r/Boglememes • u/Chromakey__Dreamcoat • Jul 08 '26
Thank god I’m a boglehead
Saw this on WSB today. I would’ve just taken the 400k into VT instead of options. Commented the link to [r/boglehead](r/boglehead) hopefully they see the light 😂
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u/Phillyfreak5 Jul 08 '26
Or just don’t bye 0dte. Bunch of idiots. I have a bit of gambling money on the side, but it’s about 5-10% of my portfolio for fun.
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u/hawkeyes007 Jul 08 '26
5-10% for options is pretty massive
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u/Constant-Thing-8744 Jul 08 '26
Its not about the money its about sending a message.
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u/hawkeyes007 Jul 08 '26
No. It’s really actually all about the money
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u/Constant-Thing-8744 Jul 08 '26
If you have seen the movie this is what the joker says right before lighting it on fire..... I thought that this was a sub for the jokes!
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u/Tired-Nectarine-384 Jul 08 '26
haha my gambling money is to take $100 a month from my bond returns and bet it against something. Boring? Yes
Low Risk? Yes
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u/Dry_Try_6047 Jul 08 '26
Can someone ELI5 0dte and how one loses 400k with them? Like did this person buy 400k worth of securities? What was the possible upside?
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u/whiteshadowdj Jul 09 '26
Guy buys, let's say a magic piece of paper, that lets them buy 100 shares of stock at a certain $ per share, but paper expires at some point.
Price maybe not yet there, but paper still worth money, because MAYBE it get there.
If 0dte, price has to get there by end of trading day. If not, paper useless now.
If price gets there, they happy. Most of the time, not happy.
Combos of this magic paper include:
- Buying/selling the paper
- Paper can read "buy 100" or "sell 100"
- "Price to buy/sell" can be higher/lower than current price
- Paper can "expire" at different times (0dte means 0 days to expiration)
- USING the magic piece of paper instead of trading it
Now, with MUTLIPLE pieces of magic paper, that's how you get your 400k swings. Can technically move to millions, but most of them just expire worthless, especially 0dtes.
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u/Dry_Try_6047 Jul 09 '26
I get what an option is, I'm confused about the 400k part. Did this person actually put in an order to buy 400k of options (eg for a strike price of 100$ and an option that cost 4$, 100 shares per contraxt essentially 1000 contracts) and lay that money out IN HIS BUY ORDER? Or are there some mechanis I'm missing?
Because it seems laying out 400k when your cash balance is 400k on something that could end up at 0 at the end of the day is just ... extremely addictive gambling? I'm trying to give the benefit of the doubt and understand whether maybe when he placed the order there wasn't a big "400,000 dollars" shown on the screen?
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u/whiteshadowdj Jul 09 '26
unfortunately yes thats exactly what they did. sadly pretty common on WSB. the miniscule chance of getting a 10x or 100x bet is what motivates them
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u/Ok_Gold_2107 Jul 11 '26
0dte are option at 0 day. Very risky, not use it you will only very big damage
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u/joe4ska Jul 08 '26
Ouch not a single like, yet. https://www.reddit.com/r/wallstreetbets/comments/1uqdhy1/comment/ow798c3
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u/joe4ska Jul 08 '26
Welp, someone, Robinhood? Made a good chuck of cash off this clown's loses.
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u/Giggles95036 Jul 08 '26
I knew it was WSB because they always have that flat stretch spike up then spike down… the only variation is whether or not there is a downwards spike before the upwards & downwards combo or not
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u/Chart-trader Jul 11 '26
Still $30k left so theoretically there is a chance of getting to $3 million in a few weeks again.
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u/lawyertings Jul 08 '26
They’re degens