I have seen too many posts here of people having upwards of $50K in their accounts, but still buying calls and puts. No hedging. Pr

    Why is that? Is it because this is your play money and you don't care. Or you're so sure of your trade that you don't want to limit the upside? First person perspectives of people with ~20K or more will be helpful.

    I understand this is wsb, but you understand I cannot ask this question in other subs like thetagang. Because I want to ask people who are YOLOing.

    Genuine question – why are people with $50K plus accounts not hedging risk?
    byu/strthrowreg inwallstreetbets



    Posted by strthrowreg

    36 Comments

    1. spacecadet501st on

      I wonder the same thing tbh. It comes down to ignorance and gambling

    2. InfiniteAmphibian189 on

      The folks here are more concerned with edging than they are with hedging brother.

    3. ShlodoDobbins on

      If I buy a call how do I hedge? Buy a put? If I sell a put how do I hedge? Buy a put?

    4. Classic_Acanthaceae2 on

      Can you share what’s a hedge? I believe you clearly mentioned the YOLOing people with a 50k account want to double down ASAP, hedging If I understand will limit the growth and assume that the goals to grow are less than the expected.
      My guess is that rather than hedging should be a risk management thinking and that implies there’s a game plan in place that most degens like myself easily broke in willing to win

    5. We spend our entire lives enslaved to currency, this is our hope at creating generational wealth.

      The idea of never working again, and having FU money is wonderful.

    6. MinimumCat123 on

      People would rather lose it all then potentially limit their upside if their yolo was correct

    7. Vegetable_Turnip9852 on

      Why gamble,
      Why make less money when you can make more,
      Why lose some of your money when you can lose all of it,
      The reasonable trades don’t get upvoted,
      Survivor bias,
      You’re mostly seeing the wildest trades that get upvoted alot

    8. friendlysatan69 on

      If you aren’t confident enough to commit, why even take the trade? There are endless opportunities out there. But I also don’t know how to hedge lol

    9. without NVDA S&P500 would lose 20% of it’s rev. Without tech S&P500 would be down. No hedging is possible. We go all in!

    10. ItzImaginary_Love on

      I definitely should and that’s the smart thing to do but it also makes less. There is a Nash equilibrium and honestly I’m an addict

    11. Huge-School-9275 on

      They are hedging against their wife’s boyfriend!! They know he will take care of the wife!!!

    12. MarxKnewBest on

      It’s often play money. My Robinhood acct is currently just 10% of my NW.

    13. darktidelegend on

      A hedge is doubt
      Just do not be wrong
      If you are you pay the price

      Everytime you hedge you are doubting your analysis and taking money from yourself

      You are taxing yourself for lack of confidence

      Or maybe you are over exposed with to many positions.

      You can be right 19 times but if those are small wind and you go big on one then you lose

      A lot of people will tell you how to trade

      Yet everyone has a diff strategy and we are all accountable for our own results

      If I am in a position where I need to “hedge” I shouldn’t be in that position

      Napoleon was famous for concentration of mass

      Being all your artillery on one spot and make the most impact

      Hedging is giving money away

      Just my opinion

      To answer the question simply
      If I need a hedge I’m not in the right position and it’s time to sell and find a new opportunity that will run over time

    14. Do you even get the point of hedging? What stock cost $50k and has trouble getting out due to liquidity issues??????

    15. I actively hedge and typically sell options rather than buy them. I’m holding collars on QQQ and on SMH to ride out some expected volatility and protect my gains.

    16. Wonder if an alcoholic thinks about the binge drinking they are about to go when they wake up Friday morning and say, this is a great day to bet my life savings on …..

    17. You-Asked-Me on

      People don’t open spreads because when you hedge your bets you also limit your gains, and everyone thinks that they are the next DFV.

    18. Fast money. I know im making a net negative bet. It’s like you can either go to the casino and play one $1000 hand or 10 $100 hands. Your odds are better with the $1000.

      Yes I know it’s still net negative.

    19. Stonks only go up ![img](emote|t5_2th52|4276)![img](emote|t5_2th52|4276)![img](emote|t5_2th52|4276)

    20. llIlIIllIlllIIIlIIll on

      I can answer this. I’ve got way more than 50k and I don’t even know what the fuck you’re talking about

    21. Born_Professional_64 on

      I’m always blindly over confident so no need to hedge. If I’m right, I’m a genius, if I’m wrong, it’s divine intergalactic alien intervention

    Leave A Reply
    Share via