One company now controls entire markets, retail traders are unknowingly funding algorithmic profit machines, and natural price discovery is dead.
| | When you can move a $5 trillion market cap, you can move the entire NASDAQ. It's pretty easy. | NVIDIA just crossed $4.6 trillion in market cap – I round it to $5 trillion because what the hell, we're going there anyway. But here's what nobody's connecting: when one company gets that massive, it becomes the market. | I watched it happen in real-time this morning. The advanced decline line shows 80 products trading to the downside, but nobody cares because NVIDIA is carrying the whole market higher on its shoulders. | That's not natural price discovery. That's one company with enough gravitational pull to drag everything else along while sophisticated algorithms extract profits from your predictable trades. | You're Funding Your Own Destruction | Retail traders were "buying calls like mad little monkeys" in NVIDIA's new zero DTE options this morning. Over 350,000 contracts traded in the first nine minutes. A hundred thousand of those traded at the ask or above. | You know what retail is doing? Paying premium prices to fund the very algorithms designed to destroy them. | Here's how it works: When you buy NVIDIA calls, market makers hedge by buying the underlying stock. But proprietary trading firms figured out the real game. They buy calls with everyone else, then immediately offset that positive delta with negative delta trades in real-time. | They're gamma scalping with algorithms. | Every fraction of a penny NVIDIA moves, they're offsetting the trade and locking in profits while you're trying to figure out why you keep losing money despite being "right" about direction. | If you open a Robinhood account, they basically let you buy calls. That's it. You watch a couple YouTube videos, think "I'm gonna buy some calls," and congratulations – you just became fuel for sophisticated profit extraction machines. | Retail likes to buy calls because that's what retail knows. You are retail. You don't even know about puts. Those call things are pretty cool. | The prop firms know you're coming. They're positioned to profit from your predictable behavior while you wonder why being right about direction doesn't matter anymore. | | | | Week Two Made Everything Worse | Zero DTE options in individual stocks just entered week two, and the machine is running at full capacity. | These markets are so tight it's ridiculous. | I'm seeing 60 cents bid, 61 cents ask on options that expire today. When spreads are that narrow, people don't give a damn about paying the ask. They'll sweep thousands of contracts at market prices. | The volume's already at 120,000 contracts traded at the ask in NVIDIA this morning. You know definitively that these are new positions because 40,000 have already traded against only 20,000 in open interest. | A crap load of new order flow is being generated, and it's all feeding the same algorithmic machine that turns retail predictability into systematic profits. | Look at NVIDIA's chart from last week. Those aren't natural market movements. Markets tip up, down, up, down. This is algorithmic chaos amplified by a $5 trillion market cap that can drag the entire NASDAQ wherever it wants to go. | Friday's massive short squeeze – the largest on record – proves the point. When everyone's positioned the same way, the algorithms profit from forced covering while retail tries to figure out what happened. | The game changed. And if you don't learn how to actually play it, you're someone else's exit liquidity. | This Friday, I'm walking through exactly how I'm navigating this chaos in 0DTE Mastermind as a CTA. Three hours. Live trades. Real setups. | You'll see how to stop being the fuel and start profiting from the machine. | Get in now before it's too late. | To your success, | Don Kaufman | |
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