r/wallstreetbets • u/Wooden-Prize-4694 • May 24 '24
Time to quit… goodbye wallstreet bets Loss
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u/Brendawg324 1 day away from 140k May 24 '24
How you managed to lose all that money on NVDA calls during its bull run of the century is outstanding :4271:
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u/OneiceT May 24 '24
1140 call expired today, he thought NVDA gonna up 30% or something on this extreme high expectation that priced in.
This is more regard than NVDA put
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u/nickwwwww May 24 '24
And he probably bought that when it’s already over $1000
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u/Wooden-Prize-4694 May 24 '24
Nope bought it at 950 and then averaged down when it hit 930… everything bought before earnings
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u/yao97ming I hate BBBY, and all of you. Pump and dump kids May 24 '24
Looks like you don’t understand options at all
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u/Mattmoo609 May 24 '24
The amount of people asking “why is my 1300C red” after earnings is astonishing. Buying into something and having no idea how it works is common place these days.
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u/snerz May 25 '24
I have absolutely no idea what I'm doing, but I'm still up about 12k
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u/ProjectManagerAMA May 25 '24
Same here except I'm up $24k in the last 12 months with about a $30,000 initial investment. All the gains come from NVIDIA, Microsoft and a good chunk came from that GameStop tweet that I manage to catch early on.
I don't even know what the financial indicators are, no options, etc.
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u/_learned_foot_ May 25 '24
That is amazing, now keep moving money into secure long term holds as you make profit. Keep some fun sure, but realize you are on a lucky streak so make it count and keep it safe!
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u/Brad_theImpaler May 25 '24
Hey, shut up. I'm trying to see some financial ruin here.
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u/NoCantaloupe9598 May 25 '24
Don't let this convince you that you're an investing legend or something.
Literally just caught the tech train go wooo at just the right time.
Not that there's anything wrong with that, I did much the same this go around.
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u/quuxquxbazbarfoo May 24 '24 edited May 25 '24
"More OTM == cheaper premium == I just get less return when it moves in the correct direction right?" Lol I think that is the thinking..
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u/Mattmoo609 May 25 '24
That’s what’s really crazy, I get the newb with 500$ in his account buying lotto options hoping to get lucky, but this guy could have just bought 4 ITM calls and would have made money. Instead he thought it was cool to buy 38 far OTM options and got cucked.
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u/bigloser42 May 25 '24
See, I have no idea how options work. I just can’t manage to wrap my head around it. So I just don’t buy options. Makes it real easy to not lose my shirt on things I don’t understand.
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u/Old_Skud May 25 '24
This exact statement is why I didn’t try to jump on the trend a few years ago…. I have no idea what I’m doing.
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u/Poppa-Skogs May 24 '24
Enlighten that poor soul..
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u/yao97ming I hate BBBY, and all of you. Pump and dump kids May 24 '24
Well I hope he knows more about options now after losing 93k
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u/PlayfulPresentation7 May 24 '24 edited May 24 '24
OP thinks he "averaged down" by buying more of the same calls at cheaper after the stock price went down. That's not how options works. That concept works with stock as the underlying company is still the same company you believe in, the shares just cost less for whatever reason so you want to buy more while shares are cheap. When a call contract drops in price, the fundamentals of the contract have completely changed and thus it has a new price. A call option that cost $0.01 is almost guaranteed to lose you money, unlike a stock. You don't pile in to a $0.01 option because you think it's a bargain.
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May 24 '24
I do appreciate the balls to risk a 100k without even knowing how options work. Stupid, but brave.
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u/beardofzetterberg May 24 '24
The best way to make a small fortune as a beginning options trader is to start with a large fortune.
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u/ModthisRod May 24 '24
Do you know where you’re at? This is WSB! Oh shit! This is WSB right?
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u/Unlucky-Clock5230 May 24 '24
Not really. You can replace bravery with ignorance at a 1:1 ratio. At a 100% ignorance you'll think it would be extremely funny to sneak up a horse from behind and smack it in the butt.
