He was Selling and Buying Puts. Problem is, he probably sold the ATM Strike Puts and they're Way ITM RN. Bought the OTM strike one's for more profit and didn't really buy them as the premium would have paid for their purchase. Basically, even though this is a Put Spread, it's a Bullish Trade. If the SPX rises, his low strike's turn green first, meaning he could Buy to Close and then just print money off the one's he purchased. Why not just buy or sell calls. Another way. Sell the OTM to pay for ATM calls would have also worked for the thesis. Only way I figure dude went off the rails. Strategies have a very defined range of max profit and require constant attention. Soon as that selloff started fella should have hit his stop loss and took a small loss
I prefer a Gaggle of Giggling Goons, Assembly of Ass-licking Apes or Menagerie of Manic Mental Monkeys- but Den of Slithering Retards is growing on me.
I lost nearly all my savings of 86k on natural gas futures shorts in 2 days a few weeks ago. I am now resorting to selling my only home (a small condo) which is basically my entire inheritance to pay down debt and still have enough to feed my family for a few more months.
Wow, I read the details below. I hope you keep strong mentally through this. Even though so many of us are going through tough times now, your situation is tougher than most, I believe.
86k is chump change around here for true retard plays.. but thanks for making me feel good about my last TSLA trade that lost me 60k in about 35 minutes.
less than 10 times. Its always a very low risk trade in my opinion. I typically always trade 2 hours before close with with far OTM. stupid me didnt imajine that spx could fall 80 points in 2 hours on a no news day and i didnt monitor the trade actively.
Have some sympathy for that guy. Actually, unlike in the corporate world, he has to bear the consequences of his mistake. "Corporate leaders" make worse decisions all day and others have to pay for it.
Looks like no one's answered your question... Yes, your 80k capital gains will offset the losses, so you won't have to pay taxes on the 80k gains as you have a 1 million dollar loss (which would be reduced to 920k losses that will rollover until you have future capital gains to offset it.) Happened to me when I lost 100k+ one year and made it back, didn't have to pay taxes on the 100k capital gains cuz it was offset by the loss from the year before.
You know there's a reason why when playing options you put against your calls on such large numbers. At least I know that's what Nancy Pelosi does. I recommend you take what you have left to an accountant. Like a real one with a license and start there. This not the place to ask for financial advice. We're just smooth brain Apes who like this stock.
Saw a video of some guy partying in Reno over Memorial Day blow his hand off with a firework. He was so drunk he didn’t seem to realize what he had just done. At least you’re not that guy.
It’s kind of funny because they traded a spread to limit losses, but used so much capital the losses are nuts. They could’ve just gone single leg with like 1/10th of the capital but to each their own. Probably felt safe using a spread, still got violated
Cause the volatility could have turned $1MM to $2MM+ in under half an hour. On a “good day” it could have turned into $4-$5MM in a couple hours… you “just” have to “get it right”
Just keep gambling and make 750K back. Your losses carryover - you can offset more than 3K in losses each year against gains. You just can’t do more than 3K against your income.
Have your CPA redo previous years taxes and make you a professional day trader. As a business its a lower tax rate. You just need to show you conducted it like a business. And then the write off works different, ask a CPA. I think you will be able to carry it forward unlike a regular Joe investment account. Source: I am a 61 year old goof up with no degree but life experience.
Mark to Market will allow you to do this. Once you switch to this method, you will no longer be eligible for the long-term capital gains tax rate. Everything will be treated as ordinary income
OP, yes there is a solution. It’s called mark to market (I think form 475) have your tax accountant change your status for 2022 year as a day trader. Then you can write ALL of your losses against any / ordinary income. So if you make $300k at your job and lose $300k in the market you will owe 0.
The only backdoor is your ass at Wendy's. Jokes apart, the best way to offset that loss is with a profit. The good part is you can offset both stock and real estate profits, so buy a 1 MM house in the coming downturn and hold for 10+ years to double your money on it.
Thanks a lot. It was actually an iron condor. I made 20k on the call side. My mistake was not actively monitoring the put trade, by the time i looked it was already in ITM with 5 mins to go. I never thought spx would fall 80 points in 2 hours on a no news day.
I mostly understand your strategy to manage risk as one side goes ITM, but, is there a visual explanation to 'roll as needed to capture the price between the call and put sides making it100% profitable.', perhaps a video? Thank you
Well a 70K tax through half year means you prolly make 500k a year. Sounds like a recoverable loss. I learned my lesson on options, once I have the loss I limit myself, I turn to regular shares.
