I am never trading options again
This was the original title and post I wrote up before the events of Thursday transpired. Everything in quotes was written by past me:
"I’ve disabled options trading. I will dump all my money into blue chips and index funds. I’ve just made 100k over a span of 3 days.
The contracts gained more value, but I didn't screenshot
The screen shots are incomplete because I was trying to sell quick. It’s about 100k profit when you factor in I lost 60k entering the trade on shorter dated puts.
I’m going to be completely candid. Whether that gets me banned or not, I will take that risk.
From the moment I uttered this comment, I set fourth the most regarded scheme in history.
When I decided to hold until recivership
At the time, FRC hadn’t halted trading. I reached out to Robinhood support to get their stance on what would happen during a halt. I didn’t show the full conversation, but they were extremely unclear. They said that I would be short if I exercised, but I’d have a hard time covering that short position. Although this is not saying yes or no, it’s definitely terrible communication on their part.
A lawsuit based on the hypothetical scenario we discussed is a complete long shot. Out of curiosity, I asked a lawyer that day. They said I was likely to win if Robinhood backed out but they needed more details. I did not trust this scummy lawyer. I had another option. Robinhood had previously cracked to social media pressure and allowed people to exercise puts into a short position. They have a history of bending to social media backlash. There’s even this disclaimer when stocks are halted:
This is directly from backlash on Reddit when they disabled the buy button.
I thought I could increase the odds by creating viral posts about Robinhood’s misdeeds. Hopefully Robinhood would crack knowing their name was being smeared on the front page of Reddit. WSB backing me would have been helpful but not necessary. I just needed to make noise.
I believed the chances I could cash out were high to begin with. I was sort’ve right. Multiple brokers allowed exercising into a short. Just not Robinhood. They still may have made an exception, as their support told me multiple times it “might” happen. But I wasn’t about to wait till expiration without a fight.
Within the quest to fight Robinhood, I made this bet:
Robinhood did not allow short selling for FRC put holders as the terms of the bet demanded. I sold the contracts instead of exercising. [Based on the terms of the bet I do not have to pay anything. I still planned on donating a few thousand until yesterday.]
Whether this scheme would have worked, I guess we’ll never know. FRC began trading OTC and exercising was not necessary anymore.
Despite being correct, I’ve taken up a reckless unsustainable trading approach. If I continue on this path, I will lose everything. I’ve seen it so many times where someone makes a very intelligent correct trade, then starts thinking they’re a trading genius. They start making reckless bets in things they have no business buying. This is an extremely slippery slope for me. I’ve blown up multiple accounts and I refuse to make the same mistake. I hope I can set an example- don’t keep rolling the dice. Take the money and run.
I know it’s very obvious to everyone; cashing out is the smart thing to do. But in my position the rush of euphoria from a massive win like this is intoxicating. The sobering despair of previous losses melts away. It’s very hard to fight the imaginative ideas of becoming a multimillionaire and retiring under 30. I hope I can set an example and inspire others to break the gambling cycle. Hopefully, I will be able to maintain self control, but the urge to make one more bet is always there. I refuse let myself squander this life altering amount of money."
PRESENT MOMENT:
I saw PACW tanking after hours based on news that they were looking for sellers. They had already said this in their ER that they were looking to sell assets. I felt the drop overblown fear from FRCs collapse.
I bought when it was at $2.90 but because I didn’t put a limit order in RH averaged purchase price was fucking $3.40 my god. Immediate 40k loss.
Then I think to myself: PACW’s drop is not completely overblown. The need to shore up liquidity is bad in this environment and a recovery is higher risk. So I thought, let me buy a regional that is being pulled down just because everything is tanking: FHN.
The TD CEO firmly stated they were committed to buying FHN. So any massive drop has huge upside. Surely TD wouldn’t back out of the deal 8 hours after I go all in.
I sold around 9.70, still lost a ton, but this loss wasn't fully realized
I am completely spiraling into whirlpool of gambling and degeneracy. I am trying to control myself. I lost another 50k yesterday and made it back just as quick. I'm playing with fire and I'm foolishly dead set on making back what I've lost. I've finally found an amazing risk reward trade to make all my money back plus profit. Selling WAL puts. I still stand by the idea that this current panic in regionals is far overblown. WAL especially is nothing like FRC and its odds of collapse are extraordinarily low. Currently selling $12 puts for a huge premium while that stock is at $20, this is a very safe bet to make back everything. I will roll into the $2.5 puts for an even safe bet. IV is at 500%, this is almost free money. WAL is not like FRC, even if PACW falls, WAL will be ok.
Everything is riding on WAL surviving. Very safe bet in my opinion.
Then I can finally end this nightmare, quit the gambling and move on with my life. No more sleepless nights, no more insane schemes. I will finally come out on top and follow my original intentions after I made out on FRC. I am jumping into a wild ape cage posting this. I am revealing myself to be a reckless fool to the millions that believe I owe an Autism charity $10k. The internet is brutal, do with me what you will.