Comments (26)

Nov 19, 2015

He raised $2k already. How did Etrade not pull the plug on this sooner? Dude should just roll everything into his 401k and declare bankruptcy.

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Nov 19, 2015

This is why you buy puts and why I never short stocks.

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Nov 19, 2015

or at least have some stop orders in place

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Nov 19, 2015

Lol. Dude's in over his head

Nov 19, 2015

This may be the worst luck ever. The stock has traded below 4 the whole year, and it went to like 18 today. But it's back at 10. It will probably crash down. Hopefully he hasn't been able to close his position because he doesn't have the money.

Nov 19, 2015

Sucks because the stock was around $10 in trading today, would have been out only like $72,000 then... That sucks so bad!

Nov 19, 2015

Is this real? I don't know much about trading, but judging from the comments on GoFundMe, it looks like this guy might be making this up.

Nov 19, 2015

O_O

That sucks, bro. He said he cashed out of the position but DAMN I hope he didn't.

Nov 19, 2015

wow...just...wow

Nov 19, 2015

Can someone explain this as one would to a child? I thought I understood shorting and the risk involved, but from the comments on the Go Fund Me it appears I only understand it in an very elementary sense. Are the commenters correct in that this guy was just a moron? Is the guy correct in that E-Trade shouldn't have let it get that far without notification? What's your take?

Nov 19, 2015

The real problem was the stock went up too quickly.

Yesterday during regular trading hours the price didn't go crazy. Then Martin Shkreli announces he took a controlling stake in the company. This sparked a rally after hours that continued into pre market today.

It looks like his broker doesn't pay attention to after/pre markets so they didn't cover his position due to a Margin Call.

This guy claims that "At the close of the bell I saw the quote montage clear out and figured today there was no action after hours in the stock." Which means he didn't wait more than 5 minutes to check the quotes.

He either shorted before Martin started buying and didn't cover or during. Either way you can see clear as day in the 1 month chart that someone is buying out the company. Why would there me 100% price increase on high volume on the 16th and 17th when the company announced they were closing on the 13th.

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Nov 19, 2015

Martin Shkreli is just shafting everybody! The man is unstoppable.

Nov 20, 2015

I'm sure you understand that the max profit is the dollar price of the share but losses are in theory unlimited. in practice, most brokerages will have limits on margin losses (usually as a % of the account) and then they will sell you out, but to my knowledge, there's no law dictating what this dollar amount is. the reason losses got to where they are has been mentioned: it happened so fast it caught him by surprise.

but yes, he is an idiot for shorting. it's not eTrade's fault to minimize his losses, it's his job to keep track of his positions. I hope he learned his lesson.

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Nov 19, 2015

Next time I gamble $100k at the casino and lose, I know how I'll be raising money.

Nov 19, 2015

This is why shorting is best done with other people's money.

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Nov 20, 2015

GoFundMe has put a kink in Darwinism.

Follow the shit your fellow monkeys say @shitWSOsays

Life is hard, it's even harder when you're stupid - John Wayne

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Nov 20, 2015

As for shorting, there is nothing wrong with it if you A) actually know what you are doing B) don't make short trades in a bull market with out stops C) don't go crying to the internet after you tanked your entire life savings by not follow the previous two rules.

Follow the shit your fellow monkeys say @shitWSOsays

Life is hard, it's even harder when you're stupid - John Wayne

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Nov 20, 2015

He should have thought ahead enough to straddle this one. At least have a stop. Unbelievable that people are donating to his GoFundME though.

Nov 20, 2015

Looks like it was taken down.

"There's no reason to be the richest man in the cemetery. You can't do business from there." - Colonel Sanders

Nov 20, 2015

I honestly, have no clue how you could ever go short after the price action and volume that in-sued on nov 16th.

I read about this story and this guy was really new to trading and clearly had no idea what he was doing. If he actually looked at the chart he would have never shorted this after nov 16.....

Still gotta feel bad for him, Martin Shkreli, pumped this thing and made millions, if I was him, I would foot this guys bill with my millions in profits... He definitely manipulated it

Dec 22, 2015

That's a fun way to wake up. Reminds me of the surprise rate cut days.

Dec 30, 2015

Now KaloBios declared bankruptcy... lol guy had a good thesis apparently, but left himself exposed to too much risk overnight... Martin Shkreli did just enough to screw this trader over!

Dec 30, 2015
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