Former poker pro Daniel Moravec has been named as the man who helped the WallStreetBets Reddit group give hedge funds a bloody nose. The Minnesota man came up with a cunning hack to bypass the restricted purchase of GameStop stock.
By: Mark Patrickson
Victory for the amateurs
For those who missed this story that was covered by mainstream media around the world, Hedge funds have been hit hard by a group of Reddit users who post in a group to discuss finances.
The WallStreetBets The forum has come together to fight back against hedge funds that have shorted shares in a number of companies, including GameStop. The American company’s business does not make money and Bankruptcy is on the horizon, so it makes sense for hedge funds Bet on the falling share price.
The problem started with a group of hedge funds publicly declared her plan. Amateur investors thought these were Wall Street Bully Boys flexing their muscles and forcing an innocent company out of business. And so they decided to do something about it.
One by one, the group bought shares in GameStop until the momentum built up and the The share price began to rise. The word got around and soon the price of a share in GameStop rose by less than $ 20 up to $ 483. The Hedge funds lost billions.
Of course it was too good to lastand then some of the brokers came in, who then restricted the purchase of GameStop stock.
This sparked fouls from observers who assumed this was a favor for the banks and hedge funds, but in truth it was just that protect yourself from massive losses in an unusual trading situation.
Poker players always find a way
In the middle of this restricted trade Daniel Moravec Posted in the WallStreetBets thread on a Workaround to be able to buy more stocksand it went viral.
Here’s a trick that will work.
** Update February 1st gap closed **
- Go to the closest expiration of the option (February 5th starting today).
- Scroll all the way down in the call log.
- Buy a GME call option with the lowest + x.xx% (0% would not be a premium at Mark).
- Train immediately.
The only downside, and it’s a big one for many people, You must be trading in at least USD 30,000.
Moravec is no newcomer to this game. He has 16 years of experience since he started trading Apple stock when it was only rated $ 2. You’re worth it $ 130 now! He’s also in Bitcoin So you can guarantee that he kills in this market right now.
Politicians and the SEC are on the lookout
This unusual trading situation has got the attention of regulators like the US Securities and Exchange Commission (SEC) and politicians. Jordan Belfort, the Wolf of Wall Street, said in an interview that he thinks the WallStreetBets group is right potentially breaking the law by teaming up to pump a stock price. He went to prison in 1999 for exactly that.
It is unlikely that anyone will be prosecuted for this matter Some new regulations could be considered. Texas Attorney General Ken Paxton tweeted last week that he was opening an investigation into the brokerage firm Robin Hood for interference in a supposedly free market.
senator Ted Cruz and representatives Alexandria Ocasio-Cortez have also spoken publicly on social media about raising the discussion on this matter to a high level.
Today I’m starting an investigation into @RobinhoodApp, @discord, and hedge funds who rigged our free market for the benefit of Wall Street elites.
The US economy should be transparent and open. This week’s coordinated corruption by a cabal of oligarchs shows that it is not. I will help fix that.
– Attorney General Ken Paxton (@KenPaxtonTX) January 29, 2021