The Reddit geek who raked in $100,000 with 2 trades is 'taking a small break'

T

trader99

Do you guys know his exact puts and strikes? I'm curious
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"When shares of the streaming provider fell 19% on September 20, Choi's $766 worth of options was suddenly worth $50,553."

https://markets.businessinsider.com...28611560?utm_source=markets&utm_medium=ingest

Choi, whose Reddit username is TheTriviaTribe, returned to WallStreetBets to share the Bloomberg story in a thread titled, "I Did It!" He also answered several questions in the comments.

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https://markets.businessinsider.com...-trades-taking-small-break-2019-10-1028611970

Eddie Choi turned less than $800 into nearly $108,000 by purchasing puts on Roku stock and SPY — the S&P 500 exchange-traded fund — then profiting enormously when they fell, Bloomberg reported. He learned how to trade options on WallStreetBets, a subreddit with the tagline "Like 4chan found a Bloomberg terminal."
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That's a HELL of a return from a 19% drop, I had 1 on SEC news drop 60% over night, OTM puts just from vague memory based on how I used to trade, think I'd paid $1.20, worth $0.70 at the time, so $240 worth had 2 Contracts, $18 dropped to $8 vaguely, sold out for $1700 ( remember that for 100% ) so sold $8.50 per contract, as you see no where near that rate of return.

If he's of bought 125's with price @$135 cashed out that day $105 for price @$20 per contract, so $2000, so 25 contracts, 30cents per contract very price cheap but expiring on the 20th Sept so if only bought a few days before maybe I guess.

Tweak the numbers up and down a bit, but should be pretty close.

SPY wise only a double, no a biggy options wise.
 
Anyone posting on a forum without proof should be taken with a simple grain of salt. Some of these reddit posts can sometimes be completely bogus.
 
S2007S said:
Anyone posting on a forum without proof should be taken with a simple grain of salt. Some of these reddit posts can sometimes be completely bogus.
More...

Bloomberg checked his account statements.
And out of million traders it’s possible that one will hit the lottery.
Though this is not much different than “regular” trading. His return was 65x on a very low probability trade, and if anyone would make 65 such trades per year they have a chance of making 0% annually, or losing everything.
Btw, the roulette has 1:35 chance of winning and you wouldn’t be anazed that someone has won. It’s even possible that once in a while someone wins couple times in a day.
If you want a similar or a better “trade” just visit a casino.
 
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Winning a big bit once in a while is bound to happen if you place enough big bets, the vast majority end up going bust just as fast as they made it.

Surprised this even made the news, junk food for the impulsive casino mentality types that are all about instant gratification. Growing your equity curve year over year take's a great deal of skill - a whole different world.
 
comagnum said:
Winning a big bit once in a while is bound to happen, the vast majority of those making big bets without a good risk mgmt strategy end up going bust just as fast as they made it.

Surprised this even made the news, junk food for the impulsive casino mentality types that are all about instant gratification. Growing your equity curve year over year take's a great deal of skill - a whole different world.
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It's a Charlie and the Chocolate Factory-type story.

What I wonder, is how much did he put at risk to make that money? Could his $766 worth of options have caused him to lose more than that amount? To the tune of an unlimited amount of loss? Or just the $766?

Now that he made $100 grand, he could just throw his buying puts at a dartboard and eventually hit a bullseye, 1% of his account at a time.

If it were that easy, everyone would do it and be insta-millionaires.
 
Overnight said:
What I wonder, is how much did he put at risk to make that money? Could his $766 worth of options have caused him to lose more than that amount? To the tune of an unlimited amount of loss? Or just the $766?
More...

Just the $766. The max loss for buying options is the premium you've spent.

"turned less than $800 into nearly $108,000 by purchasing puts on Roku stock and SPY"

But yeah, it's financial porn. For every guy accidentally hitting the $100k lottery, there are thousands who are losing millions of dollars in the aggregate, daily. Without their continued support, we'd all be a little poorer...
 
guru said:
Bloomberg checked his account statements.
And out of million traders it’s possible that one will hit the lottery.
Though this is not much different than “regular” trading. His return was 65x on a very low probability trade, and if anyone would make 65 such trades per year they have a chance of making 0% annually, or losing everything.
Btw, the roulette has 1:35 chance of winning and you wouldn’t be anazed that someone has won. It’s even possible that once in a while someone wins couple times in a day.
If you want a similar or a better “trade” just visit a casino.
More...


Did they post his exact trades?? They said he bought puts in roku and spy. That's all I'm getting out of the story. I remember the day roku fell hard but not enough to warrant such an extreme amount of return.
 
Overnight said:
It's a Charlie and the Chocolate Factory-type story.

What I wonder, is how much did he put at risk to make that money? Could his $766 worth of options have caused him to lose more than that amount? To the tune of an unlimited amount of loss? Or just the $766?

Now that he made $100 grand, he could just throw his buying puts at a dartboard and eventually hit a bullseye, 1% of his account at a time.

If it were that easy, everyone would do it and be insta-millionaires.
More...



Just $766 but with roku being a $150+ stock at the time he would be lucky to only buy a few put options placed at around $2-3 a put, that's why I cant understand the return he made.
 
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