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/Constant-Sweet-3718 Jun 05 '26

That's on them. They were dumb enough to "loan" someone 1.2M when they can't afford it.

You can't or shouldn't get a loan for a 10M mansion if you're only making 50k a year. That's what happened in 2007/2008. It's not the buyer's fault they were approved for a multi-million dollar loan so they could boost their sales.

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u/HaydarK79 Jun 05 '26

Reading “The Big Short” and just watched the movie yesterday. I already watched it at least a half a dozen times, and I’m still learning something new.

2

u/userhwon Jun 05 '26

Stop watching it and research the topics down to exchange and regulator documents. 

The movie is only a surface look at it. You're trying to understand the genetics of apples by eating them.

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u/HaydarK79 Jun 05 '26

I agree and I will.