So we can learn from other traders experiences. First off we have user keen feed who shares some hardcore lost porn of his portfolio, decreasing in value by more than 150 000, mostly from calls on gamestop and ev stocks. He shares a screenshot of his positions, showing numerous call options on gamestop, apple, aphrya and neo. In total, he has more than 13 call option positions, all of which are in the red, with losses ranging from negative 10 for this afria april 16th call to 99.96 loss for this gamestop february 26 call in his post. He says he lost more than 150 000 and if you add up the losses on all the positions, it adds up to almost 200 thousand dollars of losses. The majority of them came from gamestop, which account for 143 thousand dollars, followed by neo, which account for about thirty nine thousand dollars. This is a truly sad loss for the op. It took him years to build up the savings for these yolos and the money was originally supposed to go to building his first house. This was a true yolo for him, and now he is left with no house and no wife, and only eleven thousand dollars left in his account. Many fellow wall street best users are sympathetic and encourage the op to look at the bigger picture, while losing two hundred thousand dollars is surely gut. Wrenching it’s important to keep in mind that we enter this world with nothing and at the end of the day, when we enter the shadow of the valley of death, we will take nothing with us as we enter the next realm.
Our lives take unique paths, but whether you are rich or poor, our paths will ultimately end at the same destination. Next up, we have user dark lights. Lights973, who posted a screenshot of his amc, call position up a whopping, 29, 000 or 29 000 on the morning of january 27th. He bought 10 contracts of 9 strike, calls for 10 cents each. So he put in 100 into 1 000 call options on this investment on that morning, amc opened up 300 percent jumping from 5 to 20 dollars a share overnight. His calls were about 50 out of the money before that morning, but more than 100 in the money by market open with amc at twenty dollars a share. There was eleven dollars of intrinsic value in each option, which is how much profit you would make. If you were to exercise the option at that very moment, one person in the comments asked how it’s possible to have an option that is worth more than the stock price itself. The answer is because of the extreme volatility of amc. It was very possible that it could keep going up even further before expiry, with unlimited gains, although it could just as easily go down if it went back down below the strike price. The losses would be capped by the construction of an option. So this added another 18 of time value to the option. At this moment, the op sold some of his options, because in order for him to have benefited from holding the stock would have had to go to 38 dollars a share at expiry.
Basically, he realized that the time value of the option was inflated and that he’d be losing more than half of his value to theta. If he held since then, amc has given up most of its games and now trades about 5.70, a share 70 below its closing price on january 27th. This is about in line with where the stock price was at for most of 2020, unlike gamestop, which seems to have had a permanent increase in price due to the short squeeze. Next up, we have user tesla, bmw 6 with another screenshot from the glory days of the short squeeze. He went all in on gamestop for 200 shares, which made up 100 of his portfolio diversity at the time of this screenshot gamestop shares were at 445 dollars. So here is up 75 thousand dollars for 519 returns on his 15 000 investment. Unfortunately, gamestop failed to hold on to the majority of those games. Thanks to certain actors behind the scenes they now trade around forty to fifty dollars, a share which, while significantly higher than where they were six months ago, is significantly below the op’s 70 cost basis. User love thunder muffin says that the title it felt good is hard because for those couple of days the glory of wall street bets felt kingly for those that didn’t sell. However, it only lasted for those few days. Next off we have user accomplish bit, who shares a screenshot of his portfolio, showing large losses on amc, blackberry, castor, maritime gamestop and patriot 1 technologies.
The op hails from sweden and says he will see his fellow swedish degenerates in valhalla. Some users are interested in the currency he used to buy the shares which are labeled bellop on his account. Some users speculate that this is a new digital currency, but it turns out is just a swedish currency of the op’s five positions. Three of them are well known in meme stocks, amc, blackberry and gamestop, but he also holds positions in two little known: penny stocks, caster, maritime and patriot. One technologies, castor maritime, is a global shipping company that engages in seaborne transportation of a wide range of dry bulk commodities along worldwide shipping routes through its dry bulk vessels, unfortunately, for the op he bought into these stocks years ago and has been battling for a long Time as they have underperformed the market on the positive note, despite his large trading losses, the op won’t have to worry about putting food on the table, because sweden has one of the most generous welfare states on the planet. We wish you luck on. Your future plays next up. We have some nice games on a long dated call option play on wells fargo. This user held eight thousand dollars of 40 strike, calls on wells, fargo expiring in january of next year. He bought them in late october 2020, along with some long dated calls on xlf’s spyder financials etf. The xlf has, since gained more than 30 and wells. Fargo has gained more than 75.
Even though wells fargo calls are still 10 out of the money, because the op used long dated options, they have still made money so far. He is taking advantage of the leap strategy where you use options to essentially gain leverage on a long term. Investment rather than speculate on short term weeklies with leaps, you reduce the amount of theta decay. Your options are exposed to because of the long dated expiry. The opi’s investment thesis that wells fargo is undervalued, was able to make him money because, as long as the stock goes up at some point in the following year after he bought the calls he makes money. Wells fargo has been doing well recently due to a combination of increasing interest rates, as well as speculation that the fed is close to lifting the asset cap and imposed on the company several years ago, among other restrictions. If this happens, wells fargo could increase the size of his operation significantly as well as possibly bring back its old share, buyback and dividend growth programs. However, if the fed decides not to or interest rates, stop increasing wells, fargo’s operations could be in for more pain in the years ahead. Next up, we have user saint of fury whose portfolio has significantly underperformed the dow jones industrial average since the beginning of the pandemic. Over the past 365 days, the dow has increased in value by 11 percent. During that same period, the op’s account has decreased in value by 93.
His portfolio was not well positioned going into the pandemic as he owned boomer stocks, including exxon mobil, occidental, petroleum carnival, cruise lines and american airlines. He sold out of his stock positions after the first dip, but then converted to calls on the same stocks. Unfortunately, the stocks continued to fall as oil prices briefly turned negative and air travel was severely impaired. Consequently, most of his calls expired worthless and he lost almost his entire portfolio value. To add insult to injury, a lot of these stocks started to rebound strongly after his calls expired. Had he waited another month to buy into them. He could have actually massively outperformed the market and now, with the vaccine starting to be distributed, there is much optimism around the reopening stocks, as many investors expect to return to normalcy in 2021 and despite his poor performance in 2020, the op is not giving up. He points out that if you zoom into the chart and just look at his performance in 2021, he’s actually doing pretty well, although it will take him a long time to make back his 93 percent loss, we wish you luck on. Your future plays alright guys that wraps it up for this video, if you like, the content, make sure to leave a like and subscribe to the channel. So you don’t miss future videos also be sure to follow us on tick, tock and instagram. If you have any recent gains or losses, let us know about them in the comments section below.
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