The legendary negative 100 bagger

Here is a lesson How (not) to lose 100 times more than you risk. This moron sold NAKED Tesla calls when the stock went vertical for $4.50 and bought them back for $410. At least he has a positive attitude about the ordeal.

Funniest comments:

"The only reason why I would go to the gym after losing 140K is to get more weights for the noose."



What we learnt here is: Instead of naked options, he could have sold vertical calls, where his losses would have been predetermined and limited.

 

One can't have both, only one :

* Naked Calls
or
* Security Analysis by B.G.​

 

Tom Sosnoffesque

 

Not to nitpick, but his risk wasn't $4.50. His max reward was $4.50

 

"They" never learn. Happens over and over and...

First thing I learned when trading options was to use a risk grapher. Unlimited-risk trades have never seemed like a good idea to me.

 

My goal is to get back to even on the year on TSLA alone

Says it all.

 

That is impressive.

 

TSLA going to >1000 this guy is dead.

 

Years ago when I was in securities school to get my Series 7 license... the instructor made it a point to pound the notion into our heads... "writer, seller, short". I can still recall seeing him harp on that.

In recent years there have been a few big time naked call writers who have had their head handed to them... and I'll bet there are several more who got nailed in Tesla.

 

From what I know,
Volatility is underpriced.

You can make money 99% of the time selling it.
But you will get rekt 1% of the time being naked.