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They didn't actually lose that much money, since they bought options. By my mental math they lost about $9000 (give or take a few hundred). Still bad, but bette
by sombremesa 7y ago
They didn't actually lose that much money, since they bought options. By my mental math they lost about $9000 (give or take a few hundred). Still bad, but better than losing hundreds of thousands.
Edit: I stand corrected, see below.
- manigandham 7y agoHow are you calculating this? You wouldn't have a total return of -$722k if you only lost $9k. They could easily have 1M worth of options that have now decreased in value, which is what it looks like since AMZN went up Friday and today.
- sombremesa 7y agoEdit: see below. My math was a bit off.
- thefreeman 7y agono... it’s 140 option contracts which provides the option for 14000 shares. they were bought for $66 x 100 x 140 = $924,000 and are now worth $14.43 x 100 x 140 = $202,000.
- deleted 7y ago[deleted]
- kenneth 7y agoRisk / reward is proportional. You could have easily made a killing if the markets moved the right way. In fact, anything could happen by Friday. He only needs and 10% move up be in the black