Legitimately impressed, even by wallstreetbets standards this is unheard off.
TSLA crashed by 20% today, which was literally the expected outcome for anyone literate enough to understand numbers. HE HELD AFTER 4.2M$ PROFITS ON A VOLATILE STOCK THAT DOUBLED IN 2 WEEKS
Tbh, he didn't have the chance to sell before it reached like 1m$ since the prices just fucking blew up.
And this is the perfect, perfect example of why FOMO is the worst. If he sold at 1m$, he would have regretted that he could have had 4.2m ans probably would have thought that " he would have sold right there". but since he held until 4.2m he lost it all...
what exactly was the catalyst for the stock to drop so much in the last 12 hours? you could fill a stadium with all the shit I don't understand about stocks/investing
You might ask yourself "why did tsla double in value in no time at all?" If the answer isn't that elon unveiled that he's secretly already colonized Mars in the name of gamers, you've got your answer.
Well first of all the stock lirerally doubled in a few weeks, so people just started cashing in and dumping into the retard hype investors. It culminated at 15:50 yesterday when a huge dump was taken at the peak of the stock price.
Not only that but a lot of people were betting against tesla stocks (shorting). Which basically means they borrowed a stock sold it and waited for the price of the stock to fall, buy back the stock at a lower price and give it back.
That's great when a stock falls, but when it goes up, it means you lose money. At some point, your broker or your bank will force you to buy back the stock to give it back since you've piled on too much losses. That's great, but that means that you are kind of forced to buy at market prices which adds pressure to the buy side which make prices go up. Eventually, you get a chain reaction where the prices goes up, shorters get forced to buy the stock which makes the stock go even higher. We call that a short squeeze and prices go up in crazy ways when that happens but it's not sustainable.
Now of course the short squeeze isn't the only or even main reason as to why Tesla sky rocketed like this, but it was a huge pressure on the buying side. Now that the shorts are mostly liquidated, and the people who got back their shares are probably selling at all times high, you get a BIG drop in net buying. That means a usually high drop in price
Which makes this retard even more retarded since this was almost COMPLETELY predictable and in terms of risk management it was completely skewed towards almost insanely low returns compared to risks.
I'm sorry I'm too shellshocked by the retardness of some wsb newposters, so I'm trying to inform and keep away any potential sucker/ hype investor from "wow big number up? Ooga booga has to buy now".
It just unironically sucks to get crushed on the markets since it gets a lot less fun when you mix autism with real money. Especially knowing how poor drama is
Given how bearish people have been on Tesla, there must've been something to kick off the price climb and thus set off the short-sellers being forced to close, which fueled the climb along with new buyers trying to ride it up.
They had good earnings, a good start at their china factory and they have basically the only EVs that actually sell. They are building up crazy market dominance.
I'm not saying that he should've shorted it at that level. Just that once the market gets this irrational, this quickly and retail investors start pilling in it's time to take out your wins. Don't short it, don't long it just don't touch it at all. You are basically risking 4.2m$ for almost no upside potential since it's already up 100% this year!
I'm past the point of partisan garbage and ive been exposing myself to many ideas and ive found generally both sides have a partial truth -----so there actually might be some weight to this george soros shit ----- my question is, is there anyone on earth that is talked about more than george soros that talks less than george soros does
No way the contract premiums will get back to yesterday's levels. The IV just got crushed today so even if tesla gets back up I'd be extremely surprised if the vol value of his options gets anywhere near the top
You just ALWAYS sell a fucking option when the underlying goes up by 20%. especially when you made 4.2 fucking millions
Yes, theta decay will slowly creep in on him like a pedo uncle. But the volatility/underlying price are full on fucking him in the ass right now. Theta is probably the least of his concerns.
Also
Using the BSM in 2019
Yikes sweatie that's how you get raped on the markets by the big boys
Black sholes model. The greeks are basically derivatives of that mathematical model. It's pretty good for a general idea of how options work and is the most commonly used model, but it still has huge flaws especially with american options and it's "naive" approach to Volatility. Big dick market players almost always modify it to better fit the real world though.
THIS. People don't seem to understand that your money can literally just vanish the moment the contract expires. Stocks may truly "always just go up" but almost every option contract ends up worthless
Well, I'm a dumbass also, because I was up 70k yesterday on a 2400 call investment and waited to long to sell. I'm still up, and expiration date is July, so I have a bit more time to recover if it tanks more tomorrow at open and wipes out any profit. On the up side, I made the investment on those calls back today easily selling some MSFT call contracts.
Honestly, I'm totally new to options trading. I've done well so far, but my failures are where I learn. My Robinhood account is play money... Until it isn't. And if I had sold yesterday it would no longer be play money.
Don't kick yourself for that, I've literally lost tens of thousands of $ when i first started playing with options. If there's one simple advice I'd give you is to always ask yourself: Okay, this stock is really up right now. What would be the reasons for it to go even higher? What would an x% rise would mean in terms of valuation?