I mean, this was a defined risk trade. The max loss was very clear and you knew exactly what to expect as the worst possible outcome before pushing the sell button. Not much anyone here can do to help. Find a CPA who has experience with 1256 contracts.
Best way would be to start a new life in southeast asia / south america. If you're already a million under, no point in continuing what you've been doing, just start over and try a different lifestyle.
guh
!GUH
This is the way.
*10
I dont even know what a vertical put is and yet you are still somehow more retarded than me
Apparently it's a put that takes your balance straight down
unzips
He was Selling and Buying Puts. Problem is, he probably sold the ATM Strike Puts and they're Way ITM RN. Bought the OTM strike one's for more profit and didn't really buy them as the premium would have paid for their purchase. Basically, even though this is a Put Spread, it's a Bullish Trade. If the SPX rises, his low strike's turn green first, meaning he could Buy to Close and then just print money off the one's he purchased. Why not just buy or sell calls. Another way. Sell the OTM to pay for ATM calls would have also worked for the thesis. Only way I figure dude went off the rails. Strategies have a very defined range of max profit and require constant attention. Soon as that selloff started fella should have hit his stop loss and took a small loss
Looks like a credit spread. He sold puts at 4035 and bought at 4030. Since they both closed itm its a max loss.
He picked up pennies in front of a very large, fast steamroller
What a legend tho. Wonder if it’s somebody at Melvin
People with over a mil are asking this den of slithering retards how to proceed.
“Den of slithering retards”. You have a way with words.
If there’s one thing we know it’s how to be poor.
Should be a cave in Diablo Immortals
^^^^^^ this
Nature is healing.
I prefer a Gaggle of Giggling Goons, Assembly of Ass-licking Apes or Menagerie of Manic Mental Monkeys- but Den of Slithering Retards is growing on me.
Correction: used to have over 1 mill
It’s not like we could’ve done any worse than OP
To be fair, they don't have over a mil anymore so... yep, they're in the right place
Or as Warren Buffett said, “Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.”
Maybe you could buy a cheap, used canoe and find a nice lake to float around in? It won't help anything, but it sounds kind of nice.
Time for the old fake your own death in a canoe routine
Why am I laughing so hard at this comment. Maybe because of how honest and wholesome it. Buddy is fucked....may as well enjoy the simple things now.
Sounds like one of many goods or services you could buy with a million dollars of liquid capital!
He'll need to take a cinder block and rope with him
Canoe stonks sound bullish
My parents are selling their canoe. I'll help OP get a great deal on it.
I think you should probably invest the remaining funds in the Chinese housing market as well as the Kratom market👍
I’d like to invest in the Kratom market. Didn’t know such thing exist! Please point me in the right direction👌🏽
Why stick with remaining funds when there are loans? Give yourself a bailout, you deserve it.
what, is kratom about to become illegal or something?
make sure you clear your wash sale on this ticker
Only way is to wait 30 days right?
Good point!!
SPX options shouldn't have wash sales since they're under section 1256
Holy fuck I’m early to something big…
This was my reaction exactly.
sounds like one of the all time posts.
Take 500$, get a 10/10 hooker.
do you live in Oklahoma or West Virginia because 500$ would only get you crabs
Mod this tard now
I lost nearly all my savings of 86k on natural gas futures shorts in 2 days a few weeks ago. I am now resorting to selling my only home (a small condo) which is basically my entire inheritance to pay down debt and still have enough to feed my family for a few more months.
Nat gas is the widow maker
Doesn’t bankruptcy court sometimes let you keep your home in these situations?
Dave Ramsey would be ashamed
Damn sorry to hear of you ever get that kind of money again just scalp Berkshire or something and make a decent living my god
Debt is not a you problem. Its the lender problem.
Wow, I read the details below. I hope you keep strong mentally through this. Even though so many of us are going through tough times now, your situation is tougher than most, I believe.
86k is chump change around here for true retard plays.. but thanks for making me feel good about my last TSLA trade that lost me 60k in about 35 minutes.
Lol what were you thinking
Damn not only did you short energy in this market but you put your life savings on the line. How did you think this was a good idea?!
How is the wife’s boyfriend dealing with this?
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Couldn’t have just been happy with $1 million?
Nope. Because trading options he could make 10 mil. Why happy with one million when he could have 10 million!
I don't think you understand how gambling works
its not about the number its about the % and success rate
Fucking exactly this.
Either deduct $3k the next 300 years or make $1M next years as capital gains.
both ez
I just peed in the sink lol
I see green! So how can you lose! It’s greeen!!!!
With futures products you can apply losses retroactively to offset capital gains from the previous 2(?) years.
looks like this is only true in Canada and not US ?
thanks so much. I did not know that.
