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### Comment: Google puts and facebook calls duh ### REPLY: These guys are the reason yungbillionaire made 400k. The universe must stay in balance. ### END.
### Comment: Probably depends on his trading history I imagine. If he has little to no big past trades then all of a sudden buys $57,000 worth of puts on a single company for earnings and wins big, it’s kind of a red flag. Not like he’s going to get in actual trouble for it or anything (assuming he wasn’t actually an insider), but I bet the SEC looks into it. ### REPLY: There are trillions being traded. 30k is not even a significant fraction of a fraction of a percent ### END.
### Comment: Then buy the dip ### REPLY: I don't have money left. It's all in. ### END.
### Comment: this sub is the only one where people actual post their losses. you wont see it on the stocks/options/investing/personalfinance/robinhood subs. i think its partly why on average this sub has more perspective than the others. you're all on the better end of the spectrum. ### REPLY: We're so fucking autistic we get off on graphs moving. True autism ain't about the numbers, it's about the slope ### END.
### Comment: Microsoft, Amazon, Google, Amazon again ### REPLY: * AMD for the last A ### END.
### Comment: You buy a right from someone to sell x *100 shares at a certain price, if the market price is above the price at the end, it's worthless. ### REPLY: Thanks for the explanation! ### END.
### Comment: Great work man, I’m jealous. ### REPLY: I might not have been as ballsy as u/YungBillionaire but I didn't do too bad ### END.
### Comment: > you're 100% gonna get fucked on SBUX Why do you say that? They closed 100 stores, CEO left, racist AF Debating how to play this. ### REPLY: They’re closing redundant and stupid stores, it’s a good thing Edit: someone already said that, never mind GL ### END.
### Comment: Ya I actually just sold lmao. Filled immediately. ### REPLY: It's actually semi up, I bought one for shits and it's quite entertaining. ### END.
### Comment: i watched an 8 min youtube video so i basically have it all figured out from what i can tell op doesn't own any shares in facebook but bought a bunch of put options (contracts that force buyers to buy at a specific price). since the facebook stock price crashed, people who own those stocks and want to sell them are buying up these put options so they can sell their stocks through the contract for a higher price than market. OPs contracts are now worth a ton ### REPLY: So essentially magic and we need to burn the witch. Got it ### END.
### Comment: They own Instagram which is still blossoming and stealing the little thunder SNAP had. Also FB is a huge data mine that can be sold to other companies for large profit. ### REPLY: Young people are using less and less Facebook, data doesn't mean shit when all it's on is geriatrics and MLM moms. ### END.
### Comment: ^^ This is what I was looking for. Mommy and Daddy didn't know they yolo'd. Now OP will tell them how he is an investing genius. ### REPLY: Didn't he say somewhere else in the thread that the money came from a lawsuit payout? Sounds like some sort of accident from the way he described it. ### END.
### Comment: Someone did this with MU it started on its downward trend. Beware... ### REPLY: You mentioned MU, that's going to cost it 3%. ### END.
### Comment: People survive off 15k a year not a glamorous lifestyle but he would NEVER struggle for money and could work whatever job he felt like for fun ### REPLY: 15k a year is being impoverished... Have you ever lived on 15k a year? ### END.
### Comment: Dammit you guys. Now I'm getting into options. ### REPLY: You dont want none of this dewey ### END.
### Comment: ...thanks? ### REPLY: It's the new meme on this subreddit right now. ### END.
### Comment: fuk that double down on AMZN puts ### REPLY: This guy fucks. ### END.
### Comment: Just bought 16.5p for 9/7....yolo ### REPLY: I hope SuBae is gentle with you ### END.
### Comment: People don't park their money in SOXS they get in and out fast like TVIX because they know it will lose money over time due to contango and fees. Options would be priced accordingly. I don't doubt you could get lucky and make money on a puts once or twice, but long term no way. ### REPLY: Ya You are right, so the fee will eat up a lot. So short it will always good ? ### END.
### Comment: Do you recall what the IV% and expected +/- move was for your options prior to earnings? Haven't done straddle/strangle plays in a while b/c IV crush scares me but last one I did was a monthly strangle on Chipotle and made a nice chunk of change. That was a while back ago. ### REPLY: I don't have those details documented, sorry. I was hoping for intrinsic value, so IV crush would only have marginal impact. ### END.
