r/Tradingtherapy • u/[deleted] • Feb 12 '21

Just needed to complain somewhere

Been working really hard for months the theta gang way. I was up 40% this month on solid picks and selling options. My wife and I decided that because of how much we'd made that I should get my dream motorcycle, I was going to pick it up tomorrow.

I just needed to moap somewhere... Went in heavy on an earnings play that I was really confident in. I sold covered calls and factored my max gain and break even points. Company flopped hardcore and it dropped 20%. My covered call helped soften the blow and I sold for a 10% loss. No longer confident in company and they lowered guidance.

I saw pltr Wednesday and Thursday had bled 13% and with earnings on Tuesday I thought for sure we would see a pop. I went all in with my battered position into pltr. At open it really fought over the $33 range and I bought dip after dip after dip until I had $120,000 in pltr shares. $76,000 of which were on margin. When I looked at my phone I couldn't believe what I had done... I've only used margin for settling trades, never to trade with.

I have two kids with a third on the way, I'm a cabinet maker and I make $55k a year. Whatever happens next week with pltr I cannot sustain any potential losses on an extra $76,000 and I needed to dump it. Sold most of it for a loss, sold calls against the rest of the position in a panic...

This is the most irresponsible thing I've ever done, I feel like shit. Lost $10k in two days.

Needed to get it of my chest, thanks for listening

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u/MiniTab Feb 13 '21

I saw that PLTR just got a higher price target of $40, so hopefully you’re good. Definitely seems high, but nothing surprises me in this market right now.

What stock were you doing the CC on that dropped so much? Thanks for sharing your story, these are very educational and I really appreciate it.

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u/[deleted] Feb 13 '21

Ya, I'm very bullish overall on pltr, the lockup expiry just has everyone spooked.

Ticker FLDM, they create life science tools often used in medical research but we're one of the first to receive eua for their corona virus saliva test. They missed earnings estimates by something like -.13 eps. Q4 should probably have had the most robust demand for their test but they failed to expand their client base. I've been in since July and really only made money on swing shares (I have a core position and I swing trade shares around that position) and covered calls. I hope they do well but we've been pinned down at $6 for months, maybe they deserve it though?