RJ Hamster
How Real Market Makers Operate – TheoTrade Weekend Edition
Every Twitter trader will claim they understand market makers.
They’ll tell you how they operate, why they have to do this that or the other thing.
It’s all a load of horsesh…
Don’s worked with ACTUAL market makers.
Heck, we have a former one working at TheoTrade right now.
But I’ll give you the distilled version of what happens:
- Order comes in, they fill it
- Sometimes they use their own inventory for orders
- Other times they go out and hedge
These guys aren’t interested in taking positions. They just want to profit off the spread or some other arbitrage most of the time.
That’s why Citadel controls the majority of the market at this point.
With narrow spreads and fewer opportunities, you need volume to turn a profit. Small players do still exist. But they aren’t as common as they once were.
And I’ll tell you something that Don talked about during today’s Probability training in the main chat room…
Market makers don’t give a damn about your orders.
They work on probabilities. You just happen to be rather predictable.
So, I’ll tell you this: if you don’t understand how options work, you might as well get in a horse and buggy, because you’re behind the times.
Options drive the market.
You can either accept this truth or let it plunder your account.
Jordan Schneir
Editorial Director, TheoTRADE
P.S. Is there a difference between buying $100,000 worth of calls and selling $100,000 worth of calls? Of course–any idiot can tell those are opposites.
Brandon’s Ghost Prints Console shows you intent, not just size – who is pressing risk and who’s quietly exiting. His proprietary platform doesn’t just show you big option trades. It shows you whether they were bought or sold.
Join Brandon Tomrrow at 2 PM EST to see it in action.
Don Kaufman: The $8.5 Trillion Gamma Bomb is About to go Live
Alright, so on January 26th it all goes down…but nobody’s talking about what this actually means.
Tesla, Apple, NVIDIA, all these trillion-dollar names just got zero DTE three times a week instead of once.
You think last Friday was nuts with Meta jumping eight bucks in seconds? That was one expiration day. Now it’s every Monday, Wednesday, Friday.
Most people see this announcement and they’re like, “Oh cool, more chances to trade.” Wrong. This isn’t more opportunities.
This changes how these stocks behave, period.
I’ve been watching zero DTE for months now, and here’s what kills me – retail has no idea what gamma actually does.
They see Meta gap from $642 to $650 in literally seconds on call buying, and they think it’s magic. It’s not magic.
It’s explosive gamma on expiration day.
CLICK HERE to continue reading Don’s article.
Brandon Chapman: The Most Valuable Trading Pattern Traders Can’t See
IWM jumped 10% to start the year.
While most traders saw a breakout pattern or a rotation out of tech, they missed the key driver. They might have assumed fundamentals drove small caps higher. If so they were wrong.
The real driver was invisible on price charts. It was the Russell 2000 stocks with the highest short interest that led the move.
The price pattern was textbook–but late. The real pattern start with the breakout.
It started weeks earlier with massive out-of-the-money option activity.
CLICK HERE to continue reading Brandon’s article.
Gianni Di Poce: Stop Waiting For a Crisis That Ended 3 Years Ago
Hello TheoTrader,
Every time regional banks sell off, the doomsayers come out of the woodwork.
The 2023 banking crisis isn’t over…
Another shoe is about to drop…
Waiting for that shoe means you missed one of the quietest rallies in the financial sector.
Regional banks just hit their highest level since early 2022.
The same sector that supposedly teeters on the edge of collapse has been steadily climbing for months.
But before we dig into what’s actually happening, let’s revisit what everyone is so worried about.
CLICK HERE to continue reading Gianni’s article.
Jeff Bierman: The Best Laid Plans of Mice and Men
I studied abroad in Scotland at the University of Sterling.
Spent nearly a year walking through the Highlands. Saw Robert Burns’ house. Studied classical poetry and Shakespeare before I ever touched a trading terminal.
Burns wrote a poem in 1785 called “To a Mouse.” He was plowing his field when he unearthed a nest and destroyed the mice’s home. The poem was his apology.
One line became immortal: “The best laid schemes of mice and men often go awry.”
I put that phrase on screen Monday morning as the market gapped down. App Lovin buyers down 40. Microsoft longs getting killed. Meta holders getting blown up.
Your bullish plans just went awry. Now what the hell are you going to do?
This weekend, I want to explain the one lesson that separates survival from destruction.
Because while the Genesis Cog Scanner identifies the setups…
Position sizing determines whether you survive when those setups fail.
CLICK HERE to continue reading Jeff’s article.
Blake Young: Cookie Recipe Explains Why You Fail
Do you like cookies? I do.
I try not to eat them anymore as I need to watch my sugar intake, but I can easily state that they are my favorite. Compared to pies, cakes, puddings, mousses, or any other dessert, cookies are the best.
Despite not eating cookies now, I have personally eaten enough cookies to give the blue Sesame Street monster a run for his money.
Therefore, with my vast experience, I think I have found the “best cookie recipe ever.” Would you like my cookie recipe?
Now, I imagine that many of you are saying yes, you would like to have my favorite cookie recipe.
This is where things get interesting to me.
CLICK HERE to continue reading Blake’s article.
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