Me kevin here so a couple of weeks ago, i promised in comment sections that i would make a video showing my losers, because we talk a lot about new investment ideas. We talk a lot about companies that we're really excited about. Like tesla end phase, uh amazon apple uh, you name, it etsy affirm some of these companies that we just absolutely love. We don't give a lot of attention to the ones that we thought we would love and then they turned out not so loving.

So in this video i'm going to talk about losers and lessons that i've learned so far in 2021 and mistakes that i've, how not to repeat again. So, as with all these losses, there are lessons and the first that i'm going to start with is one that actually looked like. It was going to be the biggest loser of the year, but has actually u-turned, but there's a huge lesson in this one. Okay, on april 20th 2021, i bought a lot of tesla call options.

One month later after i spent almost 2 million dollars on tesla call options. This is what it looked like. One month later, the two million dollars in options had turned into negative 955 000. That is, we went from 2 million to like 867 000 ish about 2 million.

Yes, this was back when i still owned peloton, which i sold peloton. I completely sold out of peloton at about 113, which i'm really glad i did but uh anyway. Look at this. These tesla options, they're, absolutely horrible, and some of them are so crazy out of the money and work so crazy out of the money that when tesla went down to 500, i'm like oh, this is never going to go to 1200.

This is never going to go to 1500 and the problem here was: i bought these, and this is the lesson i bought. These call options, while volatility was declining, but it hadn't hit the bottom of volatility decline. Yet because remember folks, tesla or just options in general aren't just priced on what the price of the actual stock is. But what expected volatility is or implied, volatility is at any given moment, and so just like with price the rule of thumb.

When it comes to options, is you want to buy low, sell high? You want to buy options when the volatility is low. You want to sell options when the volatility is high. Unfortunately, i bought these options when tesla was trading for around 715 dollars. A share and tesla then ran from like well fell down to like 550, then came back to like 750 a share and you'd.

Think. Oh, your price is up like your options should have gone green when tesla was at 750 a few months later right, nope, because volatility kept plummeting. These options have been read the entire year since about the beginning of october. Now i wanted to make this video a few weeks ago, which hadn't made this video a few weeks ago.

These tesla options would have still been pretty red and i'm going to show some that are still red some contracts and some investments that i made that are still red. But it's worth noting that i've closed the vast majority of my tesla options. Just to show you that all of those have turned green, though just look at the highest one, the one that's most out of the money. This is the 1725 call in a matter of three weeks.

This has now rotated because volatility for tesla skyrocketed, this one is now a 92 percent profit. When remember in that last picture, it was like a 90 loss. It shows you, the insane volatility that you can be exposed to. I was a 67.45 loss there.

There you go, but anyway, it shows you, the insane volatility that you could be exposed to with options, and a big lesson here is pay attention to implied volatility. If you're investing in options that you're not paying attention to the volatility, charts and historical volatility, you're screwed, you could sign up for uh, and this is not sponsored. But you could sign up for something like alpha quarry and you could track this kind of stuff. But pay attention this, but now i do have some other options that are still in the pooper that are doing very, very poorly, and these are options like my pinterest options.

Take a look at this one. Here's a pinterest option that i have that cost me. 38. 000, it's down 94.

Now pinterest i've been wanting to dump out of pinterest for about four months now, but what's really annoying is i fell into this fallacy with pinterest that uh it'll come back to 80 and then i'll sell well. The problem is, i should have just sold when i first realized, which i realized this about three or four months ago. I'm like uh, oh search, trends for pinterest are down website. Traffic is down, uh app usage is down.

All these metrics were down, which is a really really bad sign. Those same metrics are the reason why i completely sold out a peloton. At the same time, i should have sold out of pinterest, but i didn't i kept it now. I'm holding the bags uh of probably around 200 000 of options and stock of pins, that's totally worthless.

Well, it's not totally worthless. I mean i've got about two hundred thousand dollars left in it, but probably lost a couple hundred g's on pins, uh and uh. Actually, i think my basis was around seventy, but even though it hasn't halved from 70 options when they fall, they fall more. So uh yeah pins has been a loser for me and while it's a bummer uh, i'm over it, so uh, oh well, now another one that has been a loser.

I'm gon na pull that up right now, so uh, oh redfin, okay, so redfin has been a big winner for me in terms of shares. I bought in around 10 20 and 30 and it's trading for around 50 right now and i bought that all back early in the pandemic. I thought redfin selling down was ridiculous, especially since i saw real estate going up uh, not down, but unfortunately, recently uh, like in april i yeah it was in april. In april.

I spent some money on tesla. I'm sorry on redfin calls as well, because i wanted to get out of margin, so i sold some shares and bought options instead. Well, unfortunately, this cost me 127 7 000 and it's down 43 right now on a redfin call option, not so great here so uh, not not super super happy about the redfin call either so redfin calls uh pinterest calls big f. Basically, i do have this neo call, which i also bought at a not so ideal time, because i paid a massive amount for this contract, and so even though it's a 30 neo call i'm actually down 650 on it.

