Loss trading options

[Anonymous No.16100421]

Hey guys I lost a bunch of money trading options

What do?

https://www.youtube.com/watch?v=A-tNkuYV4_Q

https://www.reddit.com/r/wallstreetbets/comments/dpnzup/i_recorded_todays_marketopen_and_the_instant/

[Anonymous No.16100499]

>>16100421
JUST

[Anonymous No.16100984]

>>16100499
lol

[Anonymous No.16101034]

>>16100421
Holy shit I almost threw up. Fucking idiots need to stop option trading.

[Anonymous No.16101090]

>>16100421
He’s actually kind of a genius though. The guy figured out a way around rh’s rules against buying options on margin. And he found a way to get tons of margin. Based as fuck

[Anonymous No.16101172]

>>16100421
>"he told me IV crush was priced in"

KEKLMAO

[Anonymous No.16101272]

Can someone exercise their English skills for a second and explain exactly what happened here. I don't understand calls and puts. I understand the margin.

[Anonymous No.16101309]

>>16100421
154 contracts lmfao, that's the problem right there. I never do more than 10-15 per trade unless I am 100% certain the price is going to move in my favor and even then I don't get too carried away.
This is just as funny as the fuckers who get liquidated when they 50-100X short or long BTC.

[Anonymous No.16101348]

>>16101272

[Anonymous No.16101368]

>>16101272
A single put option is basically a short to sell 100 shares of company X if the price goes down.
A single call option is basically a long to buy 100 shares at the current price if the share price goes over the contract price.
Many people just sell the contracts themselves before they expire, but some do actually take sell/buy the shares.
There is a ton of money to be made if you can find the right stocks that have small enough premium to break even on smaller movements, but some have ridiculous break even margins so it's not worth it unless you know it's going to move enough.

[Anonymous No.16101390]

>>16100421
margin trading crypto is waaay better and more profitable. Stocks really are a meme

I made 40% in 2 days longing 25x leverage with a very small price change (about 4%). I mean it was only 50 dollars I played with, but had I dont the same with options, I wouldnt have made shit. Margin trading at worse is a 50/50 gamble. Option trading has a lower success rate with shittier gains.

[Anonymous No.16101572]

>>16100421
why not just buy scratchoffs at this point?

[Anonymous No.16101634]

Someone explain to me how his portfolio is NEGATIVE

like wtf? how is that even possible?

[Anonymous No.16101800]

Is this because he sold puts instead of buying puts? In any case, its always important to know your limits.

[Anonymous No.16101913]

>>16101800
>>16101634
Jesus Christ you people are retarded.

[Anonymous No.16101933]

The cost of him returning the shares he shorted (see: borrowing) is higher than the cost he paid to borrow the shares.

What he wanted to happen was for the stock to decrease in price, so he could repay the stock he borrowed at a lower price and keep the profit

Instead he has to "return" 100 shares of a stock that are worth MORE than when he bought them. So he is now in what we call "debt".

[Anonymous No.16101968]

keked

[Anonymous No.16101985]

>>16101933
But he sold a call contract of AMD for every 100 shares of AMD he bought
so if AMD went down, the calls he sold would go down proportionally, 1 to 1
if AMD went up, then the calls he sold would also go up proportionally, 1 to 1

I think I understand now after reading through the thread
He somehow leveraged himself up 25x and robinhood was not able to liquidate his positions fast enough

[Anonymous No.16102062]

this is worse than margin trading crypto because you can only lose so much as your holdings in the exchange. This guy played with margin on RH and now he owes robinhood about 53k. this should've never happened in the first place. They're going to change their ToS

[Anonymous No.16102122]

Just hodl bro market maker is trying to shake out

Stay strong it's a solid position