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From: The Ox6/16/2020 10:13:15 AM
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wired.com

Message 32789709

I dug up his email and wrote to him. “It must be a strange sensation,” I said, “to have been terribly right about something you didn't want to be right about.”
When he called me the next afternoon, the US had just passed 4,000 cases of Covid-19, and Wolfe sounded beleaguered. “Right now I'm a little bit—what's the right word for it—overwhelmed,” he said. But he seemed decidedly unenthusiastic about discussing his own prescience. “I'm not interested in Monday morning quarterbacking,” he said. “If you are the person who says the sky is falling and it falls, you definitely feel like saying ‘Why didn't people listen to me?’ But there are a lot of people saying the sky is falling about other things, and it doesn't.”

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From: Sultan6/16/2020 6:33:35 PM
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This is a bit of bummer.. Thread..

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To: Sultan who wrote (5796)6/16/2020 6:45:22 PM
From: The Ox
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There are too many issues with this situation, hard to know where to start. Tragic, for sure and as good intentioned as it was for this person to "share" on Twitter, is that really a proper way to handle a situation like this one?

Giving out only a fraction of the information just leaves me with too many questions. About this person, the young man, the family, why anyone would kill themselves over money, who raised him and how was he raised, and on and on....

wow.

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From: Sultan6/16/2020 7:49:52 PM
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To: Sultan who wrote (5796)6/16/2020 8:34:31 PM
From: Robert O
1 Recommendation   of 5826
 
I saw this story though I don't use twitter. I saw this recent post tonight from what appears to be a RH trader. and of course we all need to wait to find out the actual facts in this [still purported] tragic case but we can suspect this is what may have happened here since if a 20 year old with little income it would seem impossible to truly be exposed like this (unless he really had deposited say an inheritance of 800k no indication the case here) much more likely the below.

Autumn Capital@AutumnCapital
Replying to
@BillBrewsterSCG
and @RobinhoodApp
Tragedy because this is a fault in RH's UI since the very beginning.
When you open a defined risk trade, notional exposure can be massive while net exposure is pretty minimal. RH shows notional exposure when options are being settled at expiry, easily scaring new traders.


P.s. me again. for basic examples see- investopedia.com
Thinking about this if you had very short dated options way out of money you could 'control' a very large notional position with a relatively modest amount of money if you are looking to hit either a homerun ball or strikeout. he may have figured worst case lose that entire investment but then sees that shocker negative cash number. argggg.

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To: Sultan who wrote (5796)6/17/2020 5:36:23 PM
From: Return to Sender
1 Recommendation   of 5826
 
It's just so sad to think that so many people are now trading stocks and options with no idea how much they are putting on the line with a margin account.

Some are young. Some are just new to the market.

When I was both; I suffered through a lot of learning the hard way. Like to never place a market order for a large number of shares of a thinly traded stock and expect the price to be anything remotely close to what it was selling for at the time the order was placed. I still cannot believe how much they walked the price up to this day.

Since then nothing but limit orders.

I also later ended up with a margin call trying to catch a falling knife of a stock.

Inexperienced investors buy stocks and options thinking that huge gains are the almost guaranteed.

After all everyone is making huge money even the guys that used to make money betting on sports are killing it. It's 1999 all over again in my opinion.

The FED has created a false sense of security for the uninitiated trader/investor. The rotational and irrational speculation in stocks that either are declaring bankruptcy, or clearly could soon be bankrupt companies, is a sure sign of that fact.

People can and do lose more than their money using a margin account.

Definitely tragic...

RtS

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To: Return to Sender who wrote (5800)6/18/2020 10:54:34 AM
From: The Ox
1 Recommendation   of 5826
 
With day trading rules, if you have more than 25K in your account, you can leverage many times over that. There should be regulations that prohibit someone with 16K in an account to be trading options with notional values over that amount, especially 50 times more!!

It shouldn't matter if he's taking both side of the trade with a put/call combo, IMO.

RtS,
Your examples are exactly why education is critical before trading stocks. There seems to be a massive the lack of knowledge, where the old expression "you swim with sharks, there's going to be blood spilled" (or some variation of these words) was always understood.

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To: The Ox who wrote (5797)6/18/2020 11:15:32 AM
From: Bocor
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Why anyone would kill themselves over money??

I know more than one experienced trader who has done so with an overallocated positions that blew up. One shot himself in the head over an upside down AMZN earnings trade.

Part of the reason the opiate crisis grew so large was over jobs and money. Take away a person's ability to provide for his family, and the the escape into the Oxy-heroin world is very tempting. Many of them are slow suicides.

Most of the time it is not publicized. If it were my child, the last memory I would want is NOT a Forbes article about his suicide.

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To: Bocor who wrote (5802)6/18/2020 12:31:54 PM
From: Robert O
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A lot of people over history have killed themselves over money, love, etc. humans are emotion driven animals.
Anyway, even the Forbes article does a poor job of explaining the most important aspect of the final leg of his option strategy but at least they are likely onto just what the underlying facts were here:
forbes.com

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To: Robert O who wrote (5803)6/18/2020 12:42:24 PM
From: Bocor
2 Recommendations   of 5826
 
Whether Forbes got anything right or wrong, yes, it may be a lesson to the hundreds or thousands of other Robinhooders, but his parents had to have a say on whether or not it became a national story.

I just strongly believe that his parents will regret the article and publicity, not to mention any relatives.

He looks like one of those high school kids who may not have been "Captain of the football team", and his memory should not be this.

Enough said. It is incredibly sad, and I'm sure his family will never stop asking what they did wrong.

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