r/wallstreetbets • u/startedstonks04-2020 • Feb 01 '25

Gain 12k -> 115k @ 22 yr old

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Friend told me this is post worthy, anyways I’m blessed. I withdrew everything and put it all into VOO. Hoping I’ll be ahead of my age group for future retirement. God bless America.

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24

u/A_Dragon Feb 01 '25

What broker is this!?

How did they allow you to short so many puts with a 12k account on a $120 stock? That would have gone waaaaay outside the margin allowance for most accounts.

24

u/startedstonks04-2020 Feb 01 '25

IBKR, I deposited 12k cash.

7

u/A_Dragon Feb 01 '25

IIRC IBKR is about 4x for buying power. Still seems low. I use a 10k paper account on IBKR and they don’t allow me to sell 20 puts, that’s like 240,000 of margin.

22

u/fxresparks Feb 01 '25

If you're buying options the maximum loss you can lose is the cost of the option itself, but if you're selling them then you would be liable for the margin in the scenario that the option gets exercised.

8

u/A_Dragon Feb 01 '25

Oh haha, I saw sold put as in he was selling puts. I forgot the interface will show the position you use to close which would be a sell to close out your buys.

22

u/uberiffic Feb 01 '25

How would he have made money selling puts to open on a stock that just had a historic crash? Use your smooth brain.

1

u/A_Dragon Feb 01 '25

Because maybe he sold them at the bottom just before the rebound….

Before you accuse someone else of having a smooth brain maybe you should feel your own first.