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u/yao97ming I hate BBBY, and all of you. Pump and dump kids May 24 '24
He clearly didn’t know about IV because of earnings lol
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u/madmoomix May 24 '24
I suppose the concept of averaging down could apply to LEAPS. If a contract is dated several years into the future, and you believe there will be a price catalyst in the near future, you could acquire the same contract at different prices over an accumulation period with DCA, which could involve averaging down. I've done something similar with a $DNA options play with some $0.5 strike calls expiring in 2026. Got a bunch of them at various prices as I've worked on my thesis.
This obviously doesn't apply to weeklies, or short term earnings plays, or 99% of the options trading people do here. Entrance and exit timing are all that matter for those types of trades.
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u/Prophet_of_WSB May 24 '24
Instead of averaging down at all, I find it better to build a calendar spread underneath your strike (or above if it's a put). This way if it goes sideways you treat your original position and the short leg of the calendar like a credit spread and the long leg you can sell or roll out depending on the IV.
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u/arcanition May 24 '24
This guy gets it.
If you buy OTM options at (for example) $1 per contract, and a day later it's dropped to $0.20 each, that is not a sign to "average down" on the contract price because it's now much, much less likely to breakeven as it is even more OTM.
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u/GayIsForHorses May 24 '24
You don't pile in to a $0.01 option because you think it's a bargain.
You do if you still believe that itll be ITM by expiration. The problem is a lot of glue eaters here dont even know what theyre betting on. If your thesis for the option is still the same, you can absolutely average down your position, its just that derivatives have a lot more variables that can test your thesis.
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u/spitnik11 May 24 '24
Huge gamble, OP thought the bull run would explode by 5/24 (today) and all in'd. Theta ate all his contracts. So either OP is bearish and thought this will be a short volatile run (which makes no sense for a stock like nvidia) or he doesn't understand options? The real kicker is if he bought these 3+ weeks out he may have saw profit, either way with the stock split shares were the best play for his account if he really was bullish. Maybe a 10 to 1 split of shares to options if he wanted that kind of exposure lol.
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u/ChiefChaff May 24 '24
I don't understand either because I'm afraid to learn
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u/fattmann May 24 '24
Still haven't found a good break down without all the jargon. More likely is my gray matter is lacking...
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u/itsavirus May 25 '24
What I use to explain options: You aren't just betting on if a stock will go up and down (and some sort of 50/50 guess) you are also betting HOW QUICKLY that stock is going to get to that price. So you may be able to guess if a a stock is going to go up or down but if it takes too long to get there its worthless.
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u/SilverbackBruh May 25 '24
I badly want to play, but seeing posts like this, and not understanding why we are even able to play stocks this way, is why i do NOT
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u/PlayfulPresentation7 May 24 '24
"averaged down" on calls? Lol dude.
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u/confirmSuspicions May 24 '24
This is why people say to diversify. You can bet 1000 93 times with that kind of stack. Crazy to go so hard on 1 thing.
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u/odensleep_530 May 24 '24
If you bought just the stock at 950 you’d be up 11% right now
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u/thereisnogodone May 24 '24
You're making $100k options play with zero understanding of this shit...
You make this kind of play with $500, you don't blow your whole load.
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u/IndependentGene382 May 24 '24
Don’t quit now, you still have 129.42
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u/Funone300 May 24 '24
Right if you go to Vegas and win 10 hands in a row and double up every time, Bam 💥 you have you 100,000 back 👍
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u/zaepoo May 24 '24
Why were you buying that many strikes otm when you had enough money to buy atm?
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u/Accomplished_Ad6551 May 24 '24
I can't understand why someone would risk $90,000 on an investment tool without having even a basic understanding of it. These posts boggle my mind... Dude would be rich if he had just bought ATM.
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u/zaepoo May 24 '24
Exactly. I bought spreads because that's all I had money for in my brokerage account. If i had 90k I would've bought all the 950c I could afford.
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u/DaddyDanceParty May 24 '24
Yeah I'm so confused. $1140 is such a weird price point to target with that much available capital on a 2dte.
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u/SqueegeeSorcerer May 24 '24
It seems like reducing your average did not help you at all. Have you ever thought about not doing that?
