I don’t know how this one got $7,000 but I do know that some teenagers have jobs and it isn’t very hard to save money when your needs are taken care of due to living with your parents.
I’m pretty sure that can be cleared with a bankruptcy. Considering a 19 year old isn’t likely to have any non-exempt assets, they can go bankrupt with basically no penalty other than having a bankrupcy on their record for the next 7 years.
When you short a stock, you borrow a stock, then sell it, then you buy it back at a (ideally) lower price. Then, you have to give back the stock plus interest. This person can’t sell the stock because they have to give it back. It wasn’t theirs to begin with. They were just borrowing it.
Yeah, but the big number (-$56k) is not from a short, it’s from a call getting assigned. He sold it naked (didn’t have shares to back it) it expired ITM, and he has to cover. The broker is going to give the shares to the call buyer, and OP is out maybe a couple hundred bucks whatever the difference between spy close price, and the strike he sold *100 shares depending on what SPY closed at that day. He’s not -$56 k on that trade.
That person had 400$ and now owes 56k
$400 left.Who knows how much he started with initially.
E: started with about $7k
Where the hell is a teenager finding 7k? That takes some bootstraps pulling.
I don’t know how this one got $7,000 but I do know that some teenagers have jobs and it isn’t very hard to save money when your needs are taken care of due to living with your parents.
I had about 8k saved up when I was 17, mostly for college.
There are a lot of upper middle-class kids who start out adulthood with tens of thousands of dollars.
You can make $7k by 19 relatively easily if you never spend money on stuff and your family is large and generous with the birthday cards
If you’re working full time and still living with your parents then $7k is easy to save up.
That’s what we call an ouchie.
I’m pretty sure that can be cleared with a bankruptcy. Considering a 19 year old isn’t likely to have any non-exempt assets, they can go bankrupt with basically no penalty other than having a bankrupcy on their record for the next 7 years.
If I understand correctly, they can sell the shares they were forced to buy and get back most of the $56,000 they owe.
When you short a stock, you borrow a stock, then sell it, then you buy it back at a (ideally) lower price. Then, you have to give back the stock plus interest. This person can’t sell the stock because they have to give it back. It wasn’t theirs to begin with. They were just borrowing it.
Yeah, but the big number (-$56k) is not from a short, it’s from a call getting assigned. He sold it naked (didn’t have shares to back it) it expired ITM, and he has to cover. The broker is going to give the shares to the call buyer, and OP is out maybe a couple hundred bucks whatever the difference between spy close price, and the strike he sold *100 shares depending on what SPY closed at that day. He’s not -$56 k on that trade.
P
He’s in a better financial position than I was coming out of college. And it sounds like we both got a valuable education for our money.
Well, not exactly, his brokerage bought 100 shares of SPY and charged him the price of that. He can just sell them.