The legendary negative 100 bagger

Discussion in 'Options' started by Pekelo, Feb 13, 2020 at 8:34 AM.

  1. Pekelo

    Pekelo

    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.
     
    Last edited: Feb 13, 2020 at 8:52 AM
  2. Nobert

    Nobert

    One can't have both, only one :

    * Naked Calls
    or
    * Security Analysis by B.G.
     
    Last edited: Feb 13, 2020 at 9:21 AM
  3. jamesbp

    jamesbp

    Tom Sosnoffesque
     
  4. Not to nitpick, but his risk wasn't $4.50. His max reward was $4.50
     
    nooby_mcnoob and Pekelo like this.
  5. "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. :rolleyes:
     
    Artfldgr, Sekiyo and Nobert like this.
  6. Arnie

    Arnie

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

    Says it all.
     
  7. jys78

    jys78

    That is impressive.
     
  8. Sekiyo

    Sekiyo

    TSLA going to >1000 this guy is dead.
     
  9. 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.
     
    Nobert likes this.
  10. Sekiyo

    Sekiyo

    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.
     
    qwerty11 likes this.