The Confidence of Youth

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I saw this highly-rated post over on WSB about an Apple “investment”:


So let’s see what we’ve got here:

  1. The fellow is almost certainly a young new trader;
  2. He is self-reporting that he was already down 68% on his portfolio;
  3. He put his entire portfolio into call options on Apple that were over $20 out of the money and expired in a week (!!!);
  4. Within minutes, he got blown out of the position;
  5. He went right back in, buying the same expiration calls that were even more out of the money (about $25 away).and no stop loss

All this on a stock who, let’s face it, have come awfully far, awfully fast……..

slopechart AAPL

Look, I’ll be the first to admit the stock “market” has ascended vastly higher than even my worst nightmares dared ever conjure. But I think there’s a fairly serious chance that this young naive chap is going to see that 68% loss grow substantially in the near future.

We have created a generation of degenerate gamblers.