How to handle 1+ mil daytrading loss

  1. 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

  2. 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.

  3. 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.”

  4. 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.

  5. 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.

  6. I think you should probably invest the remaining funds in the Chinese housing market as well as the Kratom market👍

  7. I’d like to invest in the Kratom market. Didn’t know such thing exist! Please point me in the right direction👌🏽

  8. 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.

  9. 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.

  10. 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.

  11. 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?!

  12. Nope. Because trading options he could make 10 mil. Why happy with one million when he could have 10 million!

  13. 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.

  14. 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.

  15. 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.

  16. 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.

  17. 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.

  18. 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.

  19. 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

  20. 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”

  21. 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.

  22. 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

  23. 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.

  24. 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

  25. 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.

  26. 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.

  27. 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.

  28. 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

  29. Just fyi, people in my country can retire comfortably forever with 250K. You are such a fucking retard :)

  30. 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.

  31. 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.

  32. 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.

  33. The only thing more retarded than your losses is the fact that you came to reddit to ask for tax advice.

  34. People who have no clue how to invest and have millions laying around need to learn what compound interest is.

  35. 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.

  36. 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.

  37. 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.

  38. 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.

  39. You can still win it back if you sell your house and car and go all out. From one retard to another.

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