Nathan got a bit excited about telling me what had happened over the week regarding the stock market and what happened internally at the bank.
Nathan started, "Well, the accounts have multiplied, they went from being just 4 to 38 in total. Not only that, they all continue to have extremely high return rates."
"How high are we talking?"
"From what I heard the lowest is 70% and the highest 80%."
"Wow."
"Yeah. I talked to some of the tech guys about what you said on Monday. They all agreed, but said that anyone with this level of AI and computing power has to be someone big. Definitely running a supercomputer.
But, get this, I talked to some people in management about it and they said that the top brass was already paying attention to this. That they were already reaching out to other banks and investment firms to find out who was behind this.
However it's said that all of them denied any involvement with this AI."
"This AI, huh."
"Yeah, I caught that too. They definitely are developing AI, but all of them said that this wasn't them."
"Does that include overseas options?"
"I doubt it. I don't think the upper management thinks that any other country has the power or capabilities to make this happen."
"Not even Xia? They have quite a few developing cities that I think could do it, like Hong Kong or Shanghai."
"Yeah, I agree with you. But the upper management doesn't think so. They are pretty arrogant about their own capabilities."
"I see. Have there been any other movements?"
"Yeah. The bank has really been pushing AI more. They want all of their employees to be utilizing AI to increase work efficiency. They have pretty much all but said that if you are not using AI then you will be fazed out to make room for people that will use AI.
That's not all, I heard a discussion was being had to increase the amount of funding for AI development. I think the age of AI is upon us."
"Probably. Does the bank have its own AI network?"
"Yeah, they do. I'm pretty sure they have it housed in some secret basement or something."
"Why do you think that?"
"Because the speeds the AI can reach at the office are insane. I just don't see how they could be that fast if they are not on site."
"I see. Then have you thought about the possibility that the mystery accounts are linked to your own company?"
"What? I don't see how it could. They are making a pretty big fuss about the accounts as is."
"Yeah, but what if they are only doing that to throw off any of the other banks and investment firms. I'm sure they have informants in your bank."
"...I mean yeah they could…"
"But it also doesn't have to be your company, it could also be one of the others just lying about their involvement."
"Yeah, but why would they need to lie?"
"I don't know? Maybe, so the other institutions don't gang up on the one?"
"Yeah… I guess I could see that."
"I guess the bank is going to pull out of the volatile market though."
"Oh, I don't know about that."
"They aren't? I find that hard to believe."
"Well, they are going to be cautious Monday to see if the accounts are going to increase or switch to other stocks. But, if everything remains the same Monday then they are actually going to increase their involvement in the other volatile stocks or make new stocks volatile.
The banks and institutions make stocks volatile on purpose so more people are willing to take the gamble and take out loans. After all, why would so many people be interested in those stocks specifically? They are just normal stocks that the companies that manage stocks artificially inflate to gain interest."
"Yeah, but even if you know that you are still willing to take the risk."
"Well that's how money works, risk and reward."
"Yeah. So Tuesday I should be careful of the untouched stocks if Monday is the same as Friday?"
"Yeah, I feel like there are going to be big movements that day."
The real question I would like to ask is if the information is accurate. Because if it is then I can make a ton of money on tuesday if I can get the AI to a proper amount of data. But this could also just be a scheme.
They have "secret talks" about increasing their involvement but in reality they pull out completely so while the competition invests more to compete they pull out and make money off of everyone else.
I wonder if I should buy some Put Options?
But at what price and for how long?
Tuesday is the day to find out, so I know the timing.
I should only take the put options with other firms, not Nathan's bank.
How much should I hedge? A decent amount but nothing that would catch attention and something that I wouldn't miss if nothing comes of it. I'll need to see later how much the stock is currently worth to set a price.
The plan I'm thinking of is to make some new accounts then get some put options on the other volatile stocks at each of the other major banks and investment firms.
Then to cover myself I will also have the AI enter the market early on Tuesday as a just in case measure. But I will be sure to limit the input funds and keep an eye out for any major fluctuations.
This way I can play both fields. While one will inevitably suffer losses at least one will see great returns.
While I was thinking Nathan spoke up again, "What's up?"
"Nothing, I was just thinking."
While we were talking both Mariana and Seth walked up.
Mariana walked over to the girls while Seth came over to us.
Seth asked, "What are you guys talking about?"
Nathan replied, "The stock market."
I added, "And about how the bank is increasing its AI funding."
Seth groaned and said, "Ugh. These companies and their AI are driving me mad."
I asked, "What do you mean?"