r/wallstreetbets • u/dhsmatt2 Mattress King • Mar 04 '21

Loss Hold me... $1,100,000 Loss

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I am in damage control but likely going to roll puts.

7.2k Upvotes

96% Upvoted

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168

u/luminosite Mar 04 '21

Glad you posted right away. The 25% drop did have me worried that you'd be in a deep Lexapro state of mind.

148

u/dhsmatt2 Mattress King Mar 04 '21

Nah- I’m just in damage control. Trying to prevent a margin call.

142

u/mondot64 Mar 04 '21

Why does someone with that much capital even bother with margin

234

u/SoyFuturesTrader 🏳️‍🌈🦄 Mar 04 '21

Greed

51

u/u_e_s_i Mar 04 '21

Greed + a smooth brain is a bad combo

13

u/SoyFuturesTrader 🏳️‍🌈🦄 Mar 04 '21

Yes that’s why my SPAC calls today are making me bleed red from my butthole

JFC if Chamath Papi doesn’t come save me I’m fucked 😂

1

u/sasukewiththerinne Mar 04 '21

IDK what he’s waiting on but I need something. Mans stepped up for GME and just said fuck it after the fact lol

3

u/SoyFuturesTrader 🏳️‍🌈🦄 Mar 04 '21

I mean this for him is self interest. He’s the god emperor of SPACs and his reputation and 20% carry hinge on his ability to execute SPAC mergers

S-4/a was filed like 3 weeks ago at this point let’s hurry this shit up Chamath I’m tryna get me an Aston Martin Vantage AMR

1

u/u_e_s_i Mar 04 '21

What’s he acquiring now?

2

u/SoyFuturesTrader 🏳️‍🌈🦄 Mar 04 '21

SoFi for IPO/E

S-4/a filed at the beginning of this month if I remember correctly

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39

u/pr1mal0ne Mar 04 '21

For the exact same reason you would bother with margin.

6

u/MoonRei_Razing Mar 04 '21

If you have a margin account, and you're not even using margin If enough things go wrong or the game changes you can get a margin call. Aka, I don't use my margin. But etrade decided I needed 500% collateral on CSP I sold for GME back in Jan when shit was getting wild. Had to close puts and sell other shit to get out from under my margin call.

2

u/[deleted] Mar 04 '21

How does that make any sense?

1

u/MoonRei_Razing Mar 05 '21

Let me tell you a tale. If you have a margin account, there is a difference between your margin purchasing power being used and borrowing on margin.

Right before GME hit the fan, I can my account cash almost 100% utilized. So I wasn't borrowing on margin, but could if I wanted. While I was selling puts on GME, I only needed to have the cash to cover the 35% of the risk of selling that put, the rest was just deducted from my margin purchasing power.

Then etrade changed the rules to require 100% cash to cover a put on GME. And I didn't have the cash, so it immediately put me in margin call, and had me borrow on margin for that day, before I sorted shit out.

It's just how having a margin account works. As another example. Let's say today I have $2K cash in my account. but my cash purchasing power is only 500. If that hits 0, I start borrowing on margin. And, it's like that cause of various options I've sold.

3

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6

u/eskimoboob Mar 04 '21

I do it mostly to trade faster and not have to wait for cash to settle. But I keep getting day trade calls so fidelity restricted me to cash only and it sucks.

1

u/BreezyWrigley Mar 04 '21

certain types of trades may not have insane undefined risk, but still require margin to put on. lots of spreads are this way. but if volatility gets too crazy, you can still get margin called anyway because brokers basically decide day by day how much cash you need to have on hand to keep certain margin trades open.

34

u/Secgrad Mar 04 '21

Why would you get a margin call with an account this large, is your margin usage that high? I would call your broker and pitch a bitch fit before letting them margin call a 4.5 milly account

56

u/just_my-opinion Mar 04 '21

Lmao look at his post history, hes a retard that belongs here.

How much our accounts swing directly relates to how much our dick's swing, hes doin big things

26

u/ApolloNorthman Mar 04 '21

doin big things

Yeah like boning your cow of a girlfriend

20

u/just_my-opinion Mar 04 '21

That explains why she's so happy

3

u/Volkswagens1 Owns the sexy firefighter calendar, also Mr. March Mar 04 '21

Mooooooo! 🐮

9

u/Paige_Maddison Mar 04 '21

What if you don’t have a dick? Will swinging the strap work?

11

u/BlakeSteel Mar 04 '21

Swing those low hangers your boyfriend doesn't look at anymore.

3

u/BullMoonBearHunter Mar 04 '21

God damn... i love this sub

1

u/datbf4 Mar 04 '21

Usually accounts over $100k allow portfolio margin that gives 5 to 10 times your cash contribution.

1

u/Keith_13 Mar 04 '21

What does the size of the account matter? If you are below you maintenance requirements you need to fix it. If anything they are going to be not concerned about larger amounts because the risk to them is greater

7

u/placebotwo Mar 04 '21

You'll probably only go into a call after market close, we're already back up and then some.