So it's basically break even uh. Since i put 111 000 into it, but still it goes to show you like, i probably bought this call not paying attention to what implied volatility was, and it was probably at uh at a high point, which is uh, which is a big mistake so uh. Similarly, i have a lemonade 50 call, but i paid a lot of money for that option. Contract.

In fact, let me see when it filled this here. Let's see, do i have 45 of these. This filled yeah may 12th and april 12, uh 20th. Even though may 12th was like a poopy time in the market, uh volatility was up.

So again i got volatility screwed here, but this one's down about 14. So this just shows you another loser right here. So let's find another one another one so uh. Sometimes we were and of course we were expecting an end of the year rally here, but i did sell a couple covered call positions and those, unfortunately, are not so superb right now.

So take a look here, for example, this is a spot. I don't have all my end phase in etsy here, since i owned - probably about 1.8 million of each of these, but this just shows you some of the more recent purchases here, but i did do a covered call on end phase. I got a 20 000 credit. I want to say it was a 20 thousand dollar credit uh for end phase uh.

I believe it was something like that yeah it was. It was there. It was it's 10 contracts at 2120., so i got 21 000 as a credit for agreeing to sell end phase at 210. In january now i'm probably going to lose.

Those 1000 shares i'm going to get called out. So what i'm going to do, because that contract has lost like 96 of its value, which is not a big deal like i'm, not going to sell it at the 20k less, but instead, what i'm going to do is i'm going to probably sell puts on enphase Since volatility is up a little bit and so here's how something like that might work to try to offset some of the pain of having a sold call on a stock, that's running so we know volatility is up. I can go in here under end phase and i can now sell weekly puts on this thing. So let me go to 240, let's say so: 240.

I'm gon na sell a put on this thing for six dollars and twenty cents. I got paid twenty one dollars per share to sell end phase at twenty at two ten, so that puts me at a break even of about two thirty one. If i can go in here and sell a put for 240 and harvest six dollars and 20 cents, that might be worth it, especially if i don't get assigned on next friday, and then i do it again - and i just do it week after week after week And farm this higher volatility by selling puts and worst case scenario i get assigned, i own the shares, and then those are the ones that end up getting called away right. Obviously i know these numbers are potentially a little bit less relatable like if i go in here 240 times 10 times 100.

This is 240 000 that i'd be committing to potentially put into end phase in return for six dollars. It's not like a huge return. Six dollars and 20 cents divided by 240, is about 2.6 percent, but i'm also a little bit insulated. It's about two dollars more because uh the share price is about two dollars over.

So it's really like a three now we'll call it a three percent return. Uh to harvest six thousand two hundred dollars here and worst case scenario - i have to buy these shares next friday uh. So this is a consideration. You could also go.

Let's see today, that's tomorrow. If it expires tomorrow, i get twenty three hundred dollars. If i go out to the nineteenth i'd get ten thousand dollars, so this would be sort of a way to expose myself to potentially getting more end phase shares. If it runs, i keep the credit.

If it doesn't run, i buy the shares and then i let those shares end up getting called out in january. That'd be a consideration, so this is something that i'm doing to try to solve. The fact that i have a sold call that is is now upside down. So that's something you can do.

Okay, let's go to robinhood, so i've got a i've, got some options that have lost money over at robinhood. So, let's see here, let's go to total return and let's, let's find oh yeah, there's some that have a lot of pain over here. So specifically this one. This is invite.

Oh my gosh. I got destroyed so my mistake here was: i don't understand, biotech. I don't care for biotech, i don't profess to know biotech well or therapeutics, but on invite i'm like i'm a yolo on this one. This is just a yolo gone bad.

Okay, i put what did i put i put 66 000 into this option on april 20th. So volatility's come down substantially right and uh right now it says my total return is uh negative 54. Wait. How did if i put in 66 000? How is my equity still 55 000.? What's going on here, robin hood uh? I don't know because this order shows is cancelled.

Oh 34 filled, oh okay, so i i paid a lot more than 66k. I probably put in about a hundred thousand dollars or something like that and i'm down about 54. I must have put in like 130 000 into this contract, and i only have about 55k left, so i definitely got smoked on buying a contract here again, not paying attention to volatility, but also getting into a stock that probably ran on on hype and momentum. So that's uh.

That's been a little bit of a burn, much like crisper oops. That's definitely the wrong button. Sorry there we go didn't mean to put that up there. We go crisper.