You should set stop limits and sell limits for discipline and READ ABOUT OPTIONS. You will probably not strike gold again either, so don't aim for 70k$ again or you'll get absolutely raped by holding too long trying to get back the money.
Ps: if tesla peaks again, even if you don't even get to half of 70k again, SELL YOUR CALLS. Tesla at 2400$ would mean a 300b$ valuation which is 100b$ than even toyota, the largest car producer in the world. dont be retarded
Isn't this the entire point of options. Like, you have to imagine how retarded someone would have to be to buy your position and how likely that is. All in relation to the other stuff you mentioned.
To hunt autistics, you must think like an autistic.
44 comments
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2 ATissu 2020-02-05
Legitimately impressed, even by wallstreetbets standards this is unheard off.
TSLA crashed by 20% today, which was literally the expected outcome for anyone literate enough to understand numbers. HE HELD AFTER 4.2M$ PROFITS ON A VOLATILE STOCK THAT DOUBLED IN 2 WEEKS
1 GeauxHouston22 2020-02-05
I wouldn't have even made it that far, the second I saw that number creep above the balance remaining on my house, I would've sold immediately
1 ATissu 2020-02-05
Tbh, he didn't have the chance to sell before it reached like 1m$ since the prices just fucking blew up.
And this is the perfect, perfect example of why FOMO is the worst. If he sold at 1m$, he would have regretted that he could have had 4.2m ans probably would have thought that " he would have sold right there". but since he held until 4.2m he lost it all...
still what a waste
1 GeauxHouston22 2020-02-05
oh I gotcha
what exactly was the catalyst for the stock to drop so much in the last 12 hours? you could fill a stadium with all the shit I don't understand about stocks/investing
1 duckraul2 2020-02-05
You might ask yourself "why did tsla double in value in no time at all?" If the answer isn't that elon unveiled that he's secretly already colonized Mars in the name of gamers, you've got your answer.
1 ATissu 2020-02-05
Well first of all the stock lirerally doubled in a few weeks, so people just started cashing in and dumping into the retard hype investors. It culminated at 15:50 yesterday when a huge dump was taken at the peak of the stock price.
Not only that but a lot of people were betting against tesla stocks (shorting). Which basically means they borrowed a stock sold it and waited for the price of the stock to fall, buy back the stock at a lower price and give it back.
That's great when a stock falls, but when it goes up, it means you lose money. At some point, your broker or your bank will force you to buy back the stock to give it back since you've piled on too much losses. That's great, but that means that you are kind of forced to buy at market prices which adds pressure to the buy side which make prices go up. Eventually, you get a chain reaction where the prices goes up, shorters get forced to buy the stock which makes the stock go even higher. We call that a short squeeze and prices go up in crazy ways when that happens but it's not sustainable.
Now of course the short squeeze isn't the only or even main reason as to why Tesla sky rocketed like this, but it was a huge pressure on the buying side. Now that the shorts are mostly liquidated, and the people who got back their shares are probably selling at all times high, you get a BIG drop in net buying. That means a usually high drop in price
Which makes this retard even more retarded since this was almost COMPLETELY predictable and in terms of risk management it was completely skewed towards almost insanely low returns compared to risks.
2 Msmit71 2020-02-05
What the fuck is this, a long, informative effortpost? ON MY ARR DRAMA?
1 ATissu 2020-02-05
I'm sorry I'm too shellshocked by the retardness of some wsb newposters, so I'm trying to inform and keep away any potential sucker/ hype investor from "wow big number up? Ooga booga has to buy now".
It just unironically sucks to get crushed on the markets since it gets a lot less fun when you mix autism with real money. Especially knowing how poor drama is
1 big_papa_stiffy 2020-02-05
i dont think you even need to know anything about stocks at all to realise he was a retard about it lol
like there was clearly a reason it was going up and a lot of people gambling
2 UpvoteIfYouDare 2020-02-05
Given how bearish people have been on Tesla, there must've been something to kick off the price climb and thus set off the short-sellers being forced to close, which fueled the climb along with new buyers trying to ride it up.
2 ATissu 2020-02-05
They had good earnings, a good start at their china factory and they have basically the only EVs that actually sell. They are building up crazy market dominance.
1 LongPostBot 2020-02-05
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1 SWIMsfriend 2020-02-05
its thinknig like that, that caused people to lose $2 billion dollars shorting the stock
1 ATissu 2020-02-05
I'm not saying that he should've shorted it at that level. Just that once the market gets this irrational, this quickly and retail investors start pilling in it's time to take out your wins. Don't short it, don't long it just don't touch it at all. You are basically risking 4.2m$ for almost no upside potential since it's already up 100% this year!
