CoreWeave, Inc.
Short

CRWV: realized loss on naked short call options

318
When the stock was around $90 on May 20, I shorted 5 contracts of 110C expiring on May 23. The expected movement of this contract was around +/- $10, and I thought a $20 buffer would be enough.

The next day, BOOM, 19%+ gain on the stock price while the broad market was not behaving. If I did not stop loss at different stages during the day, the total unrealized loss would be over $2500 when the market closed today. Hard to swallow the first loss of the year, around 1K, with some rookie mistakes and "rare" timing.

  • Even though the stock price seems "high" and valuation makes no sense, it can go crazier, especially for new IPOs
  • Indicators up, volume up, no signage of fading momentum or reversal, then do not go against the crowd
  • Don't get emotional and do revenge trade on the same day

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