https://old.reddit.com/r/wallstreetbets/comments/1f57hs5/update_i_lost_my_life_savings_shorting_copper_a/
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This is actually one of the dumbest things I've ever read.
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he also supposedly lost 8 bands buying the royalties for a shrek movie
https://old.reddit.com/r/wallstreetbets/comments/1eqjcvd/lost_8k_buying_shrek_movie_royalty_rights_serious/
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What the actual frick
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You probably need to rethink you investment portfolio after having your scheme exposed like this.
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lmao pizza check his other post 😭😭
https://old.reddit.com/r/wallstreetbets/comments/1eqjcvd/lost_8k_buying_shrek_movie_royalty_rights_serious/
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He's no Ea-nāṣir, that's for certain
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Sumerians built their ziggurats while yt lived in mud huts
This kid just doesn't have what it takes to get into copper
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Frankly he deserved to have his messenger treated with contempt
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Summerians may have built their ziggurats, but I'm going to build a niggurat for you my dear
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This is what I see when I look in the mirror every day, except less fluffy
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what i see every day when i look in the mirror
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!besties Check this guy out he shorted copper because he thought the shitty French Bronze medals would destroy its reputation internationally
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Even if people would chimp out so hard against the fricking bronze medal and would cause copper to fall (ie one of the fricking most lucrative metals and needed for fricking everything), the fricking average normie doesn't even know copper is fricking needed to make bronze.
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Just like when pokemon silver crashed the Ag futures market
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The medal, apparently
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Copper value crashing ugly tbh
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If only copper traders priced in the aesthetic factor into the futures
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i like it
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Hmmm, might have to short some copper... brb..
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How do these services let teenagers owe sums like $50k?
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He doesn't actually owe that much. Essentially, he was trading a contract for 100 shares of a stock. It reached the time when the point that the contract executes happens the brokerage automatically buys those 100 shares to deliver them and then settles the contract at whatever the stake price is. Immediately upon buying them, your account is debited the cost of the shares, but once the contract settles you'll be credited for the proceeds which, depending on the stake will mostly even out. It's unlikely he lost more that ~$500.
All that being said, IMO you shouldn't be able to trade options if your equity is below the PDT threshold because there is a 100% chance everyone under that is gambling.
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giving a 19 year old 56k of leverage before calling the margin should be (probably is) a criminal offence. It should be argued that this was more akin to a consumer loan with no background checks. If this is true he likely has a great case that this limit was completely bonkers
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It feels criminal. Gambling sites aren't allowed to let people borrow money, these trading apps shouldn't either.
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yea i mean of course this post is likely fake but this is the scenario:
19 yo posts coll to gamble, 8.5 k$. His position gets worse and the Broker decides to fricking INCREASE HIS MARGIN??? to fricking 56 k??? like an 8 fold leverage???? Essentially having a fricking credit position of 48 k $ with no security???? Like at this point it is 100 % malice. No fricking way they can argue they have only been brokering trades until settlement...
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I can believe it solely because Robinhood seems to be really irresponsibly run. They gave a bunch of people options access that had no business trading options.
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The margin is dependent on how poor his position is doing. I don't feel like trying to decipher what the heck his positions were based off his ramblings and screenshots, but getting margin called on a ridiculously poorly performing position is Stocks 101.
Not even a margin call in this case tho. He sold a call (option saying you give a buyer the RIGHT but not the OBLIGATION to buy your assets) on an underlying $50k worth of SPY. Since it was a naked call, he didn't actually have the $50k worth of SPY and the brokerage forced him to buy it because his contract was set to expire the next day. This is better than him getting caught out in the last 24 hours of his contract and caught on the hook for $10k. Since the contract didn't actually execute (since it was OTM), he's now got $50k worth of SPY in his account that the brokerage bought for him, and he needs to sell that to pay them back.
I think he actually turned a profit on the position but it will take a bit to sell. This is a lesson for r-slur day traders that contract expiration dates matter.
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yea, and what do you call it when you owe a financial institution something? They cannot possible argue that they are merely a "brokerage" if they give 50k worth of credit to someone. His position does not matter.
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He doesn't have 50k worth of leverage. He has $50k of assets and $50k of liabilities, both of which are directly in their possession. He owns them in name alone if they got mad they would just seize the SPY and close his account.
This is just how options work, the alternative is just making it illegal to trade them.
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then wtf is he whining about on reddit? i didnt really read his post
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He's fricking stupid
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It's one thing to double down, it's another thing entirely to double down on naked $SPY calls, holy shit.
WSB is so back
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He said he didnt buy it tho 💅
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Yeah, he sold it
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He saved 4 birthdays and 3 Christmases okay???
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Based !r-slurs
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But metal look b-bad?!?!
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I'm glad I'm too dumb to know what any of these things mean, but smart enough to not learn
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Lol shorting copper marker because the Olympic commission bought some shitty bronze medals might be the biggest bone head move ever.
It's honestly no shock a 19 year old doubles down on their poor life choice. I was smart enough not to trust myself with money at that age.
Now he owes the broker 60k lmao. I'm sure his parents will bail him out because it's clear he never learned financial responsibility
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Lol I wouldn't pay that shit. He's a 19 year-old with no assets who they likely gave an illegal amount of leverage.
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I read more and it's either fake or he def doesn't have to pay that amount so can go either way
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I like the sound of this explanation
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He's 19, at least he didn't lose much
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60k is what, three years of early 20s pay with modest savings? He's going to be fine. If he learns anything from this he'll probably turn out better off than he would have otherwise been.
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Your average burger isn't even able to pay off college debt after being in a 6 figure job for a decade
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If you have a six figure job you might understand that student loan debt is low interest and not worth paying off if you can invest that money elsewhere.
There's a reason doctors carry student debt into their 60s and it's not because they're short on cash.
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60 something doctors went to school back when like twenty thousand covered everything
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I mean its not a life ending amount, but its still a ton.
Hard disagree on this lol
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19 is a military aged male, if you were walking around with a shovel in Iraq you'd get dropped.
---But seriously why the frick would they let anyone get that deep in the hole?
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giving a 19 year old 56k of leverage before calling the margin should be (probably is) a criminal offence. It should be argued that this was more akin to a consumer loan with no background checks. If this is true he likely has a great case that this limit was completely bonkers
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what? did you read my comment?
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Truly gigabrains
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What is so bizarre about these r-slurs is that there
are tons of guardrails in place 
to prevent brokies from trading 
options. I don't get how these kids are making trades like this.
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Snapshots:
https://old.reddit.com/r/wallstreetbets/comments/1f57hs5/update_i_lost_my_life_savings_shorting_copper_a/:
undelete.pullpush.io
ghostarchive.org
archive.org
archive.ph (click to archive)
A few weeks ago, I posted on this sub about how I shorted copper because I thought the price of it would crash due to the public backlash of how low quality the bronze metal at the Olympics was. I thought it was an intelligent investment decision and not a gamble (because bronze is composed of about 88% copper) but I got thousands of comments and dms telling me about how dumb my analysis was and that I should sell immediately and quit options.:
ghostarchive.org
archive.org
archive.ph (click to archive)
ghostarchive.org
archive.org
archive.ph (click to archive)
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