I am often asked here about losing . Do you ever lose? And I say yep. Often. Most of the time it's straight forward and easy to track. This one has a happy ending today so I thought I would share it. Balls enjoys this stuff. Grocery Stick thinks it's gambling. Except you rarely have a chance in gambling to trying 4-5 times to just win once. Maybe you do, I don't gamble.
As you know, I don't believe in Carvana. I think it's a fraud company run by a criminal and his son. And they are doing the same things they did before. Similar to Richard Kinder of Kinder Morgan basically running a cleaner version of Enron now. So I am inclined to invest against their future prospects. I think their future prospects involve Jail cells and financial collapse
So here are all the trades to bring us to today. All Carvana
5/1-sold 200 calls at $290 5/16 for $5.40-$108,000
Two weeks, easy $, Carvana never fails me. Lot of cash for two weeks.
Oops
5/16-bought to close 200 calls at $290 5/16 for $180,000 as Carvana went up
5/16-sold 185 calls at $302.50 5/30 for $178,000 sold less since I was now exposed and I could balance the money I had bought it out for with the new calls sold. Less exposure and mostly balancing the money
5/28-bought to close 185 calls at $302.50 5/30 for $314,000 Hmmm this isn't going well. Keeps going up and I keep losing.
5/28-sold 185 calls at $317.50 6/20 for $313,000. Trying to catch up to a runaway freight train as Carvana the meme stock is being bought up by the children of reddit
6/5-bought to close 185 calls at $317.50 6/20 for 582,000 This might have been a panic move. Carvana is way higher than this at this point. Like $360
6/5-Sold 188 calls at $360 8/15/25 for $583,000 Desperation move, trusting Carvana would eventually fall and using the long window to buy time for it to do so. At this point as you can see it's $583,000 under water or so.
Carvana eventually rose to $410 or something like that. Fell back to earth. As low as $335 and today is at $349 4 hours before closing. If it stays below $360 the losing is over and my net gain goes back to the original sale, $108,000 in June. Lot of stress and time to make $108,000 but that's a lot of money so it's worth it. Moral there is that patience and remaining calm through turbulence is usually profitable. Bailing would have lightened my pockets a lot
Oh, separately, on
7/29-sold 200 8/1 calls at $360 for $170,000 Not sure why. Maybe trying to recoup above losses at the time
Oh I remember now. It was 2 days before the option expired. And they were offering it at $8.70 Free money. Couldn't believe I would make $170,000 for just 3 days holding a call. What could be better? Well, on 7/29 they issued a boffo earnings report and the stock went to over $400 in after hours trading and I was wrecked. Instantly. Dang it. So much for $170,000 in easy money
8/1-bought out of the above for $248,000 man that hurt. Now I am cursing Carvana swearing never to do this again. Similar to my Tesla curses
8/1-sold 200 calls at $375 hoping it would come down. $258,000 and if it did come down I would net the $170,000 plus $10,000 gain on the buy sell spread here.
8/15-Looks like if it doesn't jump in the next 3.5 hours I will pocket the above $108,000 and the $180,000 from this latest merry go round.
I have calls to sell all 50,000 of my TQQQ for $92 next Friday and it's at $93 today. What will I do.??
Also have an IBM problem now. It's at $239 and I have 200 puts at $252 I am stuck with. So we may play the game with IBM for awhile to get out from under that too.
I prefer to sell calls for dimes quarters. And collect $2-3K at week at a time. Doing these bigger ticket things is risky and a lot more stressful. Going for winning a dime or a quarter may only net you a few thousand but you keep doing it over and over and can usually end up successful about 90% of the time. These larger things will give you a heart attack
That’s some big boy investing.