### Comment: Meh I just think if you wanna buy a house/condo and/or start a family you're still gonna need to plan it out, finance, negotiate and shop around. To me that's nowhere near not worrying about money. It could pay rent and utilities for 20 years yes but there's so many more expenses in life than that Edit: after taxes it can pay $1000 in rent for 20 years and that's it.... ### REPLY: In my area that's rent utilities food and beer money. 20 years free from a job seems amazing ### END.
### Comment: LMAO! Same! I sold all of my 180 $16C for 1.00 near open and looking at it now, they are going for 2.30. Thats $23,400 I could have additionally made. But now I just have to be content with the $8k I made. I underestimated Su Bae! Big Mistake! ### REPLY: New lurker here... where can I go to understand these calls and puts better? I want to play the game but I really don’t understand the whole process. ### END.
### Comment: lmao. If I remember correctly they were flying to NO and gonna drive all the way to Key West, which is pretty fuckin cool in my book. ### REPLY: That would legit be a nice drive once you get into the panhandle but there is not a single goddamn thing between NO and Florida unless there's something in Mobile I'm not aware of. ### END.
### Comment: Why Ally? ### REPLY: Because you don't want to gamble the $100,000+ you're going to owe on taxes and you might as well earn 1.75% on the money you're going to have to pay out anyway ### END.
### Comment: So is shorting no longer a thing? Why would anybody ever short if options is a thing now? ### REPLY: There's still shorting. I don't know much about it... I think one of the differences is, you can't trade options on margin. That may be why long an shorts are attractive, because of leverage. But you can also lose a crap ton of money... And get margin called. In options , worst case, your contract expires worthless. ### END.
### Comment: It takes about 30 seconds of sponging and soap. Unless you are so lazy that you let the dishes sit for 3 days. ### REPLY: My Butler does that for me. ### END.
### Comment: Yeah, I'm going to pick up Oct 19 $17 puts as well.. Pretty confident we wont see AMD this high for long ### REPLY: This looks much better to me ### END.
### Comment: Just sell it. Run for the hills. ### REPLY: >Run for the hills Run for your life. ### END.
### Comment: Gang gang💍☝🏻🙏🏻 ### REPLY: o block ### END.
### Comment: It’s like calling alphabet a search engine....with advertising. Just a small narrow minded look at a company. ### REPLY: Sounds like a narrow minded opinion. All joking aside, I won't stoop to your level. Anyway, 98% of Facebook revenue comes from advertising. Feel free to back up your statements with literally anything of substance. ### END.
### Comment: #hanging ### REPLY: #FROM THE CEILING FAN ### END.
### Comment: How is it bullshit? Qualcomm, due to its patents and the fact they sell chips globally, is heavily impacted by this. One of their issues was China basically ignoring/stealing their patents on technology. ### REPLY: I'm a bit biased since I own some shares. my fault ### END.
### Comment: #KJV or go home. ### REPLY: [If it ain't King James it ain't the bible](https://www.ebay.com/itm/IF-IT-AINT-KING-JAMES-IT-AINT-BIBLE-SCREEN-PRINTED-BUMPER-STICKER-9-X2-5-/171725484899) ### END.
### Comment: sorry kids college fund. ### REPLY: Want to adopt me? ### END.
### Comment: He asked 7 friends if they still use facebook ### REPLY: oh man, this is golden ### END.
### Comment: Not with a prenup. Although the 12k tax deduction might be less than hiring an attorney and filing marriage paperwork. ### REPLY: Yeah but at least that way you get to fuck while you're getting fucked ### END.
### Comment: Although soy sauce is Chinese in origin Kikkoman, the largest manufacturer, is a Japanese brand. ### REPLY: The implication there was that we associate soy sauce with Asia more than with America. Hence we might assume that they grow more soy than the US. ### END.
### Comment: Just think how much you'd have if you spent $100 million on FB puts yesterday. ### REPLY: Infinite money ### END.
### Comment: How many people are actually re-upping subs at standard rate. How good are they at acquiring music from record labels. Those are the two things that matter to me. DD I tried premium for free, didn't have the music I wanted and I won't pay for it. Without premium it just turns into Pandora. I doubt know why they put a huge emphasis on subs rather than reoccurring customers. ### REPLY: What kind of fucking music do you listen to that isn't on Spotify? ### END.
