What's up guys and welcome back to wall street millennial on this channel, we cover all things: stocks and investing in this video we're going to go over the greatest gains and losses on the wall street best form over the past week. So we can learn from other people's experiences before we get into the video we'd like to thank our channel members who get access to these videos one day in advance and also gets a vote on some of our video topics. First, we have user, dr dark piccolo, who turned ten thousand dollars into two hundred thousand dollars in just one week. Many so-called experts think that amc stock is worth almost nothing because of the company's high debt burden and secular headwinds facing the movie theater industry.

Despite this, under the leadership of the silverback adam aaron, the wall street vets apes have successfully pumped up amc's share price, which has more than doubled in the past week in an apparent short squeeze, this has amounted to 1.3 billion dollars of transfer of wealth from short Selling hedge funds to retail traders who were long, the stock one of those beneficiaries is user, dr dark piccolo, who is up fifty nine hundred percent or two hundred and three thousand dollars in the past week. This is quite an impressive gain for an account that just started at ten thousand dollars. He held thirty dollar and forty dollar strike calls expiring on june 4th and 18th respectively, while his calls are still out of the money. His cost basis was so low.

That gains have been exponential, as the stock price has moved closer to his strike prices, as expected with a meme stock game porn. The comment section was largely supportive of this trade. Next off we have user open call 69. After seeing the epic games of meme stocks.

Since the start of 2021, this wall street bits user wanted a part of the action he went on the subreddit looking at which meme stocks had the most height, so he could pick one stock to yolo his account into over the past few months. The three most hyped meme stocks were amc, blackberry and gamestop. After some careful consideration, he decided that blackberry was the best bet and went all in on blackberry calls in january of 2021, at the height of the initial gamestop short squeeze, he took his dad's life savings and went all in on the company. He bought.

3. 000 shares of blackberry at a cost of about 20 each. He also bought 60 leaps call contracts with 25 strike prices expiring in january of 2022.. In all his total investment was about 115 000.

This was a true yolo for this wall street bets user and his family. His highly levered blackberry position promised to yield a binary outcome in one year's time, he'll either be enjoying retirement on a luxury yacht or beyond food stamps. He bought into the position at the height of the short squeeze in january. Unfortunately, blackberry has failed to hold on to its gains and has since fallen fifty percent to ten dollars a share.

While this is still above its pre-squeeze levels of six dollars, it's a far cry from the 25 strike price of his calls or the 20 cost basis of his shares. Currently, his leaps have decreased in value by 94 and his shares have decreased by 45 percent. This adds up to a total loss of 80 dollars or seventy percent of his initial investment to add insult to injury wall street vets users lucky enough to have chosen gamestop or amc instead of blackberry have instead made massive attendees during the same period of time. Gamestop has had strong price support, as the apes refused to sell its current price of 222 dollars is not far off from the short squeeze highs.

Amc has done even better after a recent rally. Its stock price is more than 30 above the january highs. Choosing a meme stock is a bit like rolling the dice in a casino some make massive attendees, while others lose almost everything. Next up we have user rational, meet popsicle with a 14 and a half thousand dollar gain on amc options.

He has long nine contracts of three dollar strike calls on amc, not expiring until january of two years from now, they are already far in the money netting him fourteen and a half thousand dollars of pure profits and there's more than a year and a half left Till expiring, his average cost basis was seven and a half dollars per option, which means that he almost certainly bought them when amc stock was around ten dollars a share. Now amc is above 26 dollars a share, smashing wall street projections and more than doubling since the op put on his position. An interesting thing to note is that if he had bought stock at the time instead of calls, his cost basis would have been about 10 dollars per share compared to 7.5 for the options. Considering a current share price of 26 dollars, a share that would be a 160 game, so using options instead of stock actually hasn't magnified its gains by that much only up to 212 percent compared to about 160 for stocks.

This is probably because the options are so in the money, with a strike price of three dollars that the original cost basis was already pretty high. One issue that people who have made successful yellows have to deal with is deciding when to sell the op doesn't know if it is better to ride it out till expiry or try to time the peak and then move the equity into the next stock. The most highly upvoted response is that, when to sell, is a highly personal question, taking into account things like your general financial condition. Overall, if you don't have that much money in savings, it might make sense to sell at least a little to lock in the game.

However, if the fourteen thousand dollar gain wouldn't really move the needle in either direction for your net worth, it can make sense to write it out till expiry. It's all personal preference, but when in doubt, there's always the option of just following the wall street bets rule of thumb, which is, if it's good enough to screenshot, it's good enough to cash out. Congratulations on your massive gains! Next, we have a comically bad options played by the self-proclaimed worst option: trader in the history of option trading user alfin dave. His trading history was a series of buys huge unrealized losses.

Then a paper-handed sell right before a huge jump in the stock price. He bought a total of 500 contracts of amd calls expiring in a couple of weeks, including at the bottom on may 17th. However, after losing his nerve on may 27th, he dumped all 500 contracts at just 93 cents per option needing a loss of several hundred dollars. Overall, however, if he had just had the balls to hold for a few more hours, he would have been able to sell all 500 of those contracts for between two dollars and two and a half dollars per option, which is roughly a doubling or more of his Cost bases: that's the one time you don't want to see your stocks or calls go up as painful as it is to see potential gains that you had already dumped it's even worse to actually lose money use your subject, purchase 3042 says that he lost 500 000.

In the past year, while the stock market has been in a historic bull run, what do you guys think is worse losing money while the rest of the market is making money or selling a stock right before it moons? Let us know in the comment section below next: we have an example of the quickest way to lose money in the options markets, and that is zero days till expiry options user. I am mic. Centers tried to get in on the gamestop gold, mine or the get-rich-quick strategy, and bought 60 contracts of gamestop calls. The strike prices of the calls were 300 and 340 dollars, which was extremely out of the money at the time, considering that they were expiring the same day.

Usually, the price of gamestop calls is very high, because the implied volatility of gamestop stock is so high, which means that the stock is expected to move either up or down by a lot in any given time period. However, when this trader bought the calls, it was so close till expiry that it only cost him about a dollar each sure enough. Gamestop did not go up enough to put any of his calls in the money and they ended up expiring, worthless on may 28th. All in it was a 7 000 write-off in a straight line down for this trader, usually wall street bets is sympathetic to traders who long gamestop and lose money, but in this case the idea of buying out of the money calls on the day of expiry showed A little bit too much lack of iq.

Hopefully this experience will teach him how to better protect his principle in future trades. Alright, guys that wraps it up for this video, if you like, the content, make sure to smash that like button and subscribe for future videos. Also check out our second channel wsm research, where we post dd on high growth stocks in the meantime. Thank you guys so much for watching and we'll see in the next one wall, street millennial signing out.

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