You’ve lived more than 95 percent of us bro, have solace in that. You’re a man with balls the size we can only dream of.
Mans took his shot. It was a painfully retarded and probably life-altering shot, but gosh dammit, he took it. Respect.
Eh, Gain a $M lose a $M. Just keep trading.
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Good advice. YOLO everything tomorrow. I'm thinking SPX calls sounds good.
How many times did you successfully run this trade before you got run over by the steamroller?
less than 10 times. Its always a very low risk trade in my opinion. I typically always trade 2 hours before close with with far OTM. stupid me didnt imajine that spx could fall 80 points in 2 hours on a no news day and i didnt monitor the trade actively.
Ask daddy for more trust fund money?
THIS IS THE FUCKING WAY! GODSPEED YOU BEAUTIFUL BEAUTIFUL RETARD!
Try uninstalling the app, wait 10 seconds, then reinstall. This should work.
I think OP has to invert colours as well so it becomes green?
Have some sympathy for that guy. Actually, unlike in the corporate world, he has to bear the consequences of his mistake. "Corporate leaders" make worse decisions all day and others have to pay for it.
They even get rewarded with stock options.
Which is why they aren't worse decisions. This guy has to pay for it himself so he's complete dumb ass
Looks like no one's answered your question... Yes, your 80k capital gains will offset the losses, so you won't have to pay taxes on the 80k gains as you have a 1 million dollar loss (which would be reduced to 920k losses that will rollover until you have future capital gains to offset it.) Happened to me when I lost 100k+ one year and made it back, didn't have to pay taxes on the 100k capital gains cuz it was offset by the loss from the year before.
All in calls for Friday. All in puts for Monday.
Thank you for your service
This is how you deal with it,
Hey man just keep your head up!
Sorry to say bro but you start again thats the nature of the game, nice high score though
You know there's a reason why when playing options you put against your calls on such large numbers. At least I know that's what Nancy Pelosi does. I recommend you take what you have left to an accountant. Like a real one with a license and start there. This not the place to ask for financial advice. We're just smooth brain Apes who like this stock.
You dropped this 👑
I usually handle my losses by opening a new account and acting like it never happened
Saw a video of some guy partying in Reno over Memorial Day blow his hand off with a firework. He was so drunk he didn’t seem to realize what he had just done. At least you’re not that guy.
I saw that video, that was crazy.
Ya just needae drin a lil lol holy shite! I thinkj my pizzae role r donee
Lmfao
Why would you ever risk so much on something so short term??
Impulse and addiction is a crazy monster that knows no limits
It’s kind of funny because they traded a spread to limit losses, but used so much capital the losses are nuts. They could’ve just gone single leg with like 1/10th of the capital but to each their own. Probably felt safe using a spread, still got violated
Cause the volatility could have turned $1MM to $2MM+ in under half an hour. On a “good day” it could have turned into $4-$5MM in a couple hours… you “just” have to “get it right”
lost something like 50% since the top of the market.
Just keep gambling and make 750K back. Your losses carryover - you can offset more than 3K in losses each year against gains. You just can’t do more than 3K against your income.
What form allows you to do this? I was asked to pay capital gains last year on supposed "withdrawals" but I showed an overall loss of 10k
Awesome! Thank you. I read the comments for golden nuggets of information like this.
My suggestion is move to Mexico and change your name.
Use this trade to look into other shit in your life and recheck your opinions.
Bro you had 1 million $.
If he put 1mn into this trade he probably has a few million lying around elsewhere
Have your CPA redo previous years taxes and make you a professional day trader. As a business its a lower tax rate. You just need to show you conducted it like a business. And then the write off works different, ask a CPA. I think you will be able to carry it forward unlike a regular Joe investment account. Source: I am a 61 year old goof up with no degree but life experience.
Whiskey.
Mark to Market will allow you to do this. Once you switch to this method, you will no longer be eligible for the long-term capital gains tax rate. Everything will be treated as ordinary income
Tomorrow is a new day. Remember life is beautiful. Stay strong. This too shall pass.
OP, yes there is a solution. It’s called mark to market (I think form 475) have your tax accountant change your status for 2022 year as a day trader. Then you can write ALL of your losses against any / ordinary income. So if you make $300k at your job and lose $300k in the market you will owe 0.
Drugs and alcohol time my guy.
With cpi numbers coming out tmrw? You guys are truly fucking retarded hahaha
The only backdoor is your ass at Wendy's. Jokes apart, the best way to offset that loss is with a profit. The good part is you can offset both stock and real estate profits, so buy a 1 MM house in the coming downturn and hold for 10+ years to double your money on it.
