TL;DR

Oracle options briefly offered insane returns, tempting many into risky bets. The near misses highlight the dangers of get-rich-quick schemes; the market always wins in the long run.

Story

Another day, another near-miss millionaire. This time, it was Oracle Corp. ($ORCL) options. Some were thisclose to a 277,900% return. Sounds too good to be true? That’s because it is.

This isn’t a sophisticated scam; it’s pure, unadulterated luck—the kind that ruins more than it enriches. Imagine a casino where the odds are astronomically stacked against you. That’s options trading, especially with highly volatile stocks. The few who “win” are often blinded by the hype and miss the underlying instability. It’s like those who bought into tulip mania in the 17th century or the dot-com bubble of 2000—the exhilaration is fleeting; the losses, lasting.

The mechanics are simple: buying options contracts betting on a massive price jump (leveraged gambling, basically). If you guess right and the stock actually explodes, you profit massively. The problem? The chances of that happening are infinitesimally small.

The human impact is clear: a wave of near-misses fuels disappointment and encourages more reckless behavior. The Reddit post itself reveals the emotional roller coaster. Remember the 2008 financial crisis? It started with a similar delusion of easy riches.

The lessons? Avoid get-rich-quick schemes. Understand that extreme returns almost always mask extreme risk. Options trading is highly complex and risky. Don’t bet on luck; build a robust, diversified portfolio. Treat any advice found online (especially on Reddit) with profound skepticism; they could be pump-and-dump schemes designed to benefit a select few at your expense. Don’t risk funds you can’t afford to lose. Think of it as a lesson in the perils of following online trends blindly.

In conclusion, while the potential for massive gains is intoxicating, it’s often a deceptive mirage in a desert of likely loss. Remember, the market is not your personal ATM. This is why careful research and risk management are essential.

‣Options Contracts: A derivative that gives you the right, but not the obligation, to buy or sell a stock at a specific price by a certain date. Highly leveraged and risky. ‣Leveraged Gambling: Making a bet where your potential gains (and losses) are amplified significantly.

Advice

Ignore get-rich-quick schemes. Diversify. Due diligence is your best bet—literally.

Source

https://www.reddit.com/r/wallstreetbets/comments/1ndv3dq/congrats_to_you_orcl_folks_but_i_hate_you/