
I owe Etrade $106k, ouch - chad_strategic
https://www.gofundme.com/jwctrek
======
jacquesm
On the stockmarket, there are bulls and bears and pigs. The bulls expect
stocks to go up, the bears would like to see it go down and the pigs are
getting slaughtered. The moral of the story here is to not get into stuff you
do not understand.

------
keyanp
This is interesting, I didn't know about shorting stock. I'd guess the best
move is just to ride it out. Seems to me that KBIO might still go bust.

------
jimrandomh
This trader lost a lot of money by shorting KaloBios Pharmaceuticals Inc,
which went up on the news that Martin Shkreli had taken an ownership stake in
them.

You may remember Martin Shkreli having been in the news recently for a
different reason: he's the hedge fund manager who bought the exclusive right
to manufacture Daraprim, and raised its price from $13.50/tablet to
$750/tablet, to much outrage. (Daraprim is not subject to patent, but only one
manufacturer is allowed to sell it in the United States due to the combination
of a small market and regulatory dysfunction at the FDA.)

------
joshmn
GoFundMe has, in my head, turned into a beggars corner.

I have a friend on Facebook who created a "legal fund" to help her friend who
needs $7,500 for legal counsel for her first felony 5th-degree possession
charge. I thought it was for weed or something, so I didn't think too much of
it, and I said that her friend will likely get 2 years probation/stay + random
drug testing, and then it will be dropped.

Then I learned it wasn't weed. Heroin.

I stopped feeling so bad.

~~~
theworstshill
Sounds like the statists really got inside your head. Why shouldn't your
friend's friend be allowed to voluntarily put anything inside her body that
she wants to.

>libertarian feels

------
ejcx
Anyone have explanations on how this is possible? I'm familiar with the basics
of options trading but it is still very confusing...

~~~
alfalfasprout
See my explanation above on albright's comment

------
chad_strategic
I thought this was entertaining. Seeing as how many people are suffering in
the world (Paris attacks, refugees, etc...) I guess this guy is suffering as
well...

~~~
jacquesm
It's not entertaining, it's sad.

~~~
chad_strategic
Corrected:

<sarcasm> I thought this was entertaining. </sarcasm>

------
Albright
As someone who doesn't really understand day trading or much about the stock
market in general, could someone explain in plain English what is going on
here? Why would E-trade even allow one of their customers to "go into debt" to
them like this?

~~~
chad_strategic
Also Etrade will collect interest on the margin debt.

~~~
alfalfasprout
Over the course of a day or so this is pretty small though.

~~~
chad_strategic
Margin interest is margin interest. Compounded daily. I assure that Etrade (or
any brokerage firm) wouldn't do if it didn't make them lots of money.

