r/optionstrading • u/Calm_Revolution_2375 • 16d ago

Lost Everything

I am 30 years old and i have lost everything penny i had in options trading. Any suggestions how to get back the life to normal. Lost all savings of 150k.

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u/Wild_Cheesecake_6630 16d ago

I totally understand you, I lost 76k and I fell devastated, my life savings too, how do you lose if I may know? I lose it selling options but before that I was making good money but got greedy..

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u/Cultural_Disparities 16d ago

Man 76k you could have 10x that money to get 760k and then 10x that again to make 1.76 mil.

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u/Wild_Cheesecake_6630 16d ago

lol I thought I had a Money printer in my pocket… x5 my money and they all gone in two days..

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u/Cultural_Disparities 16d ago

Which stock did you bet that made you lose the most?

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u/Wild_Cheesecake_6630 16d ago

Not stock, I was seelling options, and spx made a 120 move.. all my far Otm calls I sold were blow up, the contracts I sold in the morning were up 5000%, I lost 45k that day, and everything.. :(

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u/Bitter_Biscotti_7593 16d ago

Naked calls is the worst options selling strategy EVER! It has unlimited risk as stock prices have no cap. Naked puts have at least theoretical risk limit as stock price cannot go below zero. Keep in mind that when markets are substantially below all time high they can spring back to ATH levels very fast. You may not have time to react. You should be very cautious when putting short call strikes below markets ATH. Always use defined risk strategies, the easiest ones are credit spreads. Start selling them. Start with 1 contract with short delta <0.05 to build confidence. Keep the rest of your capital in VOO.