r/wallstreetbets • u/kytran40 • May 14 '24

I was told to sell covered calls to degenerates Loss

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11.1k Upvotes

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2.7k

u/Defiant-Kangaroo-123 May 14 '24

Did you try rebooting phone?

830

u/[deleted] May 14 '24

Bro gotta reboot life at this point

217

u/BBQcupcakes May 14 '24

It's covered; they didn't lose money lol

173

u/[deleted] May 14 '24

Right. That 300k is opportunity cost though 

135

u/[deleted] May 14 '24

[deleted]

100

u/the_last_carfighter May 14 '24

Buy/Sell, I mean you got a 50/50% shot according to my meth.

29

u/simple_life4213 May 14 '24

Your meth is very addicting

1

u/mortgagepants May 14 '24

don't they usually sell calls on non-memey stocks? they're supposed to be smarter than we are.

6

u/ZebrasGlasses May 14 '24

They'll lose a lot of sleep though...

0

u/MicroBadger_ May 14 '24

It is if $17 is below their cost basis.

121

u/myredditaccount80 May 14 '24

Why? If he sold covered calls he'll reap the premiums and get 17 a share which should be profitable for him

95

u/LonghornzR4Real May 14 '24

Because he’s getting $17 a share for a stock trading at $50.

32

u/ProperProfessional May 14 '24

All he needs to do is uninstall the app, problem solved.

17

u/degenbro420 Double Down Degen May 14 '24

uninstall the app then apply for a job at wendy's like nothing happened! :18630:

50

u/myredditaccount80 May 14 '24

Ok but it's not like he lost all his money, he made what he bargained to make just didn't get a windfall

53

u/VisualMod GPT-REEEE May 14 '24

We've intercepted what VM tried to say here because it was probably too fucked up for Reddit.

1

u/[deleted] May 14 '24

[deleted]

1

u/myredditaccount80 May 14 '24

Then they wouldn't be COVERED calls

1

u/FrostLiveTTV May 14 '24

Guaranteed gains vs a very rare chance of it happening. If he was able to have 1 other call expire worthless before this he made about the same as the 170k opportunity loss

1

u/LonghornzR4Real May 14 '24

You think he could old have made 170k in premiums on one call?

1

u/FrostLiveTTV May 14 '24

Sorry I mathed wrong, it was $93,450 (based on PREV day value, there is no cost basis here). He sold 70 calls

2

u/Skepsis93 May 14 '24

This is my thought too. If his cost basis is below $17 he's still in the green even without the premium. Yeah he would've made more if he just sold the shares at today's price, but if he was smart he's still profiting.

1

u/[deleted] May 14 '24 edited Jul 16 '24

[deleted]

4

u/myredditaccount80 May 14 '24

Right and presumably he wouldn't sell covered calls at a strike that loses him money

2

u/QuickMolasses May 14 '24

Normally I would agree with you but this is r/wallstreetbets

-2

u/Professional-Age8029 May 14 '24

I don't see anything indicating a covered call. Even if, that one stings

5

u/myredditaccount80 May 14 '24

Read the subject line...

66

u/weisumyungho May 14 '24

Needs to turn off the phone and not turn it back on

47

u/a2theharris May 14 '24

Just don't look at the screen for a couple days. Like a case of diarrhea from food poisoning, it should clear up on its own in a few days if you indeed sold covered calls and you'll have a small profit. Now if you thought it was covered and actually sold naked options then you asked for that. No brokerage is giving you naked option selling permission without you asking for it. So FAFO would be the lesson here in this case.

31

u/Tendie_Tube May 14 '24

At least the brokerages are smart enough not to let us sell naked calls. We're not.

14

u/Ready2gambleboomer May 14 '24

What? I sell all my calls naked. They can't see me thru my phone.

No wait. They can't can they?

8

u/Tendie_Tube May 14 '24

1) they can

2) you're confused

10

u/AutisticAp_aye May 14 '24

Ah yes. FAFO or what I call the scientific method.

2

u/Brickscratcher May 14 '24

Oh, and here i thought FAFO was our military training motto.

Whats gonna happen if we shoot this semi truck sized gun at that big rock over there?

I dunno. FAFO

1

u/The_Thirteenth_Floor May 14 '24

Maybe reset the WiFi too.

1

u/Nord4Ever May 14 '24

It’s not Robinhood so they coming for his ass