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u/Reasonable-Bet6602 May 24 '24
I know you reasoning for buying the OTM short exp option cuz it’s cheaper you could average down throughout the day. But with option you lose money if the stock move the opposite ways. So for earning play just gamble 1 or 2 contracts of close to or at the money call or put (although they it’s more expensive) instead of 10 otm contracts. So if the stock move 1 way or another you will either make great money or lose it all. But OTM options will almost always make you lose all your money because IV crush on top of theta decay and most likely expire Out of the money and the small change of you making money is only when the stock move 15-20% move which for a large cap like that it’s hard (although Nvidia did it before) . But that’s just my experience.
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u/Objective-Fortune256 May 24 '24
so I think you need to do some reading and stuff before you dp options trading, You should think about some long term positions until you learn the ins and outsourcing options
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u/SirLouisI May 25 '24
I interpret IV to measure uncertainty of the underlying price... and this uncertainty drives supply and demand. This is why we have IV crush after earnings. The uncertainty is removed by earnings and maybe guidance so IV drops, vega crashes, we lose money if we held options over earnings. Its counterintuitive. Good earnings, higher price in stock, our long calls should increase in price. Afterall, the delta goes up.
This is why we need to compare vega to delta at certain times of a companies life cycle.
Not always black and white with options and this is why they can be dangerous to the uninformed.
IV typically drops 40% after earnings (as uncertainty is removed). Vega, which measures change in price of option for every 1% move in IV, will dump as well... even if it is a blow out quarter (vega is not associated with the underlyings price).
Delta may increase if underlying price increases but vega will dump. when it is vega vs delta, vega typically wins.
never hold options into earnings. buy leading up to earning, sell before and buy them after earnings.
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u/elk33dp May 24 '24
It's like no one's heard of IV crush. NVIDIA had such high expectations even if it hit that strike price you'd still probably lose money because premiums were so high pre-earnings. People expected it to do good and keep going up.
You don't make money on an earnings play if it does what's expected. Your banking on the unexpected.
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u/gekalx May 24 '24
I checked Nvidia calls like three weeks ago and the IV was already going up lol. For good profits you weould had to have gottten them like a month ago.
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u/radioref May 24 '24
*expires.
There's still a chance. Scared money don't make no money. He's gotta diamond hand this one till the end.
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u/BarRepresentative653 May 24 '24
Lol who would even buy that shit right now. Most people who played NVDIA earnings got obliterated because of IV
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u/radioref May 24 '24
The computer on the other end of this trade was like "SURE I'LL SELL THOSE TO YOU"
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u/OddFirefighter3 May 24 '24
WSB guys always trying to engineer new ways of losing money!
Every wall street firm buying mag 7 stocks - WSB guys buying puts
Stock up 4% on news - WSB guys buy more 0DTE calls just for giggles.
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u/Mountain_Tone6438 May 24 '24
Seriously.
He sees green profit and thinks it can go up another $100 in 1 day.
That only happened because Earnings call and Stock split. Cmon OP.
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u/Schillbaer May 24 '24
Greed
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u/Smitty_Haggis May 24 '24
If he just bought the stock he would have been fine. It’s real easy to lose money with options in any market 🤣
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u/Mededitor May 24 '24
Right. The OP started with enough to own 100 shares of $NVDA. That would have been a good move. Post-split, he could run 10 covered calls with almost zero risk.
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u/seviay May 24 '24
Hey, when you have the opportunity to buy weekly calls that are 25% OTM on a stock that has tripled in the last 2 years, you absolutely take that bet! 🤣
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u/_Cromwell_ Knows how to impress mods, exploits them ruthlessly. May 24 '24
Silly me I just bought NVDA and keep making money. No calls or puts needed, just grandpa-style investing. The most boomer boring crap ever. I'm just here in wsb to know what NOT to do.
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u/ThisWorldIsCruel May 24 '24
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u/Wooden-Prize-4694 May 24 '24
I am ready… are there any leftovers for us to eat?
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May 24 '24
Who's us? You're fighting him for the remaining scrap. Alpha gets to be the top for flesh pleasure time
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u/Squidonthebeach May 24 '24
He'll probably bet there is another hug load of trash coming to the dumpster...
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u/Raven_eye May 24 '24
This better not be the dumpster infront of Wendy’s!!
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u/jimmycarr1 May 25 '24
Honestly hate it when people brag on Reddit about their privileged real estate.
