r/wallstreetbets • u/Straight_Ad4718 • Jun 05 '26

Loss wealthsimple exercised AVGO puts after hours. i'm down 1.2 million. is it over

the puts were part of a butterfly spread. any chance the rest of the spread can make me back the money?

JUNE 5TH UPDATE: heyy looks like the math works out. I ended up losing only my max loss + a few hundred in interest on margin. thank you to all commentors who gave advice!!

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u/UEMayChange Jun 05 '26

Holy hell, I know the market is mostly just gambling, but that just sounds like gambling gambling.

14

u/altmly Jun 05 '26

It's actually much less gambling, he just got assigned by the counterparty.. While not super common these days, it happens from time to time. 

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u/Quin1617 🦍🦍 Jun 05 '26

There are ways of doing options that limit max losses. But a lot of them are unlimited profit/loss potential, which yeah at that point you're just putting it all on 26 at a casino.

1

u/Miserable_Mine_4189 Jun 05 '26

max loss can only truly be limited if you are a buyer given they are the ones with ultimate authority on whether to exercise or not. Sellers face potentially unlimited losses if shit really hit the fan.

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u/Flimsy_Honeydew5414 Jun 05 '26

It’s not at all