The Soapbox

hoolstoptheheels

Joined: 01/04/2001 Posts: 26970
Likes: 34205


The lesson of Long Term Capital Management.


They levered the crap out of a bet that, in their words, was “right”, but took longer than they were able to bear, given all the leverage.

Which, you know, means they weren’t right. Another problem with buying puts - you are making a bet on volatility more than on the underlying security. Buy TSLA puts, you are short TSLA, but long volatility - I don’t think most casual observers properly gauge that risk.

(In response to this post by southdenverhoo)

Posted: 01/25/2021 at 12:56PM



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Current Thread:
 
  
You guys watching what’s happening with $GME? ** -- hooshouse 01/25/2021 10:56AM
  The guys who short stocks rooting for them to fail -- WahooMatt05 01/25/2021 11:25AM
  Maybe I’m looking at it too simplistic. -- WahooMatt05 01/25/2021 12:21PM
  I think you make a moral argument where one does not apply. ** -- hoolstoptheheels 01/25/2021 12:57PM
  Interesting view. No question that any investor roots for -- hoolstoptheheels 01/25/2021 11:30AM
  Or bet against the Hoos. F them too! ** -- Hoodafan 01/25/2021 11:30AM
  Turn those machines back on! ** -- Brown Water 01/25/2021 11:21AM
  It’s totally Reddit and Robinhood Bros. ** -- hooshouse 01/25/2021 11:02AM
  Apparently $BB is another target. ** -- hooshouse 01/25/2021 11:21AM
  It is a classic short squeeze. Shorts getting killed. ** -- orangenblue 01/25/2021 11:14AM

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