Why don’t you have an elaborate network of shell corporations that you can pass the losses too?!?!
Damn I had Tesla puts Monday and lost 5k and felt upset from the FOMO and but this is something else
Yeah I got you. Meet me behind Wendy’s in about an hour?
I don’t have any money to invest
Ask a CPA. Why the hell are you asking WSB?
I feel better about myself after reading this as I type this from my wife’s boyfriends basement.
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Thanks a lot. It was actually an iron condor. I made 20k on the call side. My mistake was not actively monitoring the put trade, by the time i looked it was already in ITM with 5 mins to go. I never thought spx would fall 80 points in 2 hours on a no news day.
I mostly understand your strategy to manage risk as one side goes ITM, but, is there a visual explanation to 'roll as needed to capture the price between the call and put sides making it100% profitable.', perhaps a video? Thank you
Just fyi, people in my country can retire comfortably forever with 250K. You are such a fucking retard :)
What country if you dont mind me asking?
mogambuu
I earn a decent living as an Engineer, none of this was daddy's money.
Well a 70K tax through half year means you prolly make 500k a year. Sounds like a recoverable loss. I learned my lesson on options, once I have the loss I limit myself, I turn to regular shares.
Mogambuu khush nahi hua 😢
Good news is you still have $1.8m left. You’ll be ok
I think he may have lost everything
And I thought I was retarded when I lost 20% of my 30k portfolio.
Buy GME huuuurrr duuuur huur duurrr you’ll be a bazillionaire in in hour when it squeezes
So let me get this straight: You took a >$1 million loss and you're asking for advice from this sub?
If you have gains in the prior 5 years, you can carrback your loss, and get refunds from those years for the tax paid on those gains.
A horizontal put would have put you in a better place
You can fully offset your capital gains tax for this year. 3k or if you can liquidated any in the money stuff you have and offset future costs.
The only thing more retarded than your losses is the fact that you came to reddit to ask for tax advice.
Your trading SPX with million dollars? Why the hell would you do that?
This is nearly 3x my largest daily loss, and I didn't take it very well.
So your daily loss was 333k…that’s still impressive
People who have no clue how to invest and have millions laying around need to learn what compound interest is.
It’s only a loss if you give up bitch boy, your wife is out with her boyfriend she won’t notice your accounts drained temporarily
Sell your mansion for a $2m+ capital gain, job done!
Lucky. Maybe my account will show 7 figures tomorrow morning....
Buy chinesse real state market calls, those will print for sure, trust me bro
You lost a significant portion of my lifetime earnings because of greed.
How the fuck do you lose 1 mil.? Haven’t you heard about stop-loss orders? God DAMN
I’m sorrye ima restarted Lolb
You need another bold move like that 😜 tomorrow
Dear lord sir. You truly belong here.
future capital gains, oh wait nm
Why hate money so much ? Not happy with a $1m ?
Just lump sum another M into the same play next week?
Jesus
My brother in Christ you bought some FD's and got smoked.
Risk management - zero. To the tits risk: almost infinity
ouch.
No, thank you. I finished wonderfully.
Damn you truly belong here move over Guh. Damn dude I got a bridge to sell you.
Easy answer, continue to make riskier bets with your remaining capital so that you can get $1M in profit again and you will get it tax free.
Homie wants to plant some nightmare fuel so we dont sleep before 6am.
Gg thanks for playing
This trade not bussin fr no cap
I mean, this was a defined risk trade. The max loss was very clear and you knew exactly what to expect as the worst possible outcome before pushing the sell button. Not much anyone here can do to help. Find a CPA who has experience with 1256 contracts.
Have you tried unplugging it and plugging it back in?
Yeah ! You and your mom can lost all you want
Gambling... you never know what you're going to get.
How did you end up like this in the first place ? I mean rich parents or what...
bruh
Best way would be to start a new life in southeast asia / south america. If you're already a million under, no point in continuing what you've been doing, just start over and try a different lifestyle.
I feel like shit losing $400 today... but damn
Here you can have this reddit account - you’ve earned it champ 🏆
delete app.
Hey man, cheer up! Its green, even if its Negative, its green. It means something, right?
well you won't be paying taxes on gains for a long time.
One of us….one of us
I believe the traditional way to handle this was to jump out of a window that overlooks Wall Street. Not sure what the current method is.
The fuck this clown world, millionaires asking advice on wsb, like what?
You can still win it back if you sell your house and car and go all out. From one retard to another.
ah damn you poor fucker
Leverage it some more so that it's not your problem anymore
Dave Ramsey would be disappointed