r/wallstreetbets • u/DegenOptionGuy 💎Diamond Testicles💎 • 1d ago

Gain 27k -> $765k BABA $125p 4/4

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u/Prestigious_Chard_90 21h ago

Appreciate the answer. I need to get better at connecting the dots like that off news.

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u/BatteryAcid420_ 15h ago

This is rare though. Usually if you see an opportunity that‘s to good to be true there are factors priced in that you‘re not considering. The markets are rarely ever blatantly wrong. At the very least a lot of volatility should be priced into them so you need to be more than just correct with your timing and direction, you also need to hit it far enough.

OP sais „clap back quick“. Sunday would still be quick but OPs option would‘ve been expired for days. So either the guy has no clue what he‘s doing and just got lucky or he was just looking for a small gain and got lucky.

Remember he has to be right, and the stock has to move in his direction more than what‘s priced into the option. All in a day or this is a complete write-off.

I was thinking it‘s a good trade but his explanation makes me reconsider, now I think this is regarded.

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u/DegenOptionGuy 💎Diamond Testicles💎 4h ago

China had a holiday on Friday their markets were closed. When Thursday they said they would respond back. I also figured they’d fuck us since our markets are open Friday but there’s are closed. Waiting till Sunday fucks them and us.

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u/BatteryAcid420_ 3h ago

I‘m proud of you, as long as you could‘ve stomached losing that much and you intentionally went in for absurd risk then I happily reconsider and think of this as a good bet again lmao

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u/DegenOptionGuy 💎Diamond Testicles💎 2h ago

Thank you BatteryAcid420_, that means a lot coming from you

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u/Prestigious_Chard_90 11h ago

That's why I asked. Seems like the news came out when the option market was closed. Like, had China retaliated with their own tariffs on Monday, he's SOL.