LD Lossdog Research
symbol

GME

2 matching records.

Trade idea

GME volatility shorting

The trader made money back by shorting volatility during the GME meme stock explosion in 2021. The strategy was based on the expectation of a reversion to the mean in both volatility and price. The trader noted that the market's reversion to the mean in volatility and price was a key factor in the success of the trade. The trader also emphasized the importance of gravity in the market, suggesting that market corrections are a natural part of the trading environment.

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Strategyvolatility shorting
Assetequity
Time horizonShort-term
Entry / triggerVolatility reversion to the mean
Target / exitVolatility reversion to the mean
Invalidation / stopVolatility not reverting to the mean
SpeakerTom
Risks
  • Volatility not reverting to the mean
  • Market not correcting as expected
shortequityshortGMEshort-term
high confidenceVerify in video at 34:56 ↗
Q&A

How did you make your money back after your large loss in GME?

The trader made money back by shorting volatility during the GME meme stock explosion in 2021. The strategy was based on the expectation of a reversion to the mean in both volatility and price. The trader noted that the market's reversion to the mean in volatility and price was a key factor in the success of the trade.

View full notes
Actionable takeawayShorting volatility can be a profitable strategy during periods of extreme market volatility, especially when expecting a reversion to the mean.
GMEVolatility
high confidenceVerify in video at 34:56 ↗