### Comment: If you don't pay they are pretty much the same product ### REPLY: Not quite, even with a free account, on the desktop app you can listen to a song instead of having it start a radio station of similar songs. ### END.
### Comment: Pretty sure I could, easily ### REPLY: On a safe withdrawal rate (4%) you'd only be pulling out 12k-ish a year (assuming he has at least 300k left after taxes). So basically you'd be living in poverty for the rest of your life and the chance of your retirement lasting is much less likely when it's over 60 years instead of 20. ### END.
### Comment: $350, I sold... I got nervous, ### REPLY: Money's money, good work. ### END.
### Comment: Buy both ### REPLY: Unironically though, straddles this close to ER are never profitable ### END.
### Comment: If you look deep into his history you'll see he gets 125k of insurance payouts a year until 2038 ### REPLY: Goddamn didn't know r/wsb had a forensics team. ### END.
### Comment: So like I said you have to live really frugally. Especially when you consider your employer benefits like health and dental disappear. 2M stretched over 60 years means you get to drive a 5 year old Honda accord, live in a modest 2k sq ft house in a non coastal state, go out to eat twice a month, and spend 2-3 weeks a year going on vacation domestically. Assuming you have no kids or family to support anyway. ### REPLY: I mean...you just have to live like you make 60k/year, that doesn't really take much effort if you don't have kids. That's also assuming 4% returns, which is extremely conservative for a heavy stock portfolio, unless you're saying 4% after inflation (6% would be worse than any 20 year span of the S&P 500, most people would consider that pretty conservative). In reality, you're probably talking closer to 80k/year spend to stay about even, which you're living very comfortably on. ### END.
### Comment: Are u referring to pa or your autism levels ### REPLY: pa ### END.
### Comment: A friend of mine did it with AMZN. This can't actually work as well as the calculator says, can it? ### REPLY: Conditions have to be correct to make this play. The IV difference needs to be very big. ### END.
### Comment: So Facebook will buy the contacts back from the people he sold them to? ### REPLY: Yes, if the stock price at closing tomorrow is lower than the contract price, FB pays the difference out to the owner of the contract at that time. ### END.
### Comment: https://venmo.com/about/fees/ It’s a 3% fee if you send from a credit card, but from within Venmo there is no charge. Today I learned. ### REPLY: Makes sense I use bank account. But I didn’t know about the 3% either so I learned something too. ### END.
### Comment: You saw the screenshot that make insane money ? Becoz the chance is very low . IV crush and time value makes your option worthless. Also, even you are correct on direction, does it move enough? Think about that. Only buy fd option when u think the option priced too low for the upcoming movement. Always long call. Long MSFT, LONG V that kind of stuff. ### REPLY: Thanks mate ### END.
### Comment: Lmao RH screenshots on marketwatch.com What have we done? ### REPLY: We done changed the game playa, done changed the game... Yolanda pleeeeeeeeseeeee ### END.
### Comment: For a generation that has access to more information and memes thanks to the world wide web, I don't understand how you can even come to the conclusion because of soy sauce. Which, the leading manufacturer not only has a mascot but that mascot was a meme at one point. ### REPLY: You don’t understand? Really? I’m not the one who made the mistake in the first place, I’m just giving you a potential reason they might have fucked up. Soy sauce and tofu are two things I know to be made from soy. Given their association with (east) Asia, I can easily see how someone might think the beans are grown over there. A bit like rice. ### END.
### Comment: His cold, routine thrusts can be timed perfectly to a metronome ### REPLY: My chassis are so lubricated right now. ### END.
### Comment: Well guess I was wrong. The stock...kinda just did nothing all day after opening. I still think it'll rebound slightly over the next week or so though. ### REPLY: It's gonna take a while to figure out the new valuations that's why it didn't move up much. It will rebound I'm sure. The company ain't dead. But it has to be reevaluated by big money ### END.
### Comment: Wouldn't the 292% weekly options get crushed even harder by ER though? Just trying to understand this move a bit. ### REPLY: Yes, the IV would get crushed more, but there's also Theta, and the theta is MUCH higher on ER days. So the IV won't get hit as hard for the later options, but they're going to lose close to $2 on theta ### END.
