What Is Wall Street Bets? What Stocks Will They Bet on Next?

It’s the news story that’s gripped the attention of the whole world; a group of Redditors has been causing havoc on Wall Street.

In this piece, I’ll tell you more about Wall Street Bets, what they have pulled off so far, and how you can potentially make money on the action.

What Is Wall Street Bets?

Wall Street Bets was unknown to all but a few million Reddit subscribers last week, but this week, its name is printed in every newspaper on the planet. It started as a group on the popular internet forum Reddit. The group discusses bets they’re placing on stocks and shares, but in the past week, it has evolved into a full-blown financial revolution.

I was curious to learn more about who’s behind Wall Street Bets and what they’re trying to do. Here’s what I found out.

1. They’re angry and want to make hedge funds bleed. The group seems to be composed of younger investors who use the app Robinhood to trade shares. This open letter suggests they have motives over and above profit for doing what they’re doing.
2. They specifically organized and started buying shares of GameStop (GME). This is one of the companies with the most short bets taken against it. I’ll explain what that means in the next section.
3. They are aiming to bankrupt hedge funds that have taken short positions against stocks. The idea is to cause these funds to go bust while making a killing in the process. They brought one fund, Melvin Capital, to the brink on Wednesday. They had to receive a $2.75 billion bailout from a key investor to remain solvent and had to close their short position today.

What’s a Short Position?

To keep it simple, a hedge fund borrows shares at today’s price from a brokerage. They then sell those shares at today’s price for cash. They hope doing so will drive the price down, and they can then buy back the shares lower, return them to the broker with interest, and pocket the difference.

It can destroy companies. Firms that are already struggling attract short-sellers, making matters worse for them.

If you’d like more clarification on how this all works, Nicholas Merten from Data Dash has made an excellent video explaining the current situation.

What Will Wall Street Bets Do Next?

If you’re a gambling man like me, you’re probably wondering how you can get in on this action. What companies will Wall Street Bets target next?

One way to go about it would be to buy stocks in companies with lots of short positions on them. These are the companies Wall Street Bets will probably target next. You can find a list of them here.

Another way would be to look for special wagers on current events on MyBookie.ag. While the Wall Street Bets props they had open yesterday are now closed, you can be 100% certain that this is only the beginning of a much larger movement.

The brokerages and trading apps have only drawn attention to how corrupt the system really is, gaining massive support for Wall Street Bets on social media.

Nobody likes a rigged game, and you can be sure that Wall Street Bets and their followers will grow larger as a result. If you don’t already have one, set up a MyBookie.ag account and be ready for the next prop bets when they go live.

PLACE YOUR BETS NOW!

Betting on Wall Street Stocks – Other Options

As well as following the latest trends like the Wall Street Bets movement, you can make regular wagers on Wall Street stock prices. These are available at all times on betting sites like BetOnline.ag.

Another way to bet on Wall Street action is by trading options. This is risky, but it can be profitable if you know what you’re doing. To bet with options, you buy a contract for a certain number of shares, and you can cash them in at the “strike price” any time between the day you open the contract and the contract close date.

• If you think the stock will drop, you buy put options.
• If you think it will go up, you buy call options.

I don’t recommend betting with options unless you have substantial financial trading experience.

Wall Street Bets – Other Questions Answered

Are Wall Street Bets legal?

That’s a good question, and it remains to be seen. It seems to be a group of random gamers and young investors simply sharing their stock tips. This is not illegal. However, insider trading is, and the SEC has already said it will investigate any correlation between comments made on Reddit and large buy or sell orders on popular trading apps. It’s possible that this was coordinated, and that would be illegal.

How can the brokerages and apps just shut down trading like that?

That’s another great question. Traders are already in the beginning stages of a class-action lawsuit against one popular trading app called Robinhood. Politicians on opposite ends of the spectrum, such as Ted Cruz and AOC, both expressed support for the retail investors in this case. Top businessmen like Mark Cuban, Elon Musk, and Chamath Palihapitiya all expressed support, too. It’s rare that the little guy gets one up on Wall Street, and most of the public appears outraged that they changed the rules so the big guys would win.

Can Americans bet on MyBookie.ag or BetOnline.ag?

Yes, these are both US-friendly betting sites. You can sign up and bet on them from most US states. They also offer free bets to get you started.