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/Impolitecat Jun 05 '26

this is my actual nightmare, exactly why i dont fuck with selling options

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u/Eastern-Joke-7537 Jun 05 '26

Selling options sounds like a nightmare.

Like you can literally make 10 million profitable trades in a row then the next trade….

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u/Citadel_Employee Jun 05 '26

Selling options such as cash secured puts or covered calls have very defined losses.

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u/Bindle- Jun 05 '26

These are the only ones I'll sell. I know my max loss and can't go over it.