### Comment: My question was more so why Ally Bank vs others, but I guess the high APR answers it. It looks like Synchrony has some great options as well. ### REPLY: Also Ally is a bit of a meme around these parts ### END.
### Comment: Its photoshopped. its okay I didnt realize either. ### REPLY: it is his actual pool though. i just had to photoshop him near it because there are no photos of zuck near a source of water which is not suspicious ### END.
### Comment: Dude the SEC isn't going to come after you for purchasing one contract. ### REPLY: Especially one that expires worthless. ### END.
### Comment: That would be a safety violation. Ceiling fans are not mean to bear such a heavy load. ### REPLY: OSHA can pin the fine to the collar of his dangling corpse ### END.
### Comment: plz tell me you didnt do this ### REPLY: was great at the market open ### END.
### Comment: its all about balance ### REPLY: As all things should be. ### END.
### Comment: Yes, they’ll write you up on outsider trading charges ### REPLY: lmao ### END.
### Comment: Sounds more realistic than getting it from vaccines tbh. ### REPLY: Oh no, this autism comes from injecting $MU calls right into your tendies ### END.
### Comment: You think average American only spends $20,000 a year or less than $2000 a month? How stupid can you be? And I’m married so it not like I’m spending all that in myself. It’s okay if you assumed I’m an incel loner like yourself https://www.google.com/amp/s/amp.usatoday.com/amp/34378157 ### REPLY: Based off if OP's pictured value of 451k, split over eight years that's nearly 5k in spending a month. Even after capital gains it's around 4k/mo. By most metrics, a solid 4k a month in spending isn't frugal. That's a two bedroom apartment in downtown Seattle, a car payment, and eating out twice a week. Even with two people 4k is high to be called frugal. ### END.
### Comment: I think facebook got murdered for declining users more than anything and that's a huge unknown on twitter with the whole bot removal ### REPLY: I went long the stock. Calls were priced much higher than the puts. I can take a percentage loss no problem. But I know right after earnings the IV drop would crush me if I’m wrong and diminish my reward if I’m right. For the first time in my life I’m taking the conservative route ### END.
### Comment: This is WSB. YOLO ### REPLY: YOLO'd. thx for the confidence. ### END.
### Comment: Kinda want to because they will probably crush it ### REPLY: They crushed it ### END.
### Comment: The 5/6% for retirement purposes is the annual drawdown which includes reduction in principal. If you have $1 million at age 60, sure you could budget to use $50,000 per year until you die, cause you don't care about how much $ you have left in the account when you die. Assuming a 7% return means the principal also has to remain whole. It's a totally different scenario. ### REPLY: 5/6% is considered a very high draw down, especially in volatile markets. I think a few years ago, a conservative drawdown % was 2.7%. ### END.
### Comment: I ate Chipotle twice last week via UberEats ### REPLY: Quality DD ### END.
### Comment: Sell. Take your fucking profits. ### REPLY: I want to tell him to hold bcuz it's funny, but don't actually want op to lose money if serious... You know what hold that shit op. ### END.
### Comment: What are omt puts? Sorry. I'm new to this. ### REPLY: Out of the money put options. You can google it for more info ### END.
### Comment: Never said it doesn’t come from advertising? I said they are not a social media network exclusively and to label them as such is small minded. Stop arguing about nothing ### REPLY: You're dumb. ### END.
### Comment: Here from /r/all but from what I've gathered he essentially bet $60k that Facebook stock would drop. There are comments in this thread that explain it in more detail, I don't want to accidentally give incorrect information. ### REPLY: How do you make money from that though? ### END.
### Comment: out of the money TWTR put expire 8/3 GG WP ### REPLY: Picked up 4 of those suckas cheap today.... ### END.
### Comment: They were fascinated by the -600%s ### REPLY: Well yeah, just buy the opposite as the next big post ### END.
### Comment: What you invest in when your options are worthless ### REPLY: lol thank you! ### END.
### Comment: Remember where you're posting ### REPLY: Yeah sure, but it's well beyond this autistic sub. Most people I've ever had a 'tax bracket' discussion with didn't understand it, ranging from Wal-Mart workers to doctors. ### END.
