Reddit Wallstreetbets is an extremely popular subreddit that has become a major influence in retail trading. This gave way to Swaggystocks, which has created a way to track the sentiment and display it to its daily readers. Where did it all start? When Robinhood and their group of stimmy traders became mainstream during the Pandemic, a 3rd party website called ‘RobinTrack‘ gained much popularity across the internet.
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Reddit Wallstreetbets Sentiment Tracker “Swaggystocks”
RobinTrack connected to the Robinhood API and visualized how many users owned shares of each stock over time. It was an interesting way to see how share ownership changed among retail traders versus stock price changes. Robinhood, a knows or selling user data and trade information, unfortunately, disabled,d access to their API and is now keeping this information secret…
However, another website, SwaggyStocks, has taken the reigns of displaying similar data. The only difference is instead of displaying Robinhood data, SwaggyStocks displays sentiment analysis on an infamous Reddit forum called WallStreetBets.
If you’re unfamiliar with WallStreetBets, a group of nearly 2 million traders chat stocks and execute YOLO trades online.
Many members take pride in their losses of over $100k and laugh it off by saying, “I did it for the internet points.” We’ll take a look at SwaggyStocks and the sentiment analysis they track, as well as some of the other popular features on the site that include an Options Max Pain Calculator, Implied Volatility Options Ranker, and various trading AI that are set to “Buy The Dip” on a set of given WallStreetBets meme stocks, essentially creating the ‘WallStreetBets’ portfolio.
What Is SwaggyStocks?
SwaggyStocks was created to monitor momentum trading and sentiment among Reddit’s r/WallStreetBets forum users. Their “Daily Discussion” threads accumulate over 40,000-50,000 comments daily.
One person can’t read all these comments all day, every day…I mean…These comments get processed and analyzed on the SwaggyStocks website and are displayed in real time with just a few seconds of delay.
They track the general market sentiment and daily data for the most mentioned stock tickers on Wallstreetbets and find a way to make it displayed in a useful and aesthetic manner to the end-user. Cool!
Want to find the best momentum stocks to ride or which tickers are currently trending? Look at the WallStreetBets Ticker-Sentiment page and see an entire list of stocks. The day’s trending tickers will be at the top of the page, or scroll to the bottom and filter through an all-inclusive list of tickers mentioned for the last 24 hours. Selecting a ticker will allow you to see past months’ historical sentiment and comment volume trends.
The magical WallstreetBets ticker sentiment graph gives you a quick look at the top stocks on the subreddit.
The charts emphasize the comment volume among the subreddit to show how much that particular stock was mentioned versus all other tickers. You will notice that tickers such as TSLA (Tesla), AAPL (Apple), and GME (Gamestop) are consistently very highly ranked on this list and are some of the subreddit’s favorite tickers to chat about. Not only that, but Swaggy also implemented a “play button” at the top of each ticker page so you can catch up on and listen to the comments. Warning: some of these comments will give you a good laugh, but they might also be NSFW (not safe for work).
Options Max Pain On Swaggystocks
For those of you that haven’t heard of “Options Max Pain”, also known as “Strike Pinning”, I won’t get into too much detail about it here. However, the theory behind strike pinning is that market-makers are able to manipulate share prices and pin them to the strike price that will cause the most financial pain to option buyers. Since market-makers predominately write options (sell to open), bringing the share price down to a price that would cause the most financial pain to retail traders and funds purchasing options as hedges, would make sense.
Max Pain For $AAPL Shown Above
Again, this is just a theory implying that markets can be manipulated.SwaggyStxocks’ Max Pain Calculator does a formidable job displaying this data in charts that are easy to understand. The max pain chart shows the cumulative value of all calls and put options for each strike at each expiration. The “Max Pain” strike will be the strike price at which the value owed by option writers to option buyers is minimal, thus inflicting the most pain on option buyers.
SwaggyStocks also has a feature that displays the max pain strike versus the stock price historically over time. Note that the trend in that share price generally follows closely with max pain.
Implied Volatility “FD Rankr”
SwaggyStocks’ FDRankr is a hidden gem for selling options and collecting premiums. The idea behind selling options is that it requires higher volatility stocks. Simply put, stocks with higher volatility, such as GME (Gamestop) teetering on bankruptcy, will provide a much greater premium than selling premium on a market ETF such as the SPY. For example, selling options on GME could yield a 5% return per week, while selling options on the SPY market ETF will only yield a 0.5% weekly return.
An example of the IV chart of $FUBO 1-9-2021
This, of course, was a generalized example based on historical data for options on those tickers. Still, we can demonstrate how the higher-risk assets with higher Implied Volatility will always yield a better return.
FDRankr lists off the more popular and liquid stock tickers, ranking them by Implied Volatility. You can sort by next earnings date, company market cap, or volatility. This tool is extremely helpful in finding those higher IV stocks with juicy premiums and capitalizing on IV crush.
Swaggy Trading Bots That Simulate “Buying The Dip”
Interestingly, SwaggyStocks has implemented two paper-trading AIs that “Buy The Dip” on particular Reddit WallStreetBets “meme” stocks. One AI, labeled “BTFD Bot,” purchases shares on these stocks when they are “having a bad day.” The criteria for having a bad day is unique to each stock ticker, and therefore, the AI will act accordingly when it handles “buying the dip” a la Warren Buffet style. The second trading AI, ” Theta Gang, “utilizes data from FDRankr and sells put options on tickers with high IV. These bots are only paper-trading and are an educational display on the site, but last year, the “BTFD Bot” and the “Theta Gang” AI produced 20% and 35% returns, respectively.
Final Thoughts
The idea behind SwaggyStocks is quite unique to these times where retail traders have broad access to options trading. If you are looking for the next big momentum play, want to expand the range of tickers you follow, or learn more on options trading then SwaggyStocks is a great tool to add to your trading arsenal. Everything about the site, from the features available and the range of data to the charts, looks like high quality and very useful (and it’s free which is right up our alley). You will not be disappointed!
