Patrick McKenzie+ Your Authors @patio11 I work for the Internet, at @stripe, mostly on accelerating startups. Opinions here are my own. Sep. 05, 2020 1 min read + Your Authors

So it seems SoftBank has invested several billion dollars in single stock options in AppAmaGooFaceSoft.

Reporting on this is... kinda breathless?

“Why do we let one party move the market so much that the price moves?”

I mean there are relatively few things in the world where spending plural billion dollars doesn’t buy up all the conveniently available supply and move prices up.

“Experts say this is potentially a dangerous trade.”

Yes implicitly leveraged concentrated trades will do that.

“Banks had to make extreme moves in response.”

I mean you just explained why one should not have implicitly leveraged concentrate trades!

“This enticed retail traders into buying AppAmaGooBookSoft.”

I mean those comprise plural tens of percent of the market and are the most trusted and consumer-legible brands which exist on top of being great businesses. Retail does not need extra inducement to buy them.

You can follow @patio11.


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