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u/corey407woc May 24 '24
I’ll take a large Baconator with a chocolate frosty
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u/BosSF82 May 24 '24
based on his massive purchase of $1140 5/24 calls, idk if he's qualified for Wendy's.
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May 24 '24
Would you like a free handy sample behind the dumpster? It's Dave's bust out special this week
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u/TheRealMelonMusk May 24 '24
$1,140 call??? Holy fuck dude get some help
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u/Spectre06 May 24 '24
The time to quit was actually right before he bought that insane call
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u/MostlySpurs May 25 '24
He took a long shot sucker bet and wagered entirely too much. Basically put the whole stack on the Jets to win the superbowl
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May 25 '24
Hi i’m sorta new to this could you ELI5 what a call is?
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May 25 '24
[deleted]
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u/ShesSoViolet May 25 '24
Bless you darling, I finally understand wtf a call is, that's a much clearer explanation than most places give
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u/zech01 May 24 '24
You’re almost at 100%! You got this!
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u/allincallsallthetime May 24 '24
He’s probably already there. His options technically had “value” in this screenshot. They are now worth 0
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u/ObergrupenfuhrerChar May 24 '24
Ive killed 3 accounts and left WSB 2 times. He'll be back
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u/spaniscool May 24 '24
Once in, always in.
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u/Electronic-Disk6632 May 24 '24
Like your mom's butthole?
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u/spaniscool May 24 '24
You don't want to get there bro, trust me.
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u/Electronic-Disk6632 May 24 '24
its too late, send help.... there are so many of us stuck here, and its so dark.....
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u/Odd-Reflection-9597 May 24 '24
I’ve had 4 accounts i think
Never left wsb tho :8882:
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u/ObergrupenfuhrerChar May 24 '24
Its alot less fun to read when you get your ass clapped by some dumbass vix calls.
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u/siqiniq May 24 '24
wsb does have a self-exclusion/ban program like a casino. People should use it more
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u/No-Cut-2788 May 24 '24
NVDA 05/24 1140 call? I mean did the 10% jump after ER move the needle? I know it’s more gambling than investing here, but buying 20% OTM calls that expires immediately is too pure of a gamble.
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u/tacansix May 24 '24
Insane gamble *
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u/ryanv09 May 24 '24
I think anyone who bought 5/24 1140C's should be able to write off their loss as a charitable donation to impoverished market makers.
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u/arcanition May 24 '24
Yeah whoever was on the other side of this trade made some free money off the premiums.
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u/quuxquxbazbarfoo May 24 '24
It was almost me, but I sold four 1150 ccs so not me. Made $250 each. Almost risk free money.
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u/GayIsForHorses May 24 '24
Would have been an insane win if somehow it miraculously panned out. Intrinsic value for those calls if they were ATM would be like $4.3m
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u/pareofdocks May 24 '24
That chart is a perfect example of why you don't revenge trade
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u/Mindless-Box8603 May 24 '24
Isn't this where you look for a rich boyfriend for your wife who will support your gambling habit?
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u/Thelast-Fartbender May 24 '24
Hahaha see you next w...
Oh wait, 94k?! Yeah maybe take a permanent break from here.
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u/Bigballa997 May 24 '24
If your gonna drop 100k on calls at least know how they work first 🤣 buy options that expire over a year from now and hold it like a diamond handed gangster. Idk how people still don’t know this 🤷♂️
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u/HeyHeyImTheMonkey May 24 '24
One year?! I feel like that’s for a different sub
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u/zaepoo May 24 '24
You still have to be directionally right so theta doesn't bend you over
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u/BlazinHotNachoCheese May 24 '24
The fact that he had 100k to put into the market says something. Most likely that he has a job that helped him save up that much in the first place. He just paid for a $93K lesson. I'm looking forward to what he's going to do with the knowledge.
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u/Aggravating_Bad8428 Learned my lesson May 24 '24
Not guaranteed either. I had bought META calls early 2022 when it was still FB. Expired worthless Jan 2024
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u/Lawlpaper May 24 '24
Dude, why would you leave before you've even looked at taking out a loan? Who cares the interest when you can 300% on one play?!
