How to lose $45k n less than 2 weeks trading Tesla options- Advice from one RH day trading newbie to another.
I started day trading at the beginning of August, and on Sept 1 i decided to Trade Telsa for the first time. On Sept 1 i buy 7 Tesla $480 calls with Sept 11 expiration date. Stock hit $530 on Sept 1, and when it pulled back to $475 range i bought 7 of these call options for 3700 per option spending $26k. tesla tumbled over the next few days, and when these contracts were trading for 2100 i doubled down buying 9 more of these calls On Sept 3 to bring down my avg cost per unit. Stock price tumbled over the next few days and on Sept 9 i sold the 16 Sept 11 480 call option contracts for $120 per option recouping less than $2,000 of my $45,000 investment.
I am posting thIs message as a warning To my fellow newbie day traders. Unless you have $100k+ and can afford to write puts or sell calls as a hedge against the call option stay away from day trading, as this was the mistake i made betting $45k with 0 hedge.
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