This poor dude apparently traded on the margin and is now 300k in debt. People should really do a ton of research before doing things like this - https://old.reddit.com/r/wallstreetbets/comments/l739x7/300k_cash_what_do_i_do_now/?sort=new
Yeah anything outside of straight "I have x money, I will buy y shares with x money" is absolutely insane for a retail investor to be doing without extensive research. The fact that banks just allow newbie retail investors to buy out of the money options to the tune of hundreds of thousands of dollars is criminal.
Wall street is at its core a wealth transfer from unsophisticated to sophisticated. Yes the very wealthy benefit from both sides of that, but they are losing too, just they gain more than they lose.
You are even seeing this with hedge funds. The sophisticated hedge funds built option positions to take advantage of the short squeeze, which is fucking over less sophisticated hedge funds.
Yeah, I’m not big on our community getting into this sort of thing for this reason. GME couldn’t go up forever, and someone would be holding the bag. There’s gonna be a lot of stories like this unfortunately.
I think he already cashed out some of his position. Probably enough to retire for the rest of his life, and now he's probably just in it to be king of WSB and to fuck over the hedge funds.
I mean, there’s a lot of people who are in way over their head. Selling options below their intrinsic value because they can’t afford to exercise them and their broker not allowing any margin on GME. It’s fucked.
If theory if the short squeeze plan works the idea is the hedge funds get left holding the bags having been forced to buy shares (held by retail) at whatever price the retail traders set, because there literally aren't any others available to buy. Of course in practice it will be a giant chaotic cluster fuck so yeah there's a definite risk of losing a big chunk of what you put in.
This poor dude apparently traded on the margin and is now 300k in debt. People should really do a ton of research before doing things like this - https://old.reddit.com/r/wallstreetbets/comments/l739x7/300k_cash_what_do_i_do_now/?sort=new
Yeah anything outside of straight "I have x money, I will buy y shares with x money" is absolutely insane for a retail investor to be doing without extensive research. The fact that banks just allow newbie retail investors to buy out of the money options to the tune of hundreds of thousands of dollars is criminal.
Wall street is at its core a wealth transfer from unsophisticated to sophisticated. Yes the very wealthy benefit from both sides of that, but they are losing too, just they gain more than they lose.
You are even seeing this with hedge funds. The sophisticated hedge funds built option positions to take advantage of the short squeeze, which is fucking over less sophisticated hedge funds.
Yeah, I’m not big on our community getting into this sort of thing for this reason. GME couldn’t go up forever, and someone would be holding the bag. There’s gonna be a lot of stories like this unfortunately.
DeepFuckingValue just posted his daily update to WSB and I wouldn't be surprised if he silently cashes out tomorrow and is never heard from again.
Imagine throwing like $50k into a stock and then posting your way into millions.
I hope he's jokerfied enough to ride or die. Once he's out this whole experiment is over
I think he already cashed out some of his position. Probably enough to retire for the rest of his life, and now he's probably just in it to be king of WSB and to fuck over the hedge funds.
There's going to be a lot of lives destroyed when the GME stock goes pop and we'll never hear most of their stories. It's really sad.
I mean, there’s a lot of people who are in way over their head. Selling options below their intrinsic value because they can’t afford to exercise them and their broker not allowing any margin on GME. It’s fucked.
If theory if the short squeeze plan works the idea is the hedge funds get left holding the bags having been forced to buy shares (held by retail) at whatever price the retail traders set, because there literally aren't any others available to buy. Of course in practice it will be a giant chaotic cluster fuck so yeah there's a definite risk of losing a big chunk of what you put in.