1 SnapshillBot 2020-02-05
I'm past the point of partisan garbage and ive been exposing myself to many ideas and ive found generally both sides have a partial truth -----so there actually might be some weight to this george soros shit ----- my question is, is there anyone on earth that is talked about more than george soros that talks less than george soros does
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1 affectionateotter1 2020-02-05
I think the expiration was 3/20 so he could be ok if he hodls (strike price is $1000, though).
2 ATissu 2020-02-05
No way the contract premiums will get back to yesterday's levels. The IV just got crushed today so even if tesla gets back up I'd be extremely surprised if the vol value of his options gets anywhere near the top
You just ALWAYS sell a fucking option when the underlying goes up by 20%. especially when you made 4.2 fucking millions
1 affectionateotter1 2020-02-05
And fucked by theta decay, right? Idk that much about pricing options other than throwing around “Black Scholes” in conversations awkwardly.
2 ATissu 2020-02-05
Yes, theta decay will slowly creep in on him like a pedo uncle. But the volatility/underlying price are full on fucking him in the ass right now. Theta is probably the least of his concerns.
Also
Yikes sweatie that's how you get raped on the markets by the big boys
1 affectionateotter1 2020-02-05
Thanks for explaining bb
1 _Suprememe_ 2020-02-05
At least he had the sense to cash out his cost basis on the way up.
1 [deleted] 2020-02-05
[removed]
1 ExtremelyOnlineG 2020-02-05
BSM?
1 ATissu 2020-02-05
Black sholes model. The greeks are basically derivatives of that mathematical model. It's pretty good for a general idea of how options work and is the most commonly used model, but it still has huge flaws especially with american options and it's "naive" approach to Volatility. Big dick market players almost always modify it to better fit the real world though.
1 ponyblaze 2020-02-05
no. always hodl
1 [deleted] 2020-02-05
[removed]
1 UpvoteIfYouDare 2020-02-05
The moment I saw TSLA price this morning I went to WSB to try to find a follow-up post from that guy.
1 pm_me_ur_butthole420 2020-02-05
Has he actually confirmed that he didn’t sell? He hasn’t posted any real updates everyone’s just jerking themselves silly hoping that he loses it all
2 ATissu 2020-02-05
Well he said he was hodling and that was after market close. He never had the opportunity to sell since without massive losses
1 pm_me_ur_butthole420 2020-02-05
true yeah. I wonder what he would have lost if sold at open. but yeah he's a degenerate so probably lost a good chunk
1 TheBleedingofMe 2020-02-05
I should buy stock. If someone that retarded can half-manage a portfolio I'm sure I could make a killing.
1 _Suprememe_ 2020-02-05
Investing in stocks and making degenerate gambles on retardedly OTM stock options are two very different things.
1 ATissu 2020-02-05
THIS. People don't seem to understand that your money can literally just vanish the moment the contract expires. Stocks may truly "always just go up" but almost every option contract ends up worthless
1 ATissu 2020-02-05
He bought lottery tickets and "won", doesn't mean you buying more lottery tickets would work. Also it was options not stock so a little more autistic
1 gunowner63 2020-02-05
A truly impressive display of stupidity.
1 WarSanchez 2020-02-05
Anyone expecting a degenerate gambler to know when to call it a win hasn't been around degenerate gamblers enough to know they ALWAYS play to lose.
1 signal15 2020-02-05
Well, I'm a dumbass also, because I was up 70k yesterday on a 2400 call investment and waited to long to sell. I'm still up, and expiration date is July, so I have a bit more time to recover if it tanks more tomorrow at open and wipes out any profit. On the up side, I made the investment on those calls back today easily selling some MSFT call contracts.
Honestly, I'm totally new to options trading. I've done well so far, but my failures are where I learn. My Robinhood account is play money... Until it isn't. And if I had sold yesterday it would no longer be play money.
1 ATissu 2020-02-05
Don't kick yourself for that, I've literally lost tens of thousands of $ when i first started playing with options. If there's one simple advice I'd give you is to always ask yourself: Okay, this stock is really up right now. What would be the reasons for it to go even higher? What would an x% rise would mean in terms of valuation?
You should set stop limits and sell limits for discipline and READ ABOUT OPTIONS. You will probably not strike gold again either, so don't aim for 70k$ again or you'll get absolutely raped by holding too long trying to get back the money.
Ps: if tesla peaks again, even if you don't even get to half of 70k again, SELL YOUR CALLS. Tesla at 2400$ would mean a 300b$ valuation which is 100b$ than even toyota, the largest car producer in the world. dont be retarded
1 Bummunism 2020-02-05
Isn't this the entire point of options. Like, you have to imagine how retarded someone would have to be to buy your position and how likely that is. All in relation to the other stuff you mentioned.
To hunt autistics, you must think like an autistic.
1 XhotwheelsloverX 2020-02-05
https://www.reddit.com/r/wallstreetbets/comments/eytmj5/dont_doubt_ur_vibe/fgji3mg/
He still is
1 Outdated_CPU_1 2020-02-05
You can’t make this shit up