Oh no!
Anywayβ¦
19 years old. Life savings. π
i thought it was code for daddyβs money but apparently it was 400 bucks.
Boomers keep telling me I should have put $20 in my savings account with every paycheck starting at age 18 and Iβd be able to retire at 65. Dude was not going to be able to retire at 65 apparently.
He had $400 left in his account before the margin call. The trouble with options is that they can be very highly leveraged, meaning youβre trading on credit, and you can lose a lot of money really fast (and likewise, gain a lot of money really fast). Most brokerages donβt even let you trade on options until you can prove you have knowledge of how the market works. So the kid is probably smart, but like many smart 19 year olds, not smart enough.
This guy owes the brokerage $56k.
19 year old doesnβt have a lot of personal savings anyway not a big deal Time to start saving again. Β―_(γ)_/Β―
If I understand correctly, they can sell the shares they were forced to buy and get back most of the $56,000 they owe.
When you short a stock, you borrow a stock, then sell it, then you buy it back at a (ideally) lower price. Then, you have to give back the stock plus interest. This person canβt sell the stock because they have to give it back. It wasnβt theirs to begin with. They were just borrowing it.
$400 left.Who knows how much he started with initially.
E: started with about $7k
Where the hell is a teenager finding 7k? That takes some bootstraps pulling.
The problem with options trading is you can lose more money than you invest.
ππΏ
How can copper possibly go up in price, its a soft metal, low tensile strength, not resisyent to acids, tarnishes easily. Literally useless except for, I dont know, pots or whatever! Literally nothing else in the world uses copper!
- This guy