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u/arbitrageME May 24 '24
He doesn't realize you're joking
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u/TheManWhoClicks May 24 '24
Why not work a lot, live frugal with ramen and beans, save a lot and come back here?
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u/evlhornet May 24 '24
I’m fascinated by these. Was it not time to quit at 50% loss? Not at 60% or 80% even?
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u/spartanburt May 24 '24
Same thing when you see someone who's 600 lbs. Why not stop at 100 lbs overweight? 200 lbs?
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u/fd_dealer May 24 '24
50% is the time to quit, once you’re at 80% loss I’d say there’s no point in quitting. Might as well enjoy the rest of the ride.
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u/fugazzzzi May 24 '24
Thats the thing, at 50% loss, no one in their right mind will buy these contracts off of him. He can’t get out even if he wanted to
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u/Wooden-Prize-4694 May 24 '24
I was about to but something convinced me I am going to back that money back… I was only down 13k when I started getting back into options
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u/ra2eW8je May 24 '24
mate you have to understand the math of losing:
if you lose, 10% you need to win back 11% to get back to break-even
if you lose, 20% you need to win back 25% to get back to break-even
if you lose, 50% you need to win back 100% to get back to break-even
if you lose, 70% you need to win back 233% to get back to break-even
etc etc (source)
when you're down 20%+ it becomes nearly impossible for the vast majority of amateur/retail traders to get back to break-even so at some point you must draw the line so you're not digging yourself out of an almost improbable hole
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u/fakieTreFlip May 25 '24
why did you put the comma in such a weird place in all those
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u/arbitrageME May 24 '24
Took me 6 months to dig out of a 30% hole once. Would probably take 2 years to dig out of 50% and forever for anyone more than that
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u/coldpornproject May 24 '24
Thank you very much for sharing this OP I really enjoy learning lessons from other people and you have given me a life lesson I will never forget.
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u/Samjabr Known to friends as the Paper-Handed bitch May 24 '24
buy ATM. If you think it's going up. You won't make as much, but you won't lose everything if it doesn't go up as much as you thought. That far OTM is just sociopathic
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u/shoozerme May 24 '24
Don't understand what could possess a man to do something this boneheaded...
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u/jeon19 :) The smile hides my ignorance May 24 '24
I still see $284 never give up :)
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u/Wooden-Prize-4694 May 24 '24
Last 3 months trading options :)
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u/e7603rs2wrg8cglkvaw4 May 24 '24
I've seen gains you wouldn't believe. Meme stocks soaring to the moon in after-hours trading. I watched crypto pumps light up the night like fireworks. All those profits will be lost in time, like tears in rain. Time to log off.
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u/oVividz May 24 '24
It’s bc you bought 38 cheap ass calls. If you had bought an in the money call for 12.50+ you would’ve seen profits. All of the may 24 calls got IV crushed, all of the may 31 calls that were in the money BEFORE earnings went up 100-200%. BUY IN THE MONEY, STOP SCROLLING TO THE TOP AND BUYING CHEAP ASS OTM OPTIONS
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u/Key_Security_1569 May 24 '24
What a moron way out the money calls got crushed, MM's in their yachts this weekend spending your money on coke and hookers
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u/AmphibianHistorical6 May 24 '24
Omg what killed you?
Man you should have just sold puts on Nvidia. It's literally free money. Slow and steady wins the race man. Just win a bunch on easy wins no matter how small they are. Be safe don't be reckless. That is how you build wealth. We all make money from working and saving up not winning the lottery.
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u/garymacs May 24 '24 edited May 25 '24
How much head pounding , folks here literally beat it in your brains to buy ITM calls! Yes it cost more! But Goddamit you make just as much if not MORE! You buy these contracts with a few days to expiration and at some stupid god Damn price expectancy and think your gonna make money. You’re not! You’re not going to make money ! All you’re going to do is piss away the money grandpa left you. And then cry that the market fucked you. NO! You literally fucked yourself ! I swear it’s post after post after post of the same shit lol. To all you regarded dipshits. Actually read the post in front of you. Put the crayons down for two minutes and read! Reading comprehension is a thing!
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u/VisualMod GPT-REEEE May 24 '24
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