TL;DR
A Reddit post showcasing Google call option profits likely details a pump-and-dump scheme, leaving one user with a $300,000 loss. This illustrates how easily get-rich-quick schemes can exploit greed and naiveté.
Story
Another day, another rug pull. This time, it wasn’t a complex algorithm or a shadowy offshore entity. It was a simple screenshot on Reddit, a boastful display of gains from what appears to be a Google call option trade. The post, showing substantial profits, quickly attracted comments filled with envy and admiration—a testament to human greed. The mechanics? It’s likely a classic pump and dump scheme, albeit a small-scale version. One individual probably bought a large volume of Google call options, driving up the price artificially (the pump). Then, they likely sold their position at the inflated price, making a profit at the expense of those who jumped in late (the dump).
This plays out like countless financial scams before it. Remember Enron? Sophisticated accounting tricks masked massive debt; here, a simple screenshot masked an equally deceptive trade. The 2008 financial crisis was fueled by similar predatory behavior—subprime mortgages masked as sound investments. The impact? One comment mentions a trader who lost $300,000. This isn’t about abstract market forces; it’s about real people losing their life savings, their retirement funds, their dreams. Their hopes were fueled by the lure of quick riches and the social validation of a boastful post online. It’s a cruel twist of irony: the celebration of someone else’s riches leads directly to your own loss. The lessons? Be skeptical of anyone flexing gains—especially online. Due diligence is paramount; never invest in something you don’t fully understand. If it seems too good to be true, it absolutely is. Ultimately, this incident is a microcosm of larger market manipulations and a harsh reminder that greed and naiveté can be a deadly combination.
Advice
Never invest based on online hype or boasts. Always perform thorough due diligence and understand the risks involved before parting with your money.
Source
https://www.reddit.com/r/wallstreetbets/comments/1kw86is/thanks_google/