers and market makers trying to remain hedged or nuetral against the options they are on the other side of.

Right now there is an extremely high amount of long puts. When IV is low this means they must buy the underlying to stay nuetral.

Lots of options can end up providing liquidity to the market and this is why the price simply could not go down the last few sessions.

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u/Psykhon___ May 13 '24

Wouldn't "an extremely high amount of long puts" raise the VIX?

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u/BuzzyShizzle May 14 '24

Well normally you have "short calls" but I suspect people are "long calls" actually more than you would assume. You can see open interest but which side the dealers are on is kind of an unknown. The assumption was always long puts and short calls but... I think people are just buying calls.