r/wallstreetbets Feb 23 '21

Walking into the stock market today Meme

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u/13steinj Feb 23 '21

There have constantly been fears of a coming crash due to inflation and over-valuation of companies (extrinsic value is a thing, but over the pandemic its become more and more what people are pushing rather than intrinsic value).

When those fears escalate and people realize their extreme valuations of companies, the stock market will correct (or burst, but I doubt this is the bubble bursting). It is important to note that almost everything is doing worse than what even the most negative statistical models claimed, especially the tech industry.

Hence, last week I started rolling credit spreads on SPY. The panic is insane. Today I opened 3 call credit spread, premium width of $24 on a $1 spread expiring tomorrow with a 90% chance (based on basic models) of profit. There is almost no way there will be a recovery of that size by tomorrow. Only reason I'm not doing naked calls is because RH doesn't let me, and other brokers don't let me do spreads yet.

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u/movadolover Feb 23 '21

naked calls on SPY in one of the greatest bull markets of all time. Cannot possibly go tits up right?

Robinhood is inadvertently saving you from your own destruction.

No matter how smart you think you are, never go full retard

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u/[deleted] Feb 23 '21

Sir, this is r/wallstreetbets

14

u/Mozeeon Feb 23 '21

Damn. I thought this was a Wendy's. How do I get out of here?!

2

u/lilgrogu Feb 23 '21

Go to the GameStop next doors