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A comment on Day trader army loses all the money it made in meme-stock era. Parent comment
for instance, on thursday I bought a put for a stock that I didn't think was going to make earnings on Friday open.
Before the day closed the put options were at 55%.
The next day, they made earning and my same put options were trading -30% (IV crush).
So in panic and afraid of theta decay, I sell to close on Friday.
On Monday, today, I see the stock has hit my OTM strike price and had I held on to those put options I would be looking at 720% ROI, or a 7-bagger.
It really hurts when this happens. I really do not recommend trading options.
for instance, on thursday I bought a put for a stock that I didn't think was going to make earnings on Friday open.
Before the day closed the put options were at 55%.
The next day, they made earning and my same put options were trading -30% (IV crush).
So in panic and afraid of theta decay, I sell to close on Friday.
On Monday, today, I see the stock has hit my OTM strike price and had I held on to those put options I would be looking at 720% ROI, or a 7-bagger.
It really hurts when this happens. I really do not recommend trading options.