web analytics

Call Options Helps Kenneth Griffin of Citadel, According To David C. Wilson

Here’s what really happened yesterday. Ken needs liquidity. Much of that liquidity is now coming from the Options Chain, as well as from the trades themselves. How does he get that money? His Machine Learning algorithms detect that there is not enough money being made this week, so they release the strangle-hold he has on certain stocks, allowing them to rise for a short time. His algorithms start buying stock for a short time. During this time some real shares change hands, and a lot of fools run and buy Call Options. When enough money is made, the algorithms then crash the same stocks, and make more money on the way down. The Calls, naturally expire outside the money. Gary Gensler and the SEC, of course, cannot see this… Bottom line, if you buy calls, you are keeping Ken in business.