The CWAL Rubber Room
"Sometimes you have to watch a large man's penis. Everything has a price." - Fron
I've gotta admit, this game looks pretty fantastic:
I was on track to lose $100 last week due to investing in excessively volatile things, but then suddenly on Thursday evening something magical happened. Somebody decided to exercise a call option I'd sold as part of a spread when it was just barely in the money, even though the option had an intrinsic value of like $80 left since it had a week until expiration.
Then the price shifted a little between then and the morning, so I was able to close out the resulting position at a $2 profit, and sell the other half of the spread at a profit, and keep the full profit from the initial sale of the spread. All in all I made $180 on an investment that had a max possible loss of $20 and a max possible gain of $80 if everyone had been keeping up to speed on their game theory.
I think some new /r/WallStreetBets poster must have stupidly misclicked a button or something.. I guess it's possible I'm dangerously ignorant, but I've read 6 reference books about the stock market and options trading, most of the contents of Investopedia, and I watched The Big Short TWICE