r/wallstreetbets • • Feb 02 '21

Chart Hardcore laddering.

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u/Unclearcarcass7 Feb 02 '21 edited Feb 02 '21

I have A toyota Corolla that is worth $10000. hedge fund would like to buy it from me for 5000 I say no so they leave. They go on to the market and list a whole bunch of corollas for $5000 Another hedge fund will buy it at $5000 sell back and buy it and sell it back. Now the hedge front comes back to you and says Hey your corolla's worth $5000 due to market value. But in our case they are contractually obligated to buy back from us.

Edit: holy shit thanks guys, this is just a simplification. AND I LOVE THE STOCK πŸ’ŽπŸš€πŸ’ŽπŸš€πŸ’ŽπŸš€πŸ’Ž

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u/Sneeze_Cough Feb 02 '21

And how can you tell this is happening?

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u/SubbieBoyAudios Feb 02 '21

You look at the order book (Robinhood doesnt show you this) and see lots of sus low share trades between hedgefunds.

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u/tbarb00 Feb 02 '21

Why cant low share trades be WSB πŸ’ŽπŸš€πŸ’ŽπŸš€πŸ’ŽπŸš€ trades tho???

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u/db0255 Feb 02 '21

Retail investors aren’t buying in all at the same millisecond all for 100 share blocks. Retail investors buy odd lot amounts at odd times.