Markets Very Efficient Very Nice

Markets Very Efficient Very Nice

The efficient market hypothesis goes something like markets process information immediately, so technical analysis (aka astrological charting) and fundamental analysis (aka that Ben Graham book you have on your bookshelf that you never read but it looks good because it makes you look like an intelligent investor) are both completely worthless.

However the true nature of the RIGD markets is someone knows and has the information ahead of time.

Ultimately this is reflected in option flows where excess returns can be generated with smaller amounts of capital (risk).

Look no further than the move prior to $COIN getting sued by the SEC.

On 6/05 someone slammed the $50p for 6500 contracts and 107k in premium.

The contracts expire Friday so the buyer had three days to get a 15% move.

Of course the next day the SEC lawsuit was announced and the stock cratered.

These options were acquired for 0.18 and ran to 5.64 for maximum one day return of 3033.33%

Don’t like math?

107,000 × 30.3333 = $3,245,663

Over three million dollars overnight.

Although their business model of selling unregistered shitcoins to retail traders is permanently threatened and they could be shutdown or be forced to move offshore, $COIN is green two days in a row and currently up 2.13%.

Logically it makes no sense, but that’s markets… they love to fk the max amount of participants possible. Especially those who are late to the trade and not operating on possibly illegal insider information. Will we ever hear more about the trader who bought the 50p in size? Probably not… because how efficient would that be?

On the other end of the trade is none other than Cathie Wood who purchased $21.6 million of $COIN during yesterday’s session. There’s nothing like taking a hit of pharmaceutical grade amphetamines and then doubling down after doubling down after doubling down on a losing stock where your average cost is $254.65. She only needs it to go 5x to break even.

[ seeking alpha ]

RIGD REPORTS on Stonks

The market maker goblins who run this show are escaping the smoke in New York City and sadly they cannot vacation to the Hamptons, so it’s an extended vacation somewhere else which means nothing is happening. We can’t wait until they get back and start posting twitter threads on how breathing air equal to one cigarette charged their emotional chakras in the fight against global warming.

But seriously the big dogs go on vacation and now implied volatility is at its lowest level and years and the VIX has been completely crushed. Low IV means no one is pricing in a move. Boring markets means enjoyable time in Tahiti.

Elon is having one hell of a week with $TSLA hitting a new yearly high, up 111% since January. Apparently the government confirmed the nerd mobiles qualify for the $7,500 tax credit and a Mongolian (where’s the beef) factory may build a battery factory. Nothing like that sweet Mongolian labor to juice the margins and make up for the price cuts.

We’re sure if we checked the end of day flow for $TSLA, we’d see more of the same option buying on soon to be but not yet public information. But it was painful enough not buying some $COIN puts after the Binance news came out, so we’ll avoid this one.

[ forbes ]

RIGD REPORTS on RIGD

We’d like to thank the good people who signed up for the one year + beta access.

She ain’t pretty yet… but give her time and she’ll blossom into a total ass kicking machine (by following the smart money which may or may not be exploiting the efficiency of the RIGD markets).

Expect a “lite” version with alert notifications in 2-3 weeks.

Stay frosty.

thanks for reading THE REPORT by RIGD AI

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