i just lost millions

me kevin here so a couple of weeks ago i

promised in comment sections that i

would make a video showing my

losers because we talk a lot about new

investment ideas we talk a lot about

companies that we're really excited

about like tesla end phase uh amazon

apple

uh you name it etsy affirm some of these

companies that we just absolutely love

we don't give a lot of attention to the

ones that we thought we would love

and then they turned out not so loving

so in this video i'm going to talk about

losers and lessons that i've learned so

far in 2021 and mistakes that i've how

not to repeat again so

as with all these losses there are

lessons and the first that i'm going to

start with is one that actually

looked like it was going to be the

biggest loser of the year

but has actually u-turned but there's a

huge lesson in this one okay on

april 20th 2021 i bought a lot of tesla

call options

one month later after i spent almost 2

million dollars on tesla call options

this is what it looked like one month

later the two million dollars in options

had turned into

negative

955 000 that is we went from 2 million

to like 867 000 ish about 2 million yes

this was back when i still owned peloton

which i sold peloton i completely sold

out of peloton at about 113 which i'm

really glad i did but uh anyway

look at this these tesla options they're

absolutely horrible and some of them are

so crazy out of the money

and work so crazy out of the money that

when tesla went down to 500 i'm like

oh this is never going to go to 1200

this is never going to go to 1500 and

the problem here was

i bought these and this is the lesson i

bought these call options while

volatility was declining

but it hadn't hit the bottom of

volatility decline yet because remember

folks tesla or just options in general

aren't just priced on what the price of

the actual stock is but what expected

volatility is or implied volatility is

at any given moment and so just like

with price the rule of thumb when it

comes to options is you want to buy low

sell high you want to buy options when

the volatility is low you want to sell

options when the volatility is high

unfortunately i bought these options

when tesla was trading for around 715

dollars a share

and tesla then ran from like

well fell down to like 550 then came

back to like

750 a share and you'd think oh your

price is up like your options should

have gone green when tesla was at 750 a

few months later right nope because

volatility kept plummeting these options

have been read

the entire year

since about the beginning of october now

i wanted to make this video a few weeks

ago which hadn't made this video a few

weeks ago these tesla options would have

still been pretty red and i'm going to

show some that are still red some

contracts and some

investments that i made that are still

red but it's worth noting that i've

closed the vast majority of my tesla

options just to show you that all of

those have turned green though just look

at the highest one the one that's most

out of the money this is the 1725 call

in a matter of three weeks this has now

rotated because volatility for tesla

skyrocketed this one is now a 92 percent

profit

when remember in that last picture it

was like a 90

loss it shows you the insane volatility

that you can be exposed to i was a 67.45

loss there there you go but anyway it

shows you the insane volatility that you

could be exposed to with options and a

big lesson here is pay attention to

implied volatility if you're investing

in options that you're not paying

attention to the volatility charts and

historical volatility you're screwed you

could sign up for uh and this is not

sponsored but you could sign up for

something like alpha quarry and you

could track this kind of stuff but pay

attention this but now i do have some

other options

that are still in the pooper that are

doing very very poorly and these are

options like my pinterest options take a

look at this one here's a pinterest

option that i have that cost me 38 000

it's down 94

now pinterest i've been wanting to dump

out of pinterest for about four months

now but what's really annoying is i fell

into this fallacy with pinterest that uh

it'll come back to 80 and then i'll sell

well the problem is i should have just

sold when i first realized which i

realized this about three or four months

ago i'm like uh oh

search trends for pinterest are down

website traffic is down

uh app usage is down all these metrics

were down which is a really really bad

sign

those same metrics are the reason why i

completely sold out a peloton at the

same time i should have sold out of

pinterest but i didn't i kept it now i'm

holding the bags uh of probably around

200 000

of options and stock of pins that's

totally worthless well it's not totally

worthless i mean i've got about two

hundred thousand dollars left in it but

probably lost a couple hundred g's on

pins uh and uh actually i think my basis

was around seventy but even though it

hasn't halved from 70 options when they

fall they fall more so uh yeah

pins has been a loser for me and while

it's a bummer uh i'm over it

so uh oh well now another one that has

been a loser i'm gonna pull that up

right now so

uh oh redfin okay so redfin has been a

big winner for me in terms of shares i

bought in around 10 20 and 30 and it's

trading for around 50 right now and i

bought that all back early in the

pandemic i thought redfin selling down

was ridiculous especially since i saw

real estate going up uh not down

but unfortunately recently uh like in

april i yeah it was in april in april i

spent some money on tesla i'm sorry on

redfin calls as well

because i wanted to get out of margin so

i sold some shares and bought options

instead well unfortunately

this cost me 127 7 000 and it's down 43

right now on a redfin call option not so

great here so uh not not super super

happy about the redfin call either so

redfin calls uh pinterest calls big f

basically i do have this neo call which

i also bought at a not so ideal time

because i paid a massive amount for this

contract and so even though it's a 30

neo call i'm actually

down

650 on it so it's basically break even

uh since i put 111 000 into it but still

it goes to show you like i probably

bought this call not paying attention to

what implied volatility was and it was

probably at uh at a high point which is

uh which is a big mistake

so uh similarly i have a lemonade 50

call but i paid a lot of money for that

option contract in fact let me see when

it filled

this here

let's see do i have 45 of these this

filled yeah may 12th and april 12 uh

20th even though may 12th was like a

poopy time in the market

uh volatility was up so again i got

volatility screwed here but this one's

down about 14

so this just shows you another loser

right here

so let's find another one another one

so uh sometimes

we were and of course we were expecting

an end of the year rally here

but i did sell a couple covered call

positions

and

those unfortunately are not so superb

right now so take a look here for

example this is a spot i don't have all

my end phase in etsy here since i owned

probably about 1.8 million of each of

these but this just shows you some of

the more recent purchases here but i did

do a covered call on end phase i got a

20 000

credit i want to say it was a 20

thousand dollar credit

uh for end phase uh i believe it was

something like that yeah it was it was

there it was it's 10 contracts at 2120.

