After a successful morning trading, (up $178), having the urge to buy 300 SDS a half hour ago, I see that I was immediately down $750. WHAAA??? Then I realized I had bought 300 SDS options that expire TOMORROW, AT MARKET --i.e. I got screwed. I NEVER DO A MARKET ORDER ON OPTIONS.
Now, what does that mean? SDS is a bet the general market will go down and SDS gives you twice the movement of the S&P 500. It is the only way to do a negative bet in a stock account, other than buying puts.
A call option on SDS is that on steroids. The direction was correct, but NOT THAT FUCKING LEVERAGED OR LARGE A BET!
Shaking, I call Schwab and have to wait out the recorded crap. I'm too nervous to get out of the trade myself. Meanwhile each penny is a lot (for me) up or down. Let's see $.01 x 300 x 100. Let's see, 300 x 100 is 30,000. Times .01 = $300. (Now that I've done it just now it doesn't seem so bad.)
Finally the rep answers and he does the trade. But there has been little activity in this call strike. Only 15 go off. OH GOD, ONLY 285 TO GO. I tell him I can take over and wait it out on my own. FINALLY there is an uptick and I "only" lose about $500. SHEEEAT.