https://old.reddit.com/r/homeless/comments/1ih00p9/i_lost_most_of_my_money_and_im_in_debt_im_scared/
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How did he instantly lose $500k on his call options if they dont expire until March?
Brainlett here and never bought options
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Just speculating in hindsight, but that was the day/day after the inauguration, so there was probably IV crush.
IV crush means people were anticipating a huge price movement, increasing intrest in the contracts, and then a loss of interest after the event.
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Thank you! You are right as he posted the vid on inauguration day.
Am I understanding correctly that the $500k was the premium to buy the options, and the IV crash made the premium low?
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I think he bought for 1.2 million and they lost about 1/3 their value to IV crush and the price of the stock going down a bit.
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