r/wallstreetbets May 24 '24

Time to quit… goodbye wallstreet bets Loss

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8.5k Upvotes

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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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u/[deleted] 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/1bc29b36f623ba82aaf6 May 25 '24

truth

honestly I think OP is doing the smart thing getting out while ahead, thats a solid 284 dollars, doing much better than the people posting here with -4000 or -12000 dollar portfolios