35. 000 equity return down 56 on that one yeah. So i i learned my lesson on those that was oopsies, hippo yeah hippo's down a little bit, maybe twenty thousand dollars there's another redfin call that's down about 22k ubiquity down thirteen thousand dollars. That's not that big of a deal uh! What's another good one! Oh yeah! This was stupid, so i really only invest in tesla when it comes to evs and neo, and i thought it would be a good idea to buy an out of the money call on gm to kind of have a long-term option, a leap on their self-driving division.

Chevy cruze yeah well, that was a big f, that one's down 61 percent you're down 34k so uh. These are. These are my losers right now, i'm very grateful that uh right now. I don't have that much in options.

In fact, here let me show you my portfolio one second, so this spreadsheet right here represents the equity i have left in options, it's about 1.2 million dollars and the ones that are really red right now are the redfin gm invite ubiquity by like thirteen thousand dollars. Hippo tiny little bit twenty thousand dollars a i just added and uh. Some of the puts are slightly upside down like paypal and pins, but i do have pins contracts that are down yeah. The others are pretty good, but those are some of my losses and what i've noticed is most of my shares are doing relatively well, with the exception of pinterest.

Most shares are doing really well so uh. Now, if i had shares of crispr or invite, i think those would be doing pretty poorly, but otherwise my big holdings, my end phase tesla amazon apple etsy, affirm some of my my most high conviction companies. These are doing very very well. The same i mean lemonade has recently come up.

I think, on the car insurance news, that's been good, robin hood has not been doing well, that's that's another one. That's been like man should have just sold the thing at 70, which is really funny because i sold calls on robinhood when it ran up to 70. I bought it at like 34 thinking. Oh my gosh such a great dip, even though it's at like 36 right now, i ran up to 70 and i'm like oh, this is perfect.

I'ma sell calls. I should have just sold the stock, even though the sell calls i made like 99 on those. I was limited and the stock fell more so uh. I i was still down in the fact that i had the shares, but obviously the cell call helped hedge that position a little bit, so that was a bit of a bummer, but robin hood's been kind of a loser.

Robin hood's not been good. Pinterest has not been good and, in some short term plays on some of these therapeutics on options have been a problem, and it's worth noting that if you screw up with options - and you don't pay attention to volatility, chart you're probably going to end up getting killed With options, options are a great way to lose money really fast, if you're, not careful. Now that has led me to take profits, pretty liberally and frequently on options, sometimes potentially too early like on tesla. I staggered when i was taking profits.

I took profits around a little bit of call options at 9.50 at twenty five at a thousand seventy five at eleven hundred eleven. Fifty at twelve hundred i just every time i saw one of these new highs, i'm like all right. I'm gon na sell one of my options. All right, i'm gon na sell one of my options.

I've still got a few left. I have uh the one i showed you earlier and then i have a 700 tesla call that one's up like 35k and the other one's up. What was it like, 100k or something like that? Those are great. I still have those but yeah i mean look.

I could have made more money had i held those options longer, but i've been so burned by the idea of of how red these options were for how long that i'm like okay, now i've made money on them they're, they all turn green. I'm gon na take profits and i think that's something that is really important in investing culture is for us to realize that if we have options, it's a good idea to take profits, because options can move very, very quickly to the downside and if we're in margin, It's okay to sell to pay off your margin right now, i'm at zero margin and i'm really happy about that. Zero margin and uh i've really reduced my mar options, which is good. I still swing trade with options, but my options position right now is i'll.

Give you a percentage here, so you can get an idea. My options uh as a percentage of my portfolio 1.2 works out to about four percent. So i'm four percent in options right now and in crypto i'm ju, i'm almost four percent, almost four percent in crypto. So it gives you a little bit of an idea in terms of my breakdown and most of that ethereum bitcoin ada right, but this gives you a little bit of a breakdown of my portfolio, some of the losses, some of the mistakes that i've made yeah.

If i added up the losses on pinterest and some of these other options, it'd probably be losses of somewhere around four hundred thousand dollars, maybe even a little bit more uh. So those are some real losses right, but uh, fortunately they're offset by by gains. In other things, substantial gains and other things, my my jpmorgan account i'll pull that one up really quick just to show, because sometimes people are like. Oh, if, if you don't show it, it didn't happen.

Oh, my gosh there's so much jadedness online, these days, uh whatever, but uh yeah. If you look at my jp morgan i'll pull this up right here. So this is my jp morgan so because people like, if i think frequently people are like, oh you only make money from youtube or whatever people just get jaded. I think just they're having a bad day or whatever.

But anyway, you can see here on this 20.6 million dollar account 13.6 of those are our gains, so obviously we're doing something right, which is great, but yeah that doesn't mean there uh. There aren't some loser bets that come along with uh with gains and uh. If i can learn from the losers and learn from the winners, that's a good thing all right folks. Hopefully you learned something from this video, and i appreciate you for watching and we'll see the next one thanks again goodbye.

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