Hey guys I wanted to share my story in hopes that some of you defend will learn from my mistakes. Also for those of you who are experiencing something similar, I want you to know you can make it. So without further ado, here is my story (proof).
For every gains porn post someone out there is on the other end with a loss. I can still remember when the GME runup began. I was so sure it would blow over in a day, and I picked up 10k in 3 month out puts just as GME crested 40 dollars. I remember as it skyrocketed I even found myself up on my position as the I/V grew. But I wanted more and I was so sure it would be back to 4 dollars in a month or two. Lesson one, don’t get too smart, and don’t fight the market.
Well, a few months rolled by and the expiration on my options was getting close, they had slashed in value down to a third and even though GME had fallen, they weren’t worth what I paid for them. I could have cut my losses and been out about 5k. But this is where I made my second mistake. Trading options on emotion. I couldn’t believe my puts were priced correctly so I rolled them out a few more months, and aggressively. My position was now 50k instead of 10k. I couldn’t let go of my ego and take the loss.
Well, as fate would have it, a few days later GME would rip back up into the 200s. My freshly rolled position, started collapsing, and fast. I remember sitting at work every day, constantly pulling out my phone and staring at the GME ticker, waiting for any drop, hoping to be saved. But, my salvation never came, and my position got worse and worse. Enter my third mistake, doubling down. At this point I was desperate. I wanted, needed, to make my money back, so I averaged down, and averaged down again. My position was now worth just over 100k.
With each passing day, my position ticked down in value. I remember one day so vividly as I saw my losses pile up into the 80k range I noticed sharp pain in my chest. It had been getting harder and harder every day, and the extreme stress was taking a toll on my body. I held on for a few more days, but the pain was getting worse, and I was literally shaking ™, from the stress. Finally I called it. I closed my position down a total of just over 100k. It was one of the hardest things I’ve ever done.
As pathetic as this sounds, I remember actually crying several times thinking about what an idiot I was. When you lose that kind of money, and for me this wasn’t play money, it takes you to a dark place. I remember ringing in my head over and over, what was I thinking, how could I make such a mistake. It was one of my lowest points ever, and it felt like I would never feel normal again, anyone who has been in my shoes knows what I’m talking about.
Well, it’s been 7 months sense then and I will never touch an option again. I know now that I have a gambling problem and I can’t put myself in that kind of position. It has been hard, to come to terms with losing something I spent many years of my life building, but I have made it through. To anyone who is where I was, right now, I know how it feels, and I promise you the age old adage, time heals all wounds is true, it does get easier.
Anyway, thanks to anyone who read all the way through, I hope I can somebody out there learns from my mistakes, or at the very least cracks a smile laughing at my misfortune. I wouldn’t be who I am now without my experience, so cheers you beautiful bastards.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.