### Comment: Mind me asking how a fellow 24 year old had 160k to yolo on options? ### REPLY: This is the most important question here. ### END.
### Comment: Whats a put ### REPLY: Welcome to WSB. A put is an option contract where you pay a small premium to the seller to have the 'option' to short sell a stock at a certain price on a certain date. Essentially we bet that Facebook's stock would fall far, so we made about 1500% profit off of this trade. Unfortunately for me, I only made 1500% off of $200, unlike OP who bet like $50k ### END.
### Comment: Only down 1 percent now overall on all my pypl shit. Looks like its recovering. You might be doing a little better now. Edit: now I'm up one percent baby. ### REPLY: No I’m not lol I sold them for a few zucc buc’s ### END.
### Comment: >Run for the hills Run for your life. ### REPLY: *White men came across the sea* ### END.
### Comment: Says you ### REPLY: And the market ### END.
### Comment: Did you actually do this lol ### REPLY: Xe's just a non-binary plantaegenderkin that identifies as a photosynthetic eukaryote. What's so hard to believe? It's 2018, I hope you aren't being a bigot. ### END.
### Comment: Isn’t it like free in Columbia? ### REPLY: No, he heard about how great the skiing was in Colombia, so he literally bought and ran snow machines just to ski in the jungle. ### END.
### Comment: Nah give those people a week and they're negative 2,000% and making a hilarious post about it. Trust me, we want more derp. This idea that we're diluting a fine wine or something is just silly, WSB is a subreddit of financial immigrants from the rocky shores of /r/all. ### REPLY: Yeah when i found this sub I had no idea what an option was and had just recently opened my first robinhood account. I looked things up that i read about here on other places like investopedia but I can definitely say I have learned everything I know from this sub. Everybody has to be new at some point ### END.
### Comment: G ### REPLY: G ### END.
### Comment: Robinhood. ### REPLY: is this legit or paper money? If so, I'll quit my job right now and work for you ### END.
### Comment: o block ### REPLY: Rah Rah. Scurp ### END.
### Comment: Options are bought and sold as 'contracts'. Calling them shares confuses things. ### REPLY: Sorry I meant to say $3 per share and $5 per share. The put itself isn't worth $3, yeah, since each contract controls 100 shares. That bit is confusing in itself actually. ### END.
### Comment: thought you were concerned it would cause a dip haha. my b. well this sub was just mentioned in some article on MarketWatch. uptick in noobs inbound. RIP mods. https://www.marketwatch.com/story/one-millennial-options-trader-was-killing-it-then-facebook-cost-him-180000-2018-07-26 ### REPLY: good 'ol u/blueblarflubar ### END.
### Comment: Welp, kiss that $900 goodbye ### REPLY: Yup ### END.
### Comment: 14k a year is a ton if you spent 50k on a 2 bedroom on a couple actes somewhrre cheap ### REPLY: most definitely. you can live decent in any of the vacation countries too. cuba, mexico, , vietnam, philippines . ### END.
### Comment: There plenty of info online. Check out investopedia, Khan academy, tastytrades, YouTube, etc. ### REPLY: Thanks! Looking into tastytrades articles and found the reference section on investopedia. ### END.
### Comment: Read 'A Random Walk Down Wallstreet' and then ignore all the good advice and yolo on earnings week ### REPLY: have just learned about earnings week today! I added the book to my amazon cart, thanks ### END.
### Comment: I sold 7/27 options today for 2k morons paying 120% IV ### REPLY: This is the r-wsb I've come to know and love. ### END.
### Comment: My Butler does that for me. ### REPLY: your butler lets the dishes sit for 3 days? I'd get a new one ### END.
### Comment: the things i would do if it goes back to $14 before Oct... $15p holder here. ### REPLY: $16p here, please baby jesus ### END.
### Comment: I like how you were saying [this a month ago](https://www.reddit.com/r/wallstreetbets/comments/8ta5ek/what_companies_do_you_consider_vastly_undervalued/e16hj0q/?context=1) ### REPLY: We've been bamboozled ### END.
### Comment: I got $3.50 ### REPLY: I'll give u 5$ for ur left ear ### END.
### Comment: Well shit. And here I thought I was smart for buying the dip on LRCX. ### REPLY: You are. Earnings call was a smash hit ### END.