Once you start to look at hedge funds with very large option positions, the losses can be many thousands of times larger than just “stock lost 5%, means I lost

Once you start to look at hedge funds with very large option positions, the losses can be many thousands of times larger than just “stock lost 5%, means I lost 5%” It’s usually something like “if stock drops 2.5% at this number, we’re forced to buy the inverse option to hedge our bets and we loose X amount” (over simplification) Just look at the GME stuff and how much money was lost due to retail trading meme behavior