Weekly Recap: How Many Casualties Did Pinduoduo's 72-Hour Blitz Claim?

In just 72 hours, a meticulously orchestrated onslaught against retail investors unfolded, offering yet another sobering lesson:

1. Market Action: From Wednesday through Friday, the market behavior witnessed in the past three trading sessions resembled a textbook example:

March 20th - Tombstone Candlestick: An explosive earnings report triggered an initial surge, propelling the stock to a high of 150 before swiftly reversing course, slamming both shorts and longs, ultimately closing marginally higher.

March 21st - Longs Massacred: Despite anticipations of a rebound, the stock continued its downward trajectory, decimating nearly all long positions.

March 22nd - Pulse Line: Opening with an uptick followed by a dip, the day saw a minor rally forming a glimmer of hope. However, post-noon, a relentless onslaught on options ensued, wiping out virtually all positions at 120-122, leaving minimal profits (barring quick exits).

2. Trading Actions:
Personally, my 122 calls from late February were obliterated, swinging from a potential 300% gain to a 50% loss in under 48 hours.
I'm curious about others' experiences, particularly regarding the 0322-120 calls touted by some. How many bought in, and how many found themselves ensnared?

3. Post-Mortem:
Options Losses: Judging from those comments, many followed the blue or yellow ladder into the 120 calls. Failure to sell immediately likely resulted in significant losses. Those attempting to average down the next day likely found themselves wiped out entirely.

Risk Management Imperative: Options trading is a high-stakes, zero-sum game exacerbated by time decay. The market's textbook behavior over these three days was enough to bankrupt those lacking adequate risk mitigation strategies. While identifying entry points is straightforward, timing exits is exceptionally challenging in options trading. Don't stake your life savings on it. Those ladder-playing big shots may rake in tenfold because they have the capital to withstand losses.

4. Next Steps:
Stocks: Market volatility doesn't necessarily reflect Pinduoduo's underlying value. Personally, I foresee potential for a rebound in the upcoming week or the one after, possibly finding support around the MA200. Institutional profit-takers might also re-enter, riding the next wave.

Options: Exercise caution. Avoid doubling down on expiring calls; while averaging down may be viable in stocks, it can spell disaster in options trading. Don't gamble! I've witnessed the dire consequences of gambling on NIO's earnings. Let's hope the Buffetts among us steer clear of such risks.

To those in the red, seek insightful analysis over emotional outbursts. Ranting won't solve anything. Learn from mistakes and prepare for the next bout.

Investing is an infinite game. Your aim is to stay in the game and accrue long-term gains!