VIRT · Virtu Financial, Inc.Virtu Financial, Inc.
📋 Market makers like VIRT profit from increased volatility caused by the US Navy blockade at the Strait of Hormuz
Market makers like VIRT profit from increased volatility caused by the US Navy blockade at the Strait of Hormuz.
Evidence & details
- +Market makers profit from increased volatility in geopolitical crises.
- ⚡US Navy blockade at Strait of Hormuz causing market volatility.
- −Geopolitical escalation or resolution reducing volatility.
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Post Timeline · 1 posts
The US navy to blockade any ships trying to enter or leave the Strait of Hormuz. Not quite sure what the game plan is here? Regardless, I completely forgot to take call options on market makers like $VIRT. Since they are probably cheering and profiting off of increased volatil…
Thesis: Market makers like VIRT profit from increased volatility caused by the US Navy blockade at the Strait of Hormuz.
VIRT is an asymmetrical volatility hedge with low forward P/E, benefiting from rate cuts, buybacks, and volatility normalization. The stock is undervalued at ~6-7x forward earnings with a $5.2B market cap.
source ↗VIRT is undervalued after a ~20% drop, with a forward P/E of ~6.6. Market misinterpreted rate cuts as negative for VIX, but Virtu's floating debt actually benefits EPS more than expected.
source ↗VIRT remains undervalued at sub 7 P/E with significant buybacks, and interest income/expense changes have minimal impact; waiting for volatility to return.
source ↗VIRT is a value play trading at 6.6x forward P/E with a $5B market cap and strong buyback program.
source ↗Bullish on VIRT, increasing position with OTM calls due to low implied volatility (29%) providing a good entry point.
source ↗Bullish on VIRT due to low implied volatility making options attractive for leveraged upside, with risk/reward favorable despite options illiquidity.
source ↗VIRT is undervalued similar to UPWK at $13, though upside potential is less without options.
source ↗VIRT is fundamentally undervalued with $300M in buybacks, despite short-term price decline.
source ↗ETOR is undervalued due to holding $1B+ cash at $3.3B market cap, compounding like IBKR. VIRT is undervalued and serves as an asymmetrical hedge.
source ↗ETOR is extremely undervalued by the market; VIRT is down as expected due to low VIX.
source ↗The author provides ratings (Strong Buy, Buy, Sell, Strong Sell) with brief explanations for each stock. Overall sentiment is mixed: bullish on names like RDDT, SNAP, AMZN, ETOR, NBIS, LTC and several others with specific catalysts; bearish on TSLA, CRCL, PLTR, BMNR, and quantum/AI hype stocks as overvalued or cult-like.
source ↗VIRT is undervalued and serves as a hedge against market volatility, with expected rate cuts providing a supportive environment.
source ↗Post presents multiple bullish theses on NBIS, AMZN, META, SNAP, RDDT, SPRB, RKLB, AMD, TSM, ASML, BTC, LTC, VIRT, with a bearish view on CRWV. Key themes: NBIS dip buy, Mag7 catchup, recovery plays, speculative SPRB, hold RKLB, AMD/OpenAI deal boosting semis, gold signaling BTC, LTC ETF, and VIRT as hedge. Risks include dilution for SPRB and minimal NVDA moat dent.
source ↗$VIRT is undervalued and profitable during volatility, serving as a hedge. Strong retail trading activity and low forward P/E support the thesis.
source ↗Bullish on RDDT at $192, AMD at $210, VIRT at $33. VIRT seen as undervalued hedge with upcoming earnings.
source ↗Market makers like VIRT profit from increased volatility caused by the US Navy blockade at the Strait of Hormuz.
source ↗No qualifying thesis event for 45+ days.