The Cost of YOLO

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Here’s an update from the Teen Dreams department. We’re not exactly in the thick of the earnings season right now, as you know. But one of the hottest “meme” stocks of the year announced earnings this evening: Gamestop (GME):

Similar to Palantir, Gamestop is one of those issues that never seems to get old over in /WSB-land. The most popular chap over there is the one who “YOLO’d” his life savings into an aggressive GME position, and it certainly has served him marvelously.

If my math is right, this guy makes (or loses) $310,000 every time the stock goes up or down by a dollar. Not exactly, of course, since it is not a perfect correlation, but he has millions of dollars in profits here.

I would say, however, considering their after-hours results, this fellow might feel a sting of regret. On top of that, with earnings out of the bag, the extrinsic value of these 3,000 calls (!!!) is going to get smushed.