so i got 21 000 as a credit for agreeing

to sell end phase at 210 in january

now i'm probably going to lose those

1000 shares i'm going to get called out

so what i'm going to do because that

contract has lost like 96 of its value

which is not a big deal like i'm not

going to sell it

at the 20k less

but instead what i'm going to do

is i'm going to probably sell puts on

enphase since volatility is up a little

bit

and so here's how something like that

might work to try to offset some of the

pain of having a sold call on a stock

that's running

so we know volatility is up i can go in

here under end phase and i can now sell

weekly puts on this thing

so let me go to 240 let's say

so 240 i'm gonna sell a put on this

thing for six dollars and twenty cents i

got paid twenty one dollars per share to

sell end phase at twenty at two ten so

that puts me at a break even of about

two thirty one

if i can go in here and sell a put for

240 and harvest six dollars and 20 cents

that might be worth it

especially if i don't get assigned

on next friday and then i do it again

and i just do it week after week after

week and farm this higher volatility by

selling puts

and worst case scenario i get assigned i

own the shares and then those are the

ones that end up getting called away

right

obviously i know these numbers are

potentially a little bit less relatable

like if i go in here 240 times 10 times

100 this is 240 000 that i'd be

committing to potentially put into end

phase in return for six dollars it's not

like a huge return six dollars and 20

cents divided by 240 is about 2.6

percent but i'm also a little bit

insulated it's about two dollars more

because uh the share price is about two

dollars over

so it's really like a three now we'll

call it a three percent return

uh to harvest six thousand two hundred

dollars here and worst case scenario i

have to buy these shares next friday uh

so this is a consideration you could

also go let's see today that's tomorrow

if it expires tomorrow i get twenty

three hundred dollars if i go out to the

nineteenth i'd get ten thousand dollars

so this would be sort of a way to expose

myself to potentially getting more end

phase shares if it runs i keep the

credit if it doesn't run i buy the

shares and then i let those shares end

up getting called out in january that'd

be a consideration so this is something

that i'm doing to try to solve the fact

that i have a sold call

that is is now upside down

so that's something you can do okay

let's go to robinhood so i've got a i've

got some options that have lost money

over at robinhood

so let's see here let's go to

total return and let's let's find oh

yeah there's some that have a lot of

pain over here so specifically

this one this is invite oh my gosh i got

destroyed so my mistake here was i don't

understand biotech

i don't care for biotech

i don't profess to know biotech well or

therapeutics

but on invite i'm like i'm a yolo on

this one this is just a yolo gone

bad okay i put

what did i put i put 66 000 into this

option

on april 20th so volatility's come down

substantially right

and uh right now it says my total return

is

uh negative 54

wait how did if i put in 66 000

how is my equity still 55 000. what's

going on here robin hood

uh

i don't know because this order shows is

cancelled

oh 34 filled oh okay so i i paid a lot

more than 66k i probably put in about a

hundred thousand dollars or something

like that and i'm down about 54 i must

have put in like 130 000 into this

contract and i only have about 55k left

so i definitely got smoked on buying a

contract here again not paying attention

to volatility but also getting into a

stock that probably ran on on hype and

momentum

so that's uh that's been a little bit of

a burn much like crisper oops that's

definitely the wrong button sorry there

we go didn't mean to put that up there

we go crisper 35 000 equity return down

56 on that one yeah so i i learned my

lesson on those that was oopsies hippo

yeah hippo's down a little bit maybe

twenty thousand dollars there's another

redfin call that's down about 22k

ubiquity down thirteen thousand dollars

that's not that big of a deal uh what's

another good one oh

yeah this was stupid so

i really only invest in tesla when it

comes to evs and neo

and i thought it would be a good idea to

buy an out of the money call on gm to

kind of have a long-term option a leap

on their self-driving division chevy

cruze

yeah well that was a big f that one's

down 61 percent you're down 34k

so uh these are these are my losers

right now i'm very grateful that uh

right now i don't have that much in

options in fact here let me show you my

portfolio one second

so this spreadsheet right here

represents the equity i have left in

options

it's about 1.2 million dollars and the

ones that are really red right now are

the redfin

gm

invite

ubiquity by like thirteen thousand

dollars hippo tiny little bit twenty

thousand dollars

a i just added

and uh some of the puts are slightly

upside down like paypal and pins but i

do have pins contracts that are down

yeah the others are pretty good

but those are some of my losses and what

i've noticed is most of my shares are

doing relatively well with the exception

of pinterest most shares are doing

really well

so uh now if i had shares of crispr or

invite i think those would be doing

pretty poorly but otherwise my big

holdings my end phase tesla

amazon apple etsy affirm

some of my my most high conviction

companies these are doing very very well

the same i mean lemonade has recently

come up i think on the car insurance

news that's been good

robin hood has not been doing well

that's that's another one that's been

like man should have just sold the thing

at 70 which is really funny because

i sold

calls

on robinhood when it ran up to 70 i

bought it at like 34 thinking oh my gosh

such a great dip even though it's at

like 36 right now i ran up to

70 and i'm like oh this is perfect i'ma

sell calls i should have just sold the

stock even though the sell calls i made

like 99 on those

i was limited and the stock fell more

so uh i i was still down in the fact

that i had the shares but obviously the

cell call helped hedge that position a

little bit so that was a bit of a bummer

but robin hood's been kind of a loser

robin hood's not been good pinterest has

not been good and

[Music]

in some short term plays on some of

these therapeutics on options have been

a problem and it's worth noting that if

you screw up with options and you don't

pay attention to volatility chart you're

probably going to end up getting killed

with options

options are a great way to lose money

really fast if you're not careful

now

that has led me to take profits pretty

liberally and frequently on options

sometimes potentially too early like on

tesla i staggered when i was taking

profits i took profits around a little

bit of call options at 9.50 at

twenty five at a thousand seventy five

at eleven hundred eleven fifty at twelve

hundred i just every time i saw one of

these new highs i'm like all right i'm

gonna sell one of my options all right

i'm gonna sell one of my options i've

still got a few left

i have uh the one i showed you earlier

and then i have a 700 tesla call that

one's up like 35k and the other one's up

what was it like 100k or something like

that those are great i still have those

but yeah i mean look i could have made

more money had i held those options

longer but i've been so burned by the

idea of of how red these options were

for how long that i'm like okay now i've

made money on them they're they all turn

green i'm gonna take profits and i think

that's something that is really

important in investing culture is for us

to realize that if we have options it's

a good idea to take profits because

options can move very very quickly to

the downside and if we're in margin it's

okay to sell to pay off your margin

right now i'm at zero

margin and i'm really happy about that

zero margin and uh i've really reduced

my mar options which is good

i still swing trade with options but my

options position right now

is i'll give you a percentage here so

you can get an idea

my options

uh as a percentage of my portfolio 1.2

works out to about four percent so i'm

four percent in options right now

and in crypto i'm ju i'm almost four

percent almost four percent in crypto so

it gives you a little bit of an idea in

terms of my breakdown and most of that

ethereum bitcoin ada right but this

gives you a little bit of a breakdown of

my portfolio

some of the losses some of the mistakes

that i've made yeah if i added up the

losses on pinterest and some of these

other options it'd probably be losses of

somewhere around four hundred thousand

dollars maybe even a little bit more uh

so those are some real losses right but

uh fortunately they're offset by by

gains

in other things substantial gains and

other things

my my jpmorgan account

i'll pull that one up really quick just

to show because sometimes people are

like oh

if if you don't show it it didn't happen

oh my gosh there's so much jadedness

online these days uh whatever

but uh yeah if you look at my jp morgan

i'll pull this up right here

so this is my jp morgan

so because people like if i think

frequently people are like oh you only

make money from youtube or whatever

people just get jaded i think just

they're having a bad day or whatever but

anyway you can see here

on this 20.6 million dollar account

13.6 of those are our gains

so obviously we're doing something right

which is great

but yeah that doesn't mean there uh

there aren't some loser bets that come

along with uh with gains and uh if i can

learn from the losers and learn from the

winners

that's a good thing

all right folks hopefully you learned

something from this video and i

appreciate you for watching and we'll

see the next one thanks again goodbye

[Music]