Disaster
Armed with knowledge from binge watching SMB capital and tastytrade youtube videos, decided to do more risky trades in my other brokerage account...
Instead of buying YOLO CALL options WSB style (which comes with defined risk, high potential return but low probability of success)...
Went for selling naked options (which has high risk, capped returns but high probability of success)...
Instead of buying YOLO CALL options WSB style (which comes with defined risk, high potential return but low probability of success)...
Went for selling naked options (which has high risk, capped returns but high probability of success)...
Turns out selling naked options is not the best decision since the market had been crazy in recent months... and this was the result:
Fell into the traps of OPAD, SPRT-GREE merger and APLS.
Was monitoring $Offerpad Solutions (OPAD.US)$ and observing how it moved... It is quite obvious that in the case of OPAD, market manipulation is real...
Some big money, be it from proper hedge funds to shady underground organizations, manipulated the price up to force out smaller margin accounts... Literally stealing from small retail investors...
Some big money, be it from proper hedge funds to shady underground organizations, manipulated the price up to force out smaller margin accounts... Literally stealing from small retail investors...
In the case of $Support.com (SPRT.US)$/ $Greenidge Generation (GREE.US)$, it seems like a counter short squeeze...
Retail investors had some success in GME and AMC with the short squeeze by forcing big money holding shorts to eventually buy back at a loss.
What happened to SPRT was obviously staged... Making SPRT look like a short squeeze opportunity and trapping everyone by devaluating the stock through a merger.
Seems like a warning from big money that they have the tools and rules on their side to counter short squeezes in future...
Retail investors had some success in GME and AMC with the short squeeze by forcing big money holding shorts to eventually buy back at a loss.
What happened to SPRT was obviously staged... Making SPRT look like a short squeeze opportunity and trapping everyone by devaluating the stock through a merger.
Seems like a warning from big money that they have the tools and rules on their side to counter short squeezes in future...
A great learning experience... but now i have to rethink my investment strategies and recover from this loss ![]()
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bic mutney : buy calls on $Greenidge Generation (GREE.US)$ better, stocks always go up
Blue chip : It’s not a big loss, and more than offset by your prize money from the paper trading competition. You appear to perform due diligence for your trades, so I’m pretty sure you will recover the small loss very soon.
pcwSg OP Blue chip : the prize money doesnt really offset this, the whole account is 100% made up of the prize money![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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before the competition, my portfolio is 90% SG stocks, 10% US etfs (in other brokerages)
after the competition, decided to put 70% of the money into a new brokerage account for option plays (am very new to options), 20% stays in moomoo for short term speculative plays, and 10% was spent buying good food for the family... so now have to liquidate some other positions to fill this gap
不倒翁1975 : never do naked option. you can try vertical put and call. It has a limited risk.
pcwSg OP bic mutney : stonks maybe... stocks maybe not...![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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pcwSg OP 不倒翁1975 : indeed, should have traded vertical spreads instead since i am new to options and have small account size...