He should have listened to them, if even WSB comes together to tell you how stupid that idea is, you know you’ve got a real stinker on your hands.
19 year old doesn’t have a lot of personal savings anyway not a big deal Time to start saving again. ¯_(ツ)_/¯
$400 left.Who knows how much he started with initially.
E: started with about $7k
Where the hell is a teenager finding 7k? That takes some bootstraps pulling.
If I understand correctly, they can sell the shares they were forced to buy and get back most of the $56,000 they owe.
When you short a stock, you borrow a stock, then sell it, then you buy it back at a (ideally) lower price. Then, you have to give back the stock plus interest. This person can’t sell the stock because they have to give it back. It wasn’t theirs to begin with. They were just borrowing it.
The problem with options trading is you can lose more money than you invest.
That has got to be the stupidest reasoning for doing something on the stock market that I have ever heard
Then this person has won r/wallstreetbets, because the entire sub is a meme
Isn’t it the risk of trying to make money with money? It’s like gambling. If you don’t want to risk losing that money, don’t play that game.
19 years old. Life savings. 🙄
Boomers keep telling me I should have put $20 in my savings account with every paycheck starting at age 18 and I’d be able to retire at 65. Dude was not going to be able to retire at 65 apparently.
He had $400 left in his account before the margin call. The trouble with options is that they can be very highly leveraged, meaning you’re trading on credit, and you can lose a lot of money really fast (and likewise, gain a lot of money really fast). Most brokerages don’t even let you trade on options until you can prove you have knowledge of how the market works. So the kid is probably smart, but like many smart 19 year olds, not smart enough.
This guy owes the brokerage $56k.