TL;DR
Drunk on greed and leverage, a trader bet big against Intel, only to get wiped out. His story echoes past financial collapses, highlighting the dangers of unchecked risk and the illusion of easy money.
Story
They say hindsight is 20/20, but this guy’s options trades look more like 20/20 vision after a week-long bender. He gambled big on Intel (INTC), betting it would plummet. Why? He suspected foul play—a rigged game involving the US government’s significant stake. Sounds familiar? Remember Enron? Or the 2008 housing crisis? These aren’t isolated incidents; they’re cautionary tales of how hubris and the illusion of easy money can lead to ruin.
His strategy involved buying “put options.” ‣ Put option: A bet that an asset’s price will go down. If INTC tanked, he’d profit. But if it rose (or even stayed flat), he’d lose his entire investment. He likely bought these options with borrowed money, leveraging his position. ‣ Leverage: Borrowing to amplify potential gains (and losses). This is incredibly risky; a small market shift can wipe you out.
The image shows a sea of red—massive losses. His “portfolio” looks less like an investment strategy and more like a suicide note. He’s not alone. Countless others have fallen for get-rich-quick schemes, mistaking hype for substance. It’s a classic case of ’too big to fail’ thinking applied to a personal portfolio. But no one is too big to fail in the ruthless world of finance.
The comments are a mix of disbelief, ridicule, and a morbid fascination. Some are sympathetic, others gleeful, but everyone’s watching this financial train wreck in slow motion. This story is a grim reminder: the market isn’t a casino where you can win big with no risk; it’s a complex ecosystem where informed decisions and risk management are key—especially when you’re up against forces far bigger than yourself. It’s not just about market timing; it’s about understanding the inherent risks, especially when a government is involved. The most chilling lesson is that these systemic risks can and do turn individual investors into victims.
His tale ends with a hefty loss, but there’s a far more pervasive failure: the belief that the system is fair when history screams otherwise. There’s no “get rich quick” scheme that’s not ultimately a scam.
Advice
Never invest more than you can afford to lose. Understand the risks of leverage and options trading. Don’t trust get-rich-quick schemes; they’re almost always scams.
Source
https://www.reddit.com/r/wallstreetbets/comments/1npoz8